Question · Q3 2025
Yani Samolus inquired about the progress of Dedrone and DFR conversations at the state and local level, particularly after the IACP event, and the traction for drones in military/defense applications. He also asked CFO Brittany Bagley for the gross margin outlook, specifically requesting a review of the tariff impact on connected devices gross margins.
Answer
President Josh Isner and CEO Rick Smith discussed the growing awareness of drone threats, regulatory challenges for state/local mitigation, the Skydio partnership for DFR, and the strong synergy between DFR and 911 investments. CFO Brittany Bagley explained that Q3 was the first full quarter reflecting tariff impacts on connected devices gross margins, which is now 'baked in,' and future gross margins will be influenced by software growth and product mix.