Parrot SA delivered a solid year-over-year revenue uptick in QQ2 2025, reporting revenue of €33.6 million, up about 9.8% from the prior-year period. The gross margin remained robust at 74.7%, reflecting a favorable product mix and ongoing pricing discipline in a hardware-centric business. However, the quarter ended with a consolidated operating loss of €12.9 million and a net loss of €14.4 million, underscoring a continuing heavy investment cycle driven by R&D and go-to-market initiatives that are core to Parrot’s long-term software and services strategy.
Near-term profitability remains constrained by elevated operating expenses (R&D of €22.7 million and SG&A of €15.3 million) and ongoing investments in software, services, and scale. The company maintains a healthy balance sheet with €17.0 million in cash and equivalents at quarter-end and a net cash position of €8.6 million, supporting liquidity as Parrot executes its product-and-services roadmap. Despite negative earnings, the quarter reinforces the narrative that Parrot is positioning for future growth through its drone hardware ecosystem, Pix4Dmapper software, and cloud/SaaS offerings, which should help diversify revenue streams beyond hardware alone.
From an investor vantage point, the QQ2 2025 results signal a transition phase: topline growth is positive and margins on goods sold are sound, but the earnings profile remains burdened by deliberate investments aimed at future recurring software and service revenue. The balance sheet remains comparatively modest in absolute size, with a conservative debt load and a meaningful cash cushion. The key question for investors is environment-driven: can Parrot accelerate software monetization and achieve step-change improvements in operating leverage while sustaining revenue growth in a competitive drone market?