Safe Pro (Nasdaq: SPAI) announced a $1,000,000 subcontract award to supply AI-powered edge processing systems to the U.S. Government via a U.S. Government prime contractor on February 20, 2026.
Safe Pro said the systems’ internal development and LRIP were funded by strategic investments from ONDAS (Nasdaq: ONDS) and Unusual Machines (NYSE: UMAC). The effort is sponsored under 10 U.S.C. §4023.
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Positive
Awarded a $1,000,000 U.S. Government subcontract
Development and LRIP backed by strategic investors ONDAS and Unusual Machines
Negative
Contract is a subcontract through a prime contractor, not a direct prime award
Announcement provides no contract timeline, delivery schedule, or revenue timing
-8.97%
Since News
$3.90
Last Price
$3.81
$4.31
Day Range
-$8M
Valuation Impact
$82M
Market Cap
20.4x
Rel. Volume
Following this news, SPAI has declined 8.97%, reflecting a notable negative market reaction.
Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility.
The stock is currently trading at $3.90.
This price movement has removed approximately $8M from the company’s valuation.
Trading volume is exceptionally heavy at 20.4x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Subcontract value
$1,000,000
U.S. Government AI processing systems subcontract
$4.29
Last Close
Volume
Volume 76,458 is below 20-day average of 155,336 (relative volume 0.49x).
low
Technical
Price 4.29 is trading below the 200-day MA at 4.75 and 53.17% under the 52-week high.
Momentum scanner shows mixed moves among peers (e.g., CODA up 2.84%, OPXS up 2.19%, MOB down 3.05%), suggesting no clear sector-wide trend tied to this AI contract headline.
Common Catalyst
Only one peer, DPRO, reported same-day management news; no shared AI/defense contract theme appears across peers.
Date
Event
Sentiment
Move
Catalyst
Feb 04
AI conference showcase
Positive
-9.6%
Showcasing NODE and SPOTD AI platforms at a European defense conference.
Jan 14
AI demining results
Positive
+7.4%
Reported strong AI demining productivity gains and Ukraine field results.
Dec 22
AI upgrade announcement
Positive
+5.5%
Unveiled upgraded AI algorithms for GPS-denied drone operations.
Dec 18
AI pilot program
Positive
+5.3%
Completed Middle East AI demining pilot with aerial survey partner.
Dec 16
AI patent filing
Positive
-2.6%
Filed patent for enhanced AI computer-vision object detection algorithms.
Pattern Detected
AI-related announcements often moved the stock both up and down; three of the last five AI-tagged releases saw positive price reactions, while two produced negative moves despite positive-sounding news.
Recent Company History
Over recent months, Safe Pro has regularly highlighted its AI capabilities, including patent filings, GPS-denied drone algorithms, international demining pilots, and conference presentations. These AI-tagged events (e.g., on Dec 16, 2025, Dec 18, 2025, Dec 22, 2025, Jan 14, 2026, and Feb 4, 2026) produced a mix of positive and negative price reactions. Today’s AI-powered edge processing contract fits into that pattern of defense-focused AI deployment updates.
+1.2%
Average Historical Move
AI
Over the last five AI-tagged updates, SPAI’s average one-day move was 1.2%, with both rallies and selloffs after positive AI news. This contract fits that ongoing AI deployment story.
AI-related disclosures show a progression from patent filings and algorithm upgrades through field pilots and conference showcases, culminating in operational deployments such as government-focused AI processing systems.
An effective S-3 resale registration covers up to 2,000,000 common shares for selling stockholders; the company itself is not selling shares and will not receive proceeds from these resales.
The stock is down -9.0% following this news. A negative reaction despite the $1,000,000 AI-focused U.S. Government subcontract would fit prior instances where positive AI news was followed by selling. Investors have seen both rallies and pullbacks around similar announcements. Existing resale registration for 2,000,000 shares may also weigh on sentiment if secondary selling by stockholders coincides with perceived profit-taking or concerns over execution risk.
edge processing systems
technical
“awarded a subcontract agreement to supply the U.S. Government AI processing systems under a $1,000,000 subcontract”
Edge processing systems are computing setups that analyze and act on data close to where it is created — for example inside a factory, a car, or a store — instead of sending everything to a distant central server. For investors this matters because it can cut delays and communication costs, improve privacy and reliability, and enable new products or services that weren’t possible before, all of which can drive revenue growth or reduce operating expenses.
low rate initial production (lrip)
technical
“The systems’ internal development and low rate initial production (LRIP) supporting this award were funded”
Low Rate Initial Production (LRIP) is a limited, early manufacturing run of a new product — often used in defense and high-tech industries — to build initial units, test the production process, and validate performance before mass manufacturing. For investors, LRIP is a milestone that reduces technical and production risk and can indicate when a program may begin generating revenue, but it also means costs and schedules are still being refined; think of it as a dress rehearsal before opening night.
situational awareness
technical
“AI-enabled defense, security, and situational awareness solutions, today announced it has been awarded”
Awareness of the real-time business, market and regulatory conditions that could affect an investment; like a driver scanning the road for hazards, it means continuously noting news, price moves, regulatory signals and other forces that change a company’s prospects. Investors rely on situational awareness to react quickly to risks and opportunities, adjust position size, protect capital and seize short‑lived advantages before the environment shifts.
AI-generated analysis. Not financial advice.
02/20/2026 – 08:55 AM
AVENTURA, Fla., Feb. 20, 2026 (GLOBE NEWSWIRE) — Safe Pro Group Inc. (Nasdaq: SPAI) (“Safe Pro” or the “Company”), a developer of artificial intelligence (“AI”)-enabled defense, security, and situational awareness solutions, today announced it has been awarded a subcontract agreement to supply the U.S. Government AI processing systems under a $1,000,000 subcontract from a U.S. Government prime contractor. The systems’ internal development and low rate initial production (LRIP) supporting this award were funded under strategic investments from leading U.S. firms including ONDAS Inc. (NASDAQ: ONDS) and Unusual Machines Inc. (NYSE: UMAC).
For more information about Safe Pro, visit: https://safeproai.com/landmine-detections/. For information about Safe Pro Group, its subsidiaries, and technologies, please visit https://safeprogroup.com and connect with us on LinkedIn, Facebook, and X.
Effort sponsored by the U.S. Government under 10 U.S.C. §4023. The U.S. Government is authorized to reproduce and distribute reprints for Governmental purposes notwithstanding any copyright notation thereon.
The views and conclusions contained herein are those of the authors and should not be interpreted as necessarily representing the official policies or endorsements, either expressed or implied, of the U.S. Government.
About Safe Pro Group Inc.
Safe Pro Group Inc. (NASDAQ: SPAI) is a mission-driven technology company delivering AI-enabled security and defense solutions. Through cutting-edge platforms like SPOTD, Safe Pro provides advanced situational awareness tools for defense, humanitarian, and homeland security applications globally. It is a leading provider of artificial intelligence (AI) solutions specializing in drone imagery processing, leveraging commercially available “off-the-shelf” drones with its proprietary machine learning and computer vision technology to enable rapid identification of explosives threats, providing a much safer and more efficient alternative to traditional human-based analysis methods. Built on a cloud-based ecosystem and powered by Amazon Web Services (AWS), Safe Pro Group’s scalable platform is targeting multiple markets that include commercial, government, law enforcement and humanitarian sectors where its Safe Pro AI software, Safe-Pro USA protective gear and Airborne Response drone-based services can work in synergy to deliver safety and operational efficiency. For more information on Safe Pro Group Inc., please visit https://safeprogroup.com/.
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. Forward-looking statements in this press release include, without limitation, Safe Pro’s ability to support U.S. Government operations and the acceptance of its solutions by potential government, military and humanitarian organizations. 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. 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 did Safe Pro (SPAI) announce on February 20, 2026 about a government contract?
Safe Pro announced a $1,000,000 subcontract to supply AI edge processing systems to the U.S. Government. According to the company, the award comes via a U.S. Government prime contractor and is sponsored under 10 U.S.C. §4023.
How was Safe Pro’s (SPAI) system development funded for the February 2026 award?
According to the company, internal development and LRIP were funded by strategic investments from ONDAS and Unusual Machines. This funding supported low rate initial production before the $1,000,000 subcontract award.
Does the Safe Pro (SPAI) announcement specify contract timing or delivery schedule?
No, the announcement does not provide specific timelines or delivery schedules for the subcontract. According to the company, details are limited to award value, funding sources, and the sponsoring statute 10 U.S.C. §4023.
Is the $1,000,000 award a direct contract with the U.S. Government for SPAI?
No, the award is a subcontract issued through a U.S. Government prime contractor, not a direct prime contract. According to the company, Safe Pro will supply AI processing systems under that subcontract arrangement.
What does the 10 U.S.C. §4023 sponsorship mean for Safe Pro’s (SPAI) announcement?
The effort is identified as sponsored under 10 U.S.C. §4023, indicating U.S. Government support for the program. According to the company, this sponsorship authorizes government reproduction and distribution for governmental purposes.