Safe Pro Group Inc. (NASDAQ: SPAI) stock gained Wednesday after the defense technology company projected a sharp jump in third-quarter revenue, driven by new U.S. government contracts for its artificial intelligence-powered threat detection and battlefield mapping technology.
Safe Pro expects preliminary third-quarter revenue of more than $2.5 million, up more than 2,300% from $101,422 a year earlier. The company said the increase reflects multiple government subcontract awards supporting the U.S. Army and U.S. Air Force. The figures remain preliminary and unaudited.
For the first nine months of 2026, Safe Pro expects revenue to top $5 million, representing growth of more than 1,200% from $378,977 in the year-ago period.
Government Contracts Drive Revenue Surge
Safe Pro said third-quarter revenue is expected to rise about 88% sequentially from the second quarter as deliveries increased across its AI software and edge-based battlefield intelligence products.
The company has secured more than $5 million in aggregate government contract value so far this year. Third-quarter deliveries included work under a $1.3 million subcontract to integrate real-time AI threat detection into autonomous unmanned ground vehicles and a $780,000 U.S. Army award involving its NODE AI edge-processing systems and Blue UAS drones.
The company also participated in several U.S. Army exercises and technology demonstrations during the quarter. Safe Pro said its government activity has expanded across the Army, Air Force and State Department.
AI Technology Expands Beyond Battlefield Use
Safe Pro's technology uses AI to analyze drone imagery and identify threats such as landmines and unexploded ordnance. It can convert drone data into high-resolution 2D and 3D maps for battlefield situational awareness.
The company said its AI dataset now includes more than 3.1 million drone images and more than 58,500 confirmed detections across nearly 39,800 acres in Ukraine.
Safe Pro also recently received a subcontract tied to State Department-backed demining work in Ukraine. The company sees potential for its technology to expand into humanitarian and commercial applications beyond military use.
Chairman and CEO Dan Erdberg said expected third-quarter revenue nearly doubled from the second quarter, while nine-month revenue has already surpassed eight times the company's full-year 2025 revenue. He said Safe Pro plans to focus on expanding deployments across U.S. government agencies and allied countries through 2027.
Safe Pro also said it maintains significant cash reserves and carries no long-term debt, giving it added flexibility to fund operations and technology development as government contract activity expands.
SPAI Price Action: Safe Pro Group shares were up 4.15% at $4.26 at the time of publication on Wednesday, according to market data.
