DroneShield pivots to SaaS model as shares slump 65%

DroneShield Ltd, an Australian counter‑drone technology firm, launched a new software update on 6 July targeting faster first‑person‑view drones and coordinated attacks, and announced a goal to raise its software‑as‑a‑service (SaaS) revenue share from about 7 % to 30 % by 2030. The company also added retired admiral Lee Goddard to its board to bolster defence‑sector contacts.

The market reaction has been negative. The stock is trading around $2.29, roughly 65 % below its 52‑week high, and sits well under its 50‑day and 200‑day moving averages. Analysts note the price‑to‑earnings multiples remain high (around 88× FY26 earnings) despite the decline, and label the shares as a high‑risk, speculative buy for investors comfortable with volatility.

In addition to the share slump, DroneShield faces an ASIC investigation into past disclosures, adding regulatory uncertainty. Nonetheless, demand for counter‑drone solutions remains strong across defence, aviation and critical‑infrastructure customers, supporting the company’s long‑term growth outlook.