Quarterly Activities/Appendix 4C Cash Flow Report

• All-time high revenue and cash receipts
• SaaS revenues up 400% year-over-year
• Targeting consistent operating cash flow positivity and profitability

DroneShield Ltd (ASX:DRO) has reported an exceptionally strong quarter with all-time record metrics across the board. Revenue for the quarter reached A$92.9 million, up 1,091% year-over-year, with committed revenues year-to-date 2025 of A$193.1 million compared to A$57 million for all of 2024. Cash receipts also hit an all-time high of A$77.4 million, up 751% year-over-year. SaaS revenues grew 400% year-over-year to A$3.5 million, with the company expecting SaaS to play an increasing role as drone technology evolves. The company is targeting consistent operating cash flow positivity and profitability moving forward. Key developments during the quarter included the launch of DroneSentry-C2 Enterprise SaaS, an NSPA Rating for DroneSentry, a landmark 4Q25 AI software release, and the launch of a new South Australia R&D facility. The company also completed delivery of a A$62 million European contract, won an A$11.7 million DoD research contract, and expanded its presence in Ukraine and with the U.S. Department of Homeland Security.

For the financial year 2025, DroneShield is expecting to continue its strong revenue growth, with committed revenues year-to-date 2025 of A$193.1 million compared to A$57 million for all of 2024. The company is targeting consistent operating cash flow positivity and profitability moving forward.

DroneShield is expecting the civilian sector to reach up to 50% of its revenue over the next 5 years, with subscription products being a central part of the company's strategy. The company is also focused on expanding its presence in key markets such as the U.S. and Europe, and continuing to invest in R&D and manufacturing to support its growth.