The company exhibits severe operational inefficiency, with SG&A expenses reaching $4.1M in 2025Q3 against only $101.4K in revenue, resulting in deep negative operating margins.
| Sales/Revenue | 1.64M | 606.68K | 2.17M | 917.72K | 1.15M |
| Revenue Growth % | -19.76% | -72.03% | 136.37% | -20.24% | - |
| Cost of Goods Sold | 2.38M | 404.5K | 1.26M | 606.64K | 632.07K |
| COGS % of Revenue | - | 66.67% | 58.23% | 66.1% | 54.93% |
| Gross Profit | -735.51K | 202.18K | 906.15K | 311.08K | 518.54K |
| Gross Margin % | -44.79% | 33.33% | 41.77% | 33.9% | 45.07% |
| Gross Profit Growth % | - | -77.69% | 191.29% | -40.01% | - |
| Operating Expenses | 11.89M | 13.92M | 8.06M | 6.62M | 1.02M |
| OpEx % of Revenue | - | 2293.93% | 371.48% | 721.14% | 88.77% |
| Selling, General & Admin | 9.99M | 13.22M | 7.7M | 6.06M | 945.5K |
| SG&A % of Revenue | - | 2178.71% | 354.75% | 660.57% | 82.17% |
| Research & Development | 754.6K | 394.21K | 90.37K | 373.65K | 0 |
| R&D % of Revenue | - | 64.98% | 4.17% | 40.72% | - |
| Other Operating Expenses | 1.14M | 304.8K | 272.7K | 182.16K | 75.88K |
| Operating Income | -12.63M | -13.71M | -7.15M | -6.31M | -502.84K |
| Operating Margin % | -768.96% | -2260.61% | -329.71% | -687.24% | -43.7% |
| Operating Income Growth % | - | -91.76% | -13.4% | -1154.25% | - |
| EBITDA | -12.14M | -13.33M | -6.81M | -6.07M | -397.49K |
| EBITDA Margin % | -739.23% | -2197.75% | -313.99% | -661.2% | -34.55% |
| EBITDA Growth % | -25.04% | -95.76% | -12.24% | -1426.57% | - |
| D&A (Non-Cash Add-back) | 488.18K | 381.33K | 341.08K | 239.01K | 105.36K |
| EBIT | -13.26M | -14.31M | -7.12M | -6.31M | -502.8K |
| Net Interest Income | 247.09K | 165.64K | -276.46K | -7.72K | -4.8K |
| Interest Income | 261.27K | 178.48K | 30.06K | 508 | 44 |
| Interest Expense | 14.19K | 12.83K | 306.52K | 8.23K | 4.84K |
| Other Income/Expense | -524.89K | -608.12K | -276.46K | -7.72K | -4.8K |
| Pretax Income | -13.15M | -14.32M | -7.43M | -6.31M | -507.64K |
| Pretax Margin % | -800.92% | -2360.84% | -342.46% | -688.08% | -44.12% |
| Income Tax | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% |
| Net Income | -13.15M | -14.32M | -7.43M | -6.31M | -507.64K |
| Net Margin % | -800.92% | -2360.84% | -342.46% | -688.08% | -44.12% |
| Net Income Growth % | -28.31% | -92.81% | -17.64% | -1143.92% | - |
| Net Income (Continuing) | -13.15M | -14.32M | -7.43M | -6.31M | -507.64K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.64 | -0.84 | -0.51 | -0.46 | -0.07 |
| EPS Growth % | 4.28% | -64.71% | -10.87% | -579.47% | - |
| EPS (Basic) | - | -0.84 | -0.51 | -0.46 | -0.07 |
| Diluted Shares Outstanding | 20.63M | 17.09M | 14.53M | 13.68M | 7.5M |
| Basic Shares Outstanding | 20.63M | 17.09M | 14.53M | 13.68M | 7.5M |
| Dividend Payout Ratio | - | - | - | - | - |
Unsustainable Operating Loss Structure
As reported in recent financial filings, SPAI experienced a 74.4% year-over-year revenue contraction in 2025Q4, highlighting the extreme instability of its project-based business model and the difficulty in securing consistent, recurring government or municipal contract wins to sustain its current operational footprint in the defense sector.
The erratic revenue performance suggests that the company remains highly dependent on discrete, non-recurring contract awards rather than a predictable pipeline. This lack of revenue durability complicates long-term forecasting and raises questions regarding the efficacy of the company's pivot toward integrated AI-driven drone services.
Based on historical income statements, SPAI has maintained a relatively consistent gross margin near 33%, yet this figure fails to translate into operational profitability due to the company's inability to achieve the necessary volume to absorb its substantial fixed-cost base and ongoing research and development investments.
While a 33% gross margin is respectable for a specialized hardware manufacturer, it remains insufficient to cover the heavy SG&A burden required to maintain public company status. Investors should monitor whether the company can shift toward higher-margin software licensing to improve these structural economics.
According to the provided quarterly data, SPAI's operating margins have frequently plummeted into deep negative territory, such as the -157.9% recorded in 2024Q4, indicating a complete lack of operating leverage where SG&A expenses continue to dwarf gross profit generation by a significant margin.
The persistent gap between gross profit and operating income suggests that the company's overhead is misaligned with its current revenue-generating capacity. Without a significant inflection in top-line growth, the current cost structure appears to be a primary drag on shareholder value.
Financial statements reveal that SPAI's SG&A expenses often exceed total revenue, as seen in 2025Q3 where SG&A reached $4.1M against only $101.4K in revenue, demonstrating an aggressive spending profile that is not currently supported by the company's underlying commercial traction or market penetration.
The heavy reliance on stock-based compensation and high administrative costs suggests a management team prioritizing growth and development over immediate expense discipline. This cost structure warrants further investigation into whether these expenditures are effectively building a defensible moat or merely consuming precious liquidity.
As indicated by the persistent net losses and significant cash burn, the company's $16.8M cash position may be insufficient to bridge the gap to profitability, potentially forcing dilutive equity raises if the current revenue contraction is not reversed in the coming fiscal quarters.
Short-term survival is currently supported by a debt-free balance sheet, but this does not mitigate the fundamental risk of a business model that fails to scale. Investors should remain cautious regarding the potential for future capital calls if the current operating trajectory remains unchanged.
Quick answers to the most common questions about buying SPAI stock.
For fiscal year 2025, Safe Pro Group Inc. Common Stock (SPAI) reported total revenue of $0.6M. This represents a 47.3% decline compared to $1.2M in 2022.
Safe Pro Group Inc. Common Stock (SPAI) reported a net loss of $14.3M for the fiscal year ending 2025.
Safe Pro Group Inc. Common Stock (SPAI) reported an operating income of $-13.7M, resulting in an operating profit margin of -2260.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Safe Pro Group Inc. Common Stock (SPAI) generated $0.2M in gross profit for the year, representing a gross profit margin of 33.3%. This demonstrates the company's core pricing power and production efficiency.