Distributed on behalf of ZenaTech.
The drone industry is just starting to take off, creating a unique opportunity for ZenaTech (NASDAQ: ZENA), AeroVironment (NASDAQ: AVAV), Leonardo DRS (NASDAQ: DRS), L3Harris Technologies (NYSE: LHX) and Red Cat Holdings (NASDAQ: RCAT).
That’s because drones are quickly becoming an essential tool for the U.S. government, and multi-billion-dollar businesses involved in defense, construction, logistics, agriculture, oil and gas, public security and even deliveries. Fueling upside, President Trump and U.S. Secretary of War Pete Hegseth are demanding U.S. drone dominance.
Also, look at the drone-as-a-service (DaaS) market.
According to Research and Markets, the industry is expected to be worth about $355.55 billion by 2032. All thanks to strong business demand for enhanced efficiency and cost-effectiveness. Plus, with DaaS there’s no need for upfront costs or operational licensing.
All of which is a solid catalyst for ZenaTech. Unlike its peers, ZenaTech is unique with its DaaS model for drones.
ZenaTech’s Drone as a Service (DaaS) business model offers both business and government customers reduced costs and convenience to utilize drones to streamline legacy processes and manual tasks such as inspections, surveying, maintenance, precision agriculture and inventory management ─ there is no need to purchase drone hardware and software, find a drone pilot, manage maintenance and operation, or acquire regulatory approvals.
Even better, thanks to growing demand, ZENA just reported record breaking revenues.
In fact, according to Shaun Passley, PhD, ZenaTech CEO, “The demand for drone technology and software solutions is growing rapidly, helped in part in the US by historic Government policy directives enacted during the second and third quarter of this year. We are uniquely positioned to capture market share in both commercial and defense sectors and remain confident in our strategic plan to achieve sustainable profitability as drone adoption accelerates globally.”
ZenaTech Reported Record 1,225% Year-Over-Year Revenue Growth in Q3, 2025 and 6X Growth for First Nine Months of Year as Drone as a Service Business Expansion Accelerates
ZenaTech just announced financial results for the third quarter ended September 30, 2025, which includes a record 1,225% increase in year-over-year revenue for the quarter. The company achieved a 6X revenue increase for the first nine months of the year with revenue of $7.73 million compared to the same period of 2024 (all figures are in Canadian dollars). These results represent the company’s highest-ever quarterly revenue driven by exceptional performance of the Drone as a Service segment and in addition includes the highest ever quarterly growth for the enterprise SaaS software segment. Progress was made towards advancing the US defense industry business and other product and manufacturing objectives.
Highlights for Q3 2025:
· Record Revenue Growth: Revenue for the quarter was $4.35 million, a 1,225% increase year-over-year from $327,878 in the same quarter of 2024
· Drone as a Service Segment Growth: Drone as a Service contributed $3.57 million in revenue during the quarter compared to zero in Q3 of 2024
· Enterprise Software Segment Growth: Enterprise SaaS Software segment revenue grew to $776,908 during the quarter, which represents a 137% increase over the same quarter last year
· Nine-Month Growth Momentum: Revenue for the first nine months of 2025 reached $7.73 million, up almost 6X from $1.29 million in the same period in 2024
· Operational Expansion: Completed four acquisitions of land survey engineering companies during the quarter strengthening the company’s Drone as a Service national footprint to ten locations across the US by quarter end
· Working Capital: Increased to $23.6 million as of September 30, 2025, compared to $3.4 million on December 31, 2024
· Healthy Balance Sheet: Cash reserves and marketable securities increased to $19.5 million as of June 30, 2025, up from $10.27 million of cash reserves only at the end of Q2, 2025.
· Defense Business: Submitted application for Green UAS (Uncrewed Aircraft Systems), part of the pathway to becoming an approved supplier to the US Department of War, and the company made progress building relationships with military program managers and government officials to help secure future government defense contracts
“This quarter’s results demonstrate that our Drone as a Service strategy is scaling faster than expected,” said Shaun Passley, PhD, ZenaTech CEO. “We are seeing strong demand for drone-based land surveying, mapping, and infrastructure inspection services across both the public and private sectors. As we continue integrating our recent acquisitions and deploying AI-driven flight control technologies, we expect sustained growth momentum to continue into 2026.”
Dr. Passley added, “Our SaaS division also continues to expand internationally, with increasing subscription demand for field management, safety, and workflow software across Europe and the Middle East.”
Financial Overview
· Revenue Growth: The significant increase was fueled by the full-scale rollout of the Drone as a Service segment encompassing four acquisitions during the quarter combined with six existing business locations, and strong enterprise SaaS software license renewals
· Asset Growth: Total assets grew to $78.5 million at the end of the quarter, up from $34.65 million on December 31, 2024, reflecting the continued impact of acquisitions and technology investments
· Investments in Business Growth: Expenses increased as expected during the quarter, largely due to the costs associated with operations and associated wages required to drive revenue growth. The company also expanded tradeshow events and marketing, and travel expenses increased due to this and the integration of new offices and teams
· Derivatives, Non-Cash Items: The Company recorded a non-cash expense of $25 million related to the revaluation of derivative liabilities associated with its convertible line of credit, which negatively impacts net income but does not affect cash flow or operations
Operational Highlights
· Expanded Drone as a Service Footprint: Expanded presence to new states with acquisitions adding North Carolina, Virginia, California and an additional new location in Florida for a total of ten US Drone-as-a-Service business offices by the end of the quarter in addition to two international locations in Dubai and Dublin
· Expansion of Manufacturing Facilities: We established a new ZenaDrone manufacturing facility in Mesa, Arizona where the company is currently commissioning operations and hiring staff for the manufacturing and assembly of US defense agency-destined drones. ZenaTech is also commissioning a new facility to manufacture NDAA-compliant component parts as required for US military drones in Taiwan at its wholly owned subsidiary, Spider Vision Sensors
· R&D and Product Development Work: Continued focus on product development and R&D projects include Eagle Eye, which along with Zena AI, the company’s advanced AI US defense applications division, will engage in specialized AI drone applications for the US military
· R&D, Product Development and Quantum Computing: Aerial field testing and customer pilots continue while the company develops product enhancements, and development on drones, including drone fleets or swarm applications. These projects will utilize massive date sets and quantum computing which led to the announcement of the company’s intention to build a 5-qubit quantum computer
· Path to Profitability While the Company continues to invest heavily in scaling operations and integrating acquisitions, management remains confident in the strategic plan to achieve sustainable profitability as drone adoption accelerates globally
Strategic Outlook
ZenaTech expects continued revenue and operational growth for the remainder of 2025 and into 2026 driven by:
· Expanding Drone as a Service operations in the US as well as into Europe, Asia and the Middle East
· Introducing AI-enabled flight analytics and predictive maintenance software to incorporate into our drone services
· Strengthening partnerships with customers in sectors including utilities, construction, builders, farmers, and government departments for drone services
· Continued focus on building defense sector partnerships and Blue UAS certification enabling procurement list inclusion
· Continuing our disciplined acquisition strategy targeting profitable and well-established regional service providers in a variety of legacy business areas ripe for drone innovation
· Meet or exceed the goal of acquiring a total of 25 Drone as a Service-related companies by mid-2026
· Increased utilization of drone technology in existing operations in surveying and inspections, and introduce new applications such as precision agriculture, maintenance inspections, and power washing
· Expansion of Enterprise SaaS segment offerings across existing and new enterprise customers
Other related developments from around the markets include:
AeroVironment, a global defense technology leader delivering software-enabled disruptive autonomous systems, today announced a collaboration with OpenJAUS, LLC., a leader in middleware software solutions for unmanned and robotic systems, to integrate the JAUS standard into AV_Halo™ Command, a first-of-its-kind cross-architecture software solution for controlling uncrewed systems (UxS). The collaboration integrates AV_Halo Command’s modular software and suite of application programming interfaces (APIs) with the OpenJAUS software development kit (SDK), creating a unified, open-standards framework for rapid UxS and control system integration. The integration extends AV_Halo compatibility to seamlessly incorporate JAUS-compliant assets, allowing original equipment manufacturers (OEMs) to integrate their platforms faster and more easily.
Leonardo DRS, a leading provider of advanced defense technologies, today reported financial results for the third quarter 2025, which ended September 30, 2025. “Broad-based customer demand was evident in our exceptional bookings and organic revenue growth in the third quarter. Our year-to-date performance puts us on a solid path to deliver double-digit revenue growth and to execute against our financial commitments for 2025. We are making steady progress on strengthening Germanium supply and remain focused on disciplined program execution throughout the business,” said Bill Lynn, Chairman and CEO of Leonardo DRS.
L3Harris Technologies reported third quarter 2025 results. “We delivered another strong quarter, with robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution as drivers of profitable growth. We are driving sustained performance, marking our eighth consecutive quarter of year-over-year adjusted segment operating margin expansion, and advancing our strategic priorities in support of our customers’ missions. With increasing demand, a record pipeline, and timely investments made ahead of the curve in growth areas like space and munitions, we are on track to achieve our 2026 Financial Framework and positioned to deliver long-term profitable growth,” said Christopher Kubasik, Chair and CEO, L3Harris.
Red Cat Holdings, a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today announced that its FANG™ FPV drone system has been officially added to the Department of War’s Blue UAS Cleared List. This designation affirms that the complete FANG system, previously pending inclusion, meets the Pentagon’s highest standards for cybersecurity, supply chain integrity, and operational trustworthiness. With full certification, the system is now eligible for streamlined acquisition by the Department of War and other federal agencies, with no need for additional cybersecurity approvals or sourcing waivers. “Blue UAS certification of our full system marks the next phase for FANG,” said Jeff Thompson, CEO of Red Cat. “This not only validates our hardware and engineering, but it also makes it easier for defense and security customers to move fast and confidently with a fully approved, low-cost, American-made FPV drone. We’re proud to deliver a platform that meets the highest standards and is ready to scale where and when it’s needed.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for ZenaTech by ZenaTech. We own ZERO shares of ZenaTech. Please click here for full disclaimer.
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