Key Highlights

  • Underlying EBITDA was a loss of $12.4 million, against an $8.0 million profit in the prior corresponding period.
  • DroneShield makes counter-drone technology, chiefly radio-frequency (RF) detection and defeat systems, plus software that fuses sensor data.
  • reaffirmed FY2026 Revenue guidance of $250 million to $270 million, which it describes as growth of 15% to 25% on FY2025.
  • DroneShield moved into a 3,000 square metre production Facility in early 2026 and produced its first European-manufactured hardware in June.

Revenue is surging at DroneShield, but the cost of building a larger defence technology Business is rising with it. DroneShield (ASX:DRO) delivered record first-half 2026 revenue of $125.8 million while recording a statutory loss of $32.2 million, putting production scale, delivery schedules and profitability under closer scrutiny.

A Closer Look at Results

Underlying EBITDA was a loss of $12.4 million, against an $8.0 million profit in the prior corresponding period. The company also booked $15 million of “individually significant items”: $3.7 million of non-cash share-based payments, $8.7 million of business disruption and continuity costs and $2.6 million of system implementation costs. Management called the spending necessary investment.

Recurring revenue, mostly software subscriptions tied to deployed devices, rose 229% to $11.5 million, and the installed base reached 4,100 software-enabled devices. Hardware still dominates sales. The non-military government and commercial segment made up 15% of revenue.

Cash and term deposits fell to $180.0 million at 30 June from $210.6 million at 31 December 2025, with no debt. The announcement did not disclose a gross Margin figure, although “strengthening gross margin” is listed as a second-half priority. A pre-result preview from That figure comes from the preview, not the result, so treat it with caution.

Inside the Business

DroneShield makes counter-drone technology, chiefly radio-frequency (RF) detection and defeat systems, plus software that fuses sensor data. Customers are militaries, security agencies and, increasingly, civilian users such as event organisers. The company says its work at the 2026 FIFA World Cup in Kansas City involved seven multi-site deployments that recorded 184 detections and 48 unauthorised drones seized.

Hardware delivery timing makes quarterly figures lumpy, so investors watch committed revenue, which the company defines as hardware, services, warranties and subscriptions delivered and scheduled within the period, based on confirmed purchase orders.

Guidance and visibility

The company reaffirmed FY2026 revenue guidance of $250 million to $270 million, which it describes as growth of 15% to 25% on FY2025. FY2026 committed revenue stood at $240 million as at 21 August 2026, compared with $176 million a year earlier. That equals 111% of FY2025 revenue and, by the company’s calculation, 89% to 96% of the guided range. A further $43 million is committed for FY2027 and beyond.

Those are the company’s own measures, and committed revenue is not revenue recognised or cash collected.

The first quarter of 2026 gave an earlier read. According to a 4 million, revenue was $74.1 million and the company reported its fourth consecutive quarter of positive operating cash flow. It also cited a $2.2 billion pipeline, a sales-funnel estimate rather than contracted revenue.