DEFSEC Technologies (NASDAQ:DFSC) reported a massive surge in annual revenue for fiscal 2025, driven by the rapid adoption of its tactical digitization and situational awareness platforms.
The Ottawa-based defense contractor saw total revenue climb to $4.9 million, a 229% increase over the previous year, with its core digitization segment leading the charge with a 289% jump to $4 million.
The company, which rebranded from KWESST Micro Systems earlier this year, is pivoting toward a more predictable recurring revenue model.
In a significant milestone for its software portfolio, DEFSEC confirmed it has received its first order for DEFSEC Lightning, a cloud-hosted Software as a Service (SaaS) platform designed to provide real-time encrypted communication and drone-feed integration for first responders.
Beyond software, the company’s hardware and sensor divisions gained traction.
DEFSEC recently delivered its Battlefield Laser Detection System (BLDS) prototype for evaluation in a major North American armored vehicle program, potentially opening a pathway to high-volume defense contracts.
Despite the revenue growth, the company remains in a scaling phase, reporting an operating loss of $9.1 million for the year.