Committed Revenue of $261M outlined in DroneShield’s October 2026 investor presentation
In its October 2026 investor presentation, released alongside a 15 October ASX announcement, DroneShield outlined FY2026 Committed Revenue of $261 million as at 12 October 2026. That figure sits at the midpoint of the $250M to $270M FY2026 revenue outlook range provided on 28 July 2026.
Management detailed the following key figures:
- Committed Revenue is up 35% on the prior corresponding period ($193.1M as at 20 October 2025).
- The figure represents 121% of FY2025 revenue.
- It includes 9% in recurring revenue.
- $29M of Committed Revenue is already in place for FY2027.
- A further $17M is committed for FY2028 and beyond.
Angus Bean, Chief Executive Officer and Managing Director
“…2026 has been an important year when foundations have been reset, the platform has been built out, and we prepare for continued scale and growth in 2027 and beyond.”
The company defines Committed Revenue as the value of hardware, services, warranties and subscriptions delivered and scheduled for delivery within the period, based on confirmed purchase orders. It includes revenue already recognised and confirmed orders scheduled for delivery.
For investors, the measure offers visibility into future periods. The presentation states that FY2027 Committed Revenue is expected to increase in coming months.
The presentation also set out implied average weekly revenue, based on 52 weeks: $1.1M in FY2024, $3.0M in FY2025 and $4.8M to $5.2M for FY2026. The FY2025 figure excludes the $61.6M single largest order on record.
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What is Committed Revenue, and why does it matter to investors?
Committed Revenue is a running tally of work that has either been delivered or is locked in through confirmed purchase orders. It is not the same as guidance, which is a range management expects revenue to land in. It also differs from revenue already recognised in the accounts, because it includes orders still scheduled for delivery.
According to the presentation, confirmed orders convert progressively into recognised revenue. Tracking the figure over time therefore shows how much of the outlook is already backed by orders. The cumulative line chart showed Committed Revenue of $155M on 31 March 2026, $251M on 21 August 2026 and $261M on 12 October 2026.
One caveat applies. DroneShield has been awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) procurement vehicle contract, but the company states it does not guarantee any orders. It is therefore separate from Committed Revenue.
Platform built: next-generation products, recurring revenue and US validation
Next-generation solutions in market
The presentation described RfAI-3 and RfRecon as the starting point of a full next-generation product roadmap. The timeline detailed was:
- July 2026: RfAI-3 platform revealed, a third-generation RF intelligence software engine that senses emerging threats beyond catalogued signature libraries.
- August 2026: RfRecon launched as flagship hardware, with first orders received from a Tier 1 Western European military end-user.
- H2 2026: Production scaling and delivery of first RfRecon orders, with RfAI-3 software on track for delivery by the end of 2026.
- 2027: Further hardware releases through 2027.
Recurring revenue and Mission Ready Services
Mission Ready Services launched on 1 October. It is a subscription offering that includes software updates, training, specialist support and an access portal. All DroneShield solutions except DroneGuns have access to the subscription-based service.
There were 4,200 software-enabled devices as at 12 October 2026, compared with 4,100 reported at 1H 2026. Recurring revenue in 1H 2026 was $11.5M, up 229% on the prior corresponding period, and represented 9.2% of revenue (4.9% in the prior period). The presentation noted this was before the introduction of Mission Ready Services.
JIATF-401 and the US$500M IDIQ ceiling
DroneShield has been awarded an IDIQ procurement vehicle contract with a ceiling value of US$500M over 3 years. The company states the contract does not guarantee any orders, and any amounts cannot be quantified at this time.
DroneShield solutions are also available through the JIATF-401 C-UAS Marketplace, which gives eligible US Government agencies direct access to its capabilities. One example cited in the presentation was a vehicle-mounted C-UAS capability that went from contract award to accepted operational capability in ~80 days, with 3 additional units planned under contract modification.
For readers wanting to understand how the contract vehicle fits into US procurement, our full explainer on the US$500M IDIQ contract vehicle walks through the JIATF-401 Domestic Shield structure and why no order amounts can yet be quantified.
Diversification, margins and balance sheet
The presentation’s 1H 2026 financial highlights showed revenue growth alongside lower margins and an underlying EBITDA loss.
| Metric | 1H 2026 | 1H 2025 | PCP change |
|---|---|---|---|
| Revenue | $125.8M | $72.3M | 74% |
| Recurring revenue | $11.5M | $3.5M | 229% |
| Gross margin | 60.0% | 65.3% | Not stated |
| Underlying EBITDA | ($12.4M) | $8.0M | -256% |
Underlying EBITDA is before Individually Significant Items of $15M. The company attributed the result to lower gross margin and an increased fixed base for scaled operations.
On margins, the presentation said 1H 2026 gross margin was affected by a higher third-party product sales mix and ERP and relocation-related inventory impairment. FY2025 gross margin was reported as 61% and adjusted to 65% when adding back $8.5M in finished goods inventory impairment relating to earlier model DroneGuns.
Initiatives to strengthen gross margin include:
- Higher pricing and higher margins on next-generation products.
- The upgrade to Mission Ready Services.
- More active software-enabled units deployed.
- Enhanced inventory management with the ERP system and procurement processes.
Revenue diversification in 1H 2026 was as follows:
- Europe & UK: 52%
- United States: 17%
- Military: 85%
- Non-military government and commercial: 15%
DroneShield held $180M in cash and term deposits with no debt as at 30 June 2026.
Priorities for the balance of 2026 and entering 2027
Management set out five near-term priorities:
- Deliver 2026 and build 2027 revenues.
- Strengthen gross margin.
- Ship first RfRecon, with first deliveries and revenues on track for FY2026.
- Build the recurring revenue base.
- Advance the commercial growth engine through procurement portals and panels.
On people and governance, DroneShield had 519 employees as at 30 September 2026, compared with 537 at 30 June 2026. Rebecca Lowde joins as Chief Financial Officer from 2 November, and Hamish McLennan is listed as Chairman.
The presentation closed with a thesis built around structural demand, which it describes as counter-drone now being core, multi-year funded defence spend across NATO and allied markets. Alongside that sits a Committed Revenue base that is now building into FY2027.
Investors exploring the procurement panel opportunity can read our detailed coverage of the LAND 156 counterdrone panel, which explains the $1.3 billion Australian programme, the 150 Defence bases in scope and the Capability as a Service model.
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