T3 Defense Inc. Common Stock (DFNS)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the numbers, not the story. T3 Defense operates in a promising area—defense electronics, Iron Dome generator components, GPS-denied navigation, simulation, motion control, and drone payloads—but the filings show a frail enterprise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.0 million while net loss was $81.4 million and diluted EPS was -$173.80. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.7 million and net loss was $27.1 million, or diluted EPS -$1.14. Those are not the marks of a durable moat. The positive outlier is FY2025, period ended 2025-12-31, with net income of $78.5 million and diluted EPS of $7.96, but revenue was not reported; that one year sits alongside FY2024, period ended 2024-09-30, revenue $5.9 million and net loss $8.5 million, and FY2023, period ended 2023-09-30, revenue $21.3 million and net loss $17.4 million. The supplied Lynch category is TURNAROUND—Returned to profit after a loss within the last three years—but the recent quarters make that turnaround highly uneven. On FairStock calculations, the P/E is 0.00, ROE is -275.59%, ROCE is -13.21%, free cash flow yield is -66.5%, Piotroski is 4/9 and Altman Z is -1.48. At the close on 2026-10-13, price was $5.75 and market cap $20.3 million. A low debt-to-equity ratio of 0.09 is helpful, but negative cash flow and distress-zone Altman score dominate. The 52-week range of $0.04 to $91.00 shows extreme speculation. Without consistent revenue and profits, I cannot call this cheap on Graham principles; it is a speculative turnaround, not a margin-of-safety bargain.

In plain English: T3 Defense is a small aerospace and defense company that sells generators for Iron Dome launchers, navigation and simulation systems, motion controls, and drone payloads. Its business looks weak right now: revenue is tiny and recent filed results show very large losses and negative cash flow. At $5.75 a share, the price looks expensive relative to those current numbers, even though the stock has traded in a very wide range.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-09-30) · FY2023 10-K/A (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer