DroneShield Limited (ASX:DRO) has released its business update and Appendix 4C for the three-month period ended 31 March 2026 (1Q2026).
The Company started 2026 with strong momentum, delivering the highest ever customer cash receipts in a quarter and the second‑highest revenue in a quarter. These results continue the positive trajectory from 2025, during which DroneShield achieved all‑time record performance across key metrics.
| A$ | 1Q2026 | 1Q2025 | PCP1 Growth | Comment |
| Revenue | 74.1m | 33.5m | ▲121% | · 2nd highest revenue quarter to date (Highest: 3Q2025 at $92.9m)
· Higher than from Trading Update on 8 April ($62.6m) due to timing of deliveries in late March 2026 · FY2026 Committed Revenues to date of $154.8m (vs $94.4m as at 1Q2025) · Steady flow of repeat and new end-user orders (below $20m materiality reporting threshold) with $59m increase in committed revenue since start of 2026 |
| Customer
Cash Receipts |
77.4m | 16.8m | ▲360% | · Highest customer cash receipts quarter on record |
| SaaS Revenues | 5.1m | 1.7m | ▲205% | · 6.9% of Revenue from SaaS, with continued benefit from increasing number of SaaS-enabled devices in field
· Compares to $11.6m in SaaS revenue in FY2025 (5.4% of Revenue) · Growth consistent with goal of 30% in recurring revenue by 2030 · All new products carry one or multiple SaaS, with quarterly software updates to address changes in drone technology and the latest threats |
| Net Operating Cashflow | 24.1m | (17.9m) | ▲235% | · 4th consecutive quarter of positive net operating cash flow |
| Cash Balance as at 31 March | 222.8m | 196.6m | ▲13% | · Cash balance comprises cash, cash equivalents and short-term term deposits
· Up $21.7m on cash balance as at 31 Dec 2025 · No debt with funding available for ongoing investment into people and technology, and potential for strategic M&A |
- PCP refers to Prior Corresponding Quarter movement from 1Q2025 to 1Q2026
Notes: Committed Revenue FY2026 is as at 20 April 2026 and is based on revenue recognition estimates for current contracts. Committed SaaS revenue is currently 13% of FY2026 Committed Revenue. Financial information for FY2026 is unaudited and derived from management estimates. FY2026 audited results will be published in February 2027 as part of the 2026 Annual Report.
The substantial developments during and subsequent to 1Q2026 include:
- DroneShield Selected for LAND 156 LoE 3 Panel
- DroneShield Announces $21.7m in Western Military Contracts
- DroneShield Announces CEO and Chairman Transitions
- DroneShield Enters Partnership with Origin Robotics for Kinetic Interceptors
- DroneShield Expands Radar Interoperability with Robin Radar Systems
- DroneShield Establishes European Headquarters to Accelerate Regional Growth
- DroneShield Establishes European Manufacturing to Advance Sovereign Capability
- Australia to accelerate counter-drone research with DroneShield
The Company has provided a detailed summary of the various aspects of the business in the investor presentation published concurrently with this report and being lodged with the ASX today.
