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Liberty Defense Holdings (TSE:SCAN)
:SCAN
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Liberty Defense Holdings (SCAN) AI Stock Analysis

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TSE:SCAN

Liberty Defense Holdings

(SCAN)

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Underperform 39 (OpenAI - Gpt-5.6Sol)
Rating:39Underperform
Price Target:
C$3.00
▼(-38.14% Downside)
Action:Downgraded
Date:09/06/26
The score is primarily weighed down by weak financial performance (declining revenue, large net losses, and significant ongoing cash burn) and very bearish technicals (price far below key moving averages with negative momentum). Valuation metrics provide limited support due to negative earnings and no dividend yield data.
Positive Factors
Modest TTM Leverage
Debt remains modest relative to reported TTM equity, which provides some financial flexibility compared with a highly levered structure. This may help the company preserve borrowing capacity and support operations while it works toward improving profitability and cash generation.
Negative Factors
Declining Revenue
Revenue contraction and a volatile top-line history weaken the foundation for scaling the screening business. Lower sales reduce the company’s ability to absorb fixed costs, fund product commercialization, and demonstrate that customer adoption can translate into durable growth over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Modest TTM Leverage
Debt remains modest relative to reported TTM equity, which provides some financial flexibility compared with a highly levered structure. This may help the company preserve borrowing capacity and support operations while it works toward improving profitability and cash generation.
Read all positive factors

Liberty Defense Holdings (SCAN) vs. iShares MSCI Canada ETF (EWC)

Liberty Defense Holdings Business Overview & Revenue Model

Company Description
Liberty Defense Holdings, Ltd., operating through its subsidiary Liberty Defense Technologies Inc., specializes in the creation and market introduction of advanced active 3D imaging technology. This cutting-edge system is specifically tailored for...
How the Company Makes Money
Liberty Defense primarily makes money by selling security screening hardware and associated solutions to customers seeking to detect concealed threats in high-traffic environments (e.g., venues and other facilities that require weapons/explosives ...

Liberty Defense Holdings Financial Statement Overview

Summary
Financials indicate a high-risk profile: TTM revenue is small and down ~28% YoY, profitability is deeply negative (gross profit negative; TTM net loss ~11.7M), and cash burn is substantial (TTM operating and free cash flow ~-13.9M). The main offset is modest leverage in TTM (debt ~1.0M vs equity ~9.0M), but the prior swing from negative equity in 2023–2025 signals balance-sheet instability and ongoing funding risk.
Income Statement
8
Very Negative
Balance Sheet
38
Negative
Cash Flow
12
Very Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue985.17K1.52M2.44M1.49M0.000.00
Gross Profit-3.53M-3.11M-1.68M-1.22M-1.09M-161.07K
EBITDA-9.12M-12.86M-6.30M-8.49M-11.06M-9.55M
Net Income-11.66M-14.38M-8.85M-9.37M-12.16M-12.39M
Balance Sheet
Total Assets13.46M6.37M7.29M5.83M6.23M6.50M
Cash, Cash Equivalents and Short-Term Investments7.57M318.71K1.15M963.00677.47K1.34M
Total Debt962.13K3.93M3.72M1.45M667.12K802.94K
Total Liabilities4.49M8.90M8.05M6.60M2.14M1.56M
Stockholders Equity8.97M-2.53M-764.48K-764.46K4.09M4.94M
Cash Flow
Free Cash Flow-13.92M-11.64M-6.59M-5.76M-9.78M-7.49M
Operating Cash Flow-13.94M-11.55M-6.47M-5.54M-8.86M-7.21M
Investing Cash Flow22.23K-88.64K-121.22K-221.09K-925.48K-571.83K
Financing Cash Flow20.88M10.55M7.78M5.07M9.30M9.27M

Liberty Defense Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.85
Price Trends
50DMA
4.90
Negative
100DMA
5.44
Negative
200DMA
7.10
Negative
Market Momentum
MACD
-0.26
Positive
RSI
19.84
Positive
STOCH
7.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SCAN, the sentiment is Negative. The current price of 4.85 is above the 20-day moving average (MA) of 4.84, below the 50-day MA of 4.90, and below the 200-day MA of 7.10, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 19.84 is Positive, neither overbought nor oversold. The STOCH value of 7.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SCAN.

Liberty Defense Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
C$306.48M-7.64-27.52%26.30%55.00%
52
Neutral
C$205.33M-146.03-3.14%23.49%51.27%
49
Neutral
C$5.33M-0.31-143.89%82.19%90.16%
39
Underperform
C$17.78M-0.38-7968.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SCAN
Liberty Defense Holdings
3.13
-8.79
-73.75%
TSE:GSI
Gatekeeper Systems
1.84
0.04
2.22%
TSE:TMS.H
Targeted Microwave Solutions
0.01
0.00
0.00%
TSE:QESS
Aegis Critical Energy Defence
0.35
0.24
213.64%
TSE:DPRO
Draganfly
8.25
1.95
30.95%
TSE:DFSC
DEFSEC Technologies
2.00
-2.18
-52.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026