Yossef Balucka, Chief Executive Officer of Duke Robotics, commented: "The third quarter of 2025 marked meaningful progress in advancing our international expansion strategy. We strengthened our operations in Greece and achieved significant milestones across our defense and civilian business lines. On the defense and civilian fronts, we're encouraged by growing government focus on drone technologies worldwide, highlighted by President Trump's recent executive order promoting the advancement of both commercial and defense applications of autonomous systems, as well as the U.S. Army's stated goal to procure at least one million drones over the coming years1. We also confirmed initial royalty revenues under our collaboration agreement with Elbit Systems Land Ltd. ("Elbit"). Together with a successful 2025 IC Drone operations season with the Israel Electric Corporation ("IEC"), we believe that these developments position Duke Robotics for meaningful growth as we expand across both defense and civilian markets."
Recent Business Highlights
Our Company successfully completed the 2025 seasonal operations for its IC Drone service with the IEC, which remains a key source of recurring revenue and a foundation for expansion across Europe through its subsidiary, Duke Robotics Hellas. Notably, just prior to the third quarter of 2025 the Company completed its selection of drone pilot operators for the Greek market.
Throughout the third quarter of 2025, the Company focused on advancing its commercial expansion strategy, with significant progress achieved toward new partnerships and deployment opportunities. These efforts represent a key milestone in executing Duke Robotics' global growth strategy.
In July 2025, the Company announced it had received its first confirmation of royalty revenues through its collaboration with Elbit from initial sales of the "Bird of Prey" stabilized weapons drone system.
The "Bird of Prey" system was featured in the media (Israel's Channel 14 News) in August 2025 as part of an in-depth report highlighting the Israel Defense Forces' ("IDF") advanced weaponized drone combat capabilities, underscoring the system's operational deployment and growing visibility.
Financial results for three months ended September 30, 2025
Revenue for the three months ended September 30, 2025, was $216,000, compared to $72,000 for the same period in 2024. The increase reflects the expansion of commercial IC Drone service operations for the IEC following the launch of the full cleaning season in May 2025.
Gross profit for the three months ended September 30, 2025 was $123,000, compared to $31,000 in the same period of 2024. The increase was driven by improved operational scale and efficiency.
Research and development (R&D) expenses were $34,000 for the three months ended September 30, 2025, compared to $20,000 for the three months ended September 30, 2024.The increase primarily reflects ongoing investment in our advanced technologies.
General and administrative (G&A) expenses were $302,000 for the three months ended September 30, 2025, compared to $229,000 in the same period of 2024. The increase primarily reflects increased personnel and share-based compensation associated with growth initiatives.
Operating loss was $213,000 for the three months ended September 30, 2025, compared to $218,000 for the same period in 2024, representing a 2% improvement year-over-year as the Company benefits from operating leverage.
Net loss for the three months ended September 30, 2025 was $230,000, or $(0.00) per share, compared to a net loss of $211,000, or $(0.00) per share, in Q3 2024.
Financial results for nine months ended September 30, 2025
Revenue for the nine months ended September 30, 2025, was $359,000, compared to $72,000 in the same period of 2024. The significant year-over-year increase is primarily attributable to the scaling of the Company's commercial IC Drone service operations for the IEC.
Gross profit for the nine-month period was $203,000, compared to $31,000 for the same period of 2024, driven by higher revenues and improved margins from scaled operations.
R&D expenses for the nine months ended September 30, 2025, were $79,000, compared to $137,000 in the same nine-month period of 2024. The decrease reflects transition toward allocating more resources to the execution of our IC Drone insulator service activities.
G&A expenses for the nine-month period were $875,000, compared to $636,000 for the same period of 2024, primarily due to increased personnel and share-based compensation associated with growth initiatives and corporate expansion.
Operating loss for the nine months ended September 30, 2025, was $751,000, compared to $742,000 in the corresponding period of 2024, reflecting modestly higher overhead to support expanded operations.
Net loss for the nine-month period was $778,000, or $(0.01) per share, compared to a net loss of $698,000, or $(0.01) per share, in the same period of 2024.
Balance Sheet HighlightsCash and cash equivalents were $361,000 as of September 30, 2025, compared to $1.26 million as of December 31, 2024, primarily reflecting ongoing investments and operating cash use during the period. As of September 30, 2025, trade receivables totaled $236,000, primarily from the IEC. The Company believes its current cash resources and projected receipts are sufficient to support operations through the second quarter of 2026.
About Duke RoboticsDuke Robotics Corp (OTCQB:DUKR) develops advanced stabilization and autonomous robotic drone systems for both civilian and defense markets. The Company's Insulator Cleaning Drone (IC Drone) is a first-of-its-kind, drone-enabled system for cleaning and and monitoring highvoltage electric utility insulators. Leveraging Duke's technologies, the IC Drone provides a safer, more efficient, and cost-effective alternative methods. In defense, through a collaboration agreement with Elbit Systems Land Ltd. ("Elbit"), the Bird of Prey weapons drone system is an agile, fully stabilized remote weapon system designed for non-line-of-sight and stand-off engagements, marketed by Elbit under the brand name Bird of Prey (formerly known as TIKAD). For additional Company information, please visit https://dukeroboticsys.com and follow us on Twitter (X) and LinkedIn. Forward-Looking Statements This press release contains forward-looking statements. Words such as "future" and similar expressions, or future or conditional verbs such as "will," are intended to identify such forwardlooking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs, assumptions, and information currently available to us. For example, we are using forward-looking statements when we discuss the expected future government focus on drone technologies worldwide; future Company growth, the Company's expansion across both defense and civilian markets as well as its expansion across Europe and its global strategy. Our actual results may differ materially from those expressed or implied due to known or unknown risks and uncertainties. These include, but are not limited to, risks related to the successful ...
