Sydney, Jan 27, 2026, 17:43 AEDT — After-hours
- DroneShield dropped 6.5% following its 4Q25 quarterly update and cash-flow report.
- The company posted 4Q revenue from customers totaling A$51.3 million, alongside operating cash flow of A$7.7 million.
- Investors are focused on the 9 a.m. Wednesday call and the audited results for February.
Shares of DroneShield Ltd (ASX:DRO) slipped Tuesday, despite the counter-drone tech company reporting a strong rise in quarterly revenue. The stock took a hit after the firm flagged a shrinking sales pipeline.
DroneShield’s update stands out as the market’s latest insight into its cash flow and order momentum, ahead of audited full-year results set for February. Investors have been watching closely, especially after the stock’s recent volatility.
This week, traders are wrestling with how to value “secured” 2026 revenue for a company whose defence and security contracts often cluster, only to drop off sharply the next quarter.
DroneShield slipped 6.5% to close at A$4.18, after bouncing between A$4.08 and A$4.56 during the session. The S&P/ASX 200 managed a 0.9% gain. 1 2
DroneShield posted customer revenue of A$51.3 million for the quarter ending Dec. 31, marking a 94% jump from the same period last year, according to its latest quarterly activities update and Appendix 4C cash-flow statement required by the ASX. The company said this was its second-best quarter ever, trailing only the record set in the third quarter. 3
Customer cash receipts jumped to A$63.5 million, marking a 142% increase year-over-year, the filing revealed. Revenue from its SaaS business — software-as-a-service subscriptions — surged to A$4.6 million, up from A$0.8 million.
Net cash from operating activities came in at A$7.7 million this quarter, a turnaround from the cash burn reported a year ago. Cash and cash equivalents totaled roughly A$210 million at the quarter’s close, according to the Appendix 4C. The company noted its FY2025 figures are unaudited management estimates, with audited results expected in February.
DroneShield reported a sales pipeline valued at A$2.09 billion as of January 2026 in an investor presentation released with its update. This marks a decline from approximately A$2.5 billion back in October, mainly attributed to early-stage projects that either “did not materialize or were reduced in scope” alongside a stronger Australian dollar versus the U.S. dollar. The company also confirmed “secured” revenues of A$95.6 million for 2026. 4
DroneShield announced it will hold an investor call at 9 a.m. Sydney time on Wednesday, featuring CEO Oleg Vornik, CFO Carla Balanco, and chief product officer Angus Bean. 5
Investors should note the pipeline number isn’t a backlog. The company describes these opportunities as “unweighted for probability” and warns there’s “no assurance” they’ll convert into sales. Tuesday’s market response highlighted how sentiment can shift sharply when pipeline growth diverges from quarterly revenue results.
On Wednesday, traders will focus on the portion of 2026’s secured revenue that’s already confirmed versus what’s still up for grabs in procurement. They’ll also be looking for updates on margins and cash costs. Beyond that, the next major event is the company’s audited FY2025 results, which DroneShield plans to release in February.
