DroneShield shares tumble after profit forecast cut and ASIC probe

DroneShield Ltd's shares have slumped to their lowest level since the company’s IPO, closing at €1.05, down 3.6% on the day and 17.6% over the past week. The decline amounts to more than 30% in the last month and a 41.6% drop since the start of the year, erasing over 70% of the value from the October 2025 peak.

Revenue grew 74% year‑on‑year to A$125.8 million in the first half of FY 2026, but gross margin fell from about 65% to roughly 60% as the business took on more third‑party hardware and higher production costs. The company cut its full‑year revenue guidance to A$250‑270 million, about 21% below the consensus forecast of A$328 million.

Jefferies reduced its price target by 27% to A$2.05 and moved to a sell recommendation, while the Australian Securities and Investments Commission (ASIC) opened an investigation into the firm’s corporate communications and possible insider‑trading. Analyst opinions are split, with some seeing the stock as undervalued and setting a price target of $2.37, implying a potential 40% upside.