Safe Pro Group Signals Confidence with $3M Share Buyback

AVENTURA, FL – December 18, 2025 – Safe Pro Group Inc. (NASDAQ: SPAI), a developer of AI-powered security solutions, saw its stock surge over 18% in premarket trading Thursday after its Board of Directors authorized a significant share repurchase program. The plan allows the company to buy back up to $3.0 million of its common stock over the next year, a move widely interpreted as a strong vote of confidence from leadership in the firm's future.

The announcement provided a much-needed boost for the stock, which had declined over 22% in the preceding week. The buyback authorization, according to the company, is a direct reflection of the board’s belief in its strategy and technological leadership.

“This authorization reflects our confidence in Safe Pro’s long-term growth trajectory and the intrinsic value of our business,” said Dan Erdberg, Chairman and Chief Executive Officer of Safe Pro Group, in a statement. “We remain focused on executing our strategy, supporting our customers, and investing in our AI technology platform, while also returning capital to shareholders when we believe it is prudent to do so.”

A Financial Vote of Confidence

A share repurchase, or buyback, is a classic corporate finance maneuver where a company buys its own shares from the marketplace, reducing the number of outstanding shares. This action can increase earnings per share and signal to investors that the management believes the stock is undervalued. For Safe Pro Group, this $3 million authorization represents a significant strategic decision.

An examination of the company's financials reveals a nuanced picture. According to its most recent quarterly report, the firm holds a healthy cash position with $7.6 million in cash and cash equivalents against minimal debt of just over $221,000. This strong liquidity, reflected in a current ratio of 7.6, suggests the company is well-positioned to fund the repurchase program from its existing reserves. However, the decision comes at a time when Safe Pro has reported negative free cash flow of $4.62 million over the last twelve months.

Despite this, the company's strong balance sheet appears to give it the flexibility for such a move. The authorization is not an obligation; Safe Pro may repurchase shares based on market conditions and other factors, providing an agile tool for capital management rather than a rigid commitment. This financial prudence is further underscored by recent analyst sentiment. Lake Street Capital Markets, for instance, recently initiated coverage on SPAI stock with a “Buy” rating and an ambitious price target of $9.00, suggesting professional analysts also see significant upside potential.

Aligning with Shareholder and Insider Interests

The buyback program also serves to align the company's actions with shareholder interests, particularly in light of recent stock performance. Before the announcement, the stock was down approximately 6% year-to-date. By reducing the number of shares available, the program can create upward pressure on the stock price, rewarding long-term investors.

This move is further contextualized by recent insider activity. Over the last twelve months, company insiders have been net buyers of the stock, purchasing 395,000 more shares than they sold. CEO Dan Erdberg himself is a major shareholder, holding 26.41% of the company. This high level of insider ownership, coupled with net buying activity, indicates that those with the most intimate knowledge of the company's operations share the board's confidence in its intrinsic value.

Furthermore, recent adjustments to the CEO's compensation package have more closely tied his incentives to stock performance, replacing a previous grant based on market capitalization milestones with stock options that have an exercise price of $4.15 per share. This structure ensures that leadership's financial success is directly linked to creating value for all shareholders.

Powering Innovation in AI-Enabled Defense

Beyond the financial signals, the share repurchase underscores the company's stability as it continues to push the boundaries of AI in the defense and security sectors. Safe Pro specializes in developing advanced situational awareness tools, most notably through its proprietary machine learning and computer vision technology that processes drone imagery. Its SPOTD (Safe Pro Object Threat Detection) system enables the rapid identification of explosive threats, offering a safer and more efficient alternative to traditional human analysis.

This financial maneuver does not appear to be happening at the expense of innovation. On the contrary, it signals a stable foundation from which the company can pursue growth. Safe Pro recently secured a $14 million strategic investment led by Ondas Holdings Inc., specifically aimed at expanding its drone-based AI operations in critical areas like Ukraine for both defense and humanitarian demining applications.

The real-world impact of this technology was recently demonstrated in a successful Middle East pilot program, also conducted with Ondas Holdings. In the demonstration, Safe Pro's AI platform successfully identified approximately 60 landmines and unexploded ordnance, showcasing its potential to save lives in post-conflict zones. To protect its technological edge, the company has also filed a new patent for an enhanced AI computer vision algorithm designed to improve detection accuracy, reinforcing its commitment to maintaining a leadership position in the field.

A Strategic Play in a Surging Market

Safe Pro Group's decision is not occurring in a vacuum. It comes amid a historic surge of investment in the defense technology sector. Once a niche area, defense tech attracted a record $28.4 billion in venture capital across 361 deals in just the first half of 2025, surpassing the total for all of 2023. This influx of private capital is being encouraged by government initiatives, such as the Department of Defense's Office of Strategic Capital (OSC), which aims to bridge the funding gap for technologies critical to national security.

This broader market context suggests that Safe Pro's share buyback is a strategic move to solidify its position and enhance shareholder value while the sector is experiencing unprecedented growth and investor interest. By using its strong balance sheet to signal confidence, the company can better attract and retain investment, talent, and strategic partners.

The repurchase program will be funded from existing cash or future cash flows, allowing the firm to maintain financial flexibility for organic growth and other strategic opportunities as it navigates this dynamic and rapidly evolving industry.