Volatus Aerospace Releases Record Third Quarter Financial Results
- Largest quarterly revenue and gross profit figures in Company history
- Year-to-date Revenue of $26,905,671, up 32% year-over-year
- Quarterly Revenue of $10,605,438, up 60% year-over-year; blended gross margin of 33%
- Adjusted EBITDA loss of $660,661, a 52% year-over-year improvement
- Current cash balance strengthened to approximately $40 million after quarter-end financing
- Operational milestones included: new defense deployments, advancement of the Condor XL towards commercialization, and progress on Canadian manufacturing and domestic battery supply-chain initiatives
MONTREAL and TORONTO, Dec. 01, 2025 (GLOBE NEWSWIRE) — Volatus Aerospace Inc. (TSXV:FLT) (OTCQB:TAKOF) (Frankfurt:A3DP5Y/ABB.F) (“Volatus” or “the Company”), a leader in aerial and defense solutions, is pleased to announce its financial results for the three and nine months ended September 30, 2025 (Q3 2025). All dollar figures are stated in Canadian dollars, unless otherwise indicated. The Company delivered record quarterly revenue and gross profit.
Q3 2025 delivered another period of strong growth and operational progress, reflecting continuous defense demand, expansion of existing commercial programs, net new customers, and continued domestic efforts to establish Canadian manufacturing and battery supply chains.
The Company generated revenue of $26,905,671 for the nine-month period, and $10,605,438 for the three-month period ended September 30, 2025, which compares to $20,364,238 and $6,618,504 for the same comparable periods in 2024, respectively. Year-over-year revenue growth in the quarter was primarily driven by equipment sales that grew by 427% as a result of increased demand in the defense segment. Operating leverage improved on a quarter-over-quarter basis, showcasing a positive trend towards income stability. The Company’s liquidity position also strengthened, with positive working capital at quarter-end supported by an additional equity infusion.
Q3 2025 Financial Highlights:
- Revenue: $10,605,438, an increase of 60% compared with $6,618,504 in Q3 2024, driven by strong equipment demand and continued services and training execution.
- Gross Profit: $3,470,611, representing a gross margin of 33%, compared with 34% in Q3 2024. Margin reflects a higher proportion of equipment sales in the quarter.
- Adjusted EBITDA: Loss of ($660,661), a significant 52% improvement versus ($1,364,143) in Q3 2024, reflecting scale, service growth, and improved operating leverage.
- Cash Position: $17,274,905 as at September 30, 2025, with current cash now approximately $40 million after subsequent financing events. The Company closed a $10,000,000 non-brokered LIFE private placement on July 17, 2025, and a $4,830,000 brokered “bought deal” LIFE private placement on August 14, 2025.
- Revenue Mix: Services and Training accounted for 47% of Q3 revenue and equipment at 53%, compared to 16% equipment mix in Q3 2024, demonstrating scale in product sales.
Q3 2025 Operational Highlights:
- September 30, 2025: Executed an LOI with VoltaXplore to establish domestic battery-cell supply for next-generation RPAS platforms supporting defense, civil, and Arctic operations
- September 23, 2025, July 7, 2025, and July 2, 2025: Delivered C$4.06 million in tactical ISR systems and training to NATO-country partners, expanding defense-sector deployments
- September 16, 2025: Secured a multi-year agreement with a major North American utility to provide RPAS inspection, mapping, and vegetation-management services across ~100,000 miles of transmission and distribution assets
- August 25, 2025: Formed a strategic partnership with KI Reforestation to deploy Condor XL heavy-lift RPAS for large-scale aerial seeding across fire-damaged forest regions
Management Commentary
“Q3 2025 continued the momentum we set earlier this year. Defense demand drove a significant rise in equipment sales, and our commercial and utility programs continued to scale with new contract awards. We remain on track to meet current consensus expectations for Q4 2025 and Q1 2026. Our most recent financing closed on November 26, 2025, strengthening our liquidity and enabling us to meet rising demand and expand Canadian manufacturing for our next-generation platforms. These steps reinforce the foundation we need to support and serve defense, government, and industrial clients at scale into 2026 and beyond.”
Webinar Details:
In conjunction with this release, Volatus will host a webinar on Tuesday, December 2, 2025 at 4PM EST at which time Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review the financial results and major milestones with Danielle Gagne, Head of Corporate Communications as moderator.
Registration Link: https://us06web.zoom.us/webinar/register/WN_hiHLaA8jQ1eb_1-jmv1XKA#/registration
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/
Financial Snapshot:
| Notes | Three months ended September 30 | Nine months ended September 30 | |||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenue | 10,605,438 | 6,618,504 | 26,905,671 | 20,364,238 | |||||||
| Direct costs | 7,134,827 | 4,366,107 | 18,229,667 | 13,381,538 | |||||||
| Gross Profit | 3,470,611 | 2,252,397 | 8,676,004 | 6,982,700 | |||||||
| OPERATING EXPENSES | |||||||||||
| Advertising & marketing | 321,558 | 331,763 | 885,261 | 1,022,459 | |||||||
| IT & tech | 521,629 | 210,328 | 884,826 | 726,586 | |||||||
| Personnel | 2,574,798 | 1,787,175 | 7,372,814 | 5,499,433 | |||||||
| R&D | 834 | 4,011 | 16,980 | 15,851 | |||||||
| Office cost | 395,516 | 497,706 | 1,808,904 | 1,634,955 | |||||||
| Travel | 101,097 | 77,011 | 239,150 | 174,774 | |||||||
| External partner cost | 399,524 | 2,117,840 | 1,074,035 | 2,748,053 | |||||||
| Depreciation and amortization | 7,8,19 | 1,334,223 | 1,294,350 | 4,493,731 | 3,509,136 | ||||||
| Share based Payments | 670,844 | 124,861 | 1,015,697 | 378,505 | |||||||
| 6,320,023 | 6,445,045 | 7,791,398 | 15,709,752 | ||||||||
| (Loss) from Operations | (2,849,412 | ) | (4,192,648 | ) | (9,115,394 | ) | (8,727,052 | ) | |||
| OTHER ITEMS – INCOME/(EXPENSE) | |||||||||||
| Finance cost | (1,874,601 | ) | (992,806 | ) | (4,263,996 | ) | (1,863,576 | ) | |||
| Other income (expense) | 42,803 | (2,669 | ) | 56,439 | (12,684 | ) | |||||
| Gain (loss) on investments | – | – | (58,963 | ) | – | ||||||
| Loss on extinguishment of financial liabilities | – | – | (1,558,758 | ) | – | ||||||
| Gain (Loss) on disposal of property and equipment | 597 | (194,662 | ) | 597 | 117,198 | ||||||
| Loss on modification of convertible debt | – | (672,444 | ) | ||||||||
| Foreign exchange translation | 140,881 | (109,037 | ) | 83,693 | (79,641 | ) | |||||
| Net Loss | (4,539,732 | ) | (5,491,822 | ) | (15,528,826 | ) | (10,565,756 | ) | |||
| Total comprehensive Income (loss) for the period attributable to: | |||||||||||
| Owners of Volatus Aerospace Corp. | (4,545,679 | ) | (5,440,827 | ) | (15,171,780 | ) | (10,426,120 | ) | |||
| Non-controlling interest | 5,947 | (50,994 | ) | (357,046 | ) | (139,636 | ) | ||||
| (4, 539,732 | ) | (5,491,822 | ) | (15, 528,826 | ) | (10,565,756 | ) | ||||
| Loss per share | |||||||||||
| Basic and diluted | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | |||
| Weighted average number of common shares outstanding | |||||||||||
| Basic and diluted | 524,144,739 | 249,689,240 | 524,144,739 | 249,689,240 | |||||||
| Q325 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | |||||||||
| Revenue | 10,605,438 | 10,587,075 | 5,713,158 | 6,783,176 | 6,618,504 | 7,121,993 | 6,623,741 | 10,500,995 | ||||||||
| Direct costs | 7,134,827 | 7,211,655 | 3,883,185 | 4,209,577 | 4,366,107 | 4,617,447 | 4,397,985 | 7,700,881 | ||||||||
| Gross Profit | 3,470,611 | 3,375,420 | 1,829,973 | 2,573,599 | 2,252,397 | 2,504,546 | 2,225,757 | 2,800,114 | ||||||||
| 33 | % | 32 | % | 32 | % | 38 | % | 34 | % | 35 | % | 34 | % | 27 | % | |
| OPERATING EXPENSES | ||||||||||||||||
| Advertising & marketing | 321,558 | 428,128 | 135,575 | 100,878 | 331,763 | 397,357 | 293,339 | 278,781 | ||||||||
| IT & tech | 521,629 | 118,017 | 245,180 | 157,851 | 210,328 | 259,456 | 256,802 | 28,439 | ||||||||
| Personnel | 2,574,798 | 2,147,111 | 2,650,905 | 1,958,572 | 1,787,175 | 1,515,536 | 2,196,722 | 1,312,983 | ||||||||
| R&D | 834 | 4,390 | 11,756 | 25,429 | 4,011 | – | 11,840 | 771,861 | ||||||||
| Office cost | 395,516 | 795,819 | 617,569 | 673,047 | 497,706 | 554,050 | 583,199 | 605,396 | ||||||||
| Travel | 101,097 | 73,765 | 64,288 | 38,959 | 77,011 | 40,143 | 57,621 | 126,710 | ||||||||
| External partner cost | 399,524 | 473,874 | 200,637 | 386,259 | 2,117,840 | 430,141 | 200,072 | 436,686 | ||||||||
| Depreciation and amortization | 1,334,223 | 1,663,083 | 1,496,425 | 1,315,544 | 1,294,350 | 1,116,698 | 1,098,088 | 1,647,364 | ||||||||
| Share based Payments | 670,844 | 179,399 | 165,454 | 77,523 | 124,861 | 126,822 | 126,822 | 173,671 | ||||||||
| 6,320,023 | 5,883,586 | 5,587,789 | 4,734,061 | 6,445,045 | 4,440,202 | 4,824,504 | 5,381,891 | |||||||||
| (Loss) from Operations | (2,849,412 | ) | (2,508,166 | ) | (3,757,816 | ) | (2,160,462 | ) | (4,192,648 | ) | (1,935,656 | ) | (2,598,748 | ) | (2,581,777 | ) |
| OTHER ITEMS – INCOME/(EXPENSE) | ||||||||||||||||
| Finance cost | (1,874,601 | ) | (1,743,710 | ) | (645,685 | ) | (1,072,341 | ) | (992,806 | ) | (491,664 | ) | (379,106 | ) | (667,949 | ) |
| Other income (expense) | 42,803 | 17,104 | (3,468 | ) | (133,884 | ) | (2,669 | ) | 153 | (10,168 | ) | 14,955 | ||||
| Gain (Loss) on investments | – | (58,963 | ) | 247,661 | – | – | ||||||||||
| Gain (Loss) on disposal of property and equipment | 597 | – | – | (1,541 | ) | (194,662 | ) | 319,044 | (7,184 | ) | (125,476 | ) | ||||
| Loss on extinguishment of financial liabilities | (1,558,758 | ) | ||||||||||||||
| Loss on modification of convertible debt | (672,444 | ) | ||||||||||||||
| Foreign exchange | 140,881 | (58,413 | ) | 1,225 | 92,541 | (109,037 | ) | 25,508 | 3,887 | (24,156 | ) | |||||
| Net Loss | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (3,028,025 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,775,864 | ) |
| Deferred Tax Income/ (Expense) | (100,899 | ) | 464,216 | |||||||||||||
| Net Loss | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (3,128,924 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,311,647 | ) |
| Total comprehensive Income (loss) for the period attributable to: | ||||||||||||||||
| Owners of Volatus Aerospace Corp. | (4,545,679 | ) | (6,509,690 | ) | (4,116,411 | ) | (3,099,840 | ) | (5,440,827 | ) | (2,070,150 | ) | (2,915,143 | ) | (1,997,089 | ) |
| Non-controlling interest | 5,947 | (14,697 | ) | (348,296 | ) | (29,084 | ) | (50,994 | ) | (12,465 | ) | (76,176 | ) | (314,559 | ) | |
(4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (3,128,924 | ) | (5,491,822 | ) | (2,082,615 | ) | (2,991,319 | ) | (2,311,647 | ) | |
| Loss per share | ||||||||||||||||
| Basic and Diluted | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) |
About Volatus Aerospace:
Volatus Aerospace is a global provider of aerial intelligence solutions for commercial and defense customers. The Company operates piloted aircraft and remotely piloted aircraft systems (RPAS) for ISR/ISTAR missions, inspections, and public safety operations, supported by remote command centre in North America. Volatus is building RPAS manufacturing capability in Mirabel, Quebec, to support emerging large-drone requirements. The Company serves oil and gas, utilities, healthcare, public safety, and defense organizations, with a mission to deliver efficient, safe, and sustainable real-world aerial solutions.
Note Regarding Non-GAAP Measures:
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit, gross margin, Adjusted EBITDA or Normalized EBITDA, and operating leverage are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to “gross profit,” “gross margin,”, “Adjusted EBITDA”, and “operating leverage”, which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a%age of revenue. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). The Company defines Adjusted EBITDA as IFRS comprehensive loss excluding interest expense, depreciation and amortization expense, share-based payments, income tax expense, integration and due diligence costs, one time profit or loss (non-recurring), and impairment of goodwill, property, plant, and equipment and right-of-use assets (ROU). The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. In addition, the Company refers to “operating leverage.” Operating leverage measures how sensitively operating income responds to changes in revenue, based on the proportion of fixed versus variable costs in the Company’s cost structure. A business with high operating leverage typically experiences a more-than-proportionate increase in operating income when revenue grows, while declines in revenue can have an amplified negative effect. Management monitors operating leverage to evaluate margin scalability, understand cost-structure dynamics, and assess the potential impact of volume changes on profitability. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards (“IFRS”). Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers and should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the “Non-GAAP Measures and Additional GAAP Measures” section of the Company’s most recent MD&A which is available on SEDAR.
Forward-Looking Statement:
This news release contains statements that constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the business plans and expectations of the Company; and (ii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company’s current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; and meeting the continued listing requirements of the TSXV. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CONTACT DETAILS
Abhinav Singhvi
Chief Financial officer
+1 833-865-2887
abhinav.singhvi@volatusaerospace.com
COMPANY WEBSITE
https://volatusaerospace.com
SOURCE: Volatus Aerospace Inc.
