Safe Pro Group Inc. — Q3 2026 Earnings Summary

Financial Performance

• Q3 2026 preliminary, unaudited revenue expected to exceed $2.5 million, representing a year-over-year increase of over 2,300% compared to $101,422 in Q3 2025.
• Revenue for the nine months ended September 30, 2026, expected to exceed $5.0 million, a year-over-year increase of over 1,200% compared to $378,977 in the same period of 2025.
• Q3 2026 revenue represents an approximate 88% sequential increase compared to Q2 2026.
• Nine-month 2026 revenue is projected to be more than eight times the company's full-year 2025 revenue.
• The company maintains significant cash reserves and has no long-term debt.
• High margin revenue growth is expected to drive a significant increase in accounts receivable, with improved cash flows anticipated subject to customary government payment processes.

Guidance and Future Outlook

• Priority for Q4 2026 and 2027 is growing deployments of patented American AI technologies across multiple branches of the US Government and allies.
• Expected continued growth driven by rapid execution against awarded government contracts through 2027.
• Preliminary, unaudited financial data remain subject to change upon completion of quarterly closing and review procedures.

Business Segments and Product Lines

• Revenue driven by deliveries of patented AI-powered software and edge-based battlefield intelligence solutions to U.S. Government prime contractors.
• Q3 deliveries included a $1.3 million subcontract to integrate real-time AI threat detection onto autonomous unmanned ground vehicles.
• Q3 included a $780,000 U.S. Army award for a package including NODE AI edge-processing systems and Blue UAS drones.
• Revenue reflects demand across threat detection, mapping, edge compute, software licensing, and operational services and support.
• The company's AI dataset includes over 3.1 million drone images and over 58,526 confirmed detections collected across 39,777 acres in Ukraine.
• Expanded relationships include a Cooperative Research and Development Agreement (CRADA) with the U.S. Army and a subcontract with the U.S. Department of State for AI-powered demining software in Ukraine.
• Aggregate awarded contract value year-to-date exceeds $5 million.

Market and Competitive Landscape

• Activity is increasing across the U.S. government, including the U.S. Army, U.S. Air Force, and U.S. Department of State.
• The company successfully completed participation in multiple U.S. Army exercises and technology demonstrations during Q3.
• The company believes AI-powered tools are critical for restoring Ukraine's agricultural sector, recovering rare earth minerals, and supporting reconstruction.
• Technology is being extended from military use cases into broad commercial markets.

Risks and Challenges

• Preliminary, unaudited estimated financial results may differ materially from final reported results upon completion of quarterly closing, review, and audit procedures.
• Risks include limited operating history and history of losses.
• Risks related to government contracting include contract modifications, delays, cancellations, and concentration of revenue from a limited number of government programs.
• Risks include changes in government budgets, spending priorities, sequestration, or continuing resolutions that could reduce or delay funding.
• Risks include the company's ability to scale operations, market acceptance of products, competition, technological changes, and reliance on third-party technology providers including AWS.
• Risks related to international operations include geopolitical risks associated with the ongoing conflict in Ukraine and regulatory compliance.

Management Commentary and Tone

• Dan Erdberg, Chairman and CEO, stated that expected Q3 revenue nearly doubles the Q2 result and nine-month revenue is more than eight times full-year 2025 revenue.
• Management highlighted growth driven by repeat orders from U.S. Army customers and first awards from new agencies including the Department of State and U.S. Air Force.
• The tone emphasizes rapid execution, high margin revenue growth, and the strategic importance of expanding AI offerings to new platforms and applications.

Other Key Points

• Safe Pro Group Inc. trades on Nasdaq under the ticker symbol SPAI.
• The company's technology converts raw visual data from drones into high-resolution 2D and 3D maps for situational awareness.
• The platform targets commercial, government, law enforcement, and humanitarian sectors using a cloud-based ecosystem powered by Amazon Web Services (AWS).
• The company offers Safe Pro AI software, Safe-Pro USA protective gear, and Airborne Response drone-based services.