Core Insights - DEFSEC Technologies Inc. reported significant revenue growth in FY2025, with total revenue increasing by 229% to $4.9 million compared to FY2024 [5][11]. - The company anticipates continued growth in FY2026, with expected program billings reaching approximately $8.81 million annually starting February 2026 [2][11]. - DEFSEC received its first order for the DEFSEC LightningTM SaaS product, indicating strong market interest [2][11]. Financial Performance - DEFSEC's digitization revenue for FY2025 was $4.0 million, marking a 289% increase from FY2024 [5]. - Gross margin improved to $1.7 million, representing 35.2% of total revenue, compared to 32.3% in FY2024 [5]. - The operating loss decreased to $9.1 million in FY2025 from $9.8 million in FY2024 [5][21]. Cash Position - As of September 30, 2025, the company had cash and cash equivalents of $6.7 million, a significant increase from $0.3 million at the same time in 2024 [6][22]. Revenue Drivers - Revenue growth was primarily driven by increased task orders for software services from the Canadian Department of National Defence under two long-term contracts, with potential revenue of up to $75 million through 2028 and 2029 [2][11]. - The less-lethal ARWEN product line also contributed to revenue, with sales nearly doubling from $0.5 million to $0.9 million in FY2025 [4]. Future Outlook - The company plans to fully commercialize the DEFSEC LightningTM system in early 2026, following positive market feedback [2]. - Management believes that the extensive customer base for ARWEN products in North America presents a strong market for new offerings like PARA SHOTTM and DEFSEC LightningTM [4][12]. Financing Activities - On August 7, 2025, DEFSEC closed a public offering, raising approximately $6.8 million through the issuance of common shares and warrants [7]. - A registered direct offering on December 17, 2025, involved the sale of 566,040 common shares at a price of $3.64 per share [8]. Company Overview - DEFSEC develops next-generation tactical systems for military and security forces, focusing on real-time situational awareness and targeting information [9]. - The company is headquartered in Ottawa, Canada, with a representative office in London, UK [9].

Core Points - DEFSEC Technologies Inc. announced the closing of a registered direct offering for 566,040 common shares at CAD$3.64 (US$2.65) per share [1] - The gross proceeds from the offering were approximately CAD$2.1 million, intended for working capital and general corporate purposes [2] - The company issued unregistered warrants to purchase up to 566,040 common shares at an exercise price of CAD$4.27, which are immediately exercisable and will expire in five years [1][2] Financial Details - The cash fee paid to the placement agent was CAD$154,529, along with 42,453 common share purchase warrants at an exercise price of CAD$4.55 [3] - The offering remains subject to final approval from the TSX Venture Exchange [6] Company Overview - DEFSEC develops and commercializes next-generation tactical systems for military and security forces, including real-time shared situational awareness and targeting information [7] - The company also offers countermeasures against threats such as electronic detection, lasers, and drones, and has a proprietary non-lethal product line branded PARA SHOTTM [7]

Ottawa, Ontario--(Newsfile Corp. - December 17, 2025) - DEFSEC Technologies Inc. (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCW) ("DEFSEC" or the "Company"), today announced that it has entered into definitive agreements for the purchase and sale of 566,040 common shares at a purchase price of CAD$3.64 (US$2.65) per common share in a registered direct offering. In a concurrent private placement, the Company will issue unregistered warrants to purchase up to 566,040 common shares at an exercis ...

Core Insights - DEFSEC Technologies Inc. reported significant growth in Q3 Fiscal 2025, with revenue increasing by 330% compared to Q3 Fiscal 2024 and 278% year-to-date [1][5] - The gross margin also saw substantial growth, rising by 879% in Q3 Fiscal 2025 over Q3 Fiscal 2024, indicating improved profitability [1][5] - The company is transitioning from a development stage to a revenue ramp-up phase, driven by government defense contracts and growth in its ARWEN® product line [2][3] Revenue Growth - Total revenue for Q3 Fiscal 2025 reached CAD 1,417.5 million, up from CAD 329.5 million in Q3 Fiscal 2024, marking a CAD 1.1 million increase for the three-month period [6][7] - Year-to-date revenue increased to CAD 3,569.3 million from CAD 944.4 million in the previous year, reflecting a CAD 2.6 million increase [6][7] - The growth was primarily attributed to government contracts and a significant ramp-up in the Land C4ISR contract, alongside accelerated deliveries in the ARWEN® product line [5][7] Gross Margin Performance - Gross margin for Q3 Fiscal 2025 was CAD 399.5 million, a significant increase from CAD 40.8 million in Q3 Fiscal 2024, resulting in a gross margin percentage rise from 12.4% to 28.2% [6][8] - The increase in gross margin was driven by higher revenue and improved margins from the digitization business line, despite lower margins from the ARWEN® product line due to product mix changes [8] Operating Expenses - Total operating expenses for Q3 Fiscal 2025 were CAD 2,229.7 million, slightly up from CAD 2,225.6 million in Q3 Fiscal 2024 [6][10] - General and administrative expenses remained stable, while selling and marketing expenses increased due to a shift in focus towards business development for key products [11] - Research and development expenses decreased as the company transitioned to the commercialization stage for its PARA SHOTTM products [11] Financial Position - The cash balance increased by CAD 2.3 million over the fiscal year 2024 year-end, excluding a subsequent public offering that raised CAD 6.8 million in gross proceeds [1] - The company reported an adjusted EBITDA loss of CAD 1,491.5 million for Q3 Fiscal 2025, an improvement from CAD 1,901.3 million in the same period last year [6][11] Future Outlook - Management anticipates continued revenue growth as additional resources are allocated to fulfill Canadian Government Defence programs [9] - The company expects increased demand for its ARWEN® products and the commercial launch of KWESST LightningTM, alongside initial orders for its Battlefield Laser Detection System [9]