DroneShield Taps Ex-Afterpay CFO as Short Sellers Circle Its Margins

DroneShield appoints Rebecca Lowde CFO from November 2 and books the debut RfRecon order, as record revenue meets widening losses and heavy short interest.

DroneShield has handed its finance function to a technology veteran with three decades of boardroom experience, naming Rebecca Lowde as Chief Financial Officer effective November 2. The Australian counter-drone specialist is betting that Lowde's track record steering capital through high-growth phases will steady a company whose revenue is soaring even as its bottom line sours.

Lowde arrives from MYOB, the KKR-owned software provider where she oversaw debt refinancing and EBITDA expansion. Her résumé also includes a stint as finance chief and people officer at payments firm Afterpay, where she helped steer a USD 1.5 billion capital raise and the company's eventual USD 39 billion takeover by Block. At DroneShield she will take charge of transformation, capital management, mergers and acquisitions, and risk oversight.

She succeeds Carla Balanco, who departs after more than eight years with the company. Balanco joined in 2018 and was elevated to CFO in 2019, building the internal financial control, treasury, and compliance architecture that carried DroneShield from startup to internationally operating defense supplier. Shares traded 2.2% higher at EUR 1.07 in pre-market European dealing on the news.

A First Order for the AI-Driven RfRecon

Alongside the leadership change, DroneShield notched an operational milestone for its sensor lineup, securing the debut order for RfRecon, its new artificial-intelligence-based system. The buyer is an existing Western European military customer, with hardware slated for delivery before the end of 2026. The contract's financial value is modest, but the company treats the win as proof that its next product generation works in the European defense market.

That order lands against a backdrop of committed demand. DroneShield already carries USD 46 million in contracted revenue for fiscal 2027 and beyond, even as the cost of international expansion weighs on results. Three weeks ago the company reported a negative operating result for the first half despite a sharp jump in revenue, as lower gross margins and higher fixed costs pushed earnings into the red.

Record Revenue, Red Ink

The half-year figures laid bare that tension. Revenue hit a record AUD 125.8 million, up 74% year over year, while recurring software and services revenue climbed 229% to AUD 11.5 million, underpinned by 4,100 software-capable devices installed worldwide. Yet the period produced an adjusted operating loss before interest, taxes, depreciation, and amortization of AUD 12.4 million and a statutory deficit of AUD 32.2 million, dragged down by a changed product mix and one-off write-downs.

Management has guided for gross margin recovery to 65% in the second half and reaffirmed its full-year 2026 revenue target of AUD 250 million to AUD 270 million. The balance sheet offers room to maneuver: AUD 180 million in cash and term deposits, with no debt. The company's market value stands at EUR 989.50 million.

Short Sellers Take the Other Side

Not everyone is convinced. As of last Tuesday, reported short positions in DroneShield reached 15.46% of issued shares, making it the second-most-shorted stock on the Australian Securities Exchange. The shares closed at EUR 1.05 in European trading on Friday, down 3.7% on the day and 42% since the start of the year. The widening skepticism captures the gap between blistering revenue growth and the recent slide into losses.

A regulatory matter is adding to investor caution. DroneShield said it continues to cooperate with the Australian Securities and Investments Commission's investigation into its exchange announcements and trading activity from November 2025, noting it remains unclear what measures, if any, might follow.

Analysts are split. Bell Potter reaffirmed a buy rating in late August after the half-year results, trimming its 12-month price target to AUD 2.40 from AUD 2.50 on the back of the reiterated revenue guidance. Ord Minnett stayed bearish, cutting its target to AUD 1.50 from AUD 1.60 and keeping a sell recommendation. Until DroneShield proves the promised second-half margin turnaround, short sellers appear content to press their positions.