Volatus Aerospace Q2 2025 slides: Revenue soars 49% as EBITDA loss narrows

Introduction & Market Context

Volatus Aerospace Inc (TSXV:FLT) presented its Q2 2025 earnings results on August 21, 2025, showcasing significant revenue growth and improved financial metrics despite continued operating losses. The drone technology company, which trades at $0.55 as of September 9, 2025, has seen its stock fluctuate between $0.11 and $0.97 over the past year.

The company’s presentation highlighted its strategic positioning in defense and public safety sectors, areas that have seen increased investment amid growing geopolitical tensions and the expanding commercial applications of drone technology.

Quarterly Performance Highlights

Volatus reported substantial growth in Q2 2025, with revenue reaching $10.59 million, representing a 49% increase compared to $7.12 million in the same period last year. This growth was driven by strong performance across both equipment sales and service offerings.

As shown in the following financial highlights:

The company’s cash position stood at $6.13 million as of June 30, 2025, with management noting that current cash reserves have grown to approximately $20 million. This strengthened financial position provides Volatus with runway to execute its strategic initiatives.

Gross profit increased to $3.38 million, though gross margin decreased slightly to 32% compared to 35% in Q2 2024. This margin compression was attributed to a shift in product mix, with equipment sales (which typically carry lower margins) growing faster than services.

One of the most notable improvements came in Adjusted EBITDA, where Volatus reduced its loss to $276,259, representing an 85% improvement from the $1.85 million loss reported in Q2 2024.

Detailed Financial Analysis

The company’s revenue composition has been evolving, with equipment sales growing at a faster rate than services. In Q2 2025, services represented 52% of revenue (with 71% quarter-over-quarter growth), while equipment accounted for 48% (with 104% quarter-over-quarter growth).

The quarterly revenue trend shows consistent improvement since early 2022, with Q2 2025 marking the highest quarterly revenue in the company’s history:

Despite the strong revenue growth, Volatus continues to operate at a loss. The company reported a loss from operations of $2.2 million in Q2 2025, compared to $1.9 million in Q2 2024. However, on a proforma basis, the operating loss improved to $680,000 from $2.1 million in the prior year.

Gross profit has also shown consistent improvement, reaching $3.38 million in Q2 2025, a significant increase from previous quarters:

For the first half of 2025, Volatus reported:

• Revenue of $16.3 million, up 19% from $13.7 million in H1 2024
• Gross profit of $5.2 million, compared to $4.7 million in the prior year
• Gross margin of 32%, down slightly from 34% in H1 2024
• Loss from operations of $5.6 million, compared to $4.5 million in H1 2024

Strategic Initiatives

Volatus emphasized several strategic initiatives that position the company for future growth. The company has delivered approximately $5 million in Intelligence, Surveillance, and Reconnaissance (ISR) and public safety contracts, highlighting its focus on defense and security applications.

The presentation highlighted the company’s regulatory readiness, with multiple approvals enabling expanded remote operations. This regulatory advantage is particularly significant in an industry where operational permissions often determine market access.

As illustrated in the company’s strategic positioning:

Volatus is also focusing on building sovereign capacity through investments in design, production, and secure supply chains. The company emphasized its alignment with Canada’s NATO readiness, suggesting potential opportunities in defense contracts.

Forward-Looking Statements

Looking ahead, Volatus highlighted several factors that could drive future growth:

1. Regulatory tailwinds: Evolving frameworks and recent approvals that unlock scalable remote operations

2. Commercialization of innovation: Advancing AI-enabled software, counter-drone solutions, and RPAS platforms

3. International expansion: Recent engagements in ISR, training, and heavy-lift operations

The company’s strong cash position of approximately $20 million provides financial flexibility to pursue these initiatives while continuing to improve operational efficiency.

While Volatus has made significant progress in revenue growth and EBITDA improvement, investors will likely focus on the company’s path to profitability in upcoming quarters. The continued operating losses, despite improved metrics, suggest that further scaling or operational efficiencies will be necessary to achieve sustainable profitability.

As drone technology continues to mature and find new applications across industries, Volatus appears positioned to capitalize on growing market opportunities, particularly in defense and public safety sectors where regulatory barriers to entry provide competitive advantages to established players.

Full presentation:

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