DroneShield Limited (AU:DRO)
OTHER OTC:DRO
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DroneShield Limited
(OTC:DRO)
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Rating:60Neutral
Price Target:
AU$3.00
▼(-16.90% Downside)
Action:Reiterated
Date:04/09/26
The score is primarily supported by improved financial performance in 2025 (sharp revenue growth, return to net profitability, and low leverage). It is held back by weak near-term technical positioning (trading below key moving averages with subdued momentum) and a very expensive valuation (P/E ~806) with no dividend yield provided.
Positive Factors
Revenue scale & profitability recovery
A >100% revenue step-change in 2025 with a return to net profit indicates the company can scale contract wins and absorb fixed costs, improving unit economics and contract credibility. That scale and demonstrated profitability support sustainable margin recovery and contract pipeline execution over months.
Negative Factors
Material margin compression
A large decline in gross margin suggests adverse pricing, product mix shifts, or rising component/production costs. Persistently lower margins reduce operating leverage, limit reinvestment capacity and make earnings more sensitive to revenue volatility across contract cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scale & profitability recovery
A >100% revenue step-change in 2025 with a return to net profit indicates the company can scale contract wins and absorb fixed costs, improving unit economics and contract credibility. That scale and demonstrated profitability support sustainable margin recovery and contract pipeline execution over months.
Read all positive factors
DroneShield Limited (DRO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.73B
Dividend YieldN/A
Average Volume (3M)10.73M
Price to Earnings (P/E)760.1
Beta (1Y)2.12
Revenue Growth276.41%
EPS GrowthN/A
CountryAU
Employees60
SectorIndustrials
Sector Strength72
IndustryComputer Hardware
Share Statistics
EPS (TTM)<0.01
Shares Outstanding923,252,700
10 Day Avg. Volume9,495,731
30 Day Avg. Volume10,727,151
Financial Highlights & Ratios
PEG Ratio-2.96
Price to Book (P/B)8.43
Price to Sales (P/S)13.11
P/FCF Ratio307.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.61Price Target Upside0.00%
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$340.87M
DroneShield Limited Business Overview & Revenue Model
Company Description
DroneShield Limited, an Australian company founded in Sydney in 2014, specializes in the global development, commercialization, and sale of advanced hardware and software technologies designed for drone detection and security. Their comprehensive ...
How the Company Makes Money
DroneShield primarily makes money by selling counter-drone products and integrated systems to government and commercial customers, typically through project- or contract-based procurement. Key revenue streams include: (1) Hardware and system sales...
DroneShield Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: substantial YoY revenue/cash receipt growth (~4x), accelerated SaaS revenue (from ~$3M to ~$12M with >$18M locked for 2026), a large $2.1B pipeline, high gross margins (~65%), significant R&D investment ($70M+), operational reliability and manufacturing scale plans. Offsetting risks are a trimmed near‑term pipeline driven by conservative assumptions in the U.S. civilian market (pipeline down ~12.5%), timing dependency on U.S. budget/IDIQ processes, pending profit detail, executive stock sales that attracted scrutiny, and continued high fixed investments. Overall, the highlights materially outweigh the lowlights given the magnitude of revenue and backlog growth, balance‑sheet strength and clear product differentiation, supporting a positive outlook.Positive Updates
Substantial Revenue and Cash Receipts Growth
Reported about $202 million in customer cash receipts and described top-line results as roughly just under 4x the prior year (approximately a multi‑hundred percent YoY increase). The company also began the year with roughly $100 million of carry‑over locked revenue versus $5–10 million this time last year, indicating a large improvement in forward‑looking secured revenues.
Negative Updates
Pipeline Trimmed (US Civilian Conservative Re‑assessment)
Pipeline fell from roughly $2.4 billion three months ago to $2.1 billion (~$300M reduction, ≈12.5% decline) after management applied more conservative assumptions to U.S. civilian (non‑military, non‑law‑enforcement) opportunities due to nascent adoption and slower follow‑on projects.
Read all updates
Q4-2025 Updates
Positive
Negative
Substantial Revenue and Cash Receipts Growth
Reported about $202 million in customer cash receipts and described top-line results as roughly just under 4x the prior year (approximately a multi‑hundred percent YoY increase). The company also began the year with roughly $100 million of carry‑over locked revenue versus $5–10 million this time last year, indicating a large improvement in forward‑looking secured revenues.
Read all positive updates
Company Guidance
Management did not give formal FY26 revenue guidance but said it expects a “very meaningful” multi‑fold increase over FY25, noting the business entered 2026 with roughly $100M of contracted/locked cash receipts, reported about $202M of customer cash receipts in the latest period (≈4x year‑earlier), and started the year with a healthy cash balance (~$200M). Key metrics highlighted: a $2.1B pipeline (down from ~$2.4B three months prior) across ~300 deals; SaaS growth from just under $3M in 2024 to just under $12M in 2025 and >$18M already locked for 2026 with a target to grow software from ~5% to ~30% of revenue; R&D spend >$70M; ~350 hardware/software engineers (company headcount ~500, planned ~600 by end‑26); target gross margin ~65%; run‑rate cash costs ~$150M; and manufacturing capacity expansion (aiming to support ~$2.4B of output by year‑end) with rapid delivery capability demonstrated on $62M and other orders.DroneShield Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 216.55M | 57.53M | 54.09M | 16.81M | 10.47M |
| Gross Profit | 108.33M | 41.24M | 38.95M | 11.83M | 7.62M |
| EBITDA | 6.54M | -2.71M | 2.56M | -1.94M | -5.88M |
| Net Income | 3.52M | -1.32M | 9.33M | -949.30K | -5.31M |
Balance Sheet | |||||
| Total Assets | 412.19M | 355.88M | 97.05M | 25.21M | 18.34M |
| Cash, Cash Equivalents and Short-Term Investments | 209.49M | 219.49M | 56.77M | 10.22M | 9.49M |
| Total Debt | 14.26M | 9.11M | 2.63M | 596.10K | 248.37K |
| Total Liabilities | 75.57M | 44.29M | 22.54M | 6.21M | 2.76M |
| Stockholders Equity | 336.62M | 311.59M | 74.51M | 19.00M | 15.58M |
Cash Flow | |||||
| Free Cash Flow | 9.24M | -64.40M | 7.75M | -2.58M | -6.74M |
| Operating Cash Flow | 24.07M | -58.04M | 9.48M | -1.75M | -6.27M |
| Investing Cash Flow | 20.21M | -165.26M | -1.95M | -832.17K | -467.45K |
| Financing Cash Flow | -477.00K | 231.89M | 39.11M | 3.06M | -122.03K |
DroneShield Limited Technical Analysis
Negative
3.61
Price Trends
3.37
Negative
3.54
Negative
3.54
Negative
Market Momentum
-0.15
Positive
42.40
Neutral
28.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRO, the sentiment is Negative. The current price of 3.61 is above the 20-day moving average (MA) of 3.02, above the 50-day MA of 3.37, and above the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 28.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DRO.
DroneShield Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$2.73B | 760.10 | 1.08% | ― | 276.41% | ― | |
54 Neutral | AU$1.98B | 90.09 | 7.19% | ― | -27.25% | ― | |
52 Neutral | AU$31.03M | -9.79 | -40.51% | ― | 6.10% | -7.14% | |
48 Neutral | AU$9.09M | 1,011.80 | 2.60% | ― | 76.04% | ― | |
39 Underperform | AU$4.56M | -5.07 | -71.80% | ― | -3.46% | 69.77% |
* Industrials Sector Average
AU:DRO
DroneShield Limited
2.92
1.04
55.32%
AU:EOS
Electro Optic Systems Holdings Limited
8.91
6.14
221.66%
AU:HCL
XTEK Limited
0.15
-0.08
-35.56%
AU:T3D
333D Limited
0.05
0.03
242.86%
AU:RKT
Delta Drone International Ltd
0.03
0.02
150.00%
AU:SP3
Spectur Ltd.
0.01
>-0.01
-15.38%
DroneShield Limited Corporate Events
Citigroup Entities Exit Substantial Holder Position in DroneShield
Jun 4, 2026
Citigroup Global Markets Australia and related Citigroup entities have notified DroneShield Limited that they have ceased to be substantial shareholders in the company as of 2 June 2026. The change follows a series of adjustments in relevant inter...
DroneShield wins $24.9m U.S. counter-drone contract with JIATF-401
Jun 2, 2026
DroneShield Limited has secured a $24.9 million contract to supply mobile and fixed-site counter-drone solutions to the U.S. Department of War’s Joint Interagency Task Force 401, with an initial $19.3 million value and a further $5.6 million...
DroneShield Discloses Director Peter James’ Exit and Final Equity Interests
May 29, 2026
DroneShield Limited has announced the cessation of Peter James as a director effective 29 May 2026, as disclosed in a Final Director’s Interest Notice to the ASX. The filing records that upon his departure, James holds 250,000 unlisted and v...
DroneShield AGM Delivers First Strike on Pay as Key Resolutions Pass
May 29, 2026
DroneShield Limited shareholders approved three key resolutions at the company’s annual general meeting, including the election of director Hamish McLennan, an increase in the maximum aggregate fees for non-executive directors and the issuan...
DroneShield issues AGM investor presentation with extensive disclaimers
May 29, 2026
DroneShield has released an investor presentation in conjunction with its Annual General Meeting, outlining summary information about the company, its activities, and its financial reporting framework as of 29 May 2026. The document emphasises tha...
DroneShield Rides Drone-Warfare Demand to Record Results and Global Expansion
May 29, 2026
DroneShield reported a transformational 2025 financial year, with revenue surging 276% to $216.5 million, SaaS revenue up 312%, and a swing to positive EBITDA and statutory profit, supported by $210 million in cash and inclusion in the SP/ASX 200....
Citigroup Exits Substantial Shareholding in DroneShield After Securities Lending Adjustments
May 28, 2026
Citigroup Global Markets Australia and related Citi entities have disclosed that they have ceased to be substantial shareholders in DroneShield Limited as of 26 May 2026, following a series of changes in their relevant interests in the companyR...
JPMorgan exits substantial shareholder position in DroneShield
May 12, 2026
JPMorgan Chase Co. and its affiliates have notified DroneShield Ltd that they have ceased to be a substantial shareholder in the Australian counter-drone technology company. The change reflects adjustments in securities held and transactions cond...
DroneShield Faces ASIC Probe Over November 2025 Disclosures and Trading
May 12, 2026
DroneShield Limited has disclosed that it received a notice from the Australian Securities and Investments Commission requiring it to assist in an investigation under the Corporations Act. The probe focuses on the company’s announcements and...
JPMorgan exits substantial holder position in DroneShield
May 8, 2026
JPMorgan Chase Co. and its affiliates have notified DroneShield Limited that they have ceased to be a substantial holder in the company as of 5 May 2026, under Australia’s substantial shareholding disclosure rules. The change reflects a ser...
DroneShield Appoints Hamish McLennan as Director with Aligned Share Grant
May 1, 2026
DroneShield Limited has appointed Hamish McLennan as a director effective 1 May 2026, adding a high-profile chairman-elect to its board as the company advances its position in the defence technology and counter-drone market. Under his appointment ...
DroneShield seeks ASX quotation for 150,000 new ordinary shares
May 1, 2026
DroneShield Limited, a counter-drone technology specialist listed on the ASX under the code DRO, develops systems to detect and neutralise unmanned aerial threats for defence, government, and commercial clients. The company operates in the broader...
DroneShield sets date and details for 2026 AGM and shareholder voting
Apr 27, 2026
DroneShield Limited has called its 2026 Annual General Meeting for 10:00am AEST on 29 May 2026 in Sydney, with the proceedings also available via a live webcast on the Automic Platform for shareholders to view and submit questions remotely. The No...
DroneShield posts record cash receipts and boosts recurring revenue in strong Q1 2026
Apr 21, 2026
DroneShield reported a strong start to 2026, posting its second-highest quarterly revenue at A$74.1 million, more than double the prior corresponding period, and record customer cash receipts of A$77.4 million. The company’s SaaS revenues su...
DroneShield Sets Date for 1Q 2026 Results and Investor Call
Apr 20, 2026
DroneShield Limited has scheduled the release of its results for the quarter ended 31 March 2026 for Wednesday, 22 April 2026, and will host an investor results call the following day at 9:00 a.m. Sydney time. The call will be conducted via a Zoom...
DroneShield Options Lapse, Trimming Future Equity Overhang
Apr 16, 2026
DroneShield Limited has notified the market of the cessation of certain securities, following the lapse of conditional rights attached to option securities listed under the ASX code DROAH. The company reported that a total of 465,000 options, expi...
DroneShield seeks ASX quotation for additional ordinary shares
Apr 10, 2026
DroneShield Limited has applied for quotation on the ASX of 150,000 new fully paid ordinary shares under the ticker DRO. The securities, issued on 10 April 2026, expand the company’s quoted share capital, slightly increasing equity available...
DroneShield Showcases AI Counter-Drone Technology at Goldman Sachs Conference
Apr 8, 2026
DroneShield Limited has presented its AI-driven counter-drone capabilities at the Goldman Sachs Emerging Leaders Conference on 9 April 2026, highlighting systems like its DroneSentry-C2 Tactical command-and-control platform. By showcasing these ru...
DroneShield Discloses Final Director Interest as Oleg Vornik Departs Board
Apr 8, 2026
DroneShield Limited has announced the cessation of Oleg Vornik as a director of the company effective 8 April 2026, as disclosed in a final director’s interest notice to the ASX. The filing notes that Vornik holds 902,528 unlisted and vested...
DroneShield Details New Director Angus Bean’s Equity-Heavy Remuneration Package
Apr 8, 2026
DroneShield Limited has appointed Angus Bean as a director effective 8 April 2026, disclosing his initial interests in the company’s securities, including 538,875 performance options and an indirect holding of 500,000 fully paid ordinary sha...
DroneShield Overhauls Leadership as Revenue and Cash Receipts Hit New Highs
Apr 7, 2026
DroneShield announced a major leadership transition, with long‑serving CEO and managing director Oleg Vornik stepping down after more than a decade and Chief Product Officer Angus Bean, one of the firm’s earliest employees and key arch...
JPMorgan Ceases to Be Substantial Holder in DroneShield
Apr 6, 2026
JPMorgan Chase Co. and its affiliates have notified DroneShield that they have ceased to be a substantial holder in the company as of 2 April 2026. The change reflects a series of securities lending, investment management, and proprietary trading...
DroneShield issues 7.8 million unquoted options under employee incentive scheme
Apr 2, 2026
DroneShield Limited has notified the market of the issue of 7,821,742 unquoted options under its employee incentive scheme, with various exercise prices and expiry dates, effective 2 April 2026. The new options, which will not be quoted on the ASX...
DroneShield Sets May 2026 AGM Date and Director Nomination Deadline
Apr 1, 2026
DroneShield Limited has scheduled its Annual General Meeting for 29 May 2026, setting 10 April 2026 as the deadline for shareholder nominations for director positions. The timing and notice of the AGM provide investors and stakeholders with clarit...
DroneShield seeks ASX quotation for additional 160,000 ordinary shares
Mar 27, 2026
DroneShield Limited has applied to the ASX for quotation of 160,000 new fully paid ordinary shares, to be issued on 27 March 2026. The modest increase in quoted securities, arising from the exercise or conversion of existing instruments, slightly ...
DroneShield seeks ASX quotation for 315,000 new ordinary shares
Mar 20, 2026
DroneShield Limited has applied for quotation on the ASX of 315,000 new fully paid ordinary shares under its code DRO, with an issue date of March 20, 2026. The relatively small share issuance, arising from the exercise or conversion of existing s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.