Safe Pro Group Projects Over 500% Year-Over-Year Q1 2026 Revenue Growth Following U.S. Government Award for AI Edge Processing Systems

Rhea-AI Summary

Safe Pro Group (NASDAQ: SPAI) expects Q1 2026 revenue to increase over 500% year‑over‑year, driven by initial deliveries under a U.S. Government subcontract for its AI‑Powered Edge Processing platform. The company reported a $1,000,000 LRIP subcontract and completed a $14 million PIPE at $7.00 per share to support manufacturing and government program execution.

Safe Pro says it is transitioning from development into scaled revenue generation, commercializing its patented SPOTD AI platform and expanding government and allied engagements.

Positive

• Projected Q1 2026 revenue growth of over 500% YoY
• $1,000,000 LRIP subcontract establishes initial U.S. Government program revenue
• Completed $14 million PIPE financing at $7.00 per share to fund scale-up

Negative

• First quarter revenue figures are described as preliminary, unaudited
• Near‑term growth is concentrated around a single $1,000,000 subcontract

News Market Reaction – SPAI

+5.32% 3.8x vol

31 alerts

+5.32% News Effect

+14.4% Peak in 3 hr 28 min

+$5M Valuation Impact

$99M Market Cap

3.8x Rel. Volume

On the day this news was published, SPAI gained 5.32%, reflecting a notable positive market reaction. Argus tracked a peak move of +14.4% during that session. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $5M to the company's valuation, bringing the market cap to $99M at that time. Trading volume was very high at 3.8x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 revenue growth: Over 500% year-over-year Subcontract award: $1,000,000 PIPE financing proceeds: $14 million +5 more

8 metrics

Q1 2026 revenue growth Over 500% year-over-year Projected first quarter 2026 revenue vs. prior-year quarter

Subcontract award $1,000,000 U.S. Government AI edge processing subcontract LRIP

PIPE financing proceeds $14 million Q4 2025 PIPE financing to support scale-up

PIPE share price $7.00 per share Q4 2025 PIPE pricing

Productivity gain >800% Demining productivity improvement vs. traditional surveys (18‑month study)

Detection improvement 550% more UXO/ERW per hectare Detection vs. traditional surveys in Ukraine field study

Image dataset size 2.26M images SPOTD AI training/operational dataset referenced in prior studies

Reconstruction need $800B Estimated Ukraine reconstruction market referenced in prior work

Market Reality Check

Price: $3.96 Vol: Volume 3,489,676 is ~11x ...

high vol

$3.96 Last Close

Volume Volume 3,489,676 is ~11x the 20-day average of 319,072, indicating unusually heavy trading ahead of/around this AI revenue update. high

Technical Shares at $3.76 are below the 200-day MA of $4.76 and sit 58.95% under the 52-week high, despite trading 155.78% above the 52-week low.

Peers on Argus

SPAI fell 12.35% on heavy volume while key peers showed mixed, mostly modest mov...

1 Up

SPAI fell 12.35% on heavy volume while key peers showed mixed, mostly modest moves (e.g., VWAV +4.99%, POWW +2.46%, SPCE -2.38%). Momentum scanner flagged only MOB at +3.03%, reinforcing a stock-specific reaction.

Previous AI Reports

5 past events · Latest: Feb 20 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 20	U.S. gov subcontract	Positive	-7.7%	Announced <b>$1,000,000</b> AI edge-processing subcontract with U.S. Government prime.
Feb 04	AI conference showcase	Positive	-9.6%	Planned CEL26 presentation of NODE and SPOTD AI platforms for NATO engineers.
Jan 14	Ukraine demining results	Positive	+7.4%	Reported >800% productivity and 550% more UXO/ERW detected in 18‑month study.
Dec 22	AI upgrade reveal	Positive	+5.5%	Unveiled upgraded SPOTD algorithms for GPS‑denied drone operations and faster mapping.
Dec 18	Middle East pilot	Positive	+5.3%	Completed Middle East pilot with AI hazard detection across ~22 acres demining site.

Pattern Detected

Recent AI-tagged announcements are generally positive but produce mixed reactions: three events saw gains while two, including the latest U.S. government subcontract news, sold off despite constructive catalysts.

Recent Company History

Over the past few months, SPAI has repeatedly highlighted its AI capabilities, from Middle East and Ukraine demining pilots to upgraded SPOTD algorithms and NATO-focused conference presentations. These AI-tagged releases, including a $1,000,000 U.S. government subcontract on Feb 20, 2026, often showcased growing datasets and operational deployments. Market reactions have been mixed, with both sharp gains and notable pullbacks, suggesting investor debate over execution and monetization. Today’s projected Q1 2026 revenue surge builds directly on February’s subcontract award and prior field results.

Historical Comparison

+0.2% avg move · Over the last five AI‑tagged releases, SPAI’s average move was 0.18%, with both rallies and selloffs...

AI

+0.2%

Average Historical Move AI

Over the last five AI‑tagged releases, SPAI’s average move was 0.18%, with both rallies and selloffs. Today’s -12.35% drop on projected 500%+ Q1 growth stands out as a notably larger downside reaction.

AI news has progressed from pilots and conference demos to concrete field data, then a $1,000,000 U.S. government subcontract. The latest release extends this path by tying that award to projected >500% Q1 2026 revenue growth, emphasizing a shift from R&D and trials toward scaled government program revenue.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-11-07

An effective S-3 resale registration filed on Nov 7, 2025 covers up to 2,000,000 shares held by selling stockholders. The company itself does not receive proceeds from these resales, but potential secondary selling could influence trading dynamics if holders choose to sell.

Market Pulse Summary

The stock moved +5.3% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +5.3% in the session following this news. A strong positive reaction aligns with the company’s shift from demonstrations to contracted government revenue, underscored by projected >500% Q1 2026 growth tied to a $1,000,000 subcontract. Prior AI news produced both rallies and selloffs around an average 0.18% move, so a major gain would mark a break from that pattern. Investors have to weigh execution on government programs and the potential influence of existing registration statements on future secondary selling.

Key Terms

pipe financing, low-rate initial production (lrip)

2 terms

pipe financing financial

"Completed $14 million PIPE financing priced at $7.00 per share in Q4 2025"

Pipe financing is a way for companies to raise money quickly by selling new shares or bonds directly to investors, often before their stock is publicly traded or in the early stages of a project. It’s similar to a company securing a loan from investors, providing quick capital needed for growth or operations. For investors, it can offer opportunities for early involvement and potentially higher returns, but it may also carry increased risk due to the immediate nature of the deal.

low-rate initial production (lrip) technical

"Initial U.S. Government Program Revenue Low-Rate Initial Production (LRIP) supports $1,000,000 subcontract"

A low-rate initial production (LRIP) phase is a limited, early manufacturing run used to build a small number of products after testing but before full-scale production. For investors it signals a program moving from development toward commercial output—like a baker making a small batch to confirm the recipe before opening for regular sales—so LRIP can indicate near-term revenue potential, remaining technical or cost risks, and timing for larger contract value.

AI-generated analysis. Not financial advice.

Company Enters Revenue Inflection Point as AI-Driven Defense and Drone Modernization Accelerate

AVENTURA, Fla., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Safe Pro Group Inc. (NASDAQ: SPAI) (“Safe Pro” or the “Company”), an artificial intelligence (“AI”) defense technology company delivering drone-powered situational awareness and threat detection solutions, today announced that it expects revenue in the first quarter of 2026 to increase over 500% year-over-year, driven by initial deliveries under a recently awarded U.S. Government subcontract supporting deployment of the Company’s AI-Powered Edge Processing platform.

The Company believes it is entering a commercial and government adoption inflection point, transitioning from development-stage operations into scaling revenue generation and opportunities to access additional government programs.

Operational and Financial Highlights

• Based on Preliminary, Unaudited Financial Data, First Quarter 2026 Revenue Growth Expected to be Over 500% Year-over-Year
  • Projected acceleration reflects transition from development-stage operations into revenue-generating government programs

• Initial U.S. Government Program Revenue
  • Low-Rate Initial Production (LRIP) supports $1,000,000 subcontract award
  • Establishes Safe Pro as an active U.S. Government supplier
  • Positions Company for follow-on production and program expansion opportunities

• Balance Sheet Strengthened
  • Completed $14 million PIPE financing priced at $7.00 per share in Q4 2025
  • Strategic investments led by Ondas Holdings Inc. (NASDAQ: ONDS) and Unusual Machines, Inc. (NYSE American: UMAC)
  • Capital supports manufacturing scale-up, AI deployment, and government contracting execution

• Commercialization of Patented Safe Pro Object Threat Detection (SPOTD) AI Platform
  • Transition from R&D to deployment and revenue generation phase
  • AI software performs automated identification of explosive threats from drone imagery at the tactical edge
  • Expanding integration efforts into widely deployed U.S. Army mission planning and situational awareness ecosystems

• Expanding Government and Defense Sales Pipeline
  • Active engagements with domestic and allied government agencies
  • Growing interest from military and global humanitarian demining organizations
  • Invitations to participate in multiple U.S. Army-sponsored operational and technology evaluation events

“The first quarter of 2026 represents a transformational period for Safe Pro,” said Dan Erdberg, Chairman and Chief Executive Officer of Safe Pro Group Inc. “We believe global demand for AI-enabled drone intelligence and American defense technology is entering a sustained growth cycle. Initial government revenue validates our technology platform and positions Safe Pro for continued operational expansion.”

AI Defense Market Tailwinds

Safe Pro believes global defense modernization, autonomous drone adoption, and AI-enabled battlefield intelligence requirements are creating a structural demand cycle for advanced analytics platforms capable of operating at the tactical edge.

The Company’s patented SPOTD technology enables rapid analysis of drone imagery to identify potential explosive hazards, significantly reducing reliance on manual review while improving mission speed and operator safety.

About Safe Pro Group Inc. (NASDAQ: SPAI)
Safe Pro Group Inc. is an AI-driven defense and security technology company providing drone imagery analytics, situational awareness solutions, and protective technologies for government, humanitarian, and homeland security customers worldwide.

Its ecosystem integrates:

• SPOTD AI threat detection software
• Drone-based data acquisition and analysis
• Protective balisitc equipment
• Flexible technology archtectures leveraging the hyperscalablity of the Amazon Web Services (AWS) Cloud and local, hardware-based hypercompute edge processing

The Company’s technologies enable faster identification of explosive threats and operational risks across defense, law enforcement, critical infrastructure and post-conflict humanitarian environments. To learn more about Safe Pro Group, its subsidiaries, and technologies, please visit https://safeprogroup.com and connect with us on LinkedIn, Facebook, and X.

Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements relate to future events, future expectations, plans and prospects and in this press release include, without limitation, the Company's projected 500% revenue increase for Q1 2026, Safe Pro’s ability to generate revenue from the sales of its products, its ability to support current and future customers, statements regarding commercialization and recurring revenue generation, market opportunities, business momentum, and the expected contribution of the Government Contract to revenue. Although Safe Pro Group believes the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Safe Pro Group has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including market and other conditions. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth under Item 1A. in the Company’s most recently filed Form 10-K and updated from time to time in the Company’s Form 10-Q filings and in other filings with the Securities and Exchange Commission (the “SEC”), copies of which may be obtained from the SEC’s website at www.sec.gov. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the Company's limited operating history and history of losses; the Company's ability to successfully execute on government contracts; risks related to government contracting including contract modifications, delays, or cancellations; the Company's ability to scale operations; market acceptance of the Company's products; competition; technological changes; the Company's reliance on third-party technology providers including AWS; regulatory compliance; and general economic conditions. Any forward-looking statements contained in this press release speak only as of its date. Safe Pro Group undertakes no obligation to update any forward-looking statements contained in this press release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events, except as required by law.

Media Relations for Safe Pro Group Inc.:
media@safeprogroup.com

Investor Contact:
Ankit Hira, Managing Director
Solebury Strategic Communications for Safe Pro Group Inc.
ahira@soleburystrat.com

FAQ

What does Safe Pro (SPAI) mean by "over 500%" Q1 2026 revenue growth?

It refers to projected year‑over‑year revenue rising by more than 500% in Q1 2026. According to the company, this increase is driven by initial deliveries under a U.S. Government subcontract and early program revenue.

How large is the U.S. Government subcontract that Safe Pro (SPAI) received?

The initial Low‑Rate Initial Production subcontract is valued at $1,000,000. According to the company, LRIP revenue represents early program deliveries and positions the firm for potential follow‑on production.

What was the size and price of Safe Pro's (SPAI) recent financing round?

Safe Pro completed a $14 million PIPE financing priced at $7.00 per share. According to the company, proceeds will support manufacturing scale‑up, AI deployment, and government contracting execution.

What is the SPOTD AI platform that Safe Pro (SPAI) commercialized?

SPOTD is a patented AI system that analyzes drone imagery to identify potential explosive hazards at the tactical edge. According to the company, it automates threat detection to speed missions and reduce manual review.

How might the Q1 2026 announcement affect SPAI shareholders in the near term?

Near‑term investor implications include potential revenue acceleration and increased government validation. According to the company, results remain preliminary and tied to initial program deliveries, which may affect short‑term stock volatility.

Does Safe Pro (SPAI) expect more government programs after the LRIP subcontract?

The company indicates the LRIP award positions it for follow‑on production and program expansion opportunities. According to the company, active engagements and invited evaluations could lead to additional government work.