T3 Defense (DFNS) Q1 2026 earnings summary

Executive summary

• Transitioned from fintech to a strategic acquirer/operator in aerospace and defense, focusing on Tier 2/3 suppliers and dual-use technologies across the US, Israel, and Europe.

• Completed multiple acquisitions: Star 26 Capital, Nimbus Drones, ITS, and Tiltan Software Engineering, expanding defense and advanced manufacturing capabilities.

• Exchanged 6,000,000 shares (9.96% of outstanding) for Vision Wave Holdings shares, strengthening AI and unmanned vehicle technology exposure.

Financial highlights

• Q1 2026 revenue: $3.65M (Q1 2025: $0); net loss: $26.35M (Q1 2025: net income $102.96M, driven by one-time warrant revaluation gain).

• Operating expenses rose to $4.18M (Q1 2025: $1.51M), mainly from increased G&A, R&D, and integration costs.

• Cash and equivalents at March 31, 2026: $7.36M; current assets: $22.81M; negative working capital of $69M, largely due to non-cash warrant liabilities.

• Net cash used in operations: $4.9M; net cash from financing: $12.48M; investing outflows: $3.82M.

Outlook and guidance

• Management expects $6M in operating needs over the next 12 months and believes current liquidity, ELOC, and cash-positive subsidiaries will support operations.

• Additional liquidity anticipated from the sale of Zorronet and Vision Wave share exchange.