DroneShield posts record results as global counter-drone sales soar
DroneShield has reported record first half results as demand for counter-drone technology accelerates across international markets.
The company released its 1H25 report showing revenue of USD $72.3 million, an increase of 210% on the previous year. Customer cash receipts totalled USD $60.7 million, and profit after tax stood at USD $2.1 million. DroneShield also confirmed secured FY25 revenue of USD $176.3 million, with July and early August alone generating USD $42.1 million in revenue.
These results come amid a period of heightened demand for counter-drone solutions globally, with DroneShield citing substantial traction across Europe, the Asia Pacific region, and the United States. The company has expanded its production capability and workforce in response to the increasing need for advanced drone detection and mitigation products.
Financial performance
Key metrics demonstrate a sharp leap in performance compared to the same period in 2024. EBITDA climbed to USD $5.2 million from a loss of USD $4.9 million, improving by USD $10.1 million. Operating cashflow also improved, moving from negative USD $30.2 million in 1H24 to negative USD $8.7 million in 1H25. The company's cash and term deposit balance closed at USD $203.8 million, a USD $69.5 million increase year-on-year.
The first half of the year included a USD $61.6 million contract, described as the largest in the company's history, which is due for full delivery by the end of August. As of 14 August 2025, year-to-date recognised revenue stands at USD $114.4 million with cash receipts of USD $100.9 million.
"This performance reflects the strength of our product portfolio, the agility of our operations, and the rapidly growing market for counter-drone solutions," said Oleg Vornik, CEO of DroneShield. "We're proud to be delivering cutting-edge technology at scale while expanding our footprint across key international markets."
AI-focused product development
DroneShield continues to invest in artificial intelligence across its portfolio. The company's RFAI-2 detection model is set for a significant update in October 2025, aiming to expand the number of detectable drone emission formats. The next-generation detection model, RFAI-3, is scheduled for release mid-2026, and is intended to bring performance improvements, advanced capabilities, and customisation options.
Other upcoming releases include an enhanced RFAI-ATK electronic defeat model, with features designed to target specific drone threats, along with updates to the SFAI (Sensor Fusion AI Engine) and DroneOptID (AI-based Computer Vision Classifier and Optical Tracker) solutions as part of upgrades planned for the latter part of 2025.
Subscription-based Software-as-a-Service (SaaS) offerings are playing a growing role. While SaaS currently accounts for 5% of revenue, the company expects this proportion to increase as future products integrate more AI-driven features and the SentryCiv civilian-sector offering launches.
"Informed by operator requirements and evolving industry trends, DroneShield has refined its Product & Technology roadmap to balance near-term enhancements with sustained investment in R&D and strategic partnerships. This approach positions the Company to maintain and strengthen its leadership in counter-uncrewed systems technology," said Angus Bean, Chief Product & Technology Officer.
Market reach and diversification
The company has seen significant changes in revenue distribution. Fixed site solutions now account for 61% of revenue, a marked increase from 19% the previous year. The United States remains an important market, making up 20% of revenue, followed by the Asia Pacific at 27% and Europe at 16%.
DroneShield reports that hardware upgrades were delivered across all major platforms in the first half of 2025, responding to customer requirements and deploying updates to its global fleet of over 1,600 AI-enabled devices through the company's secure access portal.
Scaling operations
To meet increasing market demand, DroneShield is increasing its manufacturing capacity significantly. The company plans to expand its annual output by nearly five times, targeting annual sales capacity of up to USD $2.4 billion by the end of 2026, with manufacturing facilities in Australia, Europe, and the United States.
The company's employee base has grown from 250 at the end of the previous year to over 370 currently across engineering, sales, and operations functions, supporting its next phase of scale and international growth.
DroneShield states that ongoing investment in infrastructure, technology, and global partnerships, along with its focus on customer solutions grounded in AI and recurring revenue streams, continues to support its objectives in the counter-drone sector.
