T3 Defense Inc. (DFNS)
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T3 Defense has only carried that name since February 2026. Before that it was Nukkleus, a vendor of foreign-exchange and blockchain technology; before that it was Brilliant Acquisition Corporation, an empty shell company. Today it buys up Israeli defense suppliers. Its annual report for 2025 pairs two numbers you have to read twice: no revenue at all and $78.6 million of net income. The profit comes almost entirely from remeasuring the company's own warrants ($131.8 million). Between December 31, 2025 and July 9, 2026 the share count went from 19.0 to 126.3 million; on July 20, 2026 every 125 shares became one — a ratio that had still read 1-for-50 three days earlier. Not investment advice — just a look at who paid for that profit.
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AI Rating
Sells AIDie Tochter Tiltan Software Engineering führt im Geschäftsbericht Majestic.ai — eine generative KI-Plattform für synthetische Trainingsdaten — als eines von fünf Hauptprodukten und erlöste 2025 rund 2,185 Mio. US-Dollar; laut Bericht ist Majestic.ai allerdings erst eine „working alpha version“ mit ersten Verteidigungskunden, und Tiltans Umsatz ist im Konzernabschluss 2025 noch nicht enthalten (erst ab dem ersten Quartal 2026 als Segment mit 0,592 Mio.). Die Konzernstrategie nennt „advanced AI applications“ ausdrücklich als Zielkriterium der Zukäufe; der im Juli 2026 erworbene Drohnen-Interceptor HY-380 von Project 35 befindet sich laut Meldung in der Entwicklung und nutzt optische KI-Zielverfolgung.
View the full file — quotes, sources, reviewed filings
„Tiltan offers five principal products and platforms: (1) T-AWARE, an exploitation system for processing, analyzing, and visualizing multi-sensor intelligence data; (2) TOPS, a physics-based simulation platform that generates high-fidelity imagery across visible light (standard camera imagery similar to what the human eye sees), infrared (heat-based imagery useful for seeing in darkness), and synthetic aperture radar or SAR (radar imaging that can detect objects through clouds, darkness, and adverse weather conditions); (3) Majestic.ai, a generative AI platform for creating realistic synthetic datasets used to train AI systems more quickly and cost-effectively than using real-world imagery; (4) T-BAT, a software-only navigation solution for drones and aircraft that enables autonomous operation when GPS signals are unavailable, jammed, or unreliable; and (5) AGM, a rapid automatic geo-mapping tool that converts spatial data into actionable geospatial intelligence."
Tiltan bietet fünf Hauptprodukte und -plattformen an: (1) T-AWARE, ein Auswertungssystem zur Verarbeitung, Analyse und Darstellung von Aufklärungsdaten aus mehreren Sensoren; (2) TOPS, eine physikbasierte Simulationsplattform, die hochaufgelöste Bilder für sichtbares Licht (normale Kamerabilder, wie sie das menschliche Auge sieht), Infrarot (Wärmebilder, nützlich zum Sehen bei Dunkelheit) und Radar mit synthetischer Apertur (SAR, Radarbilder, die Objekte durch Wolken, Dunkelheit und schlechtes Wetter hindurch erfassen) erzeugt; (3) Majestic.ai, eine generative KI-Plattform zur Erzeugung realistischer synthetischer Datensätze, mit denen sich KI-Systeme schneller und kostengünstiger trainieren lassen als mit echten Aufnahmen; (4) T-BAT, eine reine Software-Navigationslösung für Drohnen und Flugzeuge, die autonomen Betrieb ermöglicht, wenn GPS-Signale fehlen, gestört oder unzuverlässig sind; und (5) AGM, ein Werkzeug zur schnellen automatischen Geo-Kartierung, das Raumdaten in verwertbare Geoinformationen umwandelt.
„Tiltan reported revenues of approximately $2,964,000 and $2,185,000 for the fiscal years ended December 31, 2024 and December 31, 2025, respectively, but has not been included in the Company’s 2025 Financial Statements."
Tiltan wies für die Geschäftsjahre bis zum 31. Dezember 2024 bzw. zum 31. Dezember 2025 Umsätze von rund 2.964.000 und 2.185.000 US-Dollar aus, ist aber im Konzernabschluss 2025 der Gesellschaft nicht enthalten.
„The Company believes that Tiltan’s key competitive advantages include over 30 years of proven delivery to all major Israeli defense companies; a proprietary physics-based 3D engine that provides full control over development, special features, and no third-party royalty obligations; the ability to generate synthetic data across visible light, infrared, and SAR sensor types, addressing the most demanding defense use cases; a working alpha version of its Majestic.ai platform with early adoption by defense customers; and recognition from the Israeli Ministry of Defense, including an award in an advanced computer vision competition and validation of its infrared simulation capabilities against competitors, in which Tiltan’s results outperformed other participants."
Nach Auffassung der Gesellschaft zählen zu den wesentlichen Wettbewerbsvorteilen von Tiltan über 30 Jahre nachgewiesener Lieferungen an alle großen israelischen Rüstungsunternehmen; eine eigene physikbasierte 3D-Engine, die volle Kontrolle über die Entwicklung und Sonderfunktionen bietet und ohne Lizenzabgaben an Dritte auskommt; die Fähigkeit, synthetische Daten für sichtbares Licht, Infrarot und SAR-Sensoren zu erzeugen und damit die anspruchsvollsten Verteidigungsanwendungen zu bedienen; eine funktionsfähige Alpha-Version der Plattform Majestic.ai mit ersten Verteidigungskunden; sowie Anerkennung durch das israelische Verteidigungsministerium, darunter eine Auszeichnung in einem Wettbewerb für fortgeschrittenes maschinelles Sehen und eine Bestätigung der Infrarot-Simulationsfähigkeiten im Vergleich mit Wettbewerbern, bei dem Tiltans Ergebnisse besser abschnitten als die der übrigen Teilnehmer.
„Tiltan’s Majestic.ai platform is positioned to address this growing demand by providing physically accurate, validated outdoor visual sensor synthetic datasets for defense and, increasingly, commercial AI applications."
Tiltans Plattform Majestic.ai ist darauf ausgerichtet, diese wachsende Nachfrage zu bedienen, indem sie physikalisch exakte, validierte synthetische Datensätze für optische Außensensoren für Verteidigungsanwendungen und zunehmend auch für kommerzielle KI-Anwendungen bereitstellt.
Filings Reviewed: 10-K 2026-04-09 · 10-Q 2026-05-20 · 10-Q 2025-11-14 · 10-Q 2025-08-14 · 10-Q 2025-05-23 · 10-KT 2025-05-08 · 10-K 2025-02-10 · 8-K 2026-07-09
Rated on July 31, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -1.70 | – | 0 | – | – | 0 | 0 |
| 2025: Q1 | 1.09 | – | 0 | – | – | -1 | -1 |
| 2025: Q2 | 0.03 | – | 0 | – | – | -1 | -1 |
| 2025: Q3 | -251.78 | -194.90 | 0 | -100.00 | – | -3 | -3 |
| 2025: Q4 | -72.68 | – | 0 | – | – | -1 | -1 |
| 2026: Q1 | -120.51 | -105.30 | 4 | – | -743.10 | -5 | -5 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Net income of $78.631 million for fiscal 2025 sits next to zero revenue and an operating loss of $32.600 million; $131.766 million of it comes from remeasuring the company's own warrants. The same mechanism produced a $160.788 million loss in the October-to-December 2024 transition quarter and a $26.351 million loss in the first quarter of 2026. No earning power can be derived from figures like these.
As of March 31, 2026 the group held $7.4 million of unrestricted cash against $4.9 million of cash used in operations during the quarter — roughly one and a half quarters on our arithmetic. Management does the sums differently: it budgets roughly $6 million for twelve months, considers the cash sufficient, and concluded that its plans in aggregate alleviate substantial doubt about the going concern; the fiscal 2025 audit opinion carries no going-concern qualification. The quarterly report also states that, absent other action, additional liquidity will be needed for the next twelve months; the main source is the equity line, that is, further dilution. Working capital stood at roughly −$69 million, of which $56 million are warrant liabilities requiring no cash settlement.
Shares outstanding rose more than sixfold between December 31, 2025 (19,025,767) and July 9, 2026 (126,311,902) before the 1-for-125 reverse split of July 20, 2026. On top of that sat warrants on 10,596,213 shares as of March 31, 2026, and on August 5, 2026 shareholders vote on a compensation plan covering 176,000 shares (17.4 percent of the share count) plus 8 percent a year.
Per the annual report the stock has traded below the $1.00 threshold since March 20, 2026; the Nasdaq deadline runs to November 2, 2026. After the reverse splits of 1-for-8 (October 2024) and 1-for-125 (July 20, 2026), a renewed breach through July 20, 2027 triggers Rule 5810(c)(3)(A)(iv): no compliance period, an immediate delisting determination. The cumulative condition (250-to-1 over two years) has applied since July 20, 2026 but lapses once the 1-for-8 split leaves the two-year window in October 2026. A delisting would, per the report, trigger debt acceleration and breach acquisition agreements.
There is an operating business with third-party customers for the first time: $3.653 million of revenue in the first quarter of 2026 against zero in the prior-year quarter, $12.1 million of backlog as of March 31, 2026 and subsidiaries with documented customers — Rimon supplies generators for missile defense launchers, Project 35 supplies Israel Aerospace Industries, Elta, Rafael and Elbit per the filing. But the gross margin was 10.2 percent, and I.T.S., the segment with the most staff, ran a gross loss; the biggest segment by revenue was Rimon at $1.601 million.
Star 26 was bought from the company's own chief executive, who was at the same time the seller's controlling shareholder and director; of the $69.433 million of consideration, $72.255 million is goodwill against net tangible assets of negative $3.702 million. Of $315.486 million of total assets, $174.568 million is trust cash at an acquisition vehicle and $100.150 million is goodwill.
T3 Defense is the costume trap in its purest form: under the holding roof sit real, small Israeli supplier businesses with 112 employees between them and $3.653 million of quarterly revenue — above them a financial structure whose reported annual profit of $78.631 million comes from remeasuring the company's own warrants and has never touched a bank account. Between December 31, 2025 and July 9, 2026 the share count went from 19.0 to 126.3 million, on July 20, 2026 the stock was reverse split 1-for-125, and under Nasdaq Rule 5810(c)(3)(A)(iv) there is no second attempt through July 20, 2027. With $7.4 million of cash and $4.9 million of quarterly burn, the next financing is not an option but a necessity. Not investment advice.
- DFNS reached the research list not through a metrics screen but through the density of its filings with the U.S. securities regulator, the SEC: 22 mandatory filings between May 20 and July 24, 2026, including the 1-for-125 reverse split of July 20, 2026. Classic metrics do not apply here anyway — the reported profit is a valuation effect, and two reverse splits in 21 months distort every price series.
- Recency gate: the most recent periodic report is the quarterly report (10-Q) as of March 31, 2026, filed May 20, 2026 — evaluated and listed in the sources. All 22 filings from that day onward were reviewed individually. The share count comes from the most recent document that states one (proxy statement of 07/09/2026 with 126,311,902 shares pre-split, ownership filing of 07/24/2026 with 1,010,495 shares post-split). Market value was checked against the last price documented in a filing ($0.3756 on 06/01/2026 per the prospectus): a 7 percent difference.
- Risk of confusion: T3 Defense Inc. is the same legal entity as the former Nukkleus Inc. and Brilliant Acquisition Corporation (CIK 0001787518) — not a successor company and not a new listing. All share counts through July 9, 2026 are stated before the 1-for-125 reverse split, as are the warrant exercise prices of $2.13 to $92.00 as of March 31, 2026. The going-concern paragraph reprinted in the annual report comes from the predecessor auditor GreenGrowth CPAs and relates to the September 30 and December 31, 2024 statements; the Somekh Chaikin opinion for fiscal 2025 contains no such paragraph.
- Two calculations, kept apart on purpose: the cash runway of roughly one and a half quarters ($7.4 million of cash against $4.9 million of quarterly burn) is our own. In the same quarterly report the company budgets roughly $6 million for twelve months, calls the cash "sufficient to fund projected operating expenses through the look-forward period" and concludes that its plans in aggregate alleviate substantial doubt about the going concern. Neither the 10-K for 2025 nor the 10-Q as of 03/31/2026 carries an auditor's going-concern qualification; the "Going concern" note exists but ends with the doubt being alleviated. The negative working capital belongs in the same category: roughly $69 million, of which $56 million are warrant liabilities "that do not require cash settlement".
- On Nasdaq Rule 5810(c)(3)(A)(iv): condition (B) — a cumulative 250-to-1 or more over the prior two years — has applied since 07/20/2026 (1-for-8 times 1-for-125 equals 1,000-to-1), but falls away once the 1-for-8 split leaves the two-year window in October 2026 (leaving 125-to-1). Condition (A) is not a state but a trigger: it bites if the price slips back below a dollar within one year of the split becoming effective — that is, through 07/20/2027. The July 20, 2027 date follows from (A) alone.
About the Company
T3 Defense Inc. acquires and operates aerospace and defense businesses in the United States and Israel. It engages in supplying generators for iron dome launchers and defense systems; defense and aerospace applications, including GPS-denied navigation, 3D mapping, simulation systems, and AI training platforms; design and manufacture of motion control systems for military and civilian use; and distribution of advanced drone payload systems for defense and homeland security markets. The company also offers unmanned arial systems and services; design, development, production, and manufacturing of serial, fully integrated electro-mechanical machines, and sophisticated assembly lines. In addition, it is involved in aviation and defense infrastructure, such as logistics hubs, maintenance, repair, and operations facilities, and aircraft modernization capabilities. The company was formerly known as Nukkleus Inc. and changed its name to T3 Defense Inc. in February 2026. T3 Defense Inc. was founded in 2013 and is headquartered in New York, New York.
| Employees | 112 |
|---|---|
| Headquarters | New York, NY |
| Website | t3dfns.com |
| IPO Date | 23. Mar 2020 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Menachem Shalom | CEO & Director | 1975 |
| Roy Cohen | Chief Financial Officer | – |
| Yair Ohayon | Investor Relations Manager & Chief Marketing Officer | – |
| Emil Blumer | Chief Business Officer | – |
| Jordan Buchler | Chief Executive Officer of Manufacturing & Industrial Processing Division | 1963 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 30, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.