AgEagle Aerial Systems reports quarterly net income of $7 million

AgEagle Aerial Systems Inc., Wichita, Kansas, a leading provider of best-in-class unmanned aerial systems and sensors for military, public safety, and commercial use, announces its financial results for the first quarter ended March 31, highlighted by gross margin improvement and significant reduction in operating expenses.

Financial highlights

• Net income was $7.06 million, compared to a net loss of $6.32 million in Q1 2024, reflecting an income increase of 211.8%. The increase in net income was primarily attributable to the gain on change in fair value of our outstanding warrant liabilities and reductions of costs related to general and administrative, research and development, and sales and marketing.
• Gross profit was $2.13 million, up 9.2% from $1.95 million in Q1 2024.
• Loss from operations in Q1 2025 was $1 million, a decrease of $1.4 million, or 58.1%, as compared to $2.4 in Q1 2024.
• Gross margin was 58.5%, compared to 50.2% in the prior-year period.
• Operating expenses decreased 27.9% to $3.14 million, reflecting disciplined cost reductions across general and administrative, research and development, and sales and marketing.
• Drone sales revenue was $2,233,409, up 98.4% from $1,146,612 in Q1 2024.
• Revenue in Q1 2025 was $3.65 million, compared to $3.89 million in Q1 2024, representing a 6% decline due primarily to seasonality in sensor sales and strategic reduction of SaaS operations.
• Cash as of March 31, was $3.78 million, a 4.7% increase over year-end 2024.

AgEagle CEO Bill Irby said, “In the first quarter of 2025 we delivered a significantly improved financial performance marked by strong gross margin improvement and a meaningful reduction in operating expenses. This pivotal milestone is a clear validation of the strategic decisions we have made to streamline operations, sharpen our commercial focus, and prioritize higher-margin product lines. With a strengthened balance sheet, improved cash position, and reduced cash burn, AgEagle is now operating from a healthier and more resilient financial foundation.

“Looking ahead, we will continue to execute a focused strategy centered on relentless innovation and market expansion, further positioning AgEagle for disciplined growth and long-term shareholder value creation”

AgEagle is a provider of full stack UAS, sensors and software solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, visit www.ageagle.com.