IQ
iQIYI, Inc.
stock NASDAQ ADR

# ZenaTech Letter to Shareholders Outlines 316% Q2 Revenue Growth and Seventh Consecutive Quarter of Sequential Growth
*Drone as a Service generated $8.6 million, or nearly 93% of Q2 revenue, as the Company expanded its operating platform and advanced its defense technology portfolio*
VANCOUVER, British Columbia, Oct. 01, 2026 [(GLOBE NEWSWIRE)](https://www.globenewswire.com/) \-- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech" or the "Company"), a technology solution provider specializing in AI-powered drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions, today provides a business update and future outlook in a letter to shareholders from CEO Shaun Passley, Ph.D. Unless otherwise indicated, all financial figures are expressed in Canadian dollars.
**To our valued shareholders,**
ZenaTech continues its evolution from a technology development company with a software revenue base to a diversified, multi-product and vertically integrated operating company with a scalable Drone as a Service platform, and advancing commercial, government and defense drone technology portfolio, and an enterprise software business.
I am proud of what we accomplished during the first half of 2026. We continued to execute our business plan, scale our DaaS operations and advance our drone and software platforms for business, government and defense markets.
Second-quarter revenue reached $9.3 million, up 316% year over year, while revenue for the first six months reached $17.7 million, up 425% from the comparable period last year. First-half revenue also exceeded our full-year 2025 revenue of $12.9 million by approximately 37%. Drone as a Service remained our primary revenue engine, contributing $8.6 million, or nearly 93% of total revenue in the quarter, and $16.4 million during the first half.
We have now delivered seven consecutive quarters of sequential revenue growth since Q4 2024. Quarterly revenue increased more than 13 times over that period, from approximately $0.7 million in Q4 2024 to $9.3 million in Q2 2026.
In June 2026, ZenaTech was added to the Russell 3000® Index, an important market-recognition milestone as we continue to expand the Company.
Our Q2 operating expenses increased with our larger workforce, acquired operations, sales and marketing activity, technology development and public-company costs. We recognize that scaling revenue must ultimately translate into improved operating leverage. Our focus is therefore not only on adding locations, but also on integrating them, deploying drone-enabled workflows and expanding higher-value data and analytics services.
Following our May financing, we ended the quarter with $12.2 million in cash, $34.6 million in combined cash and marketable securities, and $24.3 million in working capital. Total assets increased 50% to $149.3 million and shareholders' equity increased 34% to $91.4 million. These resources provide flexibility to fund integration, product development and disciplined acquisitions, while we remain focused on careful capital allocation.
**Drone as a Service**
The scale of our operating platform continues to expand. In Q2 2026, we completed four land survey and legacy service business acquisitions, bringing our cumulative DaaS acquisition count to 24 at June 30. Subsequent transactions increased that count to 29 to date and expanded our presence into additional sectors and regions, including Alberta, Ohio, Idaho and, most recently, Georgia. ZenaTech's DaaS operations now have a physical presence in 14 U.S. states. We also expanded our corporate footprint with offices in South Korea and the United Kingdom, while our broader DaaS operations and acquisition activity extend across the U.S., Canada, the UK and Australia.
We chose land surveying and related engineering services deliberately. These are essential, fragmented industries facing a shortage of licensed professionals, while many workflows remain manual and dependent on decades-old processes. By combining established local operators and customer relationships with drones, LiDAR, centralized data processing and analytics, we believe we can increase field capacity, shorten project timelines and improve data and precision. For customers, that can mean faster and more useful information. For shareholders, it creates a platform through which technology, shared services and new offerings can be deployed across a growing revenue base.
Our objective is to build a scaled, technology-enabled global Drone as a Service platform. We acquire established operating companies with licensed professionals, existing customers and specialized expertise, then connect them with ZenaDrone technology, software, AI, analytics and our vertically integrated manufacturing capabilities. Each acquisition adds an existing revenue base upon consolidation. As integration progresses, we believe drone-enabled workflows can reduce costs per job, increase capacity and support margin improvement.
Scale matters because each new location expands the customer base into which we can deploy differentiated technology and data services and broadens the types of contracts we can pursue. We will continue to target acquisitions in sectors ready for drone-enabled modernization as we enter new U.S. states and international markets. At the time of our Q2 results announcement, signed acquisition offers across the U.S., Canada and Australia, if completed, were expected to contribute approximately $40 million in revenue during the first 12 months following closing.
**Defense Technology Progress**
Our defense technology portfolio is an important component of our long-term strategy, and we continue to advance product development, certification and customer engagement as demand for commercial and defense drone solutions grows.
The ZenaDrone 1000, IQ Nano and IQ Square have advanced into the cybersecurity phase of the Blue UAS certification process, while the IQ Quad is also progressing toward certification. Blue UAS certification supports eligibility for U.S. government and defense procurement. We are also moving from internal development toward customer-facing demonstrations. We have received our first confirmed U.S. government defense agency demonstration request and are planning demonstrations involving the IQ Nano, ZenaDrone 1000 and IQ Square for applications including inspections, surveys, specialized cargo, reconnaissance and inventory management. We believe this progress strengthens our ability to pursue future pilots and potential contracts.
We continue to build out our Counter-UAS platform to offer cost-effective solutions. Low-cost hostile drones can be extraordinarily expensive to counter using traditional intercept methods. The Interceptor P-1 is our low-cost, one-way autonomous interceptor designed to physically engage hostile drones, with a target selling price of under US$5,000. It has entered flight testing. We have also advanced our IQ Aqua underwater mine-detection drone into U.S. field testing in Florida and are progressing development of the larger gas-powered ZenaDrone 2000 and IQ Glider autonomous maritime launch and refueling platform. Together, these technologies form part of a broader integrated Counter-UAS architecture intended to be supported by Zena AI and our research involving detection and swarm-command capabilities.
ZenaDrone has also begun in-house flight testing of custom-designed printed circuit boards manufactured by our Taiwan-based Spider Vision Sensors subsidiary and integrated at our UAE facility, advancing our vertical-integration strategy toward NDAA-compliant drones and Blue UAS certification.
Geographically, we are developing capabilities for U.S. and allied defense markets, including potential NATO and Gulf-state opportunities. Our Ukraine-based manufacturing and testing operation is being established with a planned focus on Counter-UAS and interceptor drones, and we registered Phoenix Aero as our Western Ukraine-based company.
**Enterprise Software**
Enterprise SaaS revenue was $702,315 in Q2, an increase of approximately 6% from the prior-year quarter. First-half Enterprise SaaS revenue was $1.29 million, compared with $1.39 million a year earlier. During the quarter, we added NOW Solutions, an HR and payroll software business serving government and institutional customers.
We also announced Zoo Office™, the next evolution of our enterprise software strategy. Our vision is an AI-powered enterprise productivity platform that will include the Company's existing 13 software brands together with new applications under development. It is intended to provide an integrated business environment in which AI can understand organizational context, automate repetitive workflows, execute tasks and support better decisions.
We have also expanded ZenaWorx virtual design and construction progress monitoring with digital-terrain-modeling capabilities and signed the Company's first paying customer in the AI data-center construction market.
**Outlook for the Remainder of 2026**
As we move through the second half of 2026, we believe we are positioned to continue building the business. Our priorities remain integrating and scaling our platforms, converting technology investment into revenue, and continuing the disciplined M&A activity that has driven our growth.
In DaaS, we are working to close transactions covered by signed acquisition offers while continuing to integrate acquired survey, inspection and power-washing businesses into drone-based delivery. Our objectives include reducing the cost per survey and per job, increasing capacity and geographic reach, supporting margin expansion, and introducing additional data and analytics services with centralized processing.
In drone technology and defense, we are advancing product development, the Blue UAS certification process and engagement with U.S. defense agencies. These activities are intended to support additional demonstration requests, potential procurement-list inclusion, pilots and future government revenue. We are also progressing our Counter-UAS and interceptor programs and establishing Ukraine-based testing and manufacturing capabilities to support product-development objectives.
Our manufacturing priorities include further commissioning facilities, expanding production capabilities and growing manufacturing and testing teams across Mesa, Arizona; Sharjah, UAE; and Taipei, Taiwan.
In enterprise software, we are continuing the rollout of Zoo Office™, our planned AI-powered enterprise productivity platform incorporating 13 existing software brands and designed to support future Enterprise SaaS revenue opportunities.
Finally, we will continue to manage our balance sheet carefully as we fund organic growth, integrate acquisitions and pursue additional disciplined transactions.
ZenaTech is a very different company than it was a year ago. We have moved from primarily developing software and technologies to building a larger operating platform with revenue, customers, acquired businesses, manufacturing capabilities, software products and a growing defense opportunity pipeline.
I am proud of what we have accomplished to date and the results we have delivered. We remain committed to building long-term shareholder value as we scale the business. I am grateful for your continued support and confidence, and I look forward to sharing our progress throughout the remainder of 2026.
Sincerely,
Shaun Passley, Ph.D.
Chief Executive Officer
ZenaTech, Inc.

Typical BJP IT Cell IQ level.

they're losing control because they are mentally low IQ.

You are severely overestimating the average IQ

Hahahahahah 🤣🤣🤣 written like a true loser in the market "for a move you can get in 30 seconds" room temperature IQ you must be new

First off, IQ is completely biased and not accurate.
Second, there are very few people who score 130-140 so their sample size of known high IQ traders would be even smaller.

A lot of the Pies posted lack purpose, they're just a bunch of stocks thrown together.
Maybe a lot will disagree with this, but I quite like the *(Almost) Daily Dividend* pie for it's academic purpose. I don't hold it, but I do follow the creator and his YouTube channel where he talks through it and updates people on its progress. There will be people learning something about stocks from that pie.
>*I'm starting to think the app is actually full of bots just posting the most ridiculous shit to get people to interact or is the average user of this app just very low IQ?*
No, the problem is that there are a lot of people expecting instant massive returns because they're being hammered with success stories daily. When I was younger stocks and shares were boring old person stuff. But now everyone is supposed to be making 10x gains every week on a random penny share or they're somehow failing. A steady 8% AAR from hands-off long-term investments is no longer cutting it, you've got to be "trading" and making 15% every month.

I've come to understand that PIES are ultimately a distraction from doing the more simpler investments and leads new investors down the wrong track by being bombarded with what looks 'right'
Now I imagine there ARE a handful of useful pies but ultimately I think they are shit.
(If you do have a pie that's worth it then please share)
The other issue is the complete limp wristed comments within the app on a companys page
"Are we expecting a rocket in AH"
People think AH is some sort of mystical realm of stonks and it's pathetic
"Are we holding over the weekend"
Make your own mind up you plank
"Look at that rocket go"
Gained 0.19£ on a £6 share
I'm starting to think the app is actually full of bots just posting the most ridiculous shit to get people to interact or is the average user of this app just very low IQ?
Thank you
This isy TED talk

Well said.
And yes, the IQ test is very problematic. Especially for folks who aren’t raised with certain norms and morays.
Definitely needed to be pointed out.

Amazing you have a gf with that low IQ spelling

Hard to believe he tested the IQs of these people, so most likely he is just guessing based on nothing.
I don't disagree with what he found, but I think it's also true that his intellectual abilities condition the strategies he created. As a result high IQ people indeed might struggle with *his* strategies. For example, a 115 IQ person may struggle trying to trade a strategy created by an 85 IQ person. That doesn't mean the 115 IQ person is a bad trader.
It is definitely true that dealing with certain classes of strategies or instruments require a minimum amount of intellectual ability.
The other thing is "IQ" has a ton of problems with it that people don't realize. I don't want to get into all of it, but one of the biggest problems is that as a proxy for "real intelligence" it has asymmetric error (it is much more accurate for gauging low "intelligence" than high "intelligence"). There are plenty of other issues. Most charitably though, high IQ basically demonstrates a superior ability to manipulate abstractions. This is great for things like math that is all abstraction and where abstractions are arbitrarily faithful. The closer you get to the real world where abstractions may be either too simple or far too complex (if they do exist), maybe this is where being too abstract hurts you.
Whether you want to cover all of intelligence under "ability to manipulate abstractions" is up to you. If 90 IQ traders function much better than 150 IQ traders, maybe intelligence needs to be redefined.

40 IQ lol. Are you guys just walking spines with with nervous system? 😆

Conpletely disagree. My friends and I are all cave men with 40 IQ and we trade just fine

>i dont know why you think special dividends are very measurable, but small dividends are not -- if both movements share the same mechanistic source. if the mechanism is what drives these differences, they would always be measurable in the **widely available market data for close/after hours close/open** prices.
Obviously a special dividend would be more noticeable because they tend to be larger. Again, I gave the TransDigm special dividend example.
> they would always be measurable in the **widely available market data for close/after hours close/open** prices.
I already invalidated your argument because stocks trade after hours and in the premarket. Again, you can't seem to comprehend that if a stock closes at $100 and something bad happen to them after hours, the stock will most likely open lower after hours and in the premarket. Therefore, the opening price will be lower. Again, look up the closes and opens on Yahoo Finance and it literally gives the "adjusted share price" which is for dividends and stock splits. Clearly you have no idea what you're talking about.
>the fact that you KEEP arguing with theorycraft over and over instead of just linking me 2\~ instances of regular dividends resulting in an **equal** drop in share price should prove to you that you actually don't know what you're talking about, and that you don't know how to perform quant market research. oh well.
It's clear you have a low IQ because you can't even comprehend the simple logic that if a company pays you cash in the form of a dividend, then logically, the company would have to be worth less after this payment. It's really simple logic bro, I don't know how to make it more clear to you. Again, you can refute all of this as much as you want. It still happens to those dividend paying stocks you own and there is nothing you can do about it. Again, provide some resources where you learned this saying that the share price isn't lowered. Please stop spreading financial information here.

I think you have the 5O IQ, I’m saying the price can spike before market open, I’ve seen it happen many times and the whole night before everyone was saying exactly what you said above. If it stays flat then yeah, but the move may have just not happened yet.

Is your IQ less than 50 or are you just stupid rich? Because theta is gonna cuck you. GG

ok, my IQ levels are back to Zero. Have a great evening

multiple mini games, it was a while ago so i dont really remember but some were like quick maths like idk 72+34 answer fast u know or something like that and then others were kinda just facebook IQ games

IQ Test Question : Would you rather exit breakeven today or incur more losses tomorrow?

I don't think so but then again I am not genius level IQ so perhaps I just can't find it.