DEFSEC Technologies Inc. Announces Strong First Quarter Fiscal 2026 Results

Executive Summary

• DEFSEC Technologies reported Q1 Fiscal 2026 financial results showing a 47% year-over-year increase in revenue, driven by growth in defense software sub-contract task orders.
• The company highlighted significant momentum in program billings, with an annualized go-forward basis reaching approximately $9.01 million in February 2026, with further growth expected to ~$9.92 million as additional resources are staffed.
• The release also noted the receipt of the first Lightning SaaS subscription and provided updates on recent corporate actions, including a registered direct offering and executive appointments.

Key Details

• Financial Performance (Q1 Fiscal 2026 vs. Q1 Fiscal 2025):
  • Revenue increased to $1,307.7 thousand from $887.7 thousand.
  • Gross profit remained stable at $404.7 thousand (vs. $404.5 thousand).
  • Operating expenses decreased to $2,468.6 thousand from $3,232.1 thousand.
  • Net loss improved to $(2,083.0) thousand from $(3,457.0) thousand.
  • EBITDA loss improved to $(1,868.4) thousand from $(3,080.5) thousand.
• Balance Sheet Highlights (as of Dec 31, 2025):
  • Cash: $5,037.4 thousand.
  • Total Assets: $11,357.2 thousand.
  • Total Liabilities: $4,091.6 thousand.
  • Working Capital: $5,759.2 thousand.
• Program Billings and Contract Updates:
  • Revenue growth driven by sub-contract task orders for Canadian Department of National Defence under DSEF and Land C4ISR programs.
  • Combined potential revenue of up to $75 million through initial contract periods (DSEF through 2028, Land C4ISR through 2029).
  • Expanded work scope on DSEF program resulted in 14 additional resources; total resources now at 42.
  • Annualized program billings on go-forward basis reached ~$9.03 million (text body) / ~$9.01 million (headline) in February 2026.
  • Recruitment for 5 additional roles expected to increase annualized billings to ~$9.94 million (text body) / ~$9.92 million (headline).
• Product Updates:
  • First Lightning SaaS subscription received; potential law enforcement customers in evaluation stages.
• Corporate Actions and Financing:
  • Registered Direct Offering (Dec 18, 2025): Closed sale of 566,040 Common Shares at $3.64 per share.
  • Concurrent Private Placement: Issued warrants to purchase up to 566,040 Common Shares at an exercise price of $4.27 per share; immediately exercisable, expiring five years from issuance.
  • Board Appointment (Jan 23, 2026): Appointed Niel Marotta as a member of the Board.
  • Executive Appointment (Feb 2, 2026): Appointed Elisabeth Preston as Senior Vice-President and Chief Legal Officer.
  • Shareholder Meeting: Annual and Special Meeting scheduled for February 19, 2026.

Notable Quotes

• "We are pleased with the continued momentum in program billings and are optimistic that we will see ongoing growth beyond currently forecasted levels," said Mr. Homuth, President and CEO of DEFSEC.
• "The ongoing interest in and receipt of a first order for the DEFSEC LightningTM platform validates that we are solving a very important problem for law enforcement and first responders with our SaaS solution. Further, it underscores our advantage from having done this type of development for military applications," stated Mr. Homuth.