Operational efficiency remains poor, as demonstrated by a 2026Q1 free cash flow outflow of $8.6M and an OCF/NI ratio of 1.49.
| Cash from Operations | -28.2M | -23.86M | -11.83M | -18.77M | -16.35M | -22M | -5.14M | -3.89M | -261.56K | -829.3K |
| Operating CF Margin % | - | -308.57% | -180.37% | -286.41% | -214.98% | -311.95% | -117.75% | -281.65% | -18.86% | -99.99% |
| Operating CF Growth % | -532.41% | -101.59% | 36.96% | -14.83% | 25.7% | -328.27% | -32.15% | -1386.47% | 68.46% | - |
| Net Income | -25.2M | -22.96M | -13.88M | -23.61M | -27.65M | -16.2M | -8.02M | -11.1M | -601.73K | -932.02K |
| Depreciation & Amortization | 286.87K | 0 | 577.09K | 546.64K | 772.76K | 311.06K | 152.63K | 49.64K | 38.05K | 34.74K |
| Stock-Based Compensation | 850.18K | 0 | 1.18M | 2.02M | 3.31M | 3.95M | 2.57M | 761.56K | 0 | 64.56K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -2.68M | 787.51K | -227.63K | 0 | 0 |
| Other Non-Cash Items | 5.04M | 4.68M | 386.27K | 1.46M | 3.43M | -25.07K | -125.68K | 7.99M | 145.27K | -1.09M |
| Working Capital Changes | -9.18M | -5.57M | -102.77K | 805.86K | 3.79M | -7.36M | -605.15K | -1.37M | 156.85K | 610.17K |
| Change in Receivables | -309.18K | -401.92K | -266.42K | 1.22M | -681.84K | -596.34K | -1.48M | -126.8K | -35.15K | 434.05K |
| Change in Inventory | -6.11M | -2.58M | -562.83K | -872.26K | -150.24K | -2.16M | -555.37K | 12.62K | 94.76K | 64.74K |
| Change in Payables | 173.14K | 1.37M | 0 | -170.78K | 1.66M | -1.04M | 1.29M | -1.01M | 100.07K | 119.59K |
| Cash from Investing | -1.07M | -852.7K | -23.31K | -379.58K | 768.65K | -3.31M | 516.42K | -27.75K | -1.78K | 952.81K |
| Capital Expenditures | -1.11M | -922.28K | -167.26K | -490.39K | -84.4K | -212.58K | -23.89K | -87.78K | -12.54K | -1.19K |
| CapEx % of Revenue | 13.1% | 11.93% | 2.55% | 7.48% | 1.11% | 3.01% | 0.55% | 6.36% | 0.9% | 0.14% |
| Acquisitions | 0 | 0 | 0 | 46.98K | 10.76K | -466.64K | -457.41K | 28.54K | 10.76K | 148 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 43.7K | 69.59K | 143.94K | 63.84K | 842.3K | -2M | 540.31K | 31.5K | 10.76K | 953.85K |
| Cash from Financing | 172.32M | 108.97M | 15.03M | 14.45M | -48.1K | 46.27M | 4.17M | 6.27M | 235.79K | -194.97K |
| Debt Issued (Net) | -157.99K | -154.15K | -442.84K | -336.91K | -157.02K | -117.74K | -151.28K | -268.92K | 0 | -525.77K |
| Equity Issued (Net) | 153.54M | 109.12M | 17.75M | 17.47M | 0 | 44.26M | 2.02M | 6.53M | 400 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 18.94M | 126 | -2.28M | -2.69M | 108.92K | 2.13M | 2.3M | 0 | 235.39K | 330.8K |
| Net Change in Cash | 145.16M | 84.12M | 3.16M | -4.8M | -15.18M | 21.09M | -446.96K | 2.33M | -28.43K | -77.37K |
| Free Cash Flow | -29.31M | -24.78M | -12M | -19.26M | -16.43M | -22.22M | -5.16M | -3.98M | -274.09K | -830.49K |
| FCF Margin % | -344.98% | -320.5% | -182.92% | -293.89% | -216.09% | -314.97% | -118.3% | -288.01% | -19.76% | -100.13% |
| FCF Growth % | -117.9% | -106.46% | 37.7% | -17.22% | 26.03% | -330.4% | -29.84% | -1350.52% | 67% | - |
| FCF per Share | -0.91 | -1.58 | -3.80 | -11.41 | -12.24 | -19.99 | -7.79 | -10.43 | -0.87 | -4.82 |
| FCF Conversion (FCF/Net Income) | 1.16x | 1.04x | 0.85x | 0.80x | 0.56x | 1.67x | 0.55x | 0.35x | 0.43x | 0.89x |
| Interest Paid | -686 | 0 | 67.86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
According to the provided cash flow statements, Draganfly consistently reports operating cash outflows that exceed net losses, with the OCF/NI ratio reaching 1.49 in 2026Q1, suggesting that the company's accounting earnings are not being supported by actual cash generation from its core industrial operations.
The persistent divergence between net income and operating cash flow indicates that accruals and non-cash adjustments are failing to bridge the gap to positive cash generation. Investors should monitor this trend, as it implies that the company's operational model is currently consuming cash at a rate that outpaces its reported accounting losses.
As reported in financial statements, Draganfly's free cash flow has remained consistently negative over the last ten quarters, culminating in an $8.6M outflow in 2026Q1, which highlights the company's ongoing struggle to achieve self-sustaining cash flow despite its recent efforts to scale hardware production.
The negative FCF margin of 3.7% in the most recent quarter underscores the difficulty in balancing growth-oriented spending with operational efficiency. This trajectory suggests that the company remains heavily reliant on external financing to fund its ongoing activities, as internal cash generation remains insufficient to cover even minimal capital requirements.
Based on the company's reported figures, working capital changes have been a persistent drag on cash flow, with a $4.6M outflow in 2026Q1 alone, indicating that the company is struggling to manage its cash conversion cycle effectively as it attempts to scale its hardware shipments.
The recurring negative impact of working capital changes suggests that cash is being trapped in inventory or delayed receivables, which exacerbates the company's liquidity pressure. This trend warrants further investigation into whether the company is over-investing in inventory that may face rapid technological obsolescence in the competitive drone sector.
As indicated by the quarterly data, Draganfly's capital expenditure has spiked to $222.5K in 2026Q1, representing a 9.6% ratio to revenue, which suggests that the company is increasing its investment in manufacturing infrastructure to support its hardware-centric business model and competitive positioning in the defense sector.
While the absolute dollar amount of CAPEX remains relatively low, the rising intensity relative to revenue suggests a shift toward more capital-intensive operations. Investors should monitor whether these investments in property and equipment yield the necessary manufacturing efficiencies to improve gross margins in future periods.
Based on the provided data, the cash flow statement reveals that stock-based compensation and other non-cash adjustments are masking the true extent of the company's cash burn, as evidenced by the lack of significant cash-based offsets to the persistent operating losses observed over the last ten quarters.
The reliance on non-cash items to reconcile the gap between net income and operating cash flow suggests that the company's underlying operational performance is weaker than the headline figures might imply. This warrants further investigation into the sustainability of the current cost structure, as the cash flow statement suggests that the company is not yet generating the operational leverage required for long-term viability.
Quick answers to the most common questions about buying DPRO stock.
Draganfly Inc. (DPRO) generated $-23.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Draganfly Inc. (DPRO) reported negative free cash flow of $24.8M in 2025, indicating capital requirements exceeded cash from operations.
Draganfly Inc. (DPRO) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.