Volatus Aerospace Releases Q2 2025 Financial Results
Revenue of $10,587,075 in Q2 2025, up 49% year-over-year; gross margin of 32%
Adjusted EBITDA loss of $276,259, an 85% year-over-year improvement
Current cash balance strengthened to approximately $20M
Operational highlights included clearances and demonstrations with defense and energy clients and new commercial wins in forestry and agriculture. Subsequent events included additional NATO-aligned contracts and growth capital
TORONTO, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Volatus Aerospace Inc. (TSXV:FLT) (OTCQB:TAKOF) (Frankfurt:A3DP5Y/ABB.F) ("Volatus" or "the Company"), a leader in aerial solutions, is pleased to announce its financial results for the three and six months ended June 30, 2025 (Q2 2025). All dollar figures are stated in Canadian dollars, unless otherwise indicated.
Q2 2025 delivered another quarter of strong growth and operational progress, reflecting robust defense demand, expanding commercial programs, and disciplined execution. Equipment sales increased 104% quarter-over-quarter and 114% year-over-year, while services grew 71% quarter-over-quarter and 16% year-over-year. Operating leverage improved as revenue growth outpaced expense increases, and the net loss attributable to shareholders narrowed versus Q1 2025. Liquidity also strengthened, with positive working capital at quarter-end supported by an equity infusion, the reclassification of certain obligations to long-term after covenant compliance, and the conversion of debt into equity.
Q2 2025 Financial Highlights:
Revenue: $10,587,075, an increase of 49% compared with $7,121,993 in Q2 2024, driven by strong equipment demand and continued services growth.
Gross Profit: $3,375,420, representing a gross margin of 32%, compared with 35% in Q2 2024. Margin reflects a higher proportion of equipment sales in the quarter.
Adjusted EBITDA: Loss of ($276,259), a significant 85% improvement versus ($1,852,178) in Q2 2024, reflecting scale, service growth, and cost discipline.
Cash Position: $6,125,646 at June 30, 2025, with current cash now approximately $20 million after subsequent financing events.
Revenue Mix: Services accounted for 52% of Q2 revenue and equipment 48%, supported by 71% quarter-over-quarter growth in services and 104% quarter-over-quarter growth in equipment.
Q2 2025 Operational Highlights:
Major Regulatory Advancements Support National-Scale BVLOS Operations
Secured one-year extension of the federal standing offer (PWGSC) to March 31, 2026, ensuring continued access to federal contracts
Obtained clearance by two major oil and gas firms for RPAS pipeline surveillance
Completed a defense demonstration for a G-20 client showcasing fixed-wing VTOL and nano RPAS platforms
Entered a collaboration with J.D. Irving, Limited to deploy heavy-lift RPAS for large-scale tree planting
Awarded a national agriculture contract to deliver multispectral crop surveys at 21 sites across four provinces
Advanced commercialization of autonomous and remote operations through OCC-supervised BVLOS medical deliveries in Ontario
Subsequent to Q2 2025 Operational Highlights:
Awarded $560,000 international training contract with a NATO member country
Closed $10 million LIFE offering
Launched Condor XL heavy-lift drone program
Delivered approximately $1 million tactical ISR drone contract from a NATO partner
Completed $4.83 million Quebec-led Institutional "bought-deal" private placement LIFE offering
Cash balance now approximately $20 million.
Management Commentary
"Q2 was fueled by growth across equipment and services, supported by strong defense demand and broader operating authorities," said Glen Lynch, CEO of Volatus Aerospace. "With national-scale BVLOS approvals and our Operations Command Centre enabling safe, efficient remote missions, we are converting more of our pipeline into repeatable programs. We strengthened liquidity, improved operating leverage, and ended the quarter with positive working capital. As we look to the balance of the year, our focus remains disciplined execution for enterprise and government clients and steady progress toward profitability."
Strategic Outlook
Volatus continues to lean into a changing geopolitical backdrop and Canada's historic commitment to higher defence spending. The Company is positioning to capture growing domestic demand across defence, public safety, and Arctic surveillance, while accelerating commercialization of proprietary systems. Investment in Canadian design, production, and secure supply chains underpins Volatus' goal of building sovereign capacity aligned with national priorities.
The Company remains actively engaged with the Government of Canada and the Canadian Armed Forces on defence modernization, border protection, and Arctic sovereignty. Recent financing proceeds have been allocated to expand the defence segment, accelerate commercialization, and reinforce Volatus' position as a national leader in aerial solutions
Webinar Details:
In conjunction with this release, Volatus will host a webinar on Thursday, August 21, 2025 at 4PM EST at which time Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review financial results and major milestones with Danielle Gagne, Head of Corporate Communications as moderator.
Registration Link: https://us06web.zoom.us/webinar/register/WN_K_HDfCINR8CMLh6072CN_w
Audio Replay Options: An audio replay of the event will be archived on the Investor Relations page of the company's website https://investor.volatusaerospace.com/videos/
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Revenue
10,587,075
5,713,158
6,783,176
6,618,504
7,121,993
6,623,741
10,500,995
8,274,349
Direct costs
7,211,655
3,883,185
4,209,577
4,366,107
4,617,447
4,397,985
7,700,881
5,265,775
Gross Profit
3,375,420
1,829,973
2,573,599
2,252,397
2,504,546
2,225,757
2,800,114
3,008,574
32
%
32
%
38
%
34
%
35
%
34
%
27
%
36
%
OPERATING EXPENSES
Advertising & marketing
428,128
135,575
100,878
331,763
397,357
293,339
278,781
541,635
IT & tech
118,017
245,180
157,851
210,328
259,456
256,802
28,439
243,602
Personnel
2,214,001
2,440,528
1,958,572
1,787,175
1,515,536
2,196,722
1,312,983
1,727,086
R&D
4,390
11,756
25,429
4,011
-
11,840
771,861
104,832
Office cost
714,212
438,182
673,047
497,706
