Safe Pro Group Inc. (NASDAQ: SPAI) announced a 560% increase in quarterly revenue for the period ending March 31, 2026, driven by a 2,400% surge in its high-margin AI revenue. The company also revealed the formation of a new growth team aimed at capturing U.S. government contracts.
According to the company's financial results, revenue rose to over $1,220,129, compared to $184,809 in the first quarter of 2025. The growth was largely fueled by contracted sales of its AI-powered drone-based video and image analysis systems. Consolidated gross margins exceeded 68%, inclusive of depreciation, validating the scalability of its business model. The company ended the quarter with $14.8 million in cash and minimal debt.
Operational highlights included the delivery of multiple Edge processing systems under a $1,000,000 government contract, along with a contract modification to provide support for those systems. Interest in Safe Pro's Navigation, Observation & Detection Engine (NODE) and the new NODE-X miniaturized Edge processing solution has grown following live demonstrations and exercises conducted by the U.S. Army. These engagements allow Safe Pro to connect directly with defense decision-makers, potentially leading to product acquisition and deployment.
The company has expanded its leadership team and launched a new growth team led by Brian Mack as Chief Growth Officer and Benjamin Chitty as Vice President of Government Growth. This team will focus on securing U.S. government awards through teaming agreements with Prime Contractors.
Dan Erdberg, Chairman and CEO of Safe Pro Group, stated: “We believe Safe Pro is well positioned to capitalize on the AI era with the momentum we see building for our patented AI solutions within the U.S. Government. Supported by a strong balance sheet, expanded team of accomplished military acquisition specialists, and an enhanced portfolio of real-world proven solutions, we are excited about our future.”
Safe Pro Group delivers AI-powered security and defense solutions to law enforcement, humanitarian, homeland security, and defense sectors. Its core technology is patented computer vision software that rapidly detects small objects in drone-based videos and images, enabling more efficient and safe field operations. More information is available at www.SafeProGroup.com.
The company's financial results and growth team launch underscore its strategic push to expand within the U.S. government market, leveraging its AI capabilities and strong balance sheet to capture further contract awards.
