DEFSEC Technologies Announces Significant Momentum in Revenue Growth due to Increased Annualized Billings for Government Services on a Go-Forward Basis to Approximately CAD$8.3M Commencing February 2026

Executive Summary

• DEFSEC Technologies announces that, beginning February 2026, its annualized program billings for government services are expected to rise to approximately CAD $8.3 million, a 704% increase over FY‑2024 levels.
• The company will expand its staffed headcount from 24 to 39 roles (adding 15 positions), with 13 of the new hires subcontracted through ADGA Group Consultants Inc.
• Corresponding annualized gross‑margin contribution is projected to climb to roughly CAD $2.3 million, up from CAD $0.2 million in FY‑2024, supporting DEFSEC’s goal of achieving cash‑flow‑positive operations.

Key Details

• Headcount Expansion: 15 additional roles added to the previously disclosed 24, for a total of 39 staff members commencing February 2026.
• Subcontracting Arrangement: 13 of the new positions will be provided by ADGA Group Consultants Inc., accelerating delivery of the expanded DSEF contract scope.
• Program Billings (Annualized): Expected to reach CAD $8.3 million in February 2026, up from CAD $5.1 million reported on October 29 2025 and a 704% increase versus FY‑2024 billings of CAD $1.0 million.
• Gross‑Margin Contribution (Annualized): Projected at CAD $2.3 million, including an incremental CAD $0.5 million attributable to the newly added roles.
• Contract Scope: Expansion tied to the Directorate Land Command Systems Program Management Software Engineering Facility (“DSEF”) contract for digital modernization of the Canadian Armed Forces.
• Revenue Run‑Rate Goal: The announced go‑forward revenue run‑rate positions DEFSEC well on track toward cash‑flow positivity and further growth as Canadian defence spending increases.
• Exclusions: The disclosed figures exclude DEFSEC’s product business (e.g., ARWEN sales), which the company expects to grow significantly in FY 2025.
• Forward‑Looking Statements: Management highlights expectations that the partnership with ADGA will deliver immediate revenue and margin impact when work begins in February 2026, and anticipates filing year‑end financial statements shortly, aligned with Q3 growth trajectory.

Notable Quotes

“It’s very gratifying to see the continued momentum in our programmatic work on digital modernization of the Canadian Armed Forces with our industry partners,” – Sean Homuth, President & CEO, DEFSEC Technologies.

“ADGA brings experienced software development experts who have supported DND for many years… we look forward to continuing to deploy this operationally critical talent in collaboration with DEFSEC.” – LGen Jean‑Marc Lanthier (Ret’d), President & CEO, ADGA Group Consultants Inc.