DRO Share Price Falls 54%: Is It a Buy Now?

DroneShield Limited (ASX: DRO) saw its share price fall by more than 50% over the past year despite a strong product portfolio and growing demand.

On 10 September 2026, DroneShield announced that its committed revenue for FY26 had reached $251 million, with full-year guidance of $250–270 million. The company has also recorded committed revenue of $46 million for FY27 and beyond, reflecting continued global demand.

DroneShield also announced that its recently released AI-enabled device, RfRecon, had received its first order. The device is expected to be delivered by the end of 2026, reflecting an important validation for its next-generation counter-drone solutions.

1H 2026 Results

Earlier, on 26 August 2026, the company announced its first-half results, reporting record half-year revenue of $125.8 million.

Recurring revenue was around $11.5 million, increasing by around 229% from $3.5 million in 1H 2025. This growth was primarily driven by 4,100 active software-enabled devices in the market.

Gross margins remained at 60%, while the company’s cash and term deposit balance stood at $180 million, reflecting its strong financial position.

Committed revenue for the first half stood at $240 million, reflecting continued demand for its products in the global market.

Expanding to Non-Military Government and Commercial Markets

DroneShield has expanded its non-military revenue to 15% in the first half, supported by growing awareness of drone threats across major events, airports, public venues and commercial assets.

The company was also contracted for airspace security and public safety in Kansas City for the FIFA World Cup 2026. During the event, it detected 184 unauthorised drones while also seizing around 48 drones in operation.

DroneShield has also provided factual information about increasing commercial drone threats. The U.S. has recorded more than 3,000 drone incidents near its airports, while drone incidents in England and Wales have risen to 1,712.

This highlights the company’s growing strategic importance beyond the military sector, potentially supporting more stable revenue in the coming years.

Why Did the Share Price Fall by 54% in the Past One Year?

DroneShield’s share price went down by more than 50% in the past one year, reflecting a recent reset in market expectations following higher operating costs and weaker profitability.

The company reported record revenue for the first half of FY26, but EBITDA turned negative. This was mainly due to the expansion of its workforce, relocation and expansion of its manufacturing capacity, ERP implementation and other business systems.

These represent strategic investments from a long-term perspective.

The company is also facing an ongoing ASIC investigation, which has contributed to some investor uncertainty.

Overall, these concerns seem to be affecting the company in the near term while preparing it for even stronger performance in the longer term, as demand for its products remains robust and continues to grow at a strong pace.

Outlook and Conclusion

Looking ahead, the company is focused on the shipment of its first RfRecon by the end of 2026. This will provide validation for its new AI-enabled products.

DroneShield is also focused on increasing the deployment of its software-enabled devices through expanded partnerships and procurement portals.

Overall, the company’s growth story remains supported by its expanding presence across commercial segments and growing demand for its products from military and government customers.

Although near-term correction may continue due to weaker profitability, elevated operating costs and investor sentiment, the company’s strong revenue growth, increasing committed revenue and expansion of its product portfolio provide a foundation for long-term growth, providing a good opportunity for investors to take a measured investment exposure.

(Source: Company Announcements)