The DroneShield Ltd (ASX: DRO) share price is down by 2% after releasing a statement defending itself.
DroneShield says that it provides artificial intelligence (AI) based platforms for protection against advanced threats such as drones and autonomous systems. It offers customers “bespoke” counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, water-based or airborne platforms.
DroneShield defends itself
The company decided to respond to recent media commentary and said “its level of stakeholder engagement may not have met expectations at a time when company resources were focused on” replying to the ASX about recent queries.
It noted it has a growing global presence and it remains “well positioned to capitalise on the rapidly expanding counter-drone market”.
The DroneShield CEO Oleg Vornik said:
The fundamental business of DroneShield remains strong and unchanged. The company continues to deliver record revenues, expand globally, and invest in technological innovation to meet evolving customer needs. Record revenues in 2025 have been driven by repeat customers, reflecting market confidence in DroneShield’s solutions.
CEO Vornik confirmed his “unwavering commitment” to DroneShield.
The DroneShield Chair Peter James said that the company is conducting an independent review:
DroneShield is committed to undertaking an independent review of its continuous disclosure and securities trading policies and other areas, as stated in the 20 November 2025 response to the ASX. That review will be overseen by independent directors, Simone Haslinger & Richard Joffe. It reflects DroneShield’s commitment to transparency and continuous improvement as the company grows.
Other issues
The company also responded about a number of other issues.
Share sales and performance options
On the share sales by management and performance options, the company said that performance options issued to employees, management and directors are designed to incentivise specific revenue milestones.
The options have historically been a large portion of total remuneration to conserve cash while rewarding performance, but the company will ensure an “appropriate split” between cash and share-based incentives in the future. Non-executive directors no longer receive performance options.
DroneShield points out that the leadership continue to hold options but also disclosed that “a number” of employees have also recently sold shares that originated from options being exercised.
Mislabeled contracts
On the contracts that were mistakenly marked as new contracts rather than revised contracts, the company said it contacted the ASX to pause trading to correct the error and it has taken steps to strengthen validation checks of orders.
Exporting
The company said that it follows “strict compliance procedures under Australian export control legislation and the Company’s internal controls. All distributors undergo thorough vetting, and secure freight processes are employed to ensure end-to-end security. A network of trusted and performing distributors around the world enables DroneShield to utilise their local deep customer relationships, without opening an office in each of 80+ countries around the world.”
R&D spending
DroneShield noted that around 70% of its Australian-based staff are engineers, product developers and technicians. Its R&D spending includes materials as well as external consultants and services. It noted some of its R&D costs are capitalised and disclosed under investing activities.
Fibre optic cable drones
The company also pointed out that the Ukrainian Deputy Prime Minister has described fibre-optic drones as sluggish and rarely used due to operational challenges. This was in response to reports fibre optic drones are becoming mainstream on the battlefield.
New US leader
Finally, the company said that Tom Branstetter, Vice President of sales and business development, will lead the company’s US operations and is taking on an expanded role.
Final thoughts on the DroneShield share price
On a day where the ASX 200 (ASX: XJO) is up 1%, the fact DroneShield is down 2% isn’t a good sign of market confidence.
The company is a lot cheaper than it was a month ago, though it would have been reassuring if fewer shares had been sold by staff.
It’s difficult to say how large the company’s revenue or profit may be in three or five years, so I’m happy to continue watching from the sidelines and look at other ASX growth shares.
