Safe Pro Expects Q3 Revenue Above $2.5 Million as U.S. Government Contract Work Accelerates

Safe Pro Group expects third-quarter revenue to exceed $2.5 million as deliveries tied to U.S. government defense and security work accelerate, according to preliminary figures released Wednesday. The company said the estimate would represent growth of more than 2,300% from $101,422 in the third quarter of 2025.

The expected result would also be about 88% higher than Safe Pro’s second-quarter revenue of $1.33 million. For the first nine months of 2026, the company expects revenue above $5.0 million, compared with $378,977 in the same period last year. Those figures remain preliminary and unaudited, and Safe Pro said they could change as it completes its quarter-end closing and review procedures.

Safe Pro disclosed the estimates in an October 7 Form 8-K filed with the Securities and Exchange Commission. The filing says growth is being driven by increasing deliveries of the company’s AI software and edge-based battlefield intelligence systems to prime contractors working with U.S. government customers. Safe Pro said it has received more than $5 million in aggregate government-related AI contract awards so far in 2026, though awarded contract value is not the same as revenue recognized in a reporting period.

Government awards move from backlog into deliveries

The third-quarter update points to two awards as contributors to current delivery activity. One is a $1.3 million subcontract announced in June under Forterra, a defense prime contractor, to put Safe Pro’s real-time explosive-threat detection technology on autonomous unmanned ground vehicles. The work is intended to allow vehicles to identify threats such as landmines and unexploded ordnance while moving, rather than relying only on post-mission analysis.

The other is a $780,000 purchase order announced in August for a package that includes Safe Pro’s NODE edge-processing systems and multiple Blue UAS drones. Safe Pro said work on that award would begin in the third quarter and was expected to continue into the first quarter of 2027. The company described the order as coming through a new prime-contractor relationship supporting a U.S. government customer.

Those awards sit within a broader run of government business. Safe Pro said in August that it had received four government contracts during the second quarter, including work supporting the U.S. Army and a U.S. Air Force Small Business Innovation Research award related to AI dataset development for airfield operations. In August, it also announced an approximately $180,000 subcontract and purchase order for threat-detection and mapping software supporting a U.S. Department of State demining program in Ukraine.

The distinction between awards and recognized sales is important for interpreting the current update. Contract announcements can span multiple reporting periods and may include hardware, software licenses, support services or development work delivered at different times. Safe Pro’s October filing specifically attributes the expected quarterly increase to rising deliveries, giving investors a clearer indication that at least part of the previously announced government pipeline is moving into reported revenue.

Black Widow work puts Safe Pro’s AI into Army exercises

Safe Pro has also been using U.S. Army exercises to demonstrate how its computer-vision software can operate on unmanned systems in the field. Earlier this year, the company said it had integrated its InFlight threat-detection package with Red Cat’s Black Widow reconnaissance drone, allowing AI models to process video onboard the aircraft and send threat data into tactical mission-planning tools.

That work was demonstrated during the Army’s Sandhills Project at Fort Bragg in August. An official U.S. Army account of the exercise described Soldiers and industry developers testing autonomous trucks, robotic breaching systems, drone swarms, mine-detection tools and counter-drone technology under operational conditions. The Army article also identifies a Safe Pro AI Black Widow drone used during the exercise.

For Safe Pro, the exercises serve two purposes. They provide a venue to test whether its software can process imagery and detect threats in realistic conditions, and they put the technology in front of military units that may become future customers. The company said in its third-quarter update that it completed multiple Army exercises and technology demonstrations during the period and has seen activity expand across Army organizations, the Air Force and, more recently, the State Department.

Safe Pro’s core threat-detection platform is designed to analyze imagery and video from drones and other sensors, identify explosive hazards or objects of interest, and turn those detections into maps that can be shared with operators. The business model increasingly mixes software, edge-compute hardware, drones supplied as part of larger kits, licensing, training and operational support. That mix helps explain why the company’s recent awards differ in size and delivery schedule.

Q3 would extend a sharp revenue step-up from the first half

The preliminary third-quarter figure would continue a rapid increase already visible in Safe Pro’s reported results. Revenue for the first quarter of 2026 was $1.22 million, followed by $1.33 million in the second quarter. Its June-quarter Form 10-Q showed first-half revenue of $2.55 million, compared with $277,555 in the first half of 2025.

The second quarter also showed how much of that growth was coming from the AI business. Safe Pro AI recorded $402,459 in product sales and $531,603 in services revenue during the quarter. The company reported a 75% gross margin for the AI subsidiary in that period, while saying new Army-contracted sales of its NODE systems and related support were a major contributor.

At June 30, Safe Pro reported $10.23 million in cash, down from $16.79 million at the end of 2025. Accounts receivable and other receivables had risen to $1.25 million from about $100,000 at year-end. In Wednesday’s update, management said continued execution of government awards is expected to increase receivables further before customer payments are collected, making working-capital timing another factor to watch as the company scales.

The size of the year-over-year growth rates also reflects a very small prior-period revenue base. A move from roughly $101,000 to more than $2.5 million produces an unusually large percentage increase, so the more useful comparison for the current operating pace is the sequential change from the second quarter. On that basis, Safe Pro is still projecting a substantial step higher, with expected Q3 revenue roughly 88% above the June-quarter level.

Final third-quarter revenue has not yet been reported. The October 7 filing presents the figures as management estimates subject to completion of closing and review procedures, so the eventual reported number could differ from the current expectation. The next financial filing will also show how much of the recent government award activity converted into recognized revenue, receivables and cash flow during the quarter.