ZenaTech revenue jumps 425% in first half as drone business scales

ZenaTech posted sharp second-quarter and first-half revenue growth for the period ended June 30, 2026, driven mostly by its Drone as a Service business. The company also added acquisitions, advanced defense products and joined the Russell 3000, signaling a broader push beyond surveying into enterprise software and defense.

Why it matters: - ZenaTech is showing that its acquisition-led drone strategy is scaling fast, with Drone as a Service now driving most revenue. - The company is also broadening into defense and enterprise software, which could diversify revenue streams if execution holds. - A stronger balance sheet and Russell 3000 inclusion may improve visibility with investors and potential customers.

What happened: - ZenaTech reported second-quarter 2026 revenue of C$9.3 million, up 316% from C$2.2 million a year earlier. - First-half 2026 revenue reached C$17.7 million, up 425% from C$3.4 million in the same period of 2025. - Drone as a Service contributed almost 93% of total revenue in both the quarter and the first half. - The company said it delivered seven straight quarters of sequential revenue growth since the fourth quarter of 2024. - ZenaTech joined the Russell 3000® Index in June 2026.

The details: - DaaS revenue was C$8.1 million in the quarter and C$16.4 million in the first half. - Enterprise SaaS revenue was C$1.2 million in the quarter and C$1.3 million in the first half. - Total assets rose to C$149.2 million from C$99.8 million at Dec. 31, 2025. - Shareholders’ equity increased to C$91.3 million from C$68 million at the end of 2025. - Cash climbed to C$12.2 million from C$6.0 million, while cash and marketable securities totaled C$34.6 million. - The company reported a net loss of C$22.5 million for the quarter. - ZenaTech completed four land survey and legacy service business acquisitions in the quarter: Andy Paris Land Surveying, North Group, High Prairie Survey Company and Green Earth Powerwashing Franchise Network. - The company said its cumulative DaaS acquisition count reached 29 to date. - ZenaTech opened new corporate offices in South Korea and the United Kingdom. - The company said signed acquisition offers could add about C$40 million in revenue to DaaS in the first 12 months after closing. - ZenaTech said its DaaS footprint now spans 14 U.S. states. - The company advanced Blue UAS certification work for the ZenaDrone 1000, IQ Square and IQ Nano, and submitted the IQ Quad for certification. - ZenaDrone began testing its Interceptor P-1 counter-UAS platform and moved the IQ Aqua underwater mine-detection drone into U.S. field testing in Florida. - ZenaTech unveiled Zoo Office™, an AI-powered enterprise productivity platform that will include 13 software brands, including NOW Solutions and ESM. - The company filed five U.S. provisional patents covering acoustic fire suppression and aerial wildfire assessment technology for the ZenaDrone 1000. - ZenaTech launched ZenaWorx, a drone and LiDAR-based 3D construction-progress monitoring platform, and said it signed its first paying AI data center construction customer. - The company said its oil and gas surveying business is benefiting from a stronger market backdrop tied to higher oil prices and more than US$500 billion in expected Canadian energy investment over the next decade.

Between the lines: - The acquisition pace suggests ZenaTech is using roll-up deals to expand both geography and service categories faster than organic growth alone likely could. - The push into defense certification and counter-UAS systems points to a higher-upside but more complex business mix, with longer sales cycles and regulatory hurdles. - The enterprise software rebrand under Zoo Office looks designed to simplify a growing software stack, but integration will matter as much as product announcements.

What's next: - ZenaTech expects growth in the rest of 2026 to come from closing signed acquisition offers and converting more legacy survey and inspection work to drones. - The company plans continued progress on Blue UAS certification, defense agency demonstrations and customer pilots. - ZenaTech also expects further development of counter-UAS products, Ukraine-based testing and manufacturing, and expansion at facilities in Mesa, Arizona; Sharja, UAE; and Taipei, Taiwan. - The company plans to keep building Zoo Office and adding AI tools to grow enterprise SaaS revenue. - ZenaTech said it will maintain balance sheet flexibility to fund organic growth and additional acquisitions.

The bottom line: - ZenaTech is still loss-making, but its revenue growth, acquisition pipeline and defense ambitions show a company trying to scale into a much broader drone and AI platform.