DroneShield’s 3Q25 Revenue Hits A$92.9M, Up 1,091% Year-Over-Year

• 3Q25 revenue hits A$92.9 million, up 1,091% year-over-year
• YTD 2025 secured revenues reach A$193.1 million, surpassing full-year 2024
• Robust sales pipeline valued at A$2.55 billion across global markets
• Expanding manufacturing capacity to A$2.4 billion annual output by end-2026
• SaaS revenue grows 400% in 3Q25, with civilian market adoption accelerating

A Market Leader in a Rapidly Evolving Sector

DroneShield Limited (ASX, DRO) has delivered a blockbuster third quarter for 2025, posting revenue of A$92.9 million; a staggering 1,091% increase compared to the same period last year. This surge underscores the company’s dominant position in the burgeoning global counter-drone market, which remains largely unsaturated despite its estimated US$60 billion total addressable size.

Geopolitical tensions and evolving security threats, notably highlighted by the ongoing conflict in Ukraine, have thrust drones and counter-drone technologies into the spotlight. Governments and civilian sectors alike are accelerating investment in solutions to detect and neutralize drone threats, creating fertile ground for DroneShield’s AI-powered multi-mission systems.

Strong Financial Momentum and Expanding Footprint

Year-to-date secured revenues have already reached A$193.1 million, dwarfing the full-year 2024 figure of A$57.5 million. The company’s cash receipts for 3Q25 also soared to A$77.4 million, a 751% increase year-over-year, reflecting robust order flow and execution. Importantly, DroneShield achieved positive operating cash flow of A$20.1 million in the quarter, signaling a transition toward sustained profitability.

DroneShield’s sales pipeline stands at an impressive A$2.55 billion, spanning over 300 projects across diverse geographies including the US, Europe, Middle East, Latin America, and Australia. This breadth of opportunity is supported by a global presence in more than 70 countries and a workforce of 400 employees, including over 330 engineers focused on continuous innovation.

Innovation at the Core, AI and SaaS Driving Growth

The company is rapidly expanding its AI-powered software-as-a-service (SaaS) offerings, which grew 400% in 3Q25 to A$3.5 million. SaaS is increasingly critical as drone technology evolves, with software playing a larger role in detection and defeat capabilities. DroneShield’s civilian-focused subscription product, SentryCiv, launched recently and is designed to be cashflow positive from day one, positioning the company to capture up to 50% of revenue from civilian markets within five years.

DroneShield’s product suite includes the DroneSentry-X, DroneGun Mk4, and RfPatrol Mk2, offering comprehensive detection and defeat solutions tailored for military, law enforcement, and civilian applications. The company’s proprietary AI datasets and continuous R&D investment; over A$50 million annually; ensure its technology remains ahead of rapidly evolving drone threats.

Scaling Manufacturing and Strategic Expansion

To meet soaring demand, DroneShield is expanding its manufacturing capacity from A$500 million to A$2.4 billion annually by the end of 2026. This includes a new 3,000 sqm production facility in Sydney, alongside planned European and US contract manufacturing hubs. The company maintains a strategic inventory valued at A$82 million to ensure rapid delivery and mitigate supply chain risks.

DroneShield’s strategic priorities include doubling its sales pipeline to A$5 billion by 2026, rolling out next-generation hardware, and deepening penetration in civilian markets. The company also plans to enhance its electronic warfare capabilities and expand regional sales hubs, positioning itself as a trusted partner rather than a mere vendor.

Outlook and Market Position

As the only publicly listed pure-play counter-drone company globally, DroneShield enjoys a unique competitive advantage. Its integrated hardware and AI-driven software solutions, combined with strong customer relationships and a growing global footprint, underpin confidence in its ability to sustain growth and profitability. However, the rapidly evolving drone threat landscape and competitive pressures will require ongoing innovation and agility.

Bottom Line?

DroneShield’s record-breaking quarter and strategic expansion set the stage for sustained leadership in a rapidly growing, high-stakes market.

Questions in the middle?

• Will DroneShield’s AI-driven SaaS offerings achieve the targeted 30-40% revenue share?
• How will geopolitical shifts and defense budgets impact contract awards in 2026 and beyond?
• Can DroneShield maintain its technological edge against emerging drone countermeasures?