Defense technology company DroneShield Ltd (DRO) reported record first-half revenue of AUD 126 million for the six months ended June 30, 2026, a 74% increase from AUD 72.4 million in the same period of 2025. Committed revenue as of late August totaled AUD 240 million, covering 89% to 96% of the company’s reaffirmed full-year guidance range.
The company maintained its fiscal 2026 revenue guidance of AUD 250 million to AUD 270 million, representing a 15% to 25% increase over its prior record year. Recurring software revenue rose to 9.2% of sales in H1 2026, up from approximately 3% a year earlier and 5% for the full year 2025. Management also targeted a return to mid-60% gross margins in the second half of 2026, with normalized operating expenses projected at about AUD 170 million.
DroneShield’s global device base expanded to more than 6,200 units, with 4,100 software-enabled, while headcount grew 62% year-over-year to 537 employees as of June 30. Europe and the U.K. accounted for 52% of revenue, while the U.S. contributed 17%, up from 14% in 2025. The company operates in over 40 countries and has representation in more than 70.
CEO Angus Menuge highlighted the shift in market focus toward counter-drone solutions, stating that competitive performance has become critical as threats evolve. He noted that DroneShield’s RfRecon platform now scans continuously from 100 megahertz to 7.125 gigahertz, a development described as a breakthrough in ultra-wideband detection. Director of Investor Relations and Strategy Josh Fegan emphasized the growing importance of software, which he said secures long-term value through AI-enabled upgrades.
The company’s cash position stood at AUD 180 million with no debt, and its stock closed at $1.77, up 2.02% on the day. DroneShield’s market capitalization was approximately $1.16 billion, with shares trading near the lower end of their 52-week range between $1.625 and $6.705.
