Safe Pro Group Inc.

What they do

Safe Pro develops the Safe Pro Object Threat Detection (SPOTD) AI platform, which analyzes imagery and video from drones to detect and classify explosive threats and other objects of interest, converting raw video into 2D/3D geospatial models. The company sells AI-powered edge compute products such as its Navigation, Observation & Detection Engine (NODE) and the embeddable InFlight threat detection package, alongside services and support. Its subsidiaries include Safe-Pro USA LLC and Airborne Response Corp., and SPOTD has been deployed in Ukraine for nearly three years.

Revenue drivers

• AI subsidiary (NODE edge compute and SPOTD software/services) — The AI segment drove Q2 2026 revenue, with AI subsidiary sales up over 3,084% year over year on U.S. Army-contracted NODE sales and services and support revenue, and AI gross margin of 75%.
• U.S. government contracts and subcontracts — Revenue is tied to government awards, including four government contracts received in Q2 2026 supporting the U.S. Army, an Air Force SBIR award for AI dataset development, and a U.S. defense prime contractor award to integrate threat detection onto autonomous ground vehicles.
• Safe-Pro USA LLC operations — Safe-Pro USA LLC is a subsidiary whose founder and president, Pravin Borkar, also serves as Chief Technical Officer and a director; the filing does not break out its revenue contribution.

Recent performance

Q2 2026 revenue was $1,332,074, up 1,336% from $92,753 in Q2 2025, with AI gross margin of 75%. Full-year 2025 revenue was $606,681, down from $2.2M in 2024, and 2025 net loss was $14.3M versus $7.4M in 2024. Operating cash flow was negative $6.2M in 2025. At June 30, 2026, the company reported total assets of $13.5M, total liabilities of $1.6M, shareholder equity of $12.0M and cash of $10.2M. The company completed a Board-approved share repurchase program, buying 637,084 shares in the open market, of which 474,630 were purchased in the six months ended June 30, 2026.

Strategy

Management said first-half 2026 investments in personnel, technology development and inventory, plus the completed share repurchase program, are aligned with a growing, high-margin government contract revenue base. The company is advancing InFlight, an embeddable real-time AI threat detection package that can process video onboard a drone and feed live threat data into mission planning systems such as the U.S. Army's Tactical Assault Kit (ATAK). It is also integrating its threat detection technology onboard next-generation autonomous Unmanned Ground Vehicles for on-the-move battlefield operations. Safe Pro hosted an Innovation Day on August 25, 2026 in Aventura, Florida featuring live drone operations.

Risks

• Customer concentration in government contracts — Q2 2026 growth depended on U.S. Army-contracted NODE sales, an Air Force SBIR award and a defense prime contractor award, so contract timing or cancellations could sharply reduce revenue.
• Volatile revenue history — Revenue fell from $2.2M in 2024 to $606,681 in 2025 before the Q2 2026 spike, showing results can swing widely between periods.
• Persistent losses and cash burn — Net loss widened to $14.3M in 2025 from $7.4M in 2024 and operating cash flow was negative $6.2M in 2025.
• Dependence on a small number of products and awards — Revenue is concentrated in the SPOTD/NODE AI product line and a handful of government awards and SBIR programs, leaving little diversification.

Outlook

Management said the growing number of contract awards for its patented AI threat detection and mapping technology validates what it believes is a large, urgent unmet need for real-time situational awareness in defense. CEO Dan Erdberg said the first-half 2026 investments position Safe Pro for sustained long-term growth as adoption of its edge compute threat detection technology accelerates across aerial and ground-based military platforms. The company has not provided specific revenue or earnings guidance in the excerpts.