DroneShield (DRO) investor relations material

Executive summary

• Achieved record customer cash receipts of $77.4m in Q1 2026, up 360% year-over-year, and reported $74.1m in revenue, the second-highest quarterly revenue to date.

• Maintained positive net operating cash flow for the fourth consecutive quarter, with a closing cash balance of $222.8m and no debt.

• Committed revenues for FY2026 reached $154.8m as of April 2026, reflecting strong pipeline conversion and repeat orders.

• SaaS revenues grew to $5.1m in Q1 2026, representing 6.9% of total revenue and supporting the goal of 30% recurring revenue by 2030.

• Leadership transition completed with new CEO and incoming chair; transition well received by staff and stakeholders.

Financial highlights

• Q1 2026 revenue: $74.1m, up 121% from Q1 2025 and 43% from Q4 2025.

• Customer cash receipts: $77.4m, up 360% year-over-year.

• Net operating cash flow: $24.1m for the quarter.

• Closing cash balance: $222.8m, up 13% from Q1 2025.

• Underlying EBITDA for FY2025: $36.5m, with a 17% margin.

Outlook and guidance

• FY2026 committed revenues at $154.8m, up from $94.4m at the same point last year.

• Sales pipeline stands at $2.2B across 312 projects, including 15 over AUD 30 million.

• Targeting $1B annualized revenue and 30% recurring revenue by 2030.

• No formal revenue or profit guidance provided; focus on recurring revenue and SaaS for predictability.

• FY2026 committed SaaS revenue is currently 13% of total committed revenue.