GuruFocus·Jun 26, 2026
DEFSEC Technologies Announces Closing of CAD$2.5 Million Registered Direct OfferingDEFSEC Technologies Announces Closing of CAD$2.5 Million Registered Direct Offering PR Newswire OTTAWA, ON, June
DEFSEC Technologies Inc.(DFSC)Earnings, Financials & Key Ratios
DFSC•NASDAQ
$1.92
Price updated Jul 7, 2026
AboutDevelops and commercializes next-gen tactical systems—non-lethal, digitization, and counter-threat—for military, public safety, and defense marketsShow more
- Revenue$5M+228.6%
- EBITDA-$8M+6.1%
- Net Income-$10M-29.4%
- EPS (Diluted)-15.78+91.6%
- Gross Margin35.16%+8.7%
- EBITDA Margin-161.83%+71.4%
- Operating Margin-183.72%+71.8%
- Net Margin-194.77%+60.6%
- ROE-209.96%+25.1%
DFSC Price & Volume
DEFSEC Technologies Inc. (DFSC) stock price & volume — 10-year historical chart
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Rapid Revenue Scaling Faces Severe Profitability Headwinds
Investment Thesis • Updated 2026Q2
VerdictNegative
Growth:Accelerating
Profitability:Negative
Financial:Vulnerable
Cash Flow:Burning
Primary Risk:Capital structure dilution risk
Key Thesis Takeaways
- DEFSEC Technologies demonstrates aggressive top-line expansion, with revenue growing from $485.9K in 2024Q2 to $1.5M by 2026Q2, yet this growth is currently decoupled from operational sustainability.
- The company's reliance on high SG&A and R&D spending has resulted in persistent net losses, with a net margin of -95.4% reported in 2026Q2.
- Investors should monitor the company's ability to stabilize gross margins, which have fluctuated between 12.4% and 49.8%, as the current cash burn rate threatens long-term liquidity.
Verdict Logic
the company's persistent cash burn, evidenced by a 2026Q2 FCF margin of -125.4%, combined with a rapidly depleting cash balance of $3.0M, presents significant capital structure and dilution risks for shareholders.
DFSC Growth Metrics
DEFSEC Technologies Inc. (DFSC) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years-
3 Years89.92%
TTM84.87%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM1.91%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM85.89%
Return on Capital
10 Years-236.58%
5 Years-236.58%
3 Years-269.16%
Last Year-143.62%
Latest DFSC News
Recent stock market news and headlines for DEFSEC Technologies Inc. (DFSC)
PRNewsWire·Jun 26, 2026
DEFSEC Technologies Announces Closing of CAD$2.5 Million Registered Direct OfferingOTTAWA, ON, June 26, 2026 /PRNewswire/ - DEFSEC Technologies Inc. (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCW) ("DEFSEC" or the "Company"), today announced the closing of its previously announced registered direct offering for the purchase and sale of 673,006 common shares at a purchase price of CAD$3.74 (US$2.63) per common share . In a concurrent private placement, the Company issued unregistered warrants to purchase up to 673,006 common shares at an exercise price of CAD$4.39 per share that are immediately exercisable upon issuance and will expire five years following the date of issuance.
PRNewsWire·Jun 25, 2026
DEFSEC Technologies Announces CAD$2.5 Million Registered Direct OfferingOTTAWA, ON, June 25, 2026 /PRNewswire/ - 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 673,006 common shares at a purchase price of CAD$3.74 (US$2.63) per common share in a registered direct offering. In a concurrent private placement, the Company will issue unregistered warrants to purchase up to 673,006 common shares at an exercise price of CAD$4.39 per share that will be immediately exercisable upon issuance and will expire five years following the date of issuance.
Peers Comparison
Key metrics vs top competitors for DEFSEC Technologies Inc. (DFSC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $1.92 | $2.66M | -0.17 | 228.56% | -194.77% | -209.96% | — | |
| $497.36 | $10.98B | 22.28 | 12.64% | 5.86% | 13.15% | — | |
| $113.67 | $4.81B | 14.76 | -2.9% | 5.55% | 27.22% | — | |
| $66.84 | $3.72B | 171.37 | 5.85% | 3.72% | 2.44% | — | |
| $63.31 | $7.58B | 9.16 | -6.37% | 7.57% | 81.03% | — | |
| $108.57 | $13.66B | 9.75 | 3.07% | 7.77% | 27.1% | — |
Compare DFSC vs Peers
DEFSEC Technologies Inc. (DFSC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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DFSC Frequently Asked Questions
DEFSEC Technologies Inc. (DFSC) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is DEFSEC Technologies Inc.'s revenue?
DEFSEC Technologies Inc. (DFSC) reported $5.6M in revenue for fiscal year 2025. This represents a 341% increase from $1.3M in 2021.
How fast is DEFSEC Technologies Inc. growing?
DEFSEC Technologies Inc. (DFSC) grew revenue by 228.6% over the past year. This is strong growth.
Is DFSC profitable?
DEFSEC Technologies Inc. (DFSC) reported a net loss of $8.3M for fiscal year 2025.
Dividend & Returns
What is DFSC's return on equity?
DEFSEC Technologies Inc. (DFSC) has a return on equity (ROE) of -210.0%. Negative ROE indicates the company is unprofitable.
What is DEFSEC Technologies Inc.'s free cash flow?
DEFSEC Technologies Inc. (DFSC) had negative free cash flow of $8.3M in fiscal year 2025, likely due to heavy capital investments.