• Highest ever customer cash receipts in a quarter
• 2nd highest revenue quarter to date
• Positive net operating cash flow for 4th consecutive quarter

DroneShield Limited (ASX:DRO) has released its business update and Appendix 4C for the three-month period ended 31 March 2026 (1Q2026), reporting its strongest quarterly performance to date. The company started 2026 with strong momentum, delivering the highest ever customer cash receipts in a quarter and the second-highest revenue in a quarter. These results continue the positive trajectory from 2025, during which DroneShield achieved all-time record performance across key metrics. Revenue for 1Q2026 was $74.1 million, up 121% from the prior corresponding period, and the second-highest revenue quarter on record (the highest being 3Q2025 at $92.9 million). Customer cash receipts also reached a record high of $77.4 million, up 360% from the prior corresponding period. The company also reported positive net operating cash flow of $24.1 million, the fourth consecutive quarter of positive net operating cash flow. DroneShield's cash balance as of 31 March 2026 stood at $222.8 million, up $21.7 million from the end of 2025, with no debt and funding available for ongoing investment and potential strategic M&A. The company highlighted several key developments during and subsequent to 1Q2026, including selection for the LAND 156 LoE 3 Panel, $21.7 million in Western Military Contracts, CEO and Chairman transitions, a partnership with Origin Robotics, expanded radar interoperability, and the establishment of a European headquarters and manufacturing footprint.

FY2026 Committed Revenues to date of $154.8 million, up from $94.4 million as at 1Q2025. Committed SaaS revenue is currently 13% of FY2026 Committed Revenue.

The company continues to see a steady flow of repeat and new end-user orders, with $59 million increase in committed revenue since the start of 2026. All new products carry one or multiple SaaS offerings, with quarterly software updates to address changes in drone technology and the latest threats, supporting the company's goal of 30% recurring revenue by 2030.