Draganfly Inc (DPRO) Stock Forecast & Price Target

Draganfly Inc. reported a 14% year-over-year increase in revenues for 3Q25, totaling CAD $2.2 million, which aligns closely with estimates and reflects the company's growing market presence. Forecasts suggest a significant revenue growth trajectory, with a projected increase to CAD $17.5 million in 2026, driven by new order fulfillment and an expected revenue rise of 19.7% in 2025. The company's strategic investment in scaling operations, as indicated by an increase in operating expenses to CAD $5.3 million, positions it well to capitalize on elevated global demand for drone technologies, potentially leading to meaningful market valuation improvements.

Draganfly Inc. is currently facing significant challenges, as indicated by its gross margins of 19.5%, which represent a decline of 390 basis points year-over-year primarily due to an unfavorable product mix. These declining margins, coupled with potential headwinds such as slower revenue growth, margin compression, and multiple contraction, are likely to exert considerable pressure on the company’s financial performance. Additionally, execution and supply chain risks, including delays in manufacturing and revenue recognition due to external factors like congressional delays or shifting defense priorities, further contribute to the negative outlook on its stock.