The specialist in counter-drone technology, DroneShield, has concluded its 2025 fiscal year by posting a series of record-breaking financial results. The company reported massive year-on-year growth in revenue, customer receipts, and operational cash flow, entering the new financial year with a substantial backlog of committed sales. This strong momentum raises questions about its sustainability moving into FY26.
Financial Highlights and a Cash Flow Reversal
The company’s fourth-quarter and full-year figures, detailed in its latest quarterly report (Appendix 4C), reveal the scale of its growth:
* Full-Year FY25 Revenue: A$216.5 million, representing a staggering 277% increase over the prior year’s A$57.5 million.
* Q4 FY25 Revenue: A$51.3 million, a 94% jump compared to the same quarter in 2024.
* Q4 Operational Cash Flow: A positive A$7.7 million, a dramatic turnaround from an outflow of A$8.9 million in Q4 of the previous year.
* Cash and Equivalents (Q4 End): A$210.4 million in total liquidity.
The final quarter’s sales of A$51.3 million marked the second-best quarterly performance in DroneShield’s history, surpassed only by the exceptional A$92.9 million recorded in Q3 of FY25. This contributed to the full-year revenue leap past the A$200 million mark.
The financial health of the business was further underscored by robust customer collections. Cash receipts from customers totaled A$63.5 million in Q4, more than double the A$26.2 million received in the prior-year period. For the entire fiscal year, customer inflows reached A$201.6 million.
Software Growth and a Solid Foundation for the Future
A significant shift occurred in the company’s cash generation from operations. For the full FY25 period, operational cash flow finished strongly positive at A$23.4 million, highlighting improved business efficiency.
Another key growth area is the company’s software segment. Revenue from Software-as-a-Service (SaaS) offerings surged to A$4.6 million in Q4, up sharply from A$0.8 million a year earlier. DroneShield anticipates that subscription-based software products will become increasingly important, even as its hardware solutions continue to evolve on an “open architecture” basis.
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Looking ahead, the company starts FY26 with markedly improved visibility. It has A$95.9 million in firm, committed revenue on its books for the new year—a stark contrast to what it describes as “negligible” commitments at the outset of FY25. Furthermore, the reported sales pipeline stands at A$2.09 billion.
Recent contract announcements, secured during and after the fourth quarter, demonstrate this commercial traction:
* A A$49.6 million contract with a European military.
* A A$25.3 million order from a customer in Latin America.
* A A$8.2 million deal with a Western military client.
* A A$6.2 million contract in the Asia-Pacific region.
* An additional A$5.2 million European military award.
In a strategic development, DroneShield has also been selected for the Australian Defence Force’s LAND 156 LoE 3 Panel program.
The company’s strong balance sheet, featuring A$210.4 million in cash and equivalents (comprising A$61.4 million in bank balances and A$151.4 million in term deposits), provides a substantial buffer to support ongoing operations and growth initiatives.
DroneShield is scheduled to release its audited full-year FY25 results, along with its annual report, in February.
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