DroneShield hits $200m milestone as 9.2m options vest and 2025 expense revealed

Yesterday afternoon, DroneShield Ltd (ASX: DRO) announced the vesting of 9.2 million Performance Options, reflecting a milestone of $200 million in cash receipts within a rolling 12-month period. The company’s continued rapid sales growth has also resulted in a $23.5 million share option non-cash expense for 2025.

What did DroneShield report?

• 9,224,361 Performance Options vested after reaching $200 million in cash receipts over 12 months
• Share option non-cash expense for 2025 totals $23.5 million
• Fully diluted shares on issue will be 930,409,195 if all new options are exercised
• 995,000 Performance Options remain unvested, tied to higher future milestones
• All Performance Options were verified and approved by independent auditor

What else do investors need to know?

DroneShield’s option milestone was independently verified by auditor HLB Mann Judd, covering cash receipts from 2 April 2025 to 13 January 2026. The newly vested options were initially granted when DroneShield’s sales and share price were much lower, designed to reward employees for driving transformational growth.

A revised incentive plan now aligns longer-term performance with shareholder interests. New Performance Options will vest in stages only if the company achieves ambitious annual cash receipt or revenue targets of $300 million, $400 million, and $500 million. These changes apply to eligible employees, with any future grants to the CEO subject to shareholder approval.

What’s next for DroneShield?

Looking ahead, DroneShield’s enhanced incentive plans are designed to motivate its team to reach even higher milestones, with structured vesting aligned to future business expansion. Investors can expect upcoming audited full-year financial results in February 2026, which will formally confirm the company’s performance and option expense.

The company remains focused on scaling its global operations and building on its momentum in the defence technology sector, partnering with governments and enterprise customers to protect critical infrastructure.

DroneShield share price snapshot

Over the past 12 months, Droneshield shares have risen 577%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post DroneShield hits $200m milestone as 9.2m options vest and 2025 expense revealed appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.