DroneShield Ltd. posted first-half 2026 revenue of $125.8 million, a 74% increase from $72.3 million in the same period of 2025, the company said in an interim results presentation on August 26. Recurring revenue tripled to $11.5 million, representing 9.2% of total revenue compared with 4.9% a year earlier.
The Sydney-based defense technology firm maintained a strong cash position with $180 million in cash and term deposits and no debt as of June 30, 2026. Committed revenue reached $240.4 million as of August 21, up 36% year-over-year, including $43 million earmarked for fiscal 2027 and beyond.
Gross profit rose 60% to $75.5 million, though gross margin narrowed to 60.0% from 65.3% in the prior period. Underlying EBITDA was negative $12.4 million, compared with a positive $8.0 million in the first half of 2025. The statutory loss after tax widened to $32.2 million from a $2.1 million profit in the year-ago period.
Operating expenses climbed to $30 million in employee benefits, excluding $5 million in significant items, alongside $7 million in sales and marketing and $4 million in corporate costs. Total inventory stood at $85 million, including $66 million in raw materials, while research and development spending reached $40 million for the half-year.
DroneShield’s workforce expanded to 537 employees as of June 30, up from 332 previously and 482 at the end of December 2025. The company has deployed 4,100 active software-enabled devices globally, with a total of 6,200+ devices fielded across 40+ countries. Revenue was primarily driven by military customers, which accounted for 85% of sales, while Europe and the UK contributed 52% of total revenue.
The company unveiled its RfAI-3 platform in July 2026 and launched the RfRecon hardware platform in August, with scaled production and first deliveries expected in the second half of 2026. DroneShield projects full-year 2026 revenue of $250–270 million, positioning itself for further growth as recurring software revenue builds.
CEO Angus Bean described the first half as an investment phase to support "the next chapter in growth," emphasizing the company’s focus on expanding capacity and software-defined solutions. The presentation highlighted the company’s role in addressing rising drone threats, including 184 detected drones across seven operational sites during the FIFA World Cup 2026 in Kansas City.
