Why DroneShield, Life360 and SGH shares are crashing lower this week

Investors sent Life360, SGH, and DroneShield shares tumbling this week. But why?

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DroneShield Ltd (ASX: DRO), Life360 Inc (ASX: 360), and SGH Ltd (ASX: SGH) shares are finishing off a week to forget.

While the S&P/ASX 200 Index (ASX: XJO) is down 1.5% since last Friday's close as at afternoon trade today, all three of these big name ASX stocks have fallen far harder.

Here's why investors have been favouring their sell buttons.

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Image source: Getty Images

SGH shares sink on revenue dip

You may be more familiar with SGH as Seven Group Holdings.

Whatever brand name you choose, SGH shares have plunged 10.9% since last Friday's close, currently trading for $40.90 apiece.

The SGH shares price lost 10.3% on Tuesday following the release of the company's full-year FY 2026 results.

Investors reacted negatively to SGH reporting $10.56 billion in revenue, down 2% from FY 2025.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.08 billion were up 2%.

However, on the bottom line, net profit after tax (NPAT) of $920 million slipped from an NPAT of $924 million in FY 2025.

Looking ahead, guidance was underwhelming, with the company expecting to deliver flat to low single-digit earnings before interest and tax (EBIT) growth in FY 2027.

DroneShield shares slide despite new product launch

Like SGH shares, investors would have done well to avoid buying DroneShield shares last Friday.

In afternoon trade today, shares in the ASX All Ords drone defence company are trading for $1.99 each, down 8.7% for the week.

The decline in DroneShield shares may have been partly driven by profit-taking, with shares still up 17.4% since the 31 July close.

The DroneShield share price closed flat on Monday, despite the company announcing the launch of its RfRecon product.

The company noted that its new product, a portable radio frequency (RF) sensing and intelligence device, allows operators to rapidly identify, locate, and assess RF activity in active operational environments.

Which brings us to…

Life360 shares slump on margin erosion

Joining DroneShield and SGH shares in taking a fall this week, Life360 shares are down a steep 17.2% over the week.

Shares in the ASX 200 location sharing software developer crashed 19.4% on Tuesday following the release of the company's second-quarter (Q2 2026) results.

On the plus side of the ledger, Life360 reported total revenue of US$159 million, up 38% year on year. And adjusted EBITDA was up 53% to US$31.1 million.

However, net income of US$5.1 million was down 17.8% year on year. And Life360's net income margin dropped to 3%, down from 6% a year earlier.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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