DEFSEC reported Q1 fiscal 2026 revenue of CAD1.308M, a 47% year-over-year increase, with gross profit of CAD404.7K nearly unchanged and operating expenses reduced to CAD2.469M. Net loss narrowed to CAD2.083M from CAD3.457M, and EBITDA loss improved to CAD1.868M, on CAD5.037M cash at quarter-end.

Growth was driven by 'as-and-when-requested' sub-contract task orders under DSEF and Land C4ISR program contracts for the Canadian Department of National Defence. Combined initial contract periods through 2028 and 2029 offer up to CAD75M revenue, and annualized program billings reached approximately CAD9.03M in February, with recruitment set to push this to CAD9.94M.

DEFSEC received its first Lightning SaaS subscription in the quarter, marking entry into law enforcement software, with multiple potential customers in active evaluation. This initial order leverages DEFSEC’s military software expertise and underscores growing demand for public safety solutions.

On December 18, the company raised capital via a registered direct offering of 566,040 common shares at CAD3.64 each plus warrants at CAD4.27. The board expanded with Niel Marotta’s appointment, and Elisabeth Preston joined as Senior Vice-President and Chief Legal Officer, ahead of a virtual shareholder meeting on February 19.