“We believe
The Company intends to maintain flexibility to invest in acquisitions, defense technologies, international operations, and emerging commercial opportunities that could defer breakeven while potentially generating greater long-term shareholder value.
Second-Quarter and First-Half 2026 Financial Results
| Metric | Q2 2026 | First Half 2026 |
| Total Revenue | ||
| Year-over-year revenue growth | 316% | 425% |
| DaaS revenue | ||
| Net loss | ||
| Operating expenses |
US$ approximate conversions at
First-half revenue exceeded the Company’s reported
Management recognizes that sustained revenue growth must translate into improved operating efficiency and financial performance. Reported net losses underscore the importance of controlling costs and assessing the returns on future investments.
“Our focus is increasingly on translating revenue growth into improved operating performance while building a technology platform capable of supporting a significantly larger business,” continued
Preliminary Third-Quarter 2026 Revenue Estimates
These estimates are preliminary, unaudited, and subject to quarter-end close and reporting procedures. The Company also previously reported average organic revenue growth of 27.1% across approximately 20 DaaS locations acquired in 2025, excluding 2026 acquisitions.
Maintaining Flexibility to Capture Growth Opportunities
While management has established 2027 as a target year for breakeven,
- Acquisitions of complementary Drone as a Service and technology businesses
- Government and defense drone programs, including testing, certification, and production capabilities
- Expansion into additional international markets
- Commercialization of autonomous drone technologies and AI-driven enterprise SaaS platforms
- Development of new drone-enabled services, analytics, and automation applications
“Achieving breakeven is an important objective, but we are not building
“We believe the appropriate measure of our success will be our ability to create a larger, stronger, and more sustainable business over time. Our capital allocation decisions will be guided by expected long-term returns, financial discipline, and shareholder value creation,” concluded
2027 Financial Target Considerations
Management expects to focus on increasing revenue from existing operations, improving operating efficiencies, integrating acquisitions, and expanding technology-enabled services. Management’s ability to achieve Adjusted EBITDA breakeven in 2027 remains subject to assumptions and operational variables, including top-line execution, the pace and cost of M&A integration, supply chain conditions, operating expenditure controls, and market acceptance of new commercial technologies. This target represents an internal management planning goal and does not constitute a projection, forecast, or guarantee of future financial performance.
Non-IFRS / Non-GAAP Financial Measures
This press release refers to Adjusted EBITDA, a financial measure not recognized under International Financial Reporting Standards (IFRS) or
Management uses Adjusted EBITDA to assess core operating performance, evaluate underlying business trends, and establish internal budgetary targets. It is believed this measure provides investors with supplemental insight into operational results by removing items that are non-operational, non-cash, or non-recurring.
Adjusted EBITDA should not be considered in isolation or as a substitute for, or superior to, IFRS net loss, operating profit, or cash flows from operating activities. Other companies may calculate Adjusted EBITDA differently, limiting its comparability.
Reconciliation Limitation: The Company has not provided a forward-looking quantitative reconciliation of targeted 2027 Adjusted EBITDA to the most directly comparable IFRS measure (Net Income/Loss) because items that reconcile these metrics—including future share-based compensation, tax provisions, transaction-related fair value adjustments, and potential impairment charges—are dependent on future events, volatile, and inherently difficult to predict with reasonable accuracy without unreasonable effort. Consequently, such reconciling information is unavailable at this time, though these items could have a significant and potentially unpredictable impact on future IFRS results.
About
About ZenaDrone
ZenaDrone, a subsidiary of ZenaTech, designs and manufactures vertically integrated AI-powered autonomous drone solutions which include machine learning, predictive analytics, and advanced computing technologies, for government, defense, and industrial applications. This includes multifunctional drones for surveying, inspections, logistics, security, and defense applications. Its product portfolio at various stages of development includes the ZenaDrone 1000 for ISR defense and specialized cargo, the IQ Nano for indoor inventory management and security, the IQ Square for outdoor inspections and maintenance, the IQ Quad for land surveying, the IQ Aqua, for underwater applications, and the IQ Octo for precision agriculture. ZenaDrone operates three global manufacturing and assembly facilities in Arizona, Dubai, and Taiwan, and is advancing counter-UAS maritime interceptor drones and an integrated defense system.
Contacts for more information:
Company, Investors and Media:
Linda Montgomery
ZenaTech
312-241-1415
Investors:
Michael Mason
CORE IR
investors@zenatech.com
Safe Harbor
This press release and related comments by management of ZenaTech, Inc. include "forward-looking statements" within the meaning of U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance, and business prospects and opportunities, including statements about the development, features, availability, pricing, commercialization, and market adoption of ZenaAI. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "aim", "seek", "is/are likely to", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology intended to identify forward-looking statements. Forward-looking statements in this press release also include statements regarding management’s 2027 adjusted EBITDA breakeven objective, expected operating efficiencies, and the Company’s preliminary, unaudited third-quarter 2026 revenue estimates, which are subject to quarter-end close and reporting procedures and may differ materially from actual results; the Company’s ability to effectively integrate acquired businesses and achieve anticipated operational efficiencies and cost synergies; the risk that historical net losses will continue and that revenue growth may decelerate or fail to offset operating expenses; final completion of quarter-end accounting procedures, which could cause actual third-quarter 2026 financial results to differ from preliminary estimates; the Company’s ongoing capital requirements and potential dilution or debt obligations necessary to fund strategic investments; operational, regulatory, certification, and technological risks associated with autonomous drone manufacturing and deployment, particularly within government and defense markets; rapid technological change, cybersecurity risks, and intense competition within the AI, drone, and SaaS sectors; and broader economic, interest rate, and capital market conditions. There can be no assurance that breakeven will be achieved in 2027 or any later period. Forward-looking information in this document includes, but is not limited to ZenaTech’s expectations regarding its revenue, expenses, production, operations, costs, cash flows, and future growth; ZenaTech’s ability to deliver products to the market as currently contemplated, including software platforms; ZenaTech’s anticipated cash needs and its needs for additional financing; ZenaTech’s intention to grow the business and its operations and execution risk; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; risks related to the development, testing, accuracy and performance of artificial intelligence and machine learning models; regulatory risks, including regulations governing drone operations; product development, validation and data quality and accuracy risks; customer adoption and recurring revenue opportunities; the competitive conditions of the industry; the ability to complete any contemplated acquisitions; market uncertainty; and applicable laws, regulations, and any amendments affecting the business of ZenaTech. Readers should not place undue reliance on forward-looking statements, which speak only as of the date of this release, and ZenaTech undertakes no obligation to update them except as required by law.
