Key Highlights

  • First-half 2026 Revenue was A$125.8 million, up 74%, and Recurring Revenue was A$11.5 million, up 229%.
  • The statutory loss after tax was A$32.2 million, and underlying EBITDA was a loss of A$12.4 million.
  • Full-year 2026 revenue guidance of A$250 million to A$270 million was reaffirmed.
  • Committed revenue for 2026 stood at A$240 million at the time of the half-year report, with A$43 million committed for 2027 and beyond.

How does a defence technology company post record half-year revenue and a larger loss at the same time? In DroneShield's (ASX:DRO) case, the answer lies in timing, mix and spending. Its first-half 2026 results, reported on 26 August 2026 for the six months to 30 June 2026, showed revenue growth of 74% alongside a statutory loss after tax of A$32.2 million. All figures are in Australian dollars.

What DroneShield does

DroneShield makes counter-drone systems, including radio-frequency detection and electronic warfare products, together with command-and-control software. Customers are mainly military and government agencies, with a smaller commercial base. Non-military government and commercial customers accounted for 15% of half-year revenue.

Revenue comes from hardware sales, which arrive in large and lumpy batches tied to delivery dates, and from a growing recurring component of software subscriptions and support. The company reported an installed base of 4,100 software-enabled devices at the half-year.

The first-half 2026 result

Half-year revenue was A$125.8 million, up 74% on the prior corresponding period. Recurring revenue was A$11.5 million, up 229%. Underlying EBITDA was a loss of A$12.4 million, and the statutory loss after tax was A$32.2 million, against a profit of roughly A$2.1 million a year earlier.

Quarterly detail shows how uneven the year has been. First-quarter revenue, reported on 22 April 2026, was A$74.1 million, up 121%, with customer cash receipts of A$77.4 million. Subtracting that from the half-year total implies second-quarter revenue of about A$51.7 million, which is this article's calculation rather than a reported figure.

Cash and term deposits were A$180.0 million at 30 June 2026, down from A$210.6 million six months earlier, with no debt. The company had reported A$222.8 million at the end of March, so the cash balance fell substantially in the second quarter. Net Operating Cash Flow had been positive at A$24.1 million in the first quarter, so the half-year balance implies a lower second quarter, though the Cash Flow Statement should be checked for the cause.

The recurring line is small but growing. Recurring revenue of A$11.5 million was about 9% of half-year revenue (this article's calculation). In the first quarter, software-as-a-service revenue was A$5.1 million, or 6.9% of revenue, up from A$1.7 million a year earlier, and full-year 2025 software revenue had been A$11.6 million, or 5.4% of revenue. A higher recurring share can smooth the lumpiness of hardware sales over time, though it takes years of installed-base growth to matter at group level.

Guidance and committed revenue

DroneShield reaffirmed full-year 2026 revenue guidance of A$250 million to A$270 million. Committed revenue for 2026 stood at A$240 million at the time of the half-year report, compared with A$176 million a year earlier, and A$43 million was committed for 2027 and beyond.

On 10 September 2026, the company reported that committed 2026 revenue had risen to A$251 million, within the guidance range, with A$46 million committed for 2027 and beyond. Committed revenue is the company's own measure of orders and contracts expected to convert to revenue, so it is not guaranteed income. Remaining revenue to reach the guidance range depends on additional orders and deliveries in the second half. As a simple illustration, guidance of A$250 million to A$270 million less first-half revenue of A$125.8 million implies second-half revenue of roughly A$124 million to A$144 million. That arithmetic is this article's, not a company forecast, but it shows the second half needs to be broadly comparable with the first.

Governance and management changes

DroneShield said it continues to assist the Australian Securities and Investments Commission with an investigation into its ASX announcements and trading activity in November 2025. No findings had been published in the sources reviewed, and nothing here should be read as a conclusion on the matter.

The company has also announced a new chief financial officer. Rebecca Lowde, who previously held senior roles at MYOB and Afterpay, joins on 2 November 2026, replacing Carla Balanco after more than eight years.

Risks and things to monitor

First, the timing of deliveries and contract awards makes quarterly numbers volatile, as the gap between the first and second quarters illustrates. Second, expenses are rising, so margins and the path to profitability deserve attention. A preliminary estimate put first-half gross Margin at around 60%, down from 65%, but the final figure should be checked in the half-year report.

Third, the ASIC matter is unresolved, and the Leadership transition in finance adds a further change. Fourth, cash fell between March and June, so investors may want to see how Working Capital and receipts develop in the third quarter.

Finally, the next regular update should show whether committed revenue converts into deliveries on the schedule needed to meet the guidance range. Readers should check DroneShield's ASX announcements for the date, as well as the half-year financial report for definitions of its underlying measures.