1. 2Q25 Key Results – Financial & Operational Highlights Growth...

1. 2Q25 Key Results – Financial & Operational Highlights

Growth Acceleration:

	Metric	Value	YoY Growth
1	2Q25 Revenue	$38.8M	+480%
2	HY25 Revenue (Jan–Jun)	$72.3M	+210%
3	YTD Revenue (to July 22)	$176.3M	~3× 2024 total
4	Pipeline (July 2025)	$2.33B	+112% YoY
5	Cash on Hand (Jul 24)	$192.0M	No debt
6	Annual R&D Spend	$50M+	Sustained
7	Engineer Headcount	285 → 363	+150% from 2024

Revenue is exploding, with clear visibility on further contract wins. They’ve already beaten FY24 revenue in just 7 months.

2. Strategic Positioning & Product Edge

Why DRO is differentiated:

• AI-powered multi-sensor systems (DroneSentry-C2, DroneGun Mk4, etc.)

• Proprietary electronic warfare capabilities

• Rapid rollout of SaaS revenue model

• Global presence in 70+ countries

• Largest pure-play counter-drone company listed globally

Key focus areas:

• Expanding into civilian markets (e.g., airports, infrastructure)

• Building EU & US manufacturing hubs

• Embedding software and lifecycle services (not just one-time sales)

3. Geographic Revenue Split

	Region	2025 Pipeline	YTD Revenue
1	USA	$684M	$14M (20%)
2	Europe	$1B	$12M (16%)
3	Australia	$437M	$20M (27%)
4	Asia	$118M	$16M (22%)
5	UK / Other	<$100M	<15%

Australia is still leading in revenue, but the US and Europe have the largest pipelines. US demand likely to explode in 2H25–2026.

️ 4. LAND 156 & Defence Ties

• Recently secured initial phase of Australia’s LAND 156 program (announced July 24).

• Multiple US DoD and NATO pipeline deals >$30M.

• “Big Beautiful Bill” expected in US for further drone/C-UxS funding.

Shows increasing political & military alignment across multiple continents.

5. Technical & Strategic Takeaways

Bullish Signals:

• Massive cash position + no debt = room to scale quickly.

• Contracts + pipeline show momentum is real, not hype.

• Shift to SaaS model with embedded AI = margin expansion potential.

• Europe/US pipeline size suggests upside ahead even if some deals slip.

⚠️ Risks to Watch:

• Execution risk: large backlog doesn’t always equal conversion.

• Macro factors (defence budgets, political changes) can delay wins.

• Still reliant on a handful of large contracts — lumpy earnings possible.

6. Upcoming Catalysts to Watch

• 2Q25 Investor Call: 5 Aug 2025 @ 8AM AEST
  Register here

• New contract wins (especially US DoD >$20M)

• Q3 cash receipts and confirmed order deliveries

• Announcements on EU/US manufacturing hubs

Investment Summary (Post-July Update)

	Factor	Rating
1	Revenue momentum	✅ Strong
2	Cash & balance sheet	✅ Strong
3	Tech & IP moat	✅ Unique
4	Valuation risk	⚠️ Moderate (parabolic move just cooled off)
5	Short-term trading	⚠️ Pullback zone (watch $2.85–$2.95 support)
6	Long-term investment	✅ Compelling growth story