DroneShield Posts Record Half-Year Profit as Recurring Revenue Surges

An update from DroneShield Limited ( (AU:DRO) ) is now available.

DroneShield reported a strong start to 2026, highlighting rapid top-line expansion and improving profitability as its counter-drone business scales. Unaudited management figures show customer cash receipts and revenue from customers rising sharply through 2025, with committed revenue and committed customer cash receipts for 2026 indicating year-on-year growth of 256% and 277% respectively, and SaaS revenue up 312% year-on-year as the company builds a substantial recurring revenue base. The company recorded the most profitable half-year in its history in 2025, with profit before tax of A$5.2m for the period, underpinned by an estimated gross margin of about 65% and fixed annual cash costs of around A$150m, suggesting increasing operational leverage as scale improves. Management emphasises that the 2025 and 2026 figures are unaudited and based on internal estimates, with audited 2025 results due in February 2026, but the trajectory indicates a transition toward sustained profitability and a stronger competitive position in the rapidly growing counter-drone market.

The most recent analyst rating on (AU:DRO) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on DroneShield Limited stock, see the AU:DRO Stock Forecast page.

More about DroneShield Limited

DroneShield Limited operates in the defence and security technology sector, specialising in multi-mission artificial intelligence counter-drone systems sold through both product and SaaS models. Its solutions target government, military and security customers globally seeking protection against rapidly increasing drone threats, with a growing focus on recurring software revenues alongside hardware deployments.

YTD Price Performance: 45.13%

Average Trading Volume: 24,566,142

Technical Sentiment Signal: Buy

Current Market Cap: A$4.09B

Learn more about DRO stock on TipRanks’ Stock Analysis page.