The DroneShield Ltd (ASX: DRO) share price is jumping on Wednesday morning.
At the time of writing, the counter-drone technology company's shares are up 4.5% to $3.98.
This follows the release of the company's eagerly anticipated first-quarter update before the market open.
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DroneShield share price jumps on quarterly update
For the three months ended 31 March, DroneShield reported its highest ever customer cash receipts in a quarter and the second‑highest revenue in a quarter.
Management believes these results continue the positive trajectory from 2025, during which DroneShield achieved all‑time record performance across key metrics.
According to the release, the company achieved revenue of $74.1 million in the first quarter. This is up 121% on the prior corresponding period. Management notes that this is higher than its trading update implied due to the timing of deliveries in late March.
This means that FY 2026 committed revenue to date is now $154.8 million, which is comfortably higher than the $94.4 million it reported at the same point last year.
Management notes that this has been driven by a steady flow of repeat and new end-user orders, many of which are below the $20 million materiality reporting threshold, with a $59 million increase in committed revenue since the start of 2026.
SaaS revenue continues to grow strongly, increasing by 205% year on year to $5.1 million. This means that SaaS now accounts for 6.9% of revenue, which is up from 5.4% in FY 2025.
Also catching the eye were its cash receipts, which grew 360% to $77.4 million, and its net operating cash flow of $24.1 million, which helped drive a 13% increase in cash balance to $222.8 million.
Outlook
DroneShield revealed that its sales pipeline now stands at $2.2 billion across a total of 312 projects.
The bulk of this is in the European and UK markets, which accounts for $1.1 billion of its sales pipeline across 77 projects.
Elsewhere, the US sales pipeline totals $268 million across 126 projects and the Asia market has a sales pipeline of $501 million across 28 projects.
It is worth noting that DroneShield's sales pipeline is lower than the $2.3 billion across 296 projects it reported in February. However, management notes that this reflects net project movement of negative $84 million from the conversion into sales and change in scope and currency movements of +$30 million.
Looking longer term, the company has spoken about its 2030+ vision. This includes a revenue target of $1 billion with significant recurring revenue >30%.
It will also look to achieve this with "strong diversification across end-users, geographies and product solutions, with hardware and software updates."
