If you bought and held onto DroneShield Ltd (ASX: DRO) shares over the long-term, I commend you on your cast-iron stomach.
While all ASX stocks are subject to the occasional unexpected moves higher or lower, DroneShield has historically been particularly volatile. Especially as the company has gained global interest over the last three years.
Indeed, it was only back on 9 October, that shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed at an all-time high of $6.60.
Which would have been an exceptionally poor time to buy the stock.
In late afternoon trade on Thursday, DroneShield shares were swapping hands for $1.80 each. While that was up 0.6% for the day, it sees the share price down a painful 72.7% from the October record high.
As mentioned, we've seen some outsized gains and losses from the ASX 200 defence stock before. More than once. And it's quite possible DroneShield can recover those losses, and more, in the year or years ahead.
But, while I certainly don't advocate trying to time the market, when it comes to investing in pioneering companies like DroneShield shares, it can pay to get in early.
Here's what I mean.
Image source: Getty Images
What a $10,000 investment in DroneShield shares five years ago is worth now
On 30 July 2021, you could have snapped up the shares in the drone defence company for just 18 cents apiece.
Meaning your $10,000 investment would have netted you 55,555 DroneShield shares.
At the recent price of $1.80 a share, that investment would now be worth $99,999.
That's a gain of 899%, which smashes the 21.3% gains delivered by the ASX over this same period.
What's the latest from the ASX 200 drone defence stock?
DroneShield released a 2026 calendar year trading update on Tuesday, 28 July.
The company said it expects first half (H1 2026) revenue to come in at $125.8 million, up 74% year on year. And management expects recurring revenue, which can help smooth out some of that volatility, of around $14.2 million, representing 11.3% of the total.
For the full 2026 calendar year, DroneShield provided revenue guidance in the range of $250 million to $270 million range. That represents a 15% to 25% increase on 2025 revenue.
Commenting on the first half, DroneShield managing director and CEO Angus Bean said, "We have converted global customer demand into revenue, deepened engagement with defence and government customers, and continued to scale the business at pace while executing a structured leadership transition."
Amid high market expectations, DroneShield shares closed down 13.2% on the day of the release.
