SYDNEY, Jan 29, 2026, 17:17 (AEDT) — Market closed.
- DroneShield dropped 9.9% to A$3.56, slipping for the third session in a row.
- This move comes after the company’s December-quarter update and a 4Q25 investor call held earlier this week.
- Attention shifts to February’s audited FY2025 results and if the selling pressure eases.
DroneShield Ltd shares fell 9.9% on Thursday, closing at A$3.56 after dipping to A$3.53 earlier in the session. The stock has now dropped roughly 15% over the past three trading days. Volume was around 21.5 million shares, per Investing.com data. (Investing.com Australia)
This decline is significant since DroneShield stands out as one of the ASX’s most closely followed defence tech stocks, attracting heavy retail interest and known for swift reactions to contract and cash-flow news.
Thursday’s drop raises a straightforward question for traders heading into the next session: is this just a reset after a strong run, or the beginning of another downward stretch as expectations get scaled back?
DroneShield reported a 94% jump in revenue from customers to A$51.3 million for the December quarter, according to its update this week. Customer cash receipts surged 142% to A$63.5 million. The company’s SaaS segment, subscription software sold as a service, grew to A$4.6 million, and operating cash flow flipped positive at A$7.7 million. DroneShield also flagged that its FY2025 and FY2026 figures remain unaudited management estimates, pending the audited results due in February.
Looking ahead to calendar 2025, the company reported customer revenue hitting A$216.5 million, up sharply from A$57.5 million in 2024. Cash receipts stood at A$201.6 million, with SaaS revenue contributing A$11.6 million. The January sales pipeline was pegged at A$2.09 billion, alongside “secured” revenue for 2026 of A$95.6 million. The company cautioned, however, that pipeline numbers are unweighted for probability and not guaranteed. (Company Announcements)
DroneShield hosted an investor call at 9 a.m. Sydney time on Wednesday, led by CEO Oleg Vornik, CFO Carla Balanco, and Chief Product Officer Angus Bean, the company confirmed in an ASX notice. (Company Announcements)
During the call, Vornik highlighted the carry-over into 2026, saying the company had “essentially $100 million” locked in cash receipts and revenue. He also mentioned that profit numbers are expected to be released alongside the annual results in roughly a month. (Investing)
The stock has held onto a volatility premium since late 2025. In response to executive share sales in mid-November that triggered a sharp drop, DroneShield rolled out a mandatory minimum shareholding rule for its directors and senior management, Reuters reported in December. (Reuters)
The downside is clear-cut: defence procurement tends to be uneven, with deliveries and payments often shifting between quarters. The company has also warned that some crucial numbers remain unaudited until the annual report is released.
Heading into Friday, traders will be eyeing if the stock can hold its ground after finishing close to the day’s lows, while watching for any new contract news that might shift sentiment.
February’s audited FY2025 results and annual report are the next key catalyst. Investors will scrutinize margins, cash conversion, and how quickly DroneShield is shifting toward a bigger software and subscription footprint.
