DroneShield posts record half-year revenue as losses grow

DroneShield reported record half-year revenue of AUD $125.8 million, while recurring revenue rose to AUD $11.5 million.

The Australian counter-drone company also posted an underlying EBITDA loss of AUD $12.4 million and a statutory loss after tax of AUD $32.2 million for the period.

Half-year revenue rose 74% from the prior corresponding period, while recurring revenue increased 229%, supported by an installed base of 4,100 software-enabled devices globally. Cash and term deposits stood at AUD $180.0 million at period end, down from AUD $210.6 million six months earlier, with no debt.

The result came as the company increased spending on production capacity, product development, internal systems and management. It also completed a move into a 3,000 square metre production facility and introduced new enterprise resource planning and sales systems.

Its non-military government and commercial business continued to expand, accounting for 15% of half-year revenue. DroneShield attributed that shift to rising concern about drone threats around major events, airports, critical infrastructure, public venues and commercial assets.

During the FIFA World Cup, the company supported public safety and airspace security operations across seven drone-detection deployments in Kansas City. Those operations identified 184 detections and led to the seizure of 48 unauthorised drones.

Operational shift

The half-year also marked production of the company's first hardware manufactured in Europe, a step intended to support regional demand through local manufacturing.

DroneShield also invested in longer lead-time components to improve readiness for future orders and shorten delivery times. It expanded its partnership network through agreements and collaborations with Intelic, Origin Robotics, Overland AI, Terma, Airspace Link, Parsons and Defenture.

Those arrangements are part of a broader approach combining sensing, electronic warfare, command-and-control, autonomous platforms, mobile deployment and airspace management. The company also expanded organisational functions and management depth as it prepares for its next stage of growth.

DroneShield continues to assist the Australian Securities and Investments Commission in relation to an investigation into ASX announcements and trading activity during November 2025. It said it was unclear what action, if any, may result.

Revenue outlook

Management reaffirmed full-year revenue guidance of AUD $250 million to AUD $270 million. Committed revenue for the year stood at AUD $240 million, compared with AUD $176 million at the same point a year earlier.

According to the company, that figure represents 111% of full-year 2025 revenue and between 89% and 96% of the current year revenue outlook. Committed revenue for 2027 and beyond stands at AUD $43 million across hardware, software, warranties and services.

Second-half priorities include delivering the remainder of the annual revenue target, improving gross margin, shipping the first units of its new RfRecon hardware and expanding recurring revenue through a larger active installed base.

The business launched two new products in July: RfAI-3, described as its radio frequency intelligence software engine, and RfRecon, its next-generation hardware product. Scaled production of RfRecon is expected to begin in the second half, with first deliveries targeted by year-end.

Angus Bean, Chief Executive Officer and Managing Director, pointed to both demand and internal restructuring in commenting on the half-year performance.

"These results demonstrate that DroneShield continues to convert global demand into growing revenue. We've achieved significant momentum while scaling operations to meet end-user demand during a structured leadership transition. The increasing installed base of our software-enabled devices, our operational work supporting major public safety environments and the promising early interest in RfRecon all demonstrate the opportunities ahead for DroneShield.

The company used the first half to deliberately invest in resources across the business, particularly in production capacity, management capability, operational systems and governance processes. We believe these are necessary investments to make now, ahead of the expectation of larger revenue, a growing installed base, increasing global customer activity and more complex operational requirements.

Commencing with RfAI-3 and RfRecon, the rollout of our next-generation AI-enabled products is a defining evolution in our counter-drone solutions. This is the start of a very exciting product roadmap that has been years in the planning. This is central to DroneShield's future and our ability to deliver sustained growth and long-term value to our shareholders," Bean said.

Chair Hamish McLennan said the board had focused on governance, leadership and operating structure as the company grows.

"DroneShield is operating in a market where the strategic importance of counter-drone capability continues to increase. This board's priority is to ensure the company has the governance, leadership, infrastructure and capital discipline required to match the scale of the opportunity.

The first half included important steps in board and executive renewal, governance uplift and operating maturity. Angus and the leadership team have moved quickly to assess the organisation, focus on the areas that matter most and position DroneShield for its next phase of growth.

DroneShield is a global defence technology platform. The board is focused on supporting management to deliver sustainable growth, strengthen investor confidence and continue building a company of significance on the global counter-drone stage," McLennan said.