Safe Pro sees 2,300% Q3 revenue jump on AI defense contracts

Safe Pro Group Inc. (Nasdaq: SPAI) expects third-quarter 2026 revenue to rise by more than 2,300% year-over-year to exceed $2.5 million, a preliminary estimate driven by U.S. government subcontract awards for AI-powered threat detection and mapping systems. The company stated that this figure is unaudited and subject to change upon the completion of its quarterly closing and review procedures. The prior-year comparison point for the third quarter of 2025 was $101,422 in revenue.

The surge in expected revenue stems from deliveries of the company’s patented AI software and edge-based battlefield intelligence solutions to multiple U.S. government prime contractors. Safe Pro reported that aggregate awarded contract value reached more than $5 million year-to-date. Specific deliveries in the third quarter involved a $1.3 million subcontract with a U.S. defense prime contractor, focusing on embedding real-time AI threat detection capabilities into autonomous unmanned ground vehicles. Additionally, the company secured a $780,000 U.S. Army award for a package that includes its NODE AI edge-processing systems and Blue UAS drones.

For the nine months ended September 30, 2026, Safe Pro projects revenue to increase by over 1,200% year-over-year to more than $5.0 million, compared with $378,977 in the same period of 2025. The company noted that third-quarter revenue represents an approximate 88% increase on a sequential basis relative to the second quarter of 2026. Dan Erdberg, Chairman and Chief Executive Officer, stated that nine-month revenue of more than $5.0 million is already more than eight times the full-year 2025 revenue total.

Safe Pro’s operations involve converting raw visual data collected by drones into high-resolution 2D and 3D maps for situational awareness. The company’s AI dataset includes more than 3.1 million drone images and over 58,526 confirmed detections collected across more than 39,777 acres of land in Ukraine. These datasets support the company’s threat detection and mapping capabilities, which are being deployed in various military and dual-use pipelines.

The company has expanded its relationships across the U.S. government, including with the U.S. Army under a Cooperative Research and Development Agreement (CRADA). Safe Pro also reported new relationships with the U.S. Department of State, where it was awarded a subcontract for AI-powered demining software supporting demining activities in Ukraine. The company believes these tools will be critical for restoring Ukraine’s agricultural sector and recovering rare earth minerals as part of reconstruction efforts.

Safe Pro maintains significant cash reserves and no long-term debt. The company expects rapid execution against awarded government contracts to drive high-margin revenue growth and contribute to a significant increase in accounts receivable. Management believes that, subject to customary government payment processes, these receivables will provide improved cash flows to support operating and technology development activities through 2027.