1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
Record revenue growth but earnings impacted by investment and margin compressionCommitted revenue of $240m underpins FY26 guidance and pipeline confidenceExpansion in Europe and the US supports DroneShield’s global growth ambitions
DroneShield’s Director of Investor Relations and Strategy (ASX:DRO) Josh Bolot outlines record first-half performance, with revenue rising 74% to $125.8 million and recurring revenue more than tripling to $11.5 million, supported by an installed base of 4,100 software-enabled devices globally. Bolot notes that despite this growth, underlying EBITDA moves to a $12.4 million loss and statutory net loss to $32.2 million due to heavy investment in people, processes and infrastructure, along with margin compression to 60% from inventory impairments and a higher mix of lower-margin third-party products.
Bolot states that committed revenue for FY26 now stands at $240 million, compared with revenue guidance of $250–$270 million, and highlights that this figure has risen by $35 million within weeks. He points to strong international demand, with just over 50% of first-half revenue coming from Europe and a rising contribution from the US, supported by a new Amsterdam office and expanded local manufacturing.
Software remains a key strategic focus, with Bolot describing a model where hardware secures the deal and software delivers ongoing value via quarterly updates and subscriptions. He also notes growing non-military revenue, particularly from airports, prisons and stadiums, and downplays share price volatility in DRO (ASX:DRO), emphasising longer-term growth in revenue and markets.
