QSE Joins CADSI and Formalizes FY26 Defence Commercialization Track Focused on Near-Term Public-Sector Revenue Conversion

Executive Summary

• Quantum Secure Encryption Corp. (QSE) announced membership in the Canadian Association of Defence and Security Industries (CADSI), positioning the company within Canada’s core defence and security ecosystem.
• The firm launched a FY2026 public‑sector commercialization track aimed at converting near‑term government demand for post‑quantum security into measurable deployments and recurring revenue throughout Q2–Q4 2026.
• Management highlighted that conversion milestones (tenant onboarding, pilot seat activation, department expansion, agency‑wide adoption) will be used as key indicators of commercial progress and future revenue growth.

Key Details

• CADSI Membership: QSE joins an association representing >900 Canadian defence, security, cybersecurity, aerospace, and advanced‑technology companies, providing structured access to senior decision‑makers in the Canadian Armed Forces, federal departments, allied governments, and international defence partners.
• FY2026 Commercialization Window (Q2–Q4 2026): Defined execution period for public‑sector assessment, conversion, and scale; aligns with QSE’s fiscal year ending September 30, 2026.
• Commercialization Milestones & Revenue Mechanics:
• New encrypted government tenants onboarded → onboarding services + initial subscription revenue.
• Pilot seats activated → early recurring revenue base + implementation validation.
• Department expansion → seat growth + governance, policy, and retention add‑ons.
• Agency‑wide adoption → multi‑year recurring footprint, renewal cycles, potential cross‑department standardisation.
• Management Commentary: CEO Ted Carefoot stated that joining CADSI is an “execution decision” to move from long‑term narratives to paid pilots and scaled deployments that will contribute to recurring revenue in FY26.
• Strategic Access & Visibility: Membership grants participation in flagship initiatives such as CANSEC (Canada’s largest defence and security trade show) and involvement in CADSI working groups focused on cybersecurity, digital defence, and emerging technology adoption.
• Prior Public‑Sector Milestones: Recent engagements include a National Partner agreement with the Municipal Information Systems Association (MISA) and participation in a CADSI‑convened Canadian delegation to the World Defense Show 2026 in Riyadh.

Notable Quotes

“Joining CADSI is an execution decision,” said Ted Carefoot, Chief Executive Officer of QSE. “Defence and government stakeholders are actively evaluating deployable post‑quantum controls today… Our focus in FY26 is to convert public‑sector engagement into paid pilots and scaled deployments that can contribute to recurring revenue as we move through Q2, Q3, and Q4.”