Draganfly Stock Sheds 21% Post-Earnings — Here's Why It's Still A Buy

Shares of drone tech company Draganfly Inc. (NASDAQ:DPRO) sold off hard on Wednesday after disappointing fourth-quarter earnings — but the report and guidance still support a speculative Buy case for investors who can handle volatility.

• DPRO stock is moving. See the chart and price action here. 

What Spooked The Market

Shares fell more than 21% in the wake of Draganfly's latest quarterly report, as investors focused on a wider‑than‑expected loss and a revenue miss versus Street estimates. 

The company posted a quarterly loww of 24 cents, significantly below the consensus estimate for a loss of 13 cents, according to Benzinga Pro data. Revenue fell short of expectations by nearly 19%, triggering a reset in near‑term sentiment. 

Profitability optics also looked worse, with gross margin compressing to around 17% for 2025 from just over 21% a year earlier, partly due to non‑cash inventory write‑downs that weighed on headline numbers.

Long‑Term Story is Intact

Despite the miss, Draganfly delivered record 2025 revenue of approximately $7.7 million, up about 18% year-over-year, driven by growing demand for its drone systems and solutions. 

Fourth-quarter revenue also climbed nearly 19% from the prior‑year quarter, showing that underlying demand is improving even as the company invests aggressively in growth. 

Management highlighted expanding opportunities in defense and public safety, positioning Draganfly to capture a larger share of a structurally growing, mission‑critical drone market over the next several years.

Why The Drop Looks Like an Opportunity

Needham analysts maintained a Buy rating on Draganfly shares on Wednesday and cut its price target to $12 rather than abandoning the name, implying meaningful upside from current levels even after revisions. 

Benzinga data shows Draganfly has a consensus Buy rating and $13 consensus price target, implying roughly 160% potential upside from the current price of $5.02. 

With the stock now trading more than 20% below its pre‑earnings price and far off its 12‑month target, investors are effectively being paid to accept execution risk in exchange for double‑digit top‑line growth and expanding defense exposure. 

For risk‑tolerant buyers, the combination of record sales, non‑recurring inventory charges and a sharp sentiment overreaction helps justify keeping DPRO rated as a speculative Buy on post‑earnings weakness.

DPRO Price Action: According to data from Benzinga Pro, Draganfly shares closed Wednesday down 21.80% to $4.95.