DroneShield (DRO) H1 2025 earnings summary

Executive summary

• Achieved record HY2025/1H25 revenue of A$72.3m, up 210% year-over-year, marking the highest half-year revenue to date.

• Profit before tax reached A$5.2m, the most profitable half-year in company history, and profit after tax was A$2.1m, reversing a prior loss.

• Secured revenues YTD2025/FY2025 at A$176.3m, already surpassing full-year 2024 figures.

• Largest contract in company history ($61.6m) received in June 2025, to be delivered by August.

• Workforce grew to over 370, a significant increase supporting rapid innovation and growth.

Financial highlights

• HY2025 revenues up 210% and cash receipts up 184% compared to HY2024.

• SaaS revenue increased 177% year-over-year in HY2025.

• Cash balance as of August 2025 stands at A$207.9m, and as of June 2025 at $203.8m, providing significant flexibility.

• EBITDA reached $5.2m, compared to a loss of $4.9m in 1H24.

• Inventory book value at $81m, supporting rapid delivery and high gross margins.

Outlook and guidance

• Positioned to scale further with a robust pipeline, ongoing investment in R&D and AI, and manufacturing capacity scaling to $2.4bn per annum by end of 2026.

• Strategic priorities include expanding SaaS revenue, launching next-gen hardware, and entering civilian markets.

• Plans to double the pipeline to $5bn by 2027-2028 and increase SaaS contribution to revenue.

• Most purchase orders received before November-December expected to be delivered and recognized as revenue in FY2025.

• Subscription revenue expected to grow with new product launches and SaaS offerings.