Sydney, Feb 1, 2026, 17:42 AEDT — The market has closed.
- DroneShield shares ended Friday at A$3.32, slipping 7.5%.
- Since closing on Jan. 23, the stock has dropped roughly 26% following four consecutive days of declines.
- Investors are focused on the A$2.09 billion pipeline alongside the release timing of audited FY2025 results.
DroneShield shares slipped 7.5% to finish Friday at A$3.32, putting the counter-drone company at a disadvantage as it enters the new week. (Investing)
Since closing on Jan. 23, the stock has dropped roughly 25.7%, with steep daily losses piling up into the end of the month. Moves like this usually shake out short-term investors or attract new sellers. (Investing)
Why it matters now: investors are weighing DroneShield’s recent quarterly report and its impact on deal conversions in 2026. For high-growth defense tech firms, a new contract announcement can shift sentiment sharply—but a weaker pipeline figure can do just as much damage.
DroneShield’s filings are crucial since its sales often come in fits and starts — a handful of big defence contracts can change a quarter’s picture entirely. Investors zero in on the “pipeline” of potential, unsigned deals and the actual cash received before the market kicks back into gear.
The company posted A$51.3 million in revenue for the quarter ended Dec. 31, a 94% jump from the previous year, alongside customer cash receipts of A$63.5 million. Operating cash flow swung to a positive A$7.7 million, compared with an A$8.9 million outflow a year earlier. It holds A$95.6 million in committed revenue for 2026, and cash and equivalents stood at A$210.4 million at quarter-end. The update highlighted contracts worth A$49.6 million with a European military client and A$25.3 million in Latin America. Audited FY2025 results are expected in February. (ASX Announcements)
DroneShield reported its sales pipeline at A$2.09 billion in January, down from A$2.5 billion in October, according to an investor presentation released alongside the update. The company attributed the decline mainly to early-stage, low-probability projects that either stalled or were scaled back, as well as a stronger Australian dollar. It also emphasized that the pipeline is unweighted and doesn’t guarantee future sales. (Company Announcements)
A separate ASX filing on Thursday revealed the company applied to list 4.565 million new fully paid ordinary shares. These came from exercised options or converted securities. Even a relatively small uptick in supply can impact a stock already under pressure. (Company Announcements)
CEO Oleg Vornik said on this week’s earnings call that the company kicked off 2026 with “essentially AUD 100 million” in locked-in revenues already secured. He added they don’t offer guidance because “it would just be irresponsible” in such a “nascent industry.” (Investing.com Nigeria)
But the next move isn’t set in stone. Defence and security contracts often drag on, budgets shift, and pipelines get reshuffled — particularly when early-stage projects hang in the balance and might never actually close. Following a 26% drop in a single week, the price action alone could trigger further swings.
Shares resume trading Monday, Feb. 2, as investors look for new contract updates and signs that selling pressure might be easing. Attention now shifts to the company’s audited FY2025 results, expected to be released in February.
