That looks more like broader market weakness than anything in the result itself. The S&P/ASX 200 Index (ASX: XJO) is down almost 1% at the time of writing.

Having reviewed the counter-drone technology company's numbers, I see a few clear takeaways. 

DroneShield's growth is still accelerating

The first thing that stands out is just how strong the growth remains.

DroneShield reported revenue of $74.1 million for the quarter, which is up 121% on the prior corresponding period and represents its second-highest quarter on record.

What I find interesting here is that this result actually came in ahead of its recent trading update, driven by the timing of deliveries late in March.

To me, that points to demand continuing to build rather than slow down after a strong 2025. The company is still winning work and converting that into revenue at a rapid pace.

Cash flow and balance sheet strength are improving

The second takeaway is how much stronger the financial position looks.

Customer cash receipts hit a record $77.4 million for the quarter, up 360% year on year. At the same time, DroneShield delivered its fourth consecutive quarter of positive operating cash flow.

The company also finished the period with around $222 million in cash and no debt.

I think that combination is important. It gives DroneShield the ability to keep investing in technology, expand its footprint, and potentially pursue acquisitions without needing to raise capital.

The pipeline and recurring revenue opportunity continue to build

The third takeaway is the scale of what sits ahead.

DroneShield has a sales pipeline of around $2.2 billion across more than 300 projects, which provides a clear line of sight into future opportunities.

On top of that, its software and SaaS revenue is growing quickly, up more than 200% in the quarter.

There is also a longer-term goal to lift recurring revenue to 30% of total revenue by 2030, which could make the business more predictable over time.

When I put that together, it suggests the company is not just growing, but also evolving into a more balanced model with a mix of hardware and software revenue.

Foolish Takeaway

Overall, this update highlights strong growth, positive cash flow, and a large sales pipeline that all point to a business that is still moving forward.

That is why I think today's share price weakness is worth looking past and could be a buying opportunity.

The post 3 key takeaways from DroneShield's latest results appeared first on The Motley Fool Australia.

One of the ASX powerhouses is underperforming the 0.9% loss posted by the S&P/ASX 200 Index (ASX: XJO) in late morning trade, while two are shaking off the wider market malaise and marching higher.

Here's what's happening.

BHP shares lift on surging copper prices

BHP shares are in the green today, up 0.7% at $55.87 apiece.

The ASX 200 mining giant is making waves today following the release of its operational review, covering the nine months to 31 March.

Turning to its two top earning commodities, BHP reported a 2% year-on-year increase in iron ore production for the nine months to 197 million tonnes. This was supported by record production at the miner's integrated Western Australia Iron Ore (WAIO) systems.

Copper production went the other direction, slipping 3% from the same period in FY 2025 to 1.461 million tonnes. But BHP shares look to be getting support, with the miner achieving a 31% year on year increase in its average realised copper price to US$5.47 per pound.

BHP also confirmed that Brandon Craig, current president Americas, will take over as CEO on 1 July. Current CEO Mike Henry is stepping down from the top job after six and a half years.

DroneShield shares rise on surging revenue

Like BHP shares, DroneShield shares are rising in today's sinking market.

At time of writing, shares in the ASX 200 drone defence company are up 0.5%, changing hands for $3.83 apiece.

DroneShield is making financial news headlines today following the release of its first quarter (Q1 2026) results.

Highlights for the three months include a 121% year-on-year increase in revenue to $74.1 million. And customer cash receipts of $77.4 million were up 360% from Q1 2025.

Turning to the balance sheet, DroneShield's cash balance at the end of the quarter was up 13% year-on-year to $222.8 million, with no debt.

Which brings us to…

Northern Star shares slide on update

Joining DroneShield and BHP shares in the top headlines today, Northern Star shares are down 3.0%, trading for $22.94 each.

The ASX 200 gold stock is under pressure following its own March quarter update release. Though to put today's performance in better perspective, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 2.3% at time of writing.

For the March quarter, Northern Star sold 380,807 ounces of gold at an all-in sustaining cost (AISC) of $2,709 per ounce. The Aussie gold mining giant reported revenue from gold sales of $2.01 billion.

However, investors may be favouring their sell buttons today, with the company also flagging an uptick in its FY 2026 growth capital expenditures.

Potentially supporting Northern Star shares down the road, management announced an on-market share buyback of up to $500 million.

As at 31 March, Northern Star had a cash and bullion balance of $1.18 billion.

The post Why Northern Star, DroneShield and BHP shares are making waves on Wednesday appeared first on The Motley Fool Australia.

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.

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."

The post DroneShield share price jumps after reporting 121% Q1 revenue increase appeared first on The Motley Fool Australia.

What did DroneShield report?

• Revenue: $74.1 million, up 121% on 1Q25
• Customer cash receipts: $77.4 million, up 360% from 1Q25
• SaaS revenues: $5.1 million, up 205% year on year; 6.9% of total revenue
• Net operating cash flow: $24.1 million, fourth consecutive positive quarter
• Closing cash balance: $222.8 million, up 13% from 1Q25 with no debt
• FY2026 committed revenue: $154.8 million as at 20 April 2026

What else do investors need to know?

DroneShield says repeat and new orders flowed steadily through the quarter, driving a $59 million increase in committed revenue since the start of 2026. The business is now sitting on its largest potential sales pipeline yet, valued at $2.2 billion across 312 projects in over 60 countries.

With a strong cash position, DroneShield highlighted ongoing expansion efforts. It added new regional manufacturing, particularly in Europe and the US, and continues to ramp up R&D spending, which exceeds $70 million per year.

What's next for DroneShield?

DroneShield plans to launch new hardware and software products starting in the third quarter of 2026, with a longer-term ambition to reach $1 billion in annual revenue and grow recurring SaaS revenues to over 30% by 2030. The company also aims to further expand its global presence, diversify its end-user base, and strengthen its regional manufacturing capabilities.

Management remains committed to investing in people, R&D, and selective M&A to sustain its growth momentum, while maintaining flexibility with a strong balance sheet.

DroneShield share price snapshot

Over the past 12 months, DroneShield shares have risen 217%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has rise 15% over the same period.

View Original Announcement

The post DroneShield delivers record 1Q26 revenue and cash receipts appeared first on The Motley Fool Australia.

Tuesday's uptick means the shares are now 14% higher over the year-to-date and 218% higher than this time last year.

As an Australian defence technology company specialising in counter-drone systems and electronic warfare solutions, Droneshield is one of very few ASX shares which have actually benefitted from rising geopolitical volatility and an ongoing war between the US and Iran. 

In a conflict situation, drones are used for everything from surveillance to direct strikes. This creates a huge demand for counter-drone systems like the ones Droneshield specialises in. This is why governments are hiking their spend on defence, with a focus on anti-drone defence systems. 

And the demand isn't expected to dwindle the minute the US and Iran reach a peace agreement either. While conflict boosts demand, Droneshield has also announced several new military contracts and orders recently, showing that this is likely a long-term shift in how nations defend themselves.

If I bought $5,000 worth of Droneshield shares 5 years ago, what are they worth now?

It's interesting to look back at how quickly Droneshield shares have climbed in value over the past six or 12 months. But, what about those investors which invested cash into the stock several years ago and have sat on it ever since?

Droneshield shares first listed on the ASX in June 2016 at 20 cents per share after raising $7 million through an IPO. The stock closed its first day of trading at 30 cents per share.

Fast forward to April 2021 and Droneshield shares had dropped to around 18 cents per share, shedding around 40% of its value. The shares didn't start gaining traction until early 2024.

While a 218% annual share price increase is impressive, those gains are eclipsed by Droneshield's 2,016.67% increase over the past five years!

That means that $5,000 invested into Droneshield shares 12 months ago is now worth $15,875. But $5,000 invested into Droneshield shares five years ago is now worth an enormous $105,833.50.

Can the shares keep climbing higher?

Yes, but not at the same rate they have climbed over the past five years.

TradingView data shows two out of three analysts have a strong buy rating on the defence stock. The third analyst has recently downgraded their rating to neutral. 

The average target price for DroneShield shares over the next 12 months is $4.50 a piece. At the time of writing, that implies an 18% upside ahead for investors. Some are more bullish and expect the shares to jump 31% to $5 in the next 12 months. 

The post $5,000 invested in Droneshield shares 5 years ago is now worth… appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) endured a volatile, yet negative, session this Tuesday. After initially spiking in early trading this morning, the ASX 200 spent the rest of the day in negative territory. Saying that, it could have been a lot worse, with the index eventually closing down just 0.044%, leaving it at 8,949.4 points.

This miserly trading day for Australian investors comes after a similarly lacklustre start to the American trading week last night.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't quite clinch a rise either, dropping by a tiny 0.0099%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more decisive, though, falling 0.26%.

But let's get back to the ASX now for a look at how the different ASX sectors handled today's interesting trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Artrya Ltd (ASX: AYA)

The Artrya share price is up over 11% to $4.65. This appears to have been driven by a bullish broker note out of Bell Potter this morning. According to the note, the broker has initiated coverage on the medical technology company's shares with a buy rating and $6.10 price target. It said: "AYA's unique offering creates an opportunity to achieve rapid growth and a material share of c.4.4m annual CCTA scans in the US market, growing at a CAGR of c.6.2%. AYA has three foundation customers in the US that should deliver c.15k scans annually by FY27. Through the SAPPHIRE study group, AYA has created a warm pipeline of six potential customers and c.400k annual scans that could generate c.10% market share and c.A$450m in annual revenue over the next decade. We expect AYA to reach EBITDA breakeven in FY28."

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price is up 3% to $2.39. This follows the release of the waste management company's investor day update. Cleanaway unveiled its new Blueprint 2030 2.0 strategy, which is built around three pillars. These are delivering customer value, optimising its branch network, and leveraging advanced ways of working through digital and data capabilities. This includes a major upgrade to sales processes, with a centralised One Sales Engine model that is designed to lift customer retention and cross-sell rates.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up almost 8% to $3.89. Investors may have been buying the counter-drone technology company's shares due to concerns that the US and Iran could fail to sign a peace deal before the ceasefire agreement ends. If tensions flare up again in the Middle East, it could lead to increased demand for DroneShield's suite of products.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 4.5% to $1.32. This follows news that the investigative analytics and intelligence software provider has completed the $27 million acquisition of Linkurious SAS following Foreign Direct Investment (FDI) approval in France. Linkurious provides technology that allows customers to visually explore and investigate graph data, to detect patterns of interest and investigate alerts. Incorporating Annualised Contract Value (ACV) associated with Linkurious, Nuix advises that it now expects full year ACV to be in the range $252 million to $272 million.

The post Why Artrya, Cleanaway, DroneShield, and Nuix shares are pushing higher today appeared first on The Motley Fool Australia.

That usually leads me toward companies with scalable models, growing markets, and clear pathways to increase revenue. 

With that in mind, here are three ASX growth shares I would look at right now if I had $3,000 to invest.

Netwealth Group Ltd (ASX: NWL)

Netwealth is benefiting from a structural shift in how Australians invest.

More advisers are moving client funds onto platform-based solutions, and Netwealth has been capturing a growing share of that flow. As funds are added to the platform, revenue grows alongside it, creating a base that can continue to expand.

Those funds also tend to stay invested, which supports a more stable and predictable growth profile. Over time, that can create a compounding effect as new inflows build on top of an already growing base.

The business is also continuing to invest in its platform, adding new features and improving functionality for advisers. That helps it remain competitive and positions it well to keep attracting new clients.

DroneShield Ltd (ASX: DRO)

DroneShield is an ASX growth share operating in a market that is still in its early stages.

The increasing use of drones across defence, security, and civilian applications is driving demand for detection and countermeasure technology. As adoption grows, the need for protection systems becomes more important.

DroneShield has been expanding its product offering to meet that demand, with solutions that can be used across a range of environments. This allows it to target multiple markets rather than relying on a single use case.

There is also growing investment from governments and organisations in this area, which can support long-term demand. As awareness and adoption increase, the company has an opportunity to continue scaling its operations.

Block Inc (ASX: XYZ)

Block provides exposure to digital payments and financial services through two interconnected ecosystems.

Square supports businesses with payments and operational tools, while Cash App focuses on consumers. As both sides continue to grow, they reinforce each other, creating a broader and more valuable network.

This structure opens up multiple avenues for growth.

As more merchants use Square, more transactions flow through the system. As Cash App continues to grow its user base, engagement and monetisation opportunities increase. Together, they create a platform that can continue to expand over time.

Block is also moving into additional financial services, including lending and other tools (like Afterpay) that can deepen relationships with users and support further growth.

Foolish takeaway

Over time, growth often comes from businesses that can keep building as their markets expand.

I think these ASX growth shares are positioned in areas where demand is increasing and adoption continues to grow, which makes them interesting when thinking about long-term growth investing.

The post Where I'd invest $3,000 in ASX growth shares now appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) remains the most shorted ASX share after its short interest rose to 15.4%. This pizza chain operator is undertaking a turnaround strategy and short sellers don't appear confident it will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 13.9%, which is down since last week. Short sellers may be betting against this radiopharmaceuticals company successfully getting its products approved by the US FDA.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. Short sellers aren't giving up on this quick service restaurant operator despite its shares rocketing this month after reporting a big improvement in its performance.
• Polynovo Ltd (ASX: PNV) has 13.7% of its shares held short, which is down since last week. Short sellers seem to think this medical device company's shares are overvalued. However, both Bell Potter and Morgans believe they could rise approximately 80%.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 13%. This is likely to have been driven by concerns that the wine giant will continue to struggle with consumer spending pressures and distributor disruption.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12.9%, which is up week on week. Short sellers appear to believe that travel demand could be impacted by the Middle East conflict.
• DroneShield Ltd (ASX: DRO) has 12.7% of its shares held short, which is up since last week. This counter drone technology company recently announced the sudden exit of its CEO and chair. This disruption and valuation concerns could be weighing on sentiment.
• Zip Co Ltd (ASX: ZIP) has short interest of 12.5%. Unfortunately for short sellers, this buy now pay later provider impressed the market with its quarterly update last week.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.5%, which is down since last week. This uranium miner's production outlook is uncertain beyond 2026. Short sellers appear to be betting on production falling more than the market is predicting.
• Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11%. It is another uranium producer that short sellers are targeting.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

During this time, the counter-drone technology company has gone from being a relatively unknown small-cap ASX defence stock to a $3.3 billion ASX 200 share.

Investors may now be wondering which stock could follow in its footsteps. Well, let's look at one defence stock that Bell Potter is tipping as a buy.

Which ASX defence stock?

The stock in question is Elsight Ltd (ASX: ELS).

It is a supplier of communication modules to drone manufacturers, offering advanced communication components for unmanned systems through its flagship product, the Halo platform.

This platform aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

Bell Potter has been looking at trends in the drone industry and believes it points to strong demand for Elsight's technology. It said:

US and Europe are severely lacking UAS production capacity when compared to Ukraine and adversaries. In a single instance, China ordered ~1m Kamikaze UAS for delivery in 2026. In comparison, the US reportedly procured 50k UAS annually prior to 2026. Governments globally have responded to this deficiency: (1) US budgets US$9.4b in FY26 for autonomous systems and seeks "Drone Dominance"; (2) US is fast-tracking procurement as highlighted by LUCAS, a reverse-engineered Shahed-136 copy, that went from prototype to combat deployment over Iran in seven months, signalling the US will procure expendable UAS at speed; and (3) Germany plans to invest €10.0b in UAS with contracts flowing.

EPS changes are +10%/+30%/+38% over CY26/27/28e, reflecting higher revenue due to our observation of greater than anticipated demand and production of non-FPV UAS in Europe, US and Ukraine; offset partially by higher install base attrition rates due to continued expected conflict. TP upgraded on higher free cash flows.

Should you invest?

According to the note, the broker has retained its buy rating on the ASX defence stock with an improved price target of $8.00 (from $5.80).

Based on its current share price of $6.80, this implies potential upside of 18% for investors.

Bell Potter concludes:

We retain Buy. We believe ELS has developed a market leading product that is leveraged to the proliferation of unmanned systems in both a defence and commercial context. We believe ELS shares offer relative value versus listed peers at 43x CY26e EV/EBIT given its recurring revenue, high ROIC business model and defensible niche. We expect the key driver for ELS shares will be revenue upgrades from OEM 1(>80% of CY25 revenue) production capacity expansion and BlueUAS list entry.

The post Looking for another DroneShield? Check out this buy-rated ASX defence stock appeared first on The Motley Fool Australia.

The rebound adds another twist to what has already been one of the ASX's most volatile high-flyers in 2026.

Even after a rough past month that has seen the stock fall 11%, DroneShield shares are still up an extraordinary 227% over the past year and more than 20% year-to-date.

That still leaves the counter-drone specialist among the ASX's standout performers despite the recent pullback.

Here's what appears to be driving the latest move.

Leadership shock triggered the recent slide

The biggest hit came on 8 April, when the DroneShield share price plunged 14% and touched a one-month low of $3.20 after founder and chief executive Oleg Vornik stepped down effective immediately.

The company announced that chief product officer Angus Bean would take over as CEO, while chairman Peter James also flagged he would not seek re-election at the upcoming AGM.

The sell-off came despite the company releasing a very strong quarterly trading update the same day, including record cash receipts and significantly higher revenue.

DroneShield shares, already prone to sharp swings, were clearly unsettled by the sudden executive reshuffle.

Investors appeared to look past the result and focus instead on Vornik's departure and what it could mean for leadership continuity.

That uncertainty has kept trading choppy since, with sharp rebounds often followed by quick profit-taking.

The bigger picture still looks strong

Despite the turbulence, the broader operating backdrop still appears supportive.

DroneShield remains one of the ASX's most direct listed exposures to the fast-growing global counter-drone market.

The business provides AI-powered systems designed to detect and neutralise drones and autonomous threats across military, intelligence, government, and critical infrastructure settings.

That theme has remained in focus as geopolitical tensions continue pushing defence spending higher globally.

Importantly, this recent volatility follows a massive rerating from last year's lows, when the stock traded near $1.72 before surging as high as $6.71 during its explosive run.

After that kind of move, periods of consolidation are not unusual.

Foolish takeaway

Yesterday's rebound suggests buyers are still willing to back DroneShield on weakness.

The recent CEO departure clearly shook confidence and triggered a fast reset in sentiment.

The bigger driver remains DroneShield's ability to convert growing international defence demand into new contract wins.

Rising defence budgets and DroneShield's expanding international sales pipeline mean new deals can still have a major impact on the share price.

If that contract momentum continues, a move back toward $6 by year-end looks achievable.

The post Why DroneShield shares are roaring back after last week's leadership shock appeared first on The Motley Fool Australia.

The shares are now up 2.4% for the year-to-date but an incredible 231% higher than 12 months ago.

It's been a rollercoaster ride for DroneShield

There have been plenty of ups and downs for DroneShield's shareholders over the past six months. The stock spiked at an all-time high in October last year before gradually but continually tumbling to a low of $1.72 in late-November.

The shares enjoyed a great rally in early 2026 and climbed over 42% in the first three weeks of the year. But again, investors started taking their gains off the table and the shares tumbled south again through to late-February.

News that conflict between the US and Iran has escalated significantly in late-February smashed the Australian sharemarket. But DroneShield sits firmly as a counterdone electronic warfare business. This means it was primed to absorb a jump in investor interest as governments around the world hike their defence budgets.

Despite the tailwinds, DroneShield shares have sharply corrected again over the past month.

What's happening to DroneShield shares now?

There have been a few hints over the past couple of weeks that the war in the Middle East may be de-escalating. And each time, DroneShield's shares take a hit amid fears that there could mean less demand for the company's technology solutions than initially anticipated. While the war is still very much underway, discussions about a peace agreement are ongoing.

But the share price decline really picked up pace last week when DroneShield announced a leadership reshuffle. It said that its managing director, Oleg Vornik, would step down from his role effective immediately, after more than 10 years leading the business.

The company also announced that In addition, chairman Peter James will retire and not seek re-election at the company's Annual General Meeting (AGM) in May.

While the leadership changes look good on paper, the announcement sparked investor panic and a sharp sell off of shares. 

It also raised questions about when Vornik, James, and another director sold a combined $70 million in shares in November last year. The moved sparked a collapse in the company's share price. Investors are clearly unsettled and the shares have shed 14.5% of their value since the announcement last Tuesday. 

Are the shares a buy, sell or hold?

While investors are rattled, it doesn't look like analysts are.

TradingView data shows that analysts ratings and target prices are unchanged. Two have a strong buy rating and one analyst with a hold rating. The average target price is $4.50, which implies a 32% upside at the time of writing. 

Some are more bullish and expect the shares to jump 47% to $5 in the next 12 months. 

The post What's going on with the DroneShield share price? appeared first on The Motley Fool Australia.

But price alone does not tell you much about value. What matters more, in my view, is whether the business has a large opportunity ahead of it and a clear path to grow into that opportunity over time.

Here are three ASX shares under $5 that I think have the potential to be much bigger businesses in the years ahead.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a niche that is becoming increasingly important.

Its technology is designed to detect and counter drones, which are now being used across defence, security, and critical infrastructure. That demand backdrop has shifted quickly in recent years, particularly as geopolitical tensions have increased.

What I like most is the scale of the opportunity. Counter-drone technology is still relatively early in its adoption curve, but the use cases are expanding rapidly. Governments, airports, and private operators are all potential customers.

I think the key question is not whether demand exists, but how large it could become.

DroneShield is positioning itself as a specialist provider in this space, and if adoption continues to broaden, the addressable market could grow significantly from here. That does not guarantee success, but it does create the kind of long-term optionality I look for in smaller companies.

Catapult Group International Ltd (ASX: CAT)

Catapult sits at the heart of sport, data, and performance technology.

This ASX share provides analytics and wearable tracking solutions to professional sports teams, helping them optimise performance and reduce injury risk. That might sound niche, but the company is already working with more than 3,000 teams across over 40 sports globally.

What I find interesting is how the growth opportunity is evolving.

According to the company's recent analyst day presentation, the professional team market alone includes more than 20,000 teams, with significant room for further penetration. That gives a sense of the existing total addressable market, before even considering adjacent opportunities.

But it goes further than that. Catapult is increasingly focused on expanding revenue per customer. Its land and expand strategy is built around adding more products and increasing average contract value over time, with a long-term ambition to grow annualised contract value materially.

To me, that combination is important. It is not just about adding more teams. It is about deepening relationships with existing ones, which can be a powerful driver of long-term growth if executed well.

SiteMinder Ltd (ASX: SDR)

SiteMinder is building what it describes as a global platform for hotel commerce.

Its software helps hotels manage bookings, distribution channels, and pricing across a highly fragmented ecosystem. That might not sound exciting at first glance, but the scale of the network is significant.

The platform already connects around 53,000 properties globally and facilitates tens of millions of reservations each year.

What I find compelling is the underlying market opportunity. The ASX share sits at the centre of a global hotel ecosystem, connecting hundreds of systems, apps, and distribution channels. As that ecosystem becomes more complex, particularly with the rise of AI-driven pricing and distribution, the need for a central platform could increase.

There is also a clear monetisation opportunity. SiteMinder has outlined a potential 5x uplift in revenue per customer as more products are adopted across its existing base. That suggests a large internal growth runway, even without relying solely on new customer additions.

Foolish takeaway

Shares trading under $5 can sometimes be overlooked, but they can also offer exposure to businesses with meaningful long-term growth potential.

DroneShield is operating in a market that is still emerging but expanding quickly, Catapult has a clear pathway to grow both its customer base and revenue per customer, and SiteMinder is building a global platform with increasing relevance as the hotel industry becomes more complex.

None of these are guaranteed winners, and all come with risks. But for me, they each have something that matters more than their share price. A large opportunity and a strategy to grow into it over time.

The post 3 ASX shares below $5 with huge potential appeared first on The Motley Fool Australia.

They tend to move quickly, both up and down, which means sentiment can shift just as fast as the underlying story.

And after a sharp pullback over the past six months, is this a good time to invest, or is it better to wait?

For me, I think the answer leans toward yes.

Leadership change doesn't change the story

One of the biggest developments recently has been the change in leadership.

Founder and long-time CEO Oleg Vornik has stepped down, with Angus Bean stepping into the role after years leading the company's technology and product development.

At the same time, the company is also transitioning at the board level, with a new chairman set to take over.

I think this is a meaningful moment. Leadership changes like this can create uncertainty in the short term. Investors often prefer stability, particularly in a high-growth company.

But it can also mark the beginning of the next phase.

Bean has been deeply involved in building the company's core technology, which suggests continuity in strategy. And with new leadership at the board level, there is also a focus on governance and scaling the business further.

Strong momentum beneath the surface

Beyond leadership, the underlying business appears to be moving in the right direction.

The company recently reported strong growth in revenue and record customer cash receipts, alongside a growing base of committed revenue early in the financial year.

That is important. DroneShield has often been seen as a company with strong potential but uneven financial performance. Signs of more consistent growth could help change that perception over time.

The broader opportunity also remains significant.

The counter-drone market is still developing, with demand coming from military, government, and civilian use cases. The company is targeting a large global opportunity and has built a sizeable pipeline of potential contracts to support future growth.

For me, that reinforces the long-term story.

But it is not without risk

At the same time, I do not think this is a straightforward investment.

Revenue can still be lumpy, depending on the timing of contracts. That can lead to periods where growth looks very strong, followed by quieter stretches.

There is also execution risk. A new CEO, even one promoted internally, still needs to prove they can lead the business through its next phase.

And more broadly, companies in emerging industries tend to be more sensitive to shifts in sentiment.

That is something investors need to be comfortable with.

So, is now a good time?

I think it depends on how you are approaching the investment. If you are looking for stability and predictability, DroneShield may not be the right fit.

But if you are comfortable with volatility and focused on long-term growth, I think the current environment could present an opportunity.

The company has strong momentum, a large addressable market, and is entering a new phase of leadership.

For me, that combination is enough to justify taking a position, even if the path forward is unlikely to be smooth.

Foolish takeaway

DroneShield shares are not a low-risk investment, and I do not think they should be treated like one.

But the long-term opportunity in counter-drone technology remains compelling, and recent developments suggest the business continues to build momentum.

For investors willing to accept volatility, I think now could be a reasonable time to start or add to a position, with a long-term mindset.

The post Is now a good time to invest $5,000 into DroneShield shares? appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share after its short interest remained flat at 15.3%. Short sellers appear to have doubts that the pizza chain operator's turnaround strategy will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.6%, which is up since last week. Unfortunately for short sellers, this radiopharmaceuticals company's shares stormed higher last week after the US FDA accepted its NDA for Pixclara
• Polynovo Ltd (ASX: PNV) has 14% of its shares held short, which is down since last week. This high level of short interest may be due to valuation concerns. The medical device company's shares are trading on high earnings multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.7%, which is down week on week. Unfortunately for short sellers, this quick service restaurant operator's shares rocketed last week after it reported a big improvement in its performance.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12.5%. This wine giant is struggling due to consumer spending pressures and distributor disruption.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12%, which is up slightly week on week. Short sellers may believe that travel demand could be impacted by the Middle East conflict.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.7%, which is down since last week. This uranium miner's production outlook beyond 2026 is uncertain and attracting short sellers.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.6%, which is down slightly since last week. This infection prevention technology company's recent performance has been disappointing. Short sellers don't appear confident a change is coming.
• DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is up since last week. Last week, this counter drone technology company announced the sudden exit of its CEO and chair.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 11.2%. Later this week, the buy now pay later provider will be releasing its third-quarter update. Short sellers appear to believe it could disappoint.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

These are not the only opportunities in the market, but they are two I could have on my shopping list next week.

BHP Group Ltd (ASX: BHP)

BHP is one of those businesses that I think could play an important role in a long-term portfolio.

What stands out to me is its exposure to future-facing commodities.

Copper, in particular, is becoming increasingly important. Electrification, renewable energy, and infrastructure investment all rely heavily on it. If those trends continue, I think demand for copper could remain strong for many years.

That matters because copper is now a major earnings driver for BHP, not just a side business.

On top of that, the company still benefits from its iron ore operations, which continue to generate significant cash flow. While iron ore prices can be volatile, this part of the business provides the financial strength that allows BHP to invest in future growth.

The Jansen potash project is another piece of that story. It adds exposure to global agriculture, which is supported by long-term trends like population growth and food demand. It is not something that will drive earnings overnight, but over time it could become a meaningful contributor.

I also think it is important not to overlook the income side. BHP's dividends can help smooth returns during weaker periods, which is valuable when markets are uncertain.

For me, it is that combination of current cash flow, future-facing commodities, and income that makes BHP appealing.

DroneShield Ltd (ASX: DRO)

DroneShield sits at the other end of the spectrum. This is a higher-growth, higher-volatility business operating in an emerging industry, and it is likely to behave very differently to a company like BHP.

What I find compelling is the direction of travel. The use of drones is increasing rapidly, both in military and civilian settings. That creates a growing need for technologies that can detect, track, and respond to those threats.

DroneShield is positioned directly within that theme.

I think this is an area that is still developing. Governments and organisations are only just beginning to build out their counter-drone capabilities, which suggests the opportunity could expand over time.

Of course, it will not be a smooth journey. Revenue can be lumpy, contracts can take time to materialise, and sentiment can shift quickly. That is part of investing in an emerging growth company.

But for me, that is also where the upside can come from.

If the company continues to win contracts and scale its technology, I think there is potential for strong growth over the long term.

Foolish takeaway

BHP and DroneShield are very different businesses, and I think that is part of the appeal.

One offers scale, cash flow, and exposure to global commodities. The other provides access to a developing technology theme with significant growth potential.

For me, it is not about choosing one over the other. It is about recognising that both can play a role, depending on how you think about risk, time horizon, and long-term opportunity.

The post Why I'd buy BHP and DroneShield shares next week appeared first on The Motley Fool Australia.

In late morning trade on Thursday, two of the S&P/ASX 200 Index (ASX: XJO) stocks are outpacing the 0.1% losses posted by the benchmark index, while the other is trailing behind.

Here's what's happening.

DroneShield shares lift on growth outlook

DroneShield shares are outperforming today. Shares in the ASX 200 drone defence company are up 1.2% at the time of writing, trading for $3.49 apiece.

The stock is grabbing headlines again today following a market update highlighting the immense growth potential of its defence-oriented business model.

Indeed, the company estimates that the global counter-drone market is worth some US$60 billion, with both national defence and civilian customers seeking to secure potentially vulnerable assets.

Today's update follows yesterday's news that CEO Oleg Vornik was exiting the top role after more than 10 years at the helm. Angus Bean, who's been working as chief product officer, has stepped in as the new CEO.

DroneShield shares closed down 13.5% on Wednesday following the leadership shakeup, but remain up a whopping 315% since this time last year.

Sandfire shares sink amid weather woes

Unlike DroneShield shares, Sandfire Resources shares are taking a tumble today following the release of the miner's March-quarter results.

Shares in the ASX 200 copper miner are down 4.1% at the time of writing, trading for $17.39 each.

Sandfire reported copper equivalent (CuEq) production of 34,500 tonnes for the three months. The miner had a net cash balance of $76 million as at 31 March.

But Sandfire shares look to be under pressure, with the company citing persistent high rainfall and unplanned maintenance as likely seeing its full-year CuEq production come in towards the lower half of its guidance range of 149,000 to 165,000 tonnes.

Sandfire shares remain up 114% over 12 months.

Which brings us to the third ASX 200 stock grabbing headlines today.

Bendigo Bank shares rocket on earnings boost

Bendigo Bank shares are outperforming the benchmark and DroneShield shares today, following the release of the challenger bank's March-quarter trading update (Q3 FY 2026).

Bendigo Bank shares are up 8.3% at the time of writing, changing hands for $11.33 apiece.

Investors are bidding up the ASX 200 bank stock with Bendigo reporting unaudited cash earnings of $137.9 million for the quarter. That's up 7.6% from the quarterly average achieved in the first half of FY 2026.

On the bottom line, the bank reported a statutory net profit after tax (NPAT) of $109.4 million.

Bendigo Bank shares are up 14% in 12 months.

The post Why is everyone talking about Sandfire, Bendigo Bank, and DroneShield shares on Thursday? appeared first on The Motley Fool Australia.

However, with the dust beginning to settle, investors appear to be refocusing on the company's underlying fundamentals and long-term growth opportunity.

At time of writing, the counter-drone technology company's shares are up 3% to $3.55.

A structural growth story that remains intact

After the market close on Wednesday. DroneShield released an investor update that has gone down well with investors.

The update reminded the market that the company operates in one of the fastest-growing areas of defence technology.

But more importantly, the size of the opportunity is significant. The global counter-drone market is estimated to exceed US$60 billion, spanning both defence and civilian applications. With drones now a core feature of modern warfare and increasingly used in civilian settings, demand for detection and mitigation technologies is accelerating.

This is being driven not just by conflict zones, but also by airports, infrastructure operators, and law enforcement agencies responding to evolving security risks.

Strong momentum and a massive pipeline

DroneShield's recent performance has been impressive.

The company's presentation reminded investors that it delivered record results in 2025 and has carried that momentum into 2026.

In the first quarter alone, it generated $62.6 million in revenue, up 88% year on year, alongside record customer cash receipts of $77.4 million.

Looking ahead, DroneShield has already secured $140 million in committed revenue for FY 2026 and boasts a $2.2 billion sales pipeline across 312 projects globally.

This pipeline is spread across regions including the United States, Europe, Asia, and the Middle East, providing diversification and visibility on future growth.

Technology edge and expanding product offering

A key part of the investment case is DroneShield's technology advantage.

The company highlights that it offers an end-to-end suite of counter-drone solutions, combining hardware such as detection sensors and jamming devices with AI-powered software platforms.

Its DroneSentry system acts as a central command-and-control hub, integrating multiple detection and defence technologies into a single ecosystem.

Furthermore, DroneShield points out that it is increasing its focus on software and recurring revenue. SaaS offerings are expected to become a growing portion of revenue over time, supported by ongoing product upgrades and AI-driven capabilities.

A rebound with more to come?

The sharp selloff earlier this week appears to have been driven more by uncertainty than a deterioration in fundamentals.

With a large addressable market, strong revenue growth, a deep sales pipeline, and increasing exposure to high-margin software, DroneShield remains a compelling growth story.

If management can continue executing on its strategy, particularly around scaling production and converting its pipeline into revenue, the recent weakness could prove to have been a buying opportunity rather than the start of a longer-term decline.

The post DroneShield shares rebound on investor update appeared first on The Motley Fool Australia.

In afternoon trade, the DroneShield share price is down a sizeable 17.29% to $3.30, after falling as low as $3.20 earlier in the session.

That is a brutal one-day move, especially with the S&P/ASX 200 Index (ASX: XJO) pushing 2.6% higher.

Even so, the defence technology stock remains up almost 280% over the past 12 months. That helps explain why some investors may be quick to lock in gains when uncertainty re-emerges.

Let's take a look at what's driving the weak sentiment.

Investors are focusing on trust, not the transition

According to the ASX announcement, DroneShield CEO Oleg Vornik has stepped down effective immediately after more than a decade leading the business.

In addition, chairman Peter James will retire and not seek re-election at May's Annual General Meeting (AGM).

Chief product officer Angus Bean has been elevated to chief executive, and former REA Group chair Hamish McLennan will join as chairman-elect.

While the leadership changes look orderly on paper, the market's attention has quickly shifted back to the controversial November selldown. At that time, Vornik, James, and another director sold a combined $70 million in shares.

The selldown triggered a major collapse in the stock that month and left lingering concerns around governance and board oversight.

With the stock having staged such a strong recovery since then, today's leadership exits appear to have brought those concerns back into focus.

Strong quarterly growth was not enough

The weaker move stands out because DroneShield paired the leadership update with another strong trading result.

The company reported March quarter revenue of $63 million, up 87% year-on-year, alongside record quarterly cash receipts of $77 million, up 361%.

It also said it already has $140 million in committed FY26 revenue just 3 months into the financial year.

Under normal conditions, those numbers would likely have supported buying interest.

Instead, the market appears more focused on the boardroom reset and the lingering fallout from last year's insider selldown.

That reaction comes even as Vornik described his time leading DroneShield as "the experience of a lifetime". He said he was proud to have helped build the company from a $27 million IPO into an ASX 200 defence technology business valued in the billions.

The contrast between record operating momentum and renewed leadership uncertainty appears to be keeping sellers in control. Some investors may also be using the weakness to lock in gains after the stock's huge 12-month run.

Foolish takeaway

DroneShield remains one of the ASX's standout momentum stocks, still valued at about $3.1 billion after today's decline.

The latest quarterly numbers show the business is still delivering exceptional growth, but leadership turnover and the overhang from last year's insider selldown have clearly unsettled sentiment.

After a 280% rally over the past 12 months, today's sell-off suggests investors are waiting for confidence in the new leadership team to improve.

The post DroneShield shares tumble 17% as CEO exit revives leadership fears appeared first on The Motley Fool Australia.

At first glance, this kind of news can be unsettling for investors.

A CEO stepping down with immediate effect and a chair preparing to exit shortly after is rarely viewed as a positive signal by the market.

But does this selloff represent a potential buying opportunity?

Why the DroneShield share price fell

The catalyst for the decline is clear. DroneShield confirmed that its long-serving CEO, Oleg Vornik, is stepping down after more than a decade in the role, while chairman Peter James will also retire from the board next month.

Leadership transitions can create uncertainty, particularly when they happen quickly. And two at once compounds things. Investors often worry about strategic shifts, disruption to execution, or a loss of momentum.

However, the detail behind the announcement arguably tells a more balanced story.

Importantly, the company has not turned to an external candidate. Instead, it has promoted its chief product officer, Angus Bean, to the CEO role.

As the company noted, this was part of a structured succession plan and reflects continuity rather than disruption.

Bean is not a new face. He has been with DroneShield since its early days. He was its sixth employee and has played a central role in developing its core technologies and engineering capabilities.

Continuity

When leadership changes come from within, it often signals that the company's broader strategy will remain intact.

The release notes that Bean has been deeply involved in DroneShield's growth journey, including building its engineering team and shaping its product roadmap.

That is important because DroneShield is not a turnaround story. It is a company that has been growing rapidly and operating in a market with strong structural tailwinds.

In fact, alongside the leadership update, the company also revealed strong trading momentum. It reported record quarterly cash receipts and significant revenue growth early in FY 2026.

This suggests that the underlying business remains in good shape despite the change at the top.

Should you buy the dip?

In the short term, volatility in the DroneShield share price is likely to persist. Leadership changes often take time for the market to fully digest, and some investors may prefer to wait for further clarity.

But for longer-term investors, this pullback could prove to be a buying opportunity.

The key point is that this does not appear to be a case of a struggling business losing its leadership. Instead, it looks more like a planned transition from one internal leader to another, supported by a strong operational backdrop.

Once the initial uncertainty fades, attention is likely to shift back to the company's fundamentals and growth outlook.

For patient investors, it could be a dip worth watching closely once the dust settles.

The post Should you buy the 20% dip in the DroneShield share price? appeared first on The Motley Fool Australia.