Key Highlights

  • Record first-half Revenue of $125.8 million, up 74% on the prior corresponding period, with Recurring Revenue up 229% to $11.5 million.
  • The Company reported a statutory loss after tax of $32.2 million, compared with a $2.1 million profit in the prior corresponding period, and an underlying EBITDA loss of $12.4 million versus an $8.0 million profit previously.
  • Cash and term deposits stood at $180.0 million as at 30 June 2026, down from $210.6 million at 31 December 2025, with no debt.
  • FY2026 Committed Revenue reached $240 million as at 21 August 2026, with full-year revenue outlook reaffirmed at $250 million to $270 million.

DroneShield Limited (ASX:DRO), trading at $1.75 and down 10.26% on the day, has announced its financial results for the six months ended 30 June 2026 (1H 2026), reporting record first-half revenue alongside a statutory loss as the Company invested in production capacity and organisational scale ahead of its next generation of counter-drone products.

1H 2026 Financial Performance

Record first-half revenue was $125.8 million, up 74% on the prior corresponding period to 30 June 2025. Recurring revenue increased 229% to $11.5 million, supported by a growing installed base of 4,100 software-enabled devices globally. Underlying EBITDA moved to a loss of $12.4 million, compared with a profit of $8.0 million in the prior corresponding period, which the Company said reflected planned Investment in production capacity, product development, organisational systems and management capability to support larger global operations.

The statutory loss after tax was $32.2 million, compared with a profit after tax of $2.1 million in the prior corresponding period, after Individually Significant Items of $15 million, comprising non-cash share-based payment expense of $3.7 million, non-recurring Business disruption and continuity costs of $8.7 million, and system implementation costs of $2.6 million. Cash and term deposits stood at $180.0 million as at 30 June 2026, compared with $210.6 million as at 31 December 2025, with the Company reporting no debt.

Operational Developments

The Company's non-military government and commercial segment represented 15% of 1H 2026 revenue, which it linked to growing awareness of drone threats around major events, airports, critical infrastructure and commercial assets. During the FIFA World Cup 2026, DroneShield supported public safety and airspace security operations across seven multi-site drone detection deployments in Kansas City, identifying 184 detections and seizing 48 unauthorised drones.

In early 2026 the Company completed relocation to a new 3,000 square metre production Facility and implemented new ERP and sales systems, and produced its first European-manufactured hardware in June 2026. The Company also expanded its Partnership ecosystem during the half, announcing collaborations with Intelic, Origin Robotics, Overland AI, Terma, Airspace Link, Parsons and Defenture. DroneShield noted it continues to assist ASIC in relation to an investigation into ASX announcements and trading activity during November 2025, and stated it is not clear what action, if any, may result from this.

Product Roadmap and Committed Revenue

In July 2026, DroneShield unveiled RfAI-3, its RF intelligence software engine, and launched RfRecon, its next-generation hardware product, marking the start of a new phase in its product roadmap. Scaled production of RfRecon is expected to commence in the second half of 2026, with first deliveries targeted by year end and further next-generation hardware releases planned through 2027.

FY2026 Committed Revenue reached $240 million as at 21 August 2026, compared with $176 million a year earlier, representing 111% of FY2025 total revenue and 89% to 96% of the Company's FY2026 revenue outlook, which was reaffirmed at $250 million to $270 million, representing growth of 15% to 25% on FY2025. Committed Revenue for FY2027 and beyond stood at $43 million as at the same date.

Conclusion

DroneShield's 1H 2026 results show revenue growth continuing at pace alongside a period of deliberate investment in production capacity, systems and next-generation products that resulted in a swing from profit to a statutory loss. With committed revenue tracking toward the top end of its reaffirmed FY2026 guidance range and the rollout of RfAI-3 and RfRecon now underway, the Company's second-half performance will be shaped by execution on scaled production, gross Margin trends, and continued growth of its recurring software-enabled device base.