• Second highest revenue quarter to date at A$51.3m, up 94% QoQ
• SaaS revenues up 475% QoQ to A$4.6m
• Targeting consistent operating cashflow positivity and profitability

DroneShield Limited (ASX:DRO) has released its business update and Appendix 4C for the three-month period ended 31 December 2025. The company reported another strong quarter, capping off a year with all-time record metrics across the board. Revenue for the quarter was A$51.3 million, up 94% quarter-on-quarter and the second highest revenue quarter to date. Customer cash receipts were A$63.5 million, up 142% quarter-on-quarter. SaaS revenues grew 475% quarter-on-quarter to A$4.6 million, with the company expecting SaaS to play an increasing role as hardware becomes more open-ended. The company reported operating cashflow of A$7.7 million, targeting to be consistently operating cashflow positive and profitable moving forward. Key developments during the quarter included an NSPA rating for DroneSentry, a landmark 4Q25 AI software release, the launch of a new R&D facility in South Australia, and several major contract wins totaling over A$94 million.

The company reported committed revenues for 2026 of A$95.6 million, compared to negligible committed revenues at the start of 2025.

The company is targeting to be consistently operating cashflow positive and profitable moving forward, with SaaS expected to play an increasing role as the civilian sector is expected to reach up to 50% of revenue over the next 5 years.