Safe Pro Group Inc. — Q2 2026 Earnings Summary

Financial Performance

• Total quarterly revenue reached $1,332,074, representing a 1,336% year-over-year increase from $92,753 in the second quarter of 2025.
• Sales within the AI subsidiary surged over 3,084% compared to the same quarter of 2025.
• AI gross margins hit 75% for the second quarter of 2026.
• The company completed its Board-approved common stock repurchase program, purchasing a total of 637,084 shares in the open market, with 474,630 shares acquired during the six months ended June 30, 2026.

Business Segments and Product Lines

• Revenue growth was driven by new U.S. Army-contracted sales of the AI-powered, edge compute Navigation, Observation & Detection Engine (NODE) and associated services and support.
• The Company received four government contracts in Q2 2026, including an SBIR award from the U.S. Air Force for AI dataset development for airfield operations.
• Safe Pro AI secured an award from a leading U.S. defense prime contractor to integrate its real-time AI-powered explosive threat detection technology onto next-generation autonomous Unmanned Ground Vehicles (UGVs).
• The Company advanced development of "InFlight," an embeddable, real-time AI-powered threat detection package capable of natively processing real-time video onboard drones at the tactical edge.
• The SPOTD AI platform, which analyzes imagery from virtually any drone, has been deployed in active operational environments in Ukraine for nearly three years.
• SPOTD capabilities include identifying over 150 types of landmines and UXO, supported by a proprietary dataset of over 2.9 million analyzed images, more than 54,328 identified threats, and coverage of approximately 37,900 acres.

Management Commentary and Tone

• Chairman and CEO Dan Erdberg stated that the increasing number of contract awards validates a large and urgent unmet need for real-time, ground-truth situational awareness across the defense sector.
• Management highlighted that investments in personnel, technology development, inventory, and disciplined capital allocation are aligned with a growing, high-margin government contract revenue base.
• The Company expressed confidence in sustained long-term growth as adoption of its edge compute threat detection technology accelerates across aerial and ground-based military platforms.

Other Key Points

• Safe Pro Group Inc. (Nasdaq: SPAI) will host an Innovation Day on Tuesday, August 25, 2026, in Aventura, Florida, featuring live drone operations.
• The Company's SPOTD platform converts raw video into high-resolution 2D/3D geospatial models rapidly shared to support operational decision-making in defense, security, and humanitarian missions.
• Safe Pro's scalable platform is built on a cloud-based ecosystem powered by Amazon Web Services (AWS).
• Forward-looking statements in the release include expectations regarding the ability to generate revenue from AI-powered products, achieve high margins, and convert customer evaluations into product acquisition or additional contract awards.