- Revenue of $10,512,712 in Q3 2026, up 24.9% from Q2 2026; gross margin of 30.4%
- $101.7 million in total contract value through 2031, including up to $26 million in customer options
- Adjusted EBITDA loss narrowed 34.3% from Q2 2026 to $2,861,177 in Q3 2026
- Awarded a five-year Government of Canada contract to supply tactical ISR uncrewed aircraft systems to the Canadian Armed Forces, its first award under the Defence Drone Initiative Marketplace
- Exited the quarter with cash of $50,605,356 and working capital of $57,762,322
- This foundation positions Volatus to accelerate the manufacturing ramp at Mirabel, advance product development for the defence market, and pursue the larger government and commercial programs that its expanding pipeline and sovereign capability increasingly bring within reach
MONTREAL, Nov. 10, 2026 (GLOBE NEWSWIRE) — Volatus Aerospace Inc. (TSX:FLT) (OTCQX:TAKOF) (Frankfurt:A3DP5Y/ABB.F) (“Volatus” or “the Company”), a Canadian-headquartered global aerospace and defence company, is pleased to announce its financial results for the three and nine months ended September 30, 2026 (Q3 2026). All dollar figures are stated in Canadian dollars, unless otherwise indicated.
The third quarter of fiscal 2026 marked continued execution of Volatus Aerospace’s transition into a sovereign aerospace and defence platform. Revenue increased 24.9% from Q2 2026, consistent with the Company’s normal seasonal pattern, and was 0.9% below Q3 2025. During the quarter, Volatus converted its qualification under the Government of Canada’s Defence Drone Initiative (DDI) Marketplace into its first Canadian Armed Forces contract and continued to scale manufacturing and systems integration at its Mirabel, Québec facility. Subsequent to quarter end, on October 7, 2026, the Company completed delivery of the initial tranche of approximately $4.5 million under its NATO-allied ISR training system contract, originally anticipated for Q1 2026. The customer has begun exercising its option on the second tranche of up to approximately $4.5 million, which remains exercisable through the end of 2027.
As of November 10, 2026, Volatus had a total contract value of approximately $101.7 million, which is expected to be executed through 2031. Of this amount, $75.7 million relates to signed contracts and multi-year agreements with established customers across defence, government, energy, and infrastructure markets. A portion of these agreements is fulfilled through purchase orders issued by customers as work is required; while such agreements do not commit customers to minimum volumes, the Company has executed consistently over the past several years. The remaining up to $26 million represents options held by customers, including under the DDI (Defence Drone Initiative) contract and the NATO-allied contracts, which are exercisable at each customer’s sole discretion.
Q3 2026 Financial Highlights:
- Revenue: $10,512,712, compared with $10,605,438 in Q3 2025 and $8,418,830 in Q2 2026. Revenue for the nine months ended September 30, 2026 was $24,562,101, compared with $26,905,671 in the prior-year period, a decrease of 8.7%. The decline reflected delays in certain commercial contract awards and in delivery under the ISR system contract.
- Gross Profit: $3,191,252, representing a gross margin of 30.4%, compared with 32.7% in Q3 2025 and 29.3% in Q2 2026. The year-over-year decline reflects a heavier weighting of defence programs, which are delivered at lower margins in the initial fulfilment phase than the Company’s established commercial service lines.
- Net Loss: $(6,182,288), compared with $(4,539,732) in Q3 2025 and $(7,500,130) in Q2 2026.
- Adjusted EBITDA: Loss of $(2,861,177), compared with $(800,708) in Q3 2025 and $(4,352,154) in Q2 2026. The year-over-year change reflects higher personnel, office, professional fees, and marketing costs tied to the defence vertical, the Mirabel manufacturing base, R&D, and defence and capital markets positioning, together with lower gross profit.
- Financial Position: Cash of $50,605,356 at September 30, 2026, compared with $59,199,739 at June 30, 2026 and $41,114,832 at December 31, 2025. Working capital of $57,762,322, up from $36,482,718 at year-end 2025, with a current ratio of 9.19.
- Revenue Mix: Services and training accounted for 54.7% of Q3 revenue and products and equipment 45.3%. For the nine months, services and training represented 55% and products and equipment 45%, compared with 51% and 49% in the prior-year period, within the Company’s long-term target range. The Revenue Mix transition towards long-term defence sustainment, Services and Training will increase gross margins and the overall revenue profile of Volatus as we head into 2027.
Q3 2026 Operational Highlights:
- September 29, 2026: Inaugurated its 53,000-square-foot Mirabel manufacturing and systems integration facility with stakeholders; production of proprietary tech is underway
- September 22, 2026: Completed initial flight testing of its proprietary V-Cortex™ AI flight controller and autonomy operating system, demonstrating GNSS-denied navigation using onboard sensors
- September 10, 2026: Awarded a five-year Government of Canada contract to supply Low-Cost Tactical ISR uncrewed aircraft systems to the Canadian Armed Forces, with an initial order of 100 systems and options for up to 4,900 additional systems
- September 8, 2026: Confirmed qualification across all five streams of the Government of Canada’s Defence Drone Initiative (DDI) Marketplace, following selection as a qualified supplier on September 3, 2026
- July 21, 2026: Joined Forces with Concordia University’s Volt-Age research program to collaborate on energy technologies for uncrewed aircraft systems
- July 20, 2026: Participated in the Farnborough International Airshow as part of the Team Canada delegation, showcasing its aerospace, autonomy, and aerial intelligence solutions
- July 9, 2026: Participated in the Maritime & Arctic Security & Safety (MASS) 2026 conference in St. John’s, Newfoundland and Labrador
- July 8, 2026: Received a Letter of Acceptance from Transport Canada under the new Pre-Validated Declaration (PVD) process for its Canary Remotely Piloted Aircraft System (RPAS)
Subsequent to Q3 2026 Highlights:
- November 4, 2026: Announced MOU with Calian Group Ltd. (TSX:CGY) and Instrumar Ltd. to evaluate integrated ice detection, de-icing and Arctic-hardening technologies for uncrewed aircraft systems
- October 28, 2026: Completed the acquisition of AISPECO UAB, a Vilnius, Lithuania-based developer and manufacturer of modular airborne sensor systems and proprietary flight-management software, for base consideration of US$10.5 million plus up to US$2.5 million in milestone-based consideration
- October 7, 2026: Completed delivery of the initial tranche of approximately $4.5 million under its NATO-allied ISR training system contract
Management Commentary
“We qualified across all five DDI streams and won our first Canadian Armed Forces contract in the same month. That is what sovereign capability looks like when it turns into orders. With Mirabel open and the first NATO tranche delivered, our job now is execution: converting a growing pipeline into revenue and closing the gap to Adjusted EBITDA breakeven,” said Glen Lynch, CEO of Volatus Aerospace.
Strategic Outlook
Volatus continues to deepen its presence in established commercial verticals such as energy, utilities, and infrastructure inspection against a backdrop of significant geopolitical realignment, accelerating domestic defence investment, and structural shifts in the global drone and autonomous systems markets. Canada’s Defence Industrial Strategy is now being translated into procurement through mechanisms such as the DDI Marketplace, where Volatus is qualified across all five streams and has secured its first Stream 1 award. The Company is advancing commercialization of its proprietary platform portfolio across hardware and software, including the SKYDRA™ C-UAS SaaS platform and the V-Cortex™ AI autonomy platform, and integrate the acquisition of AISPECO to add proprietary airborne sensor systems, mission software, and a European engineering and manufacturing base.
The Company remains committed to achieving sustained profitability through operational efficiency, cost structure optimization, long-term contract growth, and an increasing proportion of higher-margin services, software, and defence revenue. Management expects Adjusted EBITDA to improve as defence pipeline opportunities convert to revenue, with the path to breakeven predicated on revenue growth rather than further cost reduction.
Webinar Details:
In conjunction with this release, Volatus will host a webinar on Tuesday, November 10, 2026 at 5PM EST at which time Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review financial results and major milestones with Kristina Davis, Vice-President of Corporate Affairs, as moderator.
Registration Link: https://us06web.zoom.us/webinar/register/WN_l8T7DVhoQlyCb_uqCVyf7A#/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/
| Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | |||||||||
| Revenue | 10,512,712 | 8,418,830 | 5,630,559 | 7,298,364 | 10,605,438 | 10,587,075 | 5,713,158 | 6,783,176 | ||||||||
| Direct costs | 7,321,460 | 5,950,646 | 3,660,884 | 4,873,412 | 7,134,827 | 7,211,655 | 3,883,185 | 4,209,577 | ||||||||
| Gross Profit | 3,191,252 | 2,468,184 | 1,969,675 | 2,424,952 | 3,470,611 | 3,375,420 | 1,829,973 | 2,573,599 | ||||||||
| 30% | 29% | 35% | 33% | 33% | 32% | 32% | 38% | |||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Advertising & marketing | 595,636 | 996,721 | 489,016 | 273,142 | 321,558 | 428,128 | 135,575 | 100,878 | ||||||||
| IT & tech | 347,338 | 293,619 | 264,451 | 369,988 | 521,629 | 118,017 | 245,180 | 157,851 | ||||||||
| Personnel | 3,477,458 | 3,583,245 | 2,939,596 | 3,444,560 | 2,574,798 | 2,147,111 | 2,650,905 | 1,958,572 | ||||||||
| R&D | 506,958 | 313,995 | 289,714 | 234,868 | 834 | 4,390 | 11,756 | 25,429 | ||||||||
| Office cost | 942,728 | 1,011,161 | 735,538 | 644,280 | 395,516 | 795,819 | 617,569 | 673,047 | ||||||||
| Travel | 262,404 | 285,764 | 268,897 | 277,446 | 101,097 | 73,765 | 64,288 | 38,959 | ||||||||
| Professional fees | 856,952 | 921,662 | 767,826 | 1,004,383 | 399,524 | 473,874 | 200,637 | 386,259 | ||||||||
| Depreciation and amortization | 1,254,475 | 1,441,645 | 1,449,275 | 1,651,141 | 1,334,223 | 1,663,083 | 1,496,425 | 1,315,544 | ||||||||
| Share based Payments | 472,320 | 518,990 | 380,032 | 262,934 | 670,844 | 179,399 | 165,454 | 77,523 | ||||||||
| Provision for expected credit loss | (50,170 | ) | – | 67,875 | – | – | – | – | – | |||||||
| 8,666,099 | 9,366,802 | 7,652,220 | 8,162,742 | 6,320,023 | 5,883,586 | 5,587,789 | 4,734,061 | |||||||||
| (Loss) from Operations | (5,474,847 | ) | (6,898,618 | ) | (5,682,545 | ) | (5,737,790 | ) | (2,849,412 | ) | (2,508,166 | ) | (3,757,816 | ) | (2,160,462 | ) |
| OTHER ITEMS – INCOME/(EXPENSE) | ||||||||||||||||
| Finance cost | (1,130,030 | ) | (939,429 | ) | (1,012,658 | ) | (944,859 | ) | (1,874,601 | ) | (1,743,710 | ) | (645,685 | ) | (1,072,341 | ) |
| Other income (expense) | 379,917 | 271,834 | 220,377 | 129,788 | 42,803 | 17,104 | (62,431 | ) | 113,777 | |||||||
| Impairment Loss – PPE | – | – | – | (178,175 | ) | – | – | – | – | |||||||
| Loss on extinguishment of financial liabilities | – | – | – | – | – | (1,558,758 | ) | – | – | |||||||
| Loss on impairment of property and equipment | – | (500 | ) | (45,509 | ) | – | – | – | – | – | ||||||
| Gain (Loss) on disposal of property and equipment | – | – | – | 2,416 | 597 | – | – | (1,541 | ) | |||||||
| Loss on redemption | – | – | – | – | – | (672,444 | ) | – | – | |||||||
| Foreign exchange translation | 42,672 | 66,583 | (72,825 | ) | 109,779 | 140,881 | (58,413 | ) | 1,225 | 92,541 | ||||||
| Net Loss | (6,182,288 | ) | (7,500,130 | ) | (6,593,160 | ) | (6,618,840 | ) | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (3,028,025 | ) |
| Deferred Tax Income/ (Expense) | – | – | – | 152,389 | – | – | – | 283,457 | ||||||||
| Net Loss | (6,182,288 | ) | (7,500,130 | ) | (6,593,160 | ) | (6,466,451 | ) | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (2,744,568 | ) |
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| Foreign currency translation adjustment | (13,818 | ) | (19,853 | ) | (11,838 | ) | 195,269 | – | – | – | – | |||||
| Net loss and comprehensive loss | (6,196,106 | ) | (7,519,983 | ) | (6,604,998 | ) | (6,271,183 | ) | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (2,744,568 | ) |
| Total Comprehensive loss attributable to | ||||||||||||||||
| Owners of Volatus Aerospace | (6,109,330 | ) | (7,424,305 | ) | (6,225,215 | ) | (6,016,955 | ) | (4,545,679 | ) | (6,509,690 | ) | (4,116,411 | ) | (2,715,484 | ) |
| Non-controlling interest | (86,776 | ) | (95,678 | ) | (379,783 | ) | (254,228 | ) | 5,947 | (14,697 | ) | (348,296 | ) | (29,085 | ) | |
| (6,196,106 | ) | (7,519,983 | ) | (6,604,998 | ) | (6,271,183 | ) | (4,539,732 | ) | (6,524,387 | ) | (4,464,707 | ) | (2,744,568 | ) | |
| Loss per share | ||||||||||||||||
| Basic and Diluted | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) |
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
| Three months ended September 30 | ||||
| 2026 | 2025 | |||
| Adjusted EBITDA (loss) | (2,861,177 | ) | (800,708 | ) |
| Finance cost | 1,130,030 | 1,874,601 | ||
| Depreciation and amortization | 1,254,475 | 1,334,223 | ||
| Share-based payments | 472,320 | 670,844 | ||
| (Gain) loss on disposal of property & equipment | – | (597 | ) | |
| Foreign exchange translation | (42,672 | ) | (140,881 | ) |
| R&D | 506,958 | 834 | ||
| Net Loss | (6,182,288 | ) | (4,539,732 | ) |
ABOUT VOLATUS AEROSPACE INC.
Volatus Aerospace Inc. is a Canadian integrated aerospace company providing unmanned aerial systems, aerial intelligence services, autonomy software, and advanced training solutions supporting civil infrastructure, public safety, and defence markets. Through its combination of manufacturing, operations, and technology development, Volatus Aerospace is advancing the adoption of autonomous systems while supporting sovereign aerospace capability development in Canada and allied markets.
The Company operates a global platform supporting drone operations, pilot training, equipment sales, and data services while continuing to expand its capabilities in autonomy, remote operations, and next-generation aerial technologies.
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 direct costs, 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 percentage of revenue. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). The Company defines Adjusted EBITDA as IFRS net loss excluding interest expense, depreciation and amortization expense, foreign exchange, share-based payments, research and development, 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. Total contract value” is a supplementary operating measure that has no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. The Company defines total contract value as the estimated remaining unrecognized revenue under signed contracts, firm purchase orders, and multi-year agreements with customers, together with the value of unexercised options contained in those contracts. Amounts under agreements fulfilled through customer purchase orders are estimated based on contract terms and historical ordering patterns. Total contract value excludes framework or standing-offer ceilings beyond contracted options, and expected renewals not provided for in existing agreements. There is no assurance that total contract value will be realized as revenue, in full or within the expected timeframe. 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 TSX. 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.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this news release.
SOURCE: Volatus Aerospace Inc.
For additional information, please contact:
Volatus Aerospace Inc.
Abhinav Singhvi, Chief Financial Officer
+1-833-865-2887
investorrelations@volatusaerospace.com
COMPANY WEBSITE: https://volatusaerospace.com
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