DRONESHIELD LIMITED — Interim / Quarterly Report 2026

Apr 21, 2026

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DroneShield Limited ABN: 26 608 915 859 ASX:DRO Level 5, 126 Phillip St, Sydney NSW 2000

ASX Announcement

22 April 2026

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Quarterly Activities/Appendix 4C Cash Flow Report

DroneShield Limited (ASX:DRO) ( DroneShield , DRO , or the Company ) is pleased to release its business update and Appendix 4C for the three-month period ended 31 March 2026 ( 1Q2026 ).

The Company started 2026 with strong momentum, delivering the highest ever customer cash ‑ receipts in a quarter and the second highest revenue in a quarter. These results continue the ‑ positive trajectory from 2025, during which DroneShield achieved all time record performance across key metrics.

A$	1Q2026	1Q2025	PCP1 Growth	Comment
Revenue	74.1m	33.5m	▲121%	• 2nd highest revenue quarter to date (Highest: 3Q2025 at $92.9m) • Higher than from Trading Update on 8 April ($62.6m) due to timing of deliveries in late March 2026 • FY2026 Committed Revenues to date of $154.8m (vs $94.4m as at 1Q2025) • Steady flow of repeat and new end-user orders (below $20m materiality reporting threshold) with $59m increase in committed revenue since start of 2026
Customer Cash Receipts	77.4m	16.8m	▲360%	• Highest customer cash receipts quarter on record
SaaS Revenues	5.1m	1.7m	▲205%	• 6.9% of Revenue from SaaS, with continued benefit from increasing number of SaaS-enabled devices in field • Compares to $11.6m in SaaS revenue in FY2025 (5.4% of Revenue) • Growth consistent with goal of 30% in recurring revenue by 2030 • All new products carry one or multiple SaaS, with quarterly software updates to address changes in drone technology and the latest threats
Net Operating Cashflow	24.1m	(17.9m)	▲235%	• 4thconsecutive quarter of positive net operating cash flow
Cash Balance as at 31 March	222.8m	196.6m	▲13%	• Cash balance comprises cash, cash equivalents and short-term term deposits • Up $21.7m on cash balance as at 31 Dec 2025 • No debt with funding available for ongoing investment into people and technology, and potential forstrategicM&A

1. PCP refers to Prior Corresponding Quarter movement from 1Q2025 to 1Q2026

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DroneShield Limited ABN: 26 608 915 859 ASX:DRO Level 5, 126 Phillip St, Sydney NSW 2000

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Revenue from Customers (A$m) – 2 [nd] Highest Quarter on Record
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250 Q1 Revenue ▲121% PCP
FY Revenue
217
6.9%
Committed Revenue FY2026
200
SaaS % of Revenue
5.4%
4.9% 155
150
81
100 2.6%
2.0%
1.8%
54 58
50
74
17
10
33
0
2021 2022 2023 2024 2025 2026
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Customers Cash Receipts (A$m) – Record Quarter

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Q1 Receipts ▲360% PCP
FY Customer Cash Receipts
202
Committed Cash Receipts FY26
180
103
71
57
77
13 14
17
2021 2022 2023 2024 2025 2026
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Notes: Committed Revenue FY2026 is as at 20 April 2026 and is based on revenue recognition estimates for current contracts. Committed SaaS revenue is currently 13% of FY2026 Committed Revenue. Financial information for FY2026 is unaudited and derived from management estimates. FY2026 audited results will be published in February 2027 as part of the 2026 Annual Report.

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DroneShield Limited ABN: 26 608 915 859 ASX:DRO Level 5, 126 Phillip St, Sydney NSW 2000

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The substantial developments during and subsequent to 1Q2026 include:

• DroneShield Selected for LAND 156 LoE 3 Panel

• DroneShield Announces $21.7m in Western Military Contracts

• DroneShield Announces CEO and Chairman Transitions

• DroneShield Enters Partnership with Origin Robotics for Kinetic Interceptors

• DroneShield Expands Radar Interoperability with Robin Radar Systems

• DroneShield Establishes European Headquarters to Accelerate Regional Growth

• DroneShield Establishes European Manufacturing to Advance Sovereign Capability

• • Australia to accelerate counter-drone research with DroneShield

The Company has provided a detailed summary of the various aspects of the business in the investor presentation published concurrently with this report and being lodged with the ASX today.

Payments to related parties of the entity and their associates

Board fees paid to Non-Executive Directors’ and salary to CEO amounted to $362,375. Macquarie Technology, a related party of a Director, was paid $95,911 for commercial services provided.

This announcement has been approved for release to the ASX by the Board.

Enquiries:

Joshua Bolot Director of Investor Relations & Strategy E: investors@droneshield.com P: +61 2 8240 7631

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UxS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports.

To learn more about DroneShield click here: www.droneshield.com/about

ENDS

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For more information
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DroneShield Limited ABN: 26 608 915 859 ASX:DRO

Level 5, 126 Phillip St, Sydney NSW 2000

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Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

DRONESHIELD LIMITED

ABN 26 608 915 859	ABN 26 608 915 859	ABN 26 608 915 859	Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
			31 March 2026
Consolidated statement of cash flows			Current quarter A$000	Year to date (12 months) A$000
1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9	Cash flows from operating activities Receipts from customers Payments for a) research and development Relates to non-salary R&D costs. b) product manufacturing and operating costs c) advertising and marketing d) leased assets e) staff costs f) administration and corporate costs Administration and corporate costs includes the salaries of the engineering team. Dividends received Interest received Interest and other costs of finance paid Interest paid relating to the lease liability for DroneShield’s Office lease in Virginia and Sydney. Income taxes paid Government grants and tax incentives Other Net cash from / (used in) operating activities		77,392 (1,845) (22,808) (4,966) - (16,600) (9,379) - 2,420 (151) - - -	77,392 (1,845) (22,808) (4,966) - (16,600) (9,379) - 2,420 (151) - - -
			24,062	24,062
2. 2.1		Cash flows from investing activities Payments to acquire or for: a) entities b) businesses c) property, plant and equipment	- - (6,387)	- - (6,387)
ASX Listing Rules Appendix 4C (17/07/20)			Page 1

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter A$000	Year to date (12 months) A$000
2.2 2.3 2.4 2.5 2.6	d) investments e) intellectual property f) other non-current assets Intangible asset from capitalisation of development costs. Proceeds from disposal of: a) entities b) businesses c) property, plant and equipment d) investments e) intellectual property f) other non-current assets Cash flows from loans to other entities Dividends received (see note 3) Other Net cash from / (used in) investing activities	- - (4,714) - - - - - - - - -	- - (4,714) - - - - - - - - -
		(11,101)	(11,101)
3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10	Cash flows from financing activities Proceeds from issues of equity securities (excluding convertible debt securities) Proceeds from issue of convertible debt securities Proceeds from exercise of options Transaction costs related to issues of equity securities or convertible debt securities Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other Lease liability principal repayments relating to DroneShield’s Office lease in Virginia and Sydney. Net cash from / (used in) financing activities	42 - 370 - - - - - (1,067)	42 - 370 - - - - - (1,067)
		(655)	(655)

ASX Listing Rules Appendix 4C (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

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Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter A$000	Year to date (12 months) A$000
4. 4.1 4.2 4.3 4.4 4.5 4.6	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	210,381 24,062 (11,101) (655) 64	210,381 24,062 (11,101) (655) 64
		222,751	222,751
5.	Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter A$000	Previous quarter A$000
5.1 5.2 5.3 5.4 5.5	Bank balances Call deposits Bank overdrafts Other (Term Deposits) Cash and cash equivalents at end of quarter (should equal item 4.6 above)	76,567 4 146,180	53,246 4 157,131
		222,751	210,381
6.	Payments to related parties of the entity and their associates		Current quarter A$000
6.1	Aggregate amount of payments to related parties and their associates included in item 1 $362k Payments to CEO and Non-Executive Directors and $96k Payment to Macquarie Technology for services provided.		458
6.2	Aggregate amount of payments to related parties and their associates included in item 2		-

ASX Listing Rules Appendix 4C (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

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7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end A$000 Amount drawn at quarter end A$000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end -	Total facility amount at quarter end A$000	Amount drawn at quarter end A$000
	-	-
	-	-
	-	-
	-	-

8.	Estimated cash available for future operating activities	A$000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) 24,062 Cash and cash equivalents at quarter end (item 4.6) 222,751 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.2 + item 8.3) 222,751 Estimated quarters of funding available (item 8.4 divided by item 8.1) N/A Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	24,062 222,751 -
		222,751
	Answer: N/A
	8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A
	8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 22 April 2026

Authorised by: Board of Directors

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.