The DroneShield Ltd (ASX: DRO) share price is in focus after the company posted record interim revenue of $125.8 million, up 74% on the prior corresponding period, though it reported a statutory after-tax loss of $32.2 million.

What did DroneShield report?

• Revenue jumped 74% to $125.8 million (1H 2025: $72.3 million).
• Recurring revenue increased 229% to $11.5 million (1H 2025: $3.5 million).
• Statutory net loss after tax of $32.2 million, versus a $2.1 million profit a year earlier.
• Underlying EBITDA loss of $12.4 million (1H 2025: $8.0 million profit).
• Net tangible assets per share: $0.28 (31 December 2025: $0.33).
• No interim dividend declared.

What else do investors need to know?

The interim period saw DroneShield expand both its product range and geographic footprint, with over half of its revenue coming from Europe and the UK. The company completed its new Sydney production facility and launched European operations, underpinning its growth strategy.

Higher operating costs followed increased staff numbers and strategic investments in software and next-generation hardware, contributing to the reported loss. Cash and term deposits at 30 June stood at $180 million, while inventory was built up to support upcoming product launches.

Significant governance changes occurred during the half-year, including a new CEO, Angus Bean, after Oleg Vornik’s departure, and the appointment of Hamish McLennan as Chairman.

What’s next for DroneShield?

Looking ahead, DroneShield is preparing to launch new AI-enabled hardware and software solutions, aiming to grow its subscription and recurring revenue streams. The company is focused on production scale-up, ongoing research and development, and capitalising on increased demand for counter-drone solutions globally.

Management expects that strategic partnerships and regional expansion, particularly in high-demand regions like Europe and the US, will continue to play a pivotal role in future growth.

DroneShield share price snapshot

The DroneShield share price has been sold off over the past 12 months and is down 45% over the past 12 months. This compares to a modest gain by the S&P/ASX 200 index (ASX: XJO).

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The post DroneShield share price in focus as record revenue meets interim loss appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

The Koala Company Ltd (ASX: KOA) share price will be in focus after the company delivered a $24.6 million net profit for FY26, swinging strongly back to profitability, on revenue up 20.1% to $332.3 million.

What did The Koala Company report?

• Revenue rose 20.1% to $332.3 million (up 24.4% in constant currency)
• Net profit after tax (NPAT) improved from a $4.6 million loss to $24.6 million profit
• Pro forma EBITDA rose 139% to $27.9 million at an 8.4% margin, beating IPO Prospectus targets
• Group ended the year debt-free, holding $71.2 million in net cash
• Gross margin expanded to a record 65.3% (+2.9 percentage points over FY25)
• No dividends declared for FY26

What else do investors need to know?

FY26 was Koala’s first reporting period as an ASX-listed company following its March 2026 debut. The business delivered results ahead of Prospectus forecasts, driven by double-digit growth across all core geographies—Australia, Japan, and the US. Koala also entered the UK, marking its fourth market, using its capital-light global expansion model.

During the year, the company deepened its focus on product innovation, highlighted by launches such as the Torquay and Tamarama modular sofas, and upgraded best-sellers like the Koala Sofa Bed. Strong gross and contribution margin growth reflected disciplined cost control and stable marketing ratios. Koala also accelerated its supplier diversification program to strengthen supply chain resilience.

What did The Koala Company management say?

Co-Founder and CEO Dany Milham said:

We have built a repeatable model that enables us to create category-winning products, strengthen our brand equity, scale efficiently across global markets and generate the cash required to fund future growth. To our shareholders, thank you for backing us. To our customers, thank you for choosing Koala. And to our people, suppliers and partners, thank you for continuing to build alongside us.

What’s next for The Koala Company?

Koala expects to deliver further growth in sales and profits over the coming years by expanding ranges, driving innovation, and growing in both existing and new markets. Immediate priorities include strengthening its core product lineup, launching new bedroom and sitting furniture, entering Canada and priority European markets, and boosting brand equity. The company also plans to expand its physical retail footprint and deliver its first stand-alone sustainability report in FY27 in line with new climate reporting standards.

Koala remains focused on scaling its direct-to-consumer and product innovation model, aiming to further expand market share outside Australia.

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The post The Koala Company jumps to profit in FY26: Earnings highlight strong growth 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 no position in any of the stocks mentioned. 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.

The ASX stock L1 Long Short Fund Ltd (ASX: LSF) is one of my favourite ideas for passive income due to its rapid growth in quarterly payouts for shareholders amid impressive investment performance.

The listed investment company (LIC) is already one of the larger players in the LIC sector, with a market capitalisation of around $3 billion, according to the ASX. I wouldn’t be surprised if it became the largest in Australia one day, given its growth trajectory.

The investment team from L1 Group Ltd (ASX: L1G) have delivered great portfolio returns which has unlocked share price growth and dividends.  

Let me explain why the LIC is such an attractive pick to unlock $500 per week of passive income.

Compelling investment process

Before I talk about the returns, it’s important to keep in mind that past performance is not a guarantee of future performance. Plus, we should judge fund managers based on long-term returns, not just an excellent single year.

The LIC’s portfolio has delivered an average net return per year of 17.9% over the last three years, 16.1% per year in the past five years and 20% per year in the prior seven years. Since the start of the L1 long-short strategy in September 2014, it has returned an average of 19.9% per year.

It invests in both ASX shares and international shares, using both long-term investing and short selling (betting that a share price could go down) strategies. By investing in different markets and stocks for both gains and declines, it has been able to match the ASX in positive months and significantly outperform during market downturns.

The LIC’s latest commentary on its portfolio highlights its process for picks, which are sometimes contrarian:

We continue to focus on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments. We believe the portfolio looks well placed at present, with the median long position trading on 10x P/E, supported by double-digit EPS growth and modest debt levels.

Great dividend payouts

Given those investment returns, the business has been steadily increasing its passive dividend income to shareholders.

The business has increased its annual payout each year since it started paying its dividend in 2021. It changed to a quarterly payment frequency last year rather than half-yearly payouts. The ASX stock’s quarterly payout has been hiked each quarter since the shift last year.

Over the next four quarters, I expect the dividend will be at least 15.8 cents per share, which currently translates into a dividend yield of 3.3% excluding franking credits and 4.75% including franking credits.

I think that’s a great starting point for the yield considering the dividend could significantly increase in the coming years.

$500 of passive income per week

The LIC doesn’t pay every single week, but we can think of the weekly goal as an annual, or annualised, goal. With $500 per week, we’re talking about an annual goal of $26,000.

With a potential 15.8 cents per share in the year ahead, it would take 164,557 L1 Long Short Fund shares to unlock the desired income goal.  

The LIC does have a diversified portfolio itself, so I wouldn’t mind investing significantly into the LIC. However, I do think it would be a good idea to own a diversified portfolio rather than put all of that money into one name, so I’d want to buy additional stocks to generate returns.

The post I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Group and L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.