DroneShield’s stock declined 9.4% to A$1.768 on Wednesday as investors weighed a sharp turn in profitability despite record revenue growth in the first half of 2026.
The company, which provides drone detection and defense systems, reported total revenue of A$125.8 million for the six months ended June 30, up 74% from the prior-year period. Recurring revenue more than tripled, rising 229% to A$11.5 million.
Profitability metrics, however, deteriorated significantly. Underlying EBITDA shifted to a loss of A$12.4 million from a A$8.0 million profit in the first half of 2025. The statutory after-tax loss widened to A$32.2 million, compared with a A$2.1 million profit a year earlier.
The stock’s decline came as the broader ASX 200 index posted modest gains, and DroneShield entered the session with a short interest of 15.7%—the highest among companies listed on the Australian Securities Exchange.
The company’s financial results were published alongside its half-year results for the period ended June 30, 2026.
