RocketDNA’s xBot revenue passes a key threshold as mining deployments expand

Recurring xBot revenue passes 50% threshold

RocketDNA Ltd (ASX:RKT) has reached a significant point in its revenue transition: xBot recurring revenue accounted for more than half of group revenue in the September quarter, even as total revenue slipped from the previous quarter. Unaudited Q3 FY26 revenue rose 31% from Q3 FY25 to A$2.46 million, compared with A$2.53 million in Q2 FY26, as growth in recurring xBot and data-services revenue was offset by lower legacy drone services and one-off equipment sales.

xBot recurring revenue increased 24% quarter-on-quarter, helped by a full-quarter contribution from customers that began in Q2, one new paid ongoing arrangement, several paid trials and higher utilisation among existing customers. Monthly recurring revenue ended September at A$665,000, up 8% from June. That mix is strategically more important than the modest quarter-on-quarter decline in reported revenue, although the figures remain unaudited and the company has not provided a profit result in this report.

BMA extension anchors hardware rollout

RocketDNA ended the quarter with 25 xBot hardware systems operating under paid ongoing services, while another 21 were in manufacture, transport, commissioning or trial. The latter figure increased 40% from Q2, giving the company a growing installed base from which to build recurring service revenue.

The BHP Mitsubishi Alliance deployment remains the clearest commercial anchor. BMA issued purchase orders worth approximately A$1 million to extend autonomous drone operations across its Bowen Basin coal mines, covering Peak Downs, Goonyella Riverside, Saraji and Caval Ridge. The extension runs at a broadly consistent rate for a minimum of three months to October 2026, following the BMA contract extension reported in August. RocketDNA also deployed and commissioned an xBot system at Element 25’s Butcherbird mine during the quarter.

Software usage expands alongside mission visibility

The software layer is showing signs of broader customer engagement. Monthly active users across Skylink and SiteTube exceeded 1,500 at 30 September, up 50% quarter-on-quarter, while customers had approximately 25,700 drone missions pre-booked over the following 12 months. That compares with the Skylink mission pipeline reported earlier in the year, when more than 25,000 missions had been scheduled.

RocketDNA said its platforms recorded 100% uptime during the quarter and that multi-operator functionality was proven through its African production system. The company has also completed its SiteTube changes for the planned Deswik.CAD integration, with Deswik now testing its development. The arrangement remains a non-binding, non-exclusive memorandum of understanding, so testing is a milestone rather than evidence of a commercial contract.

Placement replenishes cash after heavier investment

Cash remains the main constraint in the numbers. Net operating cash outflow was A$371,000 for the quarter, while investment spending included A$837,000 on income-generating xBot fleet hardware and A$368,000 on SiteTube, Skylink and website development. Cash receipts from customers fell 14% quarter-on-quarter to A$2.58 million, leaving A$975,000 in cash at 30 September and an Appendix 4C estimate of 2.6 quarters of funding based on the quarter’s operating cash outflow.

After quarter end, RocketDNA completed the October strategic placement, raising approximately A$2.23 million through the issue of 103.5 million shares at A$0.0215. The placement, led by major shareholder Daniel Narayan, lifted pro forma cash to approximately A$3.2 million as at 30 September. Proceeds are earmarked for xBot deployment, software engineering, cyber-security accreditation and working capital, but the raise also increases the share count materially.

Five new xBot units were placed into live trials with five Tier 1 mining companies or consortiums during the quarter. Those trials can be paid, subsidised or free and run for up to three months, making conversion into paid ongoing services the next practical test of whether the hardware pipeline and rising software usage translate into sustained revenue growth. The October BMA end point is another near-term marker: RocketDNA’s recurring-revenue progress will need to withstand both customer conversion risk and the question of what follows that minimum extension.