DroneShield’s short sellers are holding on to A$256 million worth of bets even as orders for 2026 have reached A$171 million. Sydney, July 14, 2026, 09:31 (AEST)
DroneShield ASX:DRO goes into Tuesday trading with 12.19% of its shares sold short. That’s investors wagering against the stock. With DroneShield closing at A$2.27 on Monday, the value of those short positions came to about A$256 million.
Short interest climbed 0.25 percentage point in one session as traders added 2.31 million shares, or about A$5.3 million in new short bets at Monday’s close. The data tracks positions as of July 7 since ASIC releases numbers with a four-business-day lag. ASIC said results depend on short sellers reporting accurately.
Why it matters now: DroneShield stock has already dropped 66% from its A$6.70 52-week high, but the company still trades at a market cap close to A$2.10 billion. It had A$223 million in cash and zero debt as of March 31, which puts enterprise value at about A$1.88 billion. That’s about 8.7x 2025 sales and 51x EBITDA.
The bull case hinges on the order book. As of May 26, DroneShield had A$161 million in committed revenue for 2026, which is up 61% from the same time last year. “Committed” refers to scheduled deliveries with purchase orders. After that, a new A$24.9 million contract with the U.S. Joint Interagency Task Force 401 brought at least A$10 million to be counted this year, which raises the disclosed 2026 total to at least A$171 million — about 79% of 2025’s revenue. CEO Angus Bean said customers are looking for systems that can deploy fast and keep airspace secure. U.S. president Ray Fitzgerald said users want “operationally relevant counter-drone capabilities at scale.”
| Investor measure | Latest or calculated figure | What it shows |
|---|---|---|
| Reported short interest | 12.19% | |
| Shares reported short | 112.65 million | Just under the 12.66% 52-week high |
| One-day increase | 2.31 million shares | Worth about A$5.3 million at Monday’s close |
| Notional short position | A$255.7 million | Sits near 12% of DroneShield’s equity value |
| Minimum disclosed 2026 committed revenue | A$171 million | Comes out to 79% of 2025 revenue |
| Enterprise value | A$1.88 billion | Based on March 31 cash, assumes no debt |
| Enterprise value/2025 revenue | 8.7 times | Sales multiple looks rich |
| Enterprise value/2025 underlying EBITDA | 51.4 times | High number if there’s any execution slip |
Revenue quality is still a concern for that pushback. DroneShield’s 2025 sales were 91% hardware, with subscriptions at 5% and warranties and services at 4%. As of May, recurring revenue items were 13% of 2026’s committed revenue. The mix is getting better, but most of the business still rides on when and how big equipment deals are, not on regular software fees.
Electro Optic Systems ASX:EOS is making moves. The company landed a A$5.7 million contract from the Australian government on July 8 to work on its R400 Slinger system, which is aimed at counter-drone defence. EOS closed Monday at a market cap of around A$1.78 billion—still trailing DroneShield, even after securing big export deals for its weapons-focused kit. The two companies offer different technologies. DroneShield works with radio-frequency sensing, electronic warfare, and command software, while Slinger relies on a machine gun and laser-guided rockets.
| ASX company | July 13 market value | Recent relevant award | Main counter-drone layer |
|---|---|---|---|
| DroneShield ASX:DRO | A$2.10 billion | A$24.9 million contract from a U.S. task force | Detection tech, electronic jamming and software tools |
| Electro Optic Systems ASX:EOS | A$1.78 billion | A$5.7 million Mission Syracuse deal | Kinetic response using the R400 Slinger |
A big contract could move the numbers fast. DroneShield points to 13 deals each over A$20 million, with one worth up to A$730 million in total and an update coming in the second half. But these are just potential deals, not signed orders. Landing even a piece of the largest deal would push the future sales multiple down; any delay gives ammo to short sellers.
But valuation isn’t the only risk. ASIC is looking into DroneShield’s statements and its disclosures to the ASX from November 1 to November 20, 2025. The regulator is also reviewing trading in DroneShield shares from November 6 to November 12. DroneShield has said it will cooperate but it doesn’t know if anything will come of the probe. The investigation comes after governance problems tied to executive share sales and a mistaken U.S. order report, both blamed in part for last year’s heavy selloff.
Tuesday’s setup looks more balanced than usual. If another big, confirmed order lands, short sellers might have to cover, triggering a squeeze or fast move up. But if no new conversion comes, the mix of hardware-led sales, high valuation, and ongoing regulatory issues gives bears reason to stick around.
