Drone Division Expansion Drives ZenaTech's Record First-Quarter Revenue Surge
New York, Wednesday, 3 June 2026.
ZenaTech reported a staggering 640 percent revenue increase in early 2026. This massive growth, driven by strategic drone service acquisitions, contrasts with a widening $26.5 million net loss.
A Strategic Pivot to Drones Pays Off
On June 2, 2026, ZenaTech, Inc. (NASDAQ: ZENA) posted its financial results for the first quarter of 2026, revealing a total revenue of $8.4 million CAD—a 643.363 percent increase from the $1.13 million CAD reported during the same period in 2025 [1][3]. The primary engine behind this growth is the company’s Drone as a Service (DaaS) segment, which generated $7.8 million CAD, accounting for approximately 93 percent of total revenue [1]. This marks a dramatic shift for the company, which officially branched into the drone industry in January 2025 [3]. Prior to this pivot, ZenaTech relied heavily on its Software as a Service (SaaS) division, which actually saw a revenue contraction to $589,857 CAD in the first quarter of 2026, down from $732,888 CAD in the first quarter of 2025 [3].
Financial Strain Amidst Aggressive Expansion
However, this hyper-growth has come at a steep cost. While revenue surged, ZenaTech recorded a net operating loss of $21,569,161 CAD and a comprehensive loss of $27,206,284 CAD for the three months ending March 31, 2026 [3]. This represents a significant widening from the $4,610,319 CAD comprehensive loss reported in the first quarter of 2025 [3]. Consequently, the company’s accumulated deficit swelled to $80,292,091 CAD by the end of March 2026 [3]. Market data from June 3, 2026, reflects a GAAP Earnings Per Share (EPS) of -$0.36 for the quarter, though the stock maintained a relatively steady position, closing at $1.51 during regular trading hours on June 2 [2].
The Epazz Connection and Offshore Operations
A critical, yet complex, element of ZenaTech’s operational framework is its deep financial entanglement with Epazz, Inc., its majority voting shareholder [3]. ZenaTech operates under a management services agreement with Epazz that extends to November 2038 [3]. Under this arrangement, ZenaTech pays a 30 percent markup on expenses for drone production, software development, and administrative support, which are largely executed at a leased facility in Lahore, Pakistan [3]. As of March 31, 2026, ZenaTech’s total advances to Epazz for future services reached $28,571,968 CAD, a figure that includes $5,521,432 CAD advanced just during the first quarter of 2026 [3].
Future Trajectory and Defense Ambitions
Looking ahead to the remainder of 2026, ZenaTech plans to establish full operational status at its manufacturing sites in Arizona and Ukraine, while expanding capacity across facilities in Dubai and Taiwan [1]. The company is also planning to open a new drone manufacturing facility in Nevada and launch sales offices in Germany, Ireland, the UAE, and the UK [3]. To support its international workforce, ZenaTech has committed to purchasing five residential properties in the UAE, advancing $2,452,793 CAD toward a total contract value of $5,032,157 CAD [3].