DroneShield HY26 earnings preview

DroneShield overview

DroneShield (ASX: DRO) is a pure-play counter-drone (C-UxS) technology company. It designs and sells artificial intelligence (AI)-powered detection and defeat systems – including body-worn detectors (RfPatrol), multi-sensor fixed and mobile platforms (DroneSentry), and handheld jammers (DroneGun) – aimed at military, government, law enforcement and critical infrastructure customers. The business is expanding its higher-margin Software as a Service (SaaS) and recurring software revenue alongside traditional hardware sales.

When will DroneShield report its latest earnings?

DroneShield is scheduled to release its half-year (HY) results for the six months ended 30 June 2026 on Thursday, 26 August 2026.

The backdrop

FY25 was a breakout year that transformed the company's scale and profitability, even though it came against a challenging backdrop:

• Revenue: $216.5 million (up 276% from $57.5 million)
• SaaS revenue: $11.6 million (up 312%)
• Statutory net profit after tax (NPAT): $3.5 million (up 367% from a $1.3 million loss)
• Underlying profit before tax (PBT): $33.3 million
• Cash and term deposits: ~$210 million (no debt)
• Sales pipeline: $2.3 billion

That strong finish came after a turbulent end to 2025. In early November, chief executive officer (CEO) Oleg Vornik sold his entire holding of around 14.8 million shares for approximately $49 million – $50 million. Other directors and insiders followed, taking total executive sales to about $70 million in a short period. The wave of selling eroded investor confidence and triggered a sharp sell-off.

The situation was compounded in mid-November when United States (US) CEO Matt McCrann suddenly resigned with little explanation, raising further questions about transparency and leadership stability. On the FY25 results call, outgoing CEO Oleg Vornik said:

'2025 has seen a record revenue of about $260 million, about a 4x increase on the previous year. Importantly, it has been a profitable year for us of about $3.5 million profit, being also $33 million of underlying profit before tax, and importantly, having $15.9 million of net cash from operations. This reinforces our aim to have rapid growth as well as being profitable and operating cash flow positive moving forward.'

The share price surged 12.62% to $3.39 on the day the full-year numbers were released, as the market focused on the step-change in scale and the return to sustained profitability.

Recent news and updates

In early April, the company announced a leadership transition. Long-serving CEO and Managing Director Oleg Vornik stepped down (effective immediately) after more than a decade, with Chief Product Officer Angus Bean appointed as the new CEO. Chairman Peter James also flagged his retirement. The share price was hit hard on the day, finishing 13.53% lower at $3.45, reflecting residual sensitivity after earlier executive share sales.

Despite the leadership change, first quarter (Q1) 2026 continued the strong operational run. Revenue jumped 121% to $74.1 million – the second-highest quarter on record and a clear beat on the earlier April trading update that had flagged around $62.6 million. Customer cash receipts hit a record $77.4 million, while operating cash inflow of $24.1 million was the largest quarterly inflow the company has recorded (its fourth consecutive quarter of positive cash flow).

SaaS revenue more than doubled to approximately $5.1 million – $5.4 million (up ~205% from $1.7 million in the prior corresponding period (PCP)) and now represents around 7% of total revenue. FY26 committed revenue stood at $154.8 million at the time of the update.

A subsequent trading update in late July, and a further investor presentation in early August, showed first-half revenue of approximately $125.8 million (up ~74% on the PCP). Recurring revenue reached $14.2 million, or 11.3% of first-half sales. Committed revenue for FY26 had risen to $206 million (already 95% of the entire FY25 total, with five months still to run), of which around 13% is recurring.

Management lifted full-year revenue guidance to $250 million – $270 million (15% – 25% growth on FY25). First-half gross margin was estimated at 60% (down from 65% in the PCP), with management pointing to sales mix, currency and a raw-material impairment.

Building into FY26

What to expect from DroneShield HY26 earnings

• Confirmation of the already-flagged ~$125.8 million first-half (H1) revenue and any fine-tuning of the $250 million – $270 million full-year guidance.
• Progress on recurring / SaaS revenue (currently 11.3% of H1 sales).
• Gross margin trajectory – the first-half estimate of 60% was below the 65% target; investors will want clarity on the second-half recovery path.
• Cash-flow conversion and balance-sheet strength under the new CEO.
• Pipeline conversion, production ramp progress, and broader demand commentary across military and civilian markets.
• Tone from the new leadership team on governance and execution.

Key financials summary

Company update (already released):

• H1 2026 revenue: ~$125.8 million (up ~74% on H1 2025)
• Recurring revenue: $14.2 million (11.3% of H1)
• FY26 guidance: $250 million – $270 million
• FY26 committed revenue: $206 million (as at late July)

London Stock Exchange Group (LSEG) consensus (mean):

• H1 2026 net income: ~$4.2 million
• H1 2026 earnings before interest, taxes, depreciation and amortisation (EBITDA): ~$22 million
• FY26 net income: ~$16.8 million
• FY26 EBITDA: ~$49 million
• FY26 earnings per share (EPS): ~2.1 cents

DroneShield underlying net profit

DroneShield technical analysis

Having soared more than 750% in 2025 from a low of $0.58 to a high of $6.71 in early October, DroneShield's share price then plunged approximately 75% to a low of $1.62 in late November following a wave of insider selling and leadership uncertainty.

The stock staged a recovery into early 2026, reaching as high as $4.81 in mid-January, but that bounce ultimately failed. Since then, the share price has ground lower in a clear downtrend of lower highs and lower lows, well below trendline resistance at $3.00 (drawn from the October peak through the $4.72 high from March this year) and the 200-day moving average (MA) (currently at $3.05), which itself has started to roll over.

The early August $1.65 low sits just above the November 2025 trough at $1.62 – that $1.65 - $1.60 zone is the critical near-term support. A sustained break below $1.60ish would open the way for a deeper decline.

On the upside, initial resistance sits at $2.34 (the August high), followed by the descending trendline and the 200-day MA at $3.00 - $3.10. A decisive break above $3.00 - $3.10 would help to improve the medium-term technical picture.

Overall, the technical backdrop remains cautious. The half-year result will be an important catalyst, but until price can reclaim the critical $3.00 - $3.10 resistance area, the path of least resistance remains to the downside.

DroneShield daily chart

• _{Source: TradingView. The figures stated are as of 20 August 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}