ZenaTech revenue jumps 316% as Drone as a Service acquisitions reshape growth story

ZenaTech Inc. reported second-quarter revenue of C$9.3 million, up 316% from C$2.2 million a year earlier, as its rapidly expanding Drone as a Service business became the dominant contributor to the company’s top line. Revenue for the first six months reached C$17.7 million, representing growth of 425%, while Drone as a Service generated almost 93% of consolidated revenue in both periods.

The growth numbers are striking, but the composition matters just as much as the headline percentage. ZenaTech Inc. has assembled its Drone as a Service platform through an aggressive acquisition strategy, meaning a substantial portion of the revenue increase reflects newly acquired surveying, inspection and service businesses entering the consolidated results rather than purely organic expansion from existing operations.

That strategy has nevertheless transformed the scale of the business. Management said quarterly revenue has risen more than 13-fold from approximately C$700,000 in the fourth quarter of 2024, while the latest period marked the seventh consecutive quarter of sequential revenue growth. ZenaTech Inc. also ended the quarter with C$12.2 million in cash and C$34.6 million in combined cash and marketable securities, giving the company additional resources to continue acquisitions and product development.

The counterweight is profitability. ZenaTech Inc. reported a C$22.5 million second-quarter net loss and a C$49.1 million loss for the first six months, showing that the company is still spending substantially more than it earns as it builds drone manufacturing, defense products, software operations and its acquisition-led service network.

Drone as a Service now drives almost all of ZenaTech’s rapidly expanding revenue base

Drone as a Service generated C$8.1 million of ZenaTech Inc.’s C$9.3 million in second-quarter revenue and C$16.4 million of the C$17.7 million generated during the first half. The segment benefited from a full quarter of contributions from businesses acquired during 2025, four additional acquisitions completed during the second quarter and higher survey volumes across existing operations.

ZenaTech Inc. completed the acquisitions of Andy Paris Land Surveying, North Group, High Prairie Survey Company and Green Earth Powerwashing Franchise Network during the quarter. Since then, its cumulative Drone as a Service acquisition count has climbed to 29, with operations spanning 14 U.S. states and additional locations in Canada, the United Kingdom and Australia.

The strategy is essentially a technology-enabled roll-up of traditional service businesses. ZenaTech Inc. acquires established land surveying, inspection and other field-service companies, then plans to introduce drones, artificial intelligence, automation and centralized data processing to increase capacity and reduce the cost of completing individual jobs.

That creates a different growth model from a conventional drone manufacturer. Instead of waiting for customers to purchase drones directly, ZenaTech Inc. is acquiring service businesses that already have customers and revenue, then attempting to use its technology to improve those operations and potentially expand margins over time.

Management has indicated that this conversion process will generally occur after acquisitions are completed rather than immediately. That means the investment case depends not only on acquiring more businesses but also on successfully integrating them and demonstrating that drone technology materially improves their economics.

ZenaTech acquisition strategy is producing scale but also complicates the 316% growth comparison

Investors examining the 316% quarterly revenue increase should distinguish between acquired growth and organic growth. ZenaTech Inc. generated only C$12.9 million of revenue during all of 2025, but completed 20 acquisitions during that year, including 19 land-surveying and service companies that contributed heavily to the subsequent expansion of the Drone as a Service segment.

The company has continued that approach throughout 2026. It has signed offers covering additional land-surveying and geospatial businesses in the United States, Canada and Australia that management estimates could contribute approximately C$40 million of revenue during the first 12 months after they close.

That potential revenue should not be treated as already secured because the proposed acquisitions remain subject to closing. However, the figure illustrates how much larger ZenaTech Inc. could become if it continues deploying capital into regional surveying businesses at the pace established over the past two years.

The benefits of acquisition-led growth can become especially powerful if integration creates cost savings, additional services or cross-selling opportunities. The risks are equally significant because acquiring many businesses in a short period can increase management complexity, goodwill, intangible assets, financing requirements and the possibility that acquired operations fail to achieve anticipated profitability.

Those balance-sheet effects are already visible. Total assets increased 50% from C$99.8 million at the end of 2025 to C$149.2 million by the end of June, reflecting investments in property, equipment, goodwill and intangible assets associated with acquisitions and the broader expansion strategy.

ZenaTech’s C$22.5 million quarterly loss remains the biggest contrast with revenue growth

While revenue has expanded rapidly, ZenaTech Inc. remains deeply unprofitable. The company reported a C$22.5 million net loss during the second quarter, more than twice the revenue generated during the same period, while the six-month net loss reached approximately C$49.1 million.

Management attributes the losses partly to building the international infrastructure required for its artificial intelligence drone platforms, Drone as a Service network and prospective government and defense businesses. Those investments include product development, manufacturing facilities, acquisitions and work intended to qualify ZenaDrone products for government procurement.

Liquidity has improved despite those losses. Cash rose to C$12.2 million from approximately C$6 million at the end of 2025, while cash and marketable securities together increased to C$34.6 million from C$15.1 million. Shareholders’ equity also increased to C$91.3 million from C$68 million.

The stronger balance sheet provides more flexibility, but operating losses at the current level mean capital efficiency remains important. Continued acquisitions, manufacturing expansion and defense-product development could require additional financing if cash outflows remain elevated, potentially introducing dilution or additional debt depending on how the company funds future growth.

For investors, this is therefore not simply a story about whether revenue continues rising. The more consequential question is whether ZenaTech Inc. can eventually narrow the gap between revenue and expenses as acquired businesses are integrated and technology begins replacing more labor-intensive surveying and inspection processes.

Defense drones and Blue UAS certification could create a second growth engine beyond surveying

ZenaTech Inc. is simultaneously trying to build a defense-drone business that could diversify revenue beyond commercial surveying services. Its ZenaDrone subsidiary is advancing the ZenaDrone 1000, IQ Square, IQ Nano and IQ Quad through processes connected with Blue UAS certification, which could improve eligibility for certain U.S. government and defense procurement opportunities.

The company is also developing several counter-drone and defense technologies, including the ZenaDrone 2000 interceptor, Interceptor P-1 and IQ Glider launch and refueling system. ZenaTech Inc. said the Interceptor P-1 has moved into testing while its IQ Aqua underwater mine-detection drone has entered U.S. field testing in Florida.

These programs broaden the potential market considerably, but they remain less commercially mature than the Drone as a Service business. Technology demonstrations, certification progress and prototype testing do not guarantee government contracts, making signed procurement agreements a more important future benchmark than development announcements alone.

ZenaTech Inc. has begun scheduling demonstrations with U.S. government defense agencies, including an initial engagement involving the IQ Nano indoor drone. If those demonstrations eventually translate into pilot programs or procurement contracts, defense could become a meaningful new revenue source, but investors should distinguish that potential from the revenue already being generated through acquired service companies.

Enterprise software and artificial intelligence broaden the strategy beyond physical drone operations

Enterprise software remains a smaller portion of the company but adds another layer to ZenaTech Inc.’s expansion strategy. The segment generated approximately C$1.2 million of second-quarter revenue, compared with C$8.1 million from Drone as a Service, making software roughly 13% of the quarterly revenue mix.

The company is consolidating 13 software brands under its Zoo Office platform, which is being positioned as an artificial intelligence-powered enterprise productivity suite. Recent acquisitions include NOW Solutions and ESM Software, expanding ZenaTech Inc.’s exposure to human resources, strategy execution, compliance and business-management applications.

ZenaTech Inc. has also begun developing ZenaWorx, a drone and LiDAR-based construction monitoring platform aimed partly at artificial intelligence data-center construction. Management said the platform recently gained its first paying artificial intelligence data-center construction customer, providing an early commercial test of whether the company can combine its physical drone network with higher-value data and software services.

That combination could eventually become strategically important. Surveying and inspection services can generate recurring field revenue, while software and analytics could allow ZenaTech Inc. to capture additional revenue from the information collected by its drones instead of competing only on the price of completing each physical survey.

ZenaTech stock remains weak despite triple-digit revenue growth and Russell 3000 inclusion

ZenaTech Inc. shares traded around $1.39 during the September 29 session, modestly higher than the previous close of $1.38. The short-term gain did little to change the broader trend, with the stock down roughly 19% over the preceding month and more than 56% year to date through the previous session.

That performance suggests investors remain cautious despite the company’s extraordinary reported revenue growth. The market appears to be balancing the rapidly expanding Drone as a Service platform against substantial losses, execution risks associated with dozens of acquisitions and uncertainty surrounding when newer defense and drone products could become meaningful revenue contributors.

ZenaTech Inc. also joined the Russell 3000 Index during June, increasing its visibility among institutional investors and index-tracking strategies. Index inclusion can broaden awareness and create some passive ownership, but it does not alter the company’s underlying financial requirements or guarantee stronger share-price performance.

The stock’s weakness therefore underscores the gap between revenue growth and investor confidence. A sustained improvement in sentiment would likely require evidence that the acquisition platform can produce improving margins, lower losses and stronger cash generation rather than simply continued increases in consolidated revenue.

What ZenaTech’s 316% revenue growth means for the next stage of its drone strategy

ZenaTech Inc. has unquestionably become a much larger company in a relatively short period. Quarterly revenue has grown from less than C$1 million to more than C$9 million, its Drone as a Service footprint now spans numerous regional service businesses, and management continues developing products aimed at commercial, government and defense customers.

The quality of that growth will increasingly matter more than the percentage itself. Acquisition-driven expansion can create scale rapidly, but long-term shareholder value depends on whether the acquired operations become more productive after drone integration and whether margins improve enough to offset the corporate and research costs accompanying the wider strategy.

Defense represents another potentially important catalyst, but commercial validation is still developing. Blue UAS progress, government demonstrations and prototype testing can open doors, yet signed contracts and repeat procurement would provide much stronger evidence that ZenaTech Inc.’s defense ambitions are becoming a material business.

The second-quarter results therefore present two very different numbers that should be considered together: revenue increased 316% to C$9.3 million, while the company lost C$22.5 million. ZenaTech Inc. has demonstrated an ability to acquire revenue quickly; the next challenge is proving that its expanding drone, service and software ecosystem can convert that scale into improving economics.

Key takeaways from ZenaTech’s 316% revenue growth and Drone as a Service expansion

• ZenaTech Inc. reported C$9.3 million of second-quarter revenue, representing 316% year-over-year growth.
• First-half revenue reached C$17.7 million, up 425% from the comparable period of 2025.
• Drone as a Service contributed C$8.1 million, accounting for almost 93% of quarterly revenue.
• The company has completed 29 Drone as a Service acquisitions as it builds its surveying and inspection network.
• Much of the rapid revenue increase reflects newly acquired businesses, making integration performance important to future results.
• ZenaTech Inc. reported a C$22.5 million quarterly net loss despite the substantial increase in revenue.
• Cash and marketable securities totaled approximately C$34.6 million at the end of the second quarter.
• The company continues advancing Blue UAS certification, counter-drone products and U.S. government demonstrations.
• ZenaTech Inc. shares remain sharply lower year to date despite the company’s triple-digit revenue growth.
• Improving margins and narrowing losses will be critical to proving that the acquisition-led growth strategy can create sustainable value.