Liberty Defense Holdings, Ltd. (DETX) AI Stock Analysis
DETX AI stock analysis summary
AI ResearchLiberty Defense Holdings, Ltd. (DETX) develops security detection technologies, including its walk-through HEXWAVE system. The company generated trailing twelve month revenue of $974,744 and incurred a net income loss of -$14.1M in FY2025. With a market cap of $8.2M, the business continues to navigate negative margins and cash burn.
- Market cap
- $8.2M
- Revenue (TTM)
- $974,744
- P/E
- —
- 1Y return
- — S&P 500 16.8%
- Avg. target
- —
Bull case
- The company maintained a current ratio of 2.78 and held $7.6M in cash and short-term investments as of June 30, 2026.
- Enterprise value stands at $5.3M, below its market cap of $8.2M due to its liquid asset base.
- Insiders hold 10.4% of shares, aligning leadership with institutional holders who own 37.2%.
Bear case
- Trailing twelve month revenue dropped to $974,744, accompanied by a 90.2% year-over-year quarterly revenue decline in the period ended June 30, 2026.
- Free cash flow worsened to -$11.4M in FY2025, driven by an operating cash flow deficit of -$11.3M.
- The stock trades at a price-to-sales multiple of 8.4x, well above the 1.5x median for US-listed Industrials peers.
What Liberty Defense Holdings, Ltd. does
Liberty Defense Holdings, Ltd., through its subsidiaries, develops and commercializes security detection technologies across Canada, the United States, and international markets. The company operates through two segments: HEXWAVE and Contract. Its core product, HEXWAVE, is a walk-through detection system designed to scan for concealed metallic and non-metallic weapons alongside other threats. Liberty Defense also provides body scanners and footwear screeners for aviation checkpoint security, as well as an open architecture platform for airport security. Its solutions serve schools, hospitals, places of worship, hotels, shopping malls, sports venues, transit hubs, theaters, government offices, and entertainment venues.
Growth and profitability
Liberty Defense generated $1.5M in revenue in FY2023, which expanded by 63.4% to $2.4M in FY2024 before contracting 38.6% to $1.5M in FY2025, delivering a two-year revenue CAGR of 0.2%. Profitability remained deeply negative over this period, with gross margin declining from -81.5% in FY2023 to -195.3% in FY2025, while operating margin worsened from -610.2% to -898.7%. Net income fell from -$9.4M in FY2023 to -$14.1M in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $974,744 with an operating margin of -8258.3% and EPS of -$5.21, as quarterly revenue dropped 90.2% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Liberty Defense held $7.6M in cash and short-term investments, with total assets of $13.5M and shareholders' equity of $9.0M. The company maintained a current ratio of 2.78. Operating cash flow remained negative at -$11.3M in FY2025, and free cash flow stood at -$11.4M after accounting for capital expenditures of $87,119. Research and development expenses were $2.4M during FY2025.
Valuation and performance
At a last close of $1.44 on October 16, 2026, Liberty Defense carried a market cap of $8.2M and an enterprise value of $5.3M. The stock trades at a price-to-sales multiple of 8.4x and an EV-to-revenue multiple of 5.4x, higher than the median of its US-listed Industrials peers, which sit at a price-to-sales multiple of 1.5x. Its price-to-book ratio is 1.3x. Over the past year, the S&P 500 (SPY) returned 16.8%, while DETX traded between a 52-week high of $7.00 and a 52-week low of $1.36, carrying a beta of -0.18.
What analysts expect
Liberty Defense does not currently have analyst consensus rating counts, average price targets, or published forward earnings estimates available in the tracked data. The company's next scheduled earnings date is November 13, 2026. Prior performance records show trailing twelve month EPS of -$5.21 as of June 30, 2026, and an annual EPS of -$32.42 for FY2023, reflecting continuous development-stage losses across reported financial periods.
Key risks and what to watch
- Ongoing cash burn is significant, with free cash flow of -$11.4M against cash and short-term investments of $7.6M.
- Operating margin reached -8258.3% on a trailing twelve month basis, reflecting persistent high overhead relative to current sales.
- Revenue volatility is pronounced, falling 38.6% in FY2025 and dropping 90.2% year-over-year in the latest quarter.
- The stock trades near its 52-week low of $1.36 compared to its 52-week high of $7.00.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DETX AI stock analysis
This page is an AI-written research summary of Liberty Defense Holdings, Ltd. (DETX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DETX income statement, DETX balance sheet, DETX key metrics, DETX chart. See the DETX stock overview for the latest quote and news.
DETX AI stock analysis FAQ
What is Liberty Defense Holdings' primary product?
Liberty Defense primarily offers HEXWAVE, a walk-through screening system that detects concealed metallic and non-metallic weapons and threats.
Does Liberty Defense pay a dividend?
No, Liberty Defense does not pay a dividend, reporting trailing twelve month EPS of -$5.21 and a net margin of -943.2% in FY2025.
How much cash does DETX have on hand?
As of June 30, 2026, Liberty Defense held $7.6M in cash and short-term investments, with a current ratio of 2.78.
When is Liberty Defense's next earnings report?
The company's next earnings date is scheduled for November 13, 2026.