DroneShield (DRO) H2 2025 earnings summary

Executive summary

• Achieved record FY2025 performance with revenue of A$216.5m, up 276% year-over-year, and underlying PBT of A$33.3m at a 15% margin.

• Generated AUD 9 million net cash from operations, reinforcing rapid growth and profitability goals.

• Sales pipeline increased to AUD 2.3 billion, with 295 deals, including 18 over AUD 30 million and one at AUD 750 million.

• Record revenue growth, with SaaS revenues targeted to exceed 30% of total in five years.

• Entered S&P/ASX200 in September 2025, expanded global presence to 460 employees across 7 countries, and maintained a robust sales pipeline.

Financial highlights

• FY2025 revenue reached A$216.5m, a 276% increase compared to FY2024.

• Underlying EBITDA of AUD 36 million and statutory NPAT of AUD 3.5 million for FY2025.

• Underlying profit before tax for 2025 was about AUD 33 million, with gross profit margin at 65%.

• Committed revenue for the year is over AUD 100 million, with an AUD 80 million backlog.

• Cash balance at year-end was A$209.4m, with three consecutive quarters of positive net operating cash flow.

Outlook and guidance

• Strong momentum into FY2026 with YTD2026 committed revenue of A$104m.

• SaaS revenue expected to grow from 5% to 30% of total revenue by 2030.

• Targeting over $1 billion in annual revenue within five years, driven by both military and civilian markets.

• Civilian market expected to become 50% of revenue mix as demand grows.

• Gross profit margin normalized at 65% moving forward.