DroneShield Ltd reported record first-half 2026 revenue of AUD 126 million, a 74% increase from AUD 72.4 million in the same period a year earlier, as demand for counter-drone technology accelerated globally.
Committed revenue reached AUD 240 million at the end of August 2026, covering 89% to 96% of the company’s AUD 250 million to AUD 270 million full-year 2026 revenue guidance. This includes an additional AUD 43 million expected for 2027 and beyond. Recurring revenue rose to 9.2% of sales in H1 2026, up from about 3% in the prior-year period and 5% for all of 2025.
The company maintained a zero-debt balance sheet with AUD 180 million in cash and term deposits as of June 30, 2026, while headcount grew 62% to 537 employees. Management targeted normalized operating expenses of about AUD 170 million, with gross margins expected to recover to the mid-60% range in the second half of 2026 after temporary pressures from product-mix shifts and one-off impairment costs linked to an ERP implementation and warehouse relocation.
DroneShield’s installed base exceeded 6,200 devices across more than 70 countries, with 4,100 software-enabled units. Europe and the U.K. accounted for 52% of revenue, supported by a new regional headquarters and in-region production in Amsterdam, while U.S. revenue rose to 17% from 14% a year prior, aided by procurement mechanisms such as the JADA 401 online ordering portal.
The military segment remained the largest contributor, though non-military revenue reached 15% of total sales, up from negligible levels previously. The company also highlighted its RfRecon platform, which is expected to begin generating sales in H2 2026, with revenue scaling into 2027. The platform offers continuous scanning from 100 megahertz to 7.125 gigahertz.
DroneShield reaffirmed its full-year 2026 revenue guidance of AUD 250 million to AUD 270 million, representing a 15% to 25% increase over the previous record year. The stock traded at $1.77, up 2.02% on the day, though still down 52% over the past six months, with a market capitalization of $1.16 billion.
Management noted a shift in market doctrine, with counter-UAS solutions now central to defense and security discussions globally. The company is cooperating with an Australian Securities and Investments Commission investigation but declined to provide timelines or potential outcomes.
