Firefly Neuroscience (AIFF) AI Stock Analysis

• Market Cap: $9.94M
• Dividend Yield: N/A
• Average Volume (3M): 316.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.98
• Revenue Growth: -86.22%
• EPS Growth: 24.44%
• Country: US
• Employees: 13
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.64
• Shares Outstanding: 14,214,082
• 10 Day Avg. Volume: 358,037
• 30 Day Avg. Volume: 316,761
• PEG Ratio: >-0.01
• Price to Book (P/B): -46.26
• Price to Sales (P/S): 160.64
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 7.09
• Enterprise Value/Gross Profit: 10.76
• Enterprise Value/Ebitda: -0.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-4.86% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by weak financial fundamentals—very large losses and ongoing cash burn—despite strong recent revenue growth and improved gross margin. Technicals are also bearish with the stock well below key moving averages and negative MACD, while valuation offers limited support due to negative earnings and no dividend. The warrant restructuring is a small liquidity positive but highlights continued reliance on external capital.

Positive Factors

Revenue and gross margin improvement

Material revenue growth and a step-up in gross margin indicate improving monetization and unit economics. That progress supports a more sustainable operating model as sales scale, reducing the subsidy per sale and improving the path to break-even if growth persists and fixed costs are controlled.

Clean balance sheet (no debt, positive equity)

Absence of debt and positive equity materially lowers financial leverage risk, improving solvency and giving management flexibility to raise capital or execute strategic initiatives. This cleaner capital structure reduces near-term default risk versus debt-funded peers.

Scalable AI-enabled software business model

A software platform for clinical and research neurodiagnostics offers scalable unit economics, potential recurring revenues, and defensibility from proprietary algorithms and datasets. Structural demand for objective brain analytics supports multi-year adoption and commercial leverage if clinical validation continues.

Negative Factors

High cash burn and negative free cash flow

Persistent negative OCF and FCF show the business consumes material cash to operate and grow. That ongoing burn constrains runway, forces recurring capital raises, and limits the company’s ability to fund sales, clinical validation, or product investments without external financing.

Deep unprofitability and very negative margins

An extremely negative net margin reflects operating costs far exceeding current revenues, eroding shareholder value and producing negative returns on capital. Until scale or structural cost reductions are achieved, profitability metrics will remain a significant impediment to long-term financial sustainability.

Reliance on external financing and dilution risk

Recent warrant restructurings and governance moves to expand authorized shares show the company depends on equity financing to fund operations. That reliance raises dilution risk and can pressure investor alignment, making capital access and favorable terms a recurring strategic challenge.

Firefly Neuroscience Business Overview & Revenue Model

Company Description

Firefly Neuroscience, Inc., a medical technology and artificial intelligence company, provides neuroscientific solutions that improve outcomes for patients with mental illnesses and neurological disorders. The company offers Brain Network Analytics, a software that focuses on diagnostic and treatment for people suffering from mental illnesses and cognitive disorders, including depression, dementia, anxiety disorders, concussions, and attention-deficit/hyperactivity disorder. It serves pharmaceutical companies and medical practitioners. Firefly Neuroscience, Inc. is based in Toronto, Canada.

How the Company Makes Money

Firefly Neuroscience generates revenue through the sale of its neurotechnology products and solutions. The company targets both individual consumers and healthcare institutions, offering devices that are either purchased outright or through subscription-based models. Key revenue streams include direct sales of brain-computer interface devices, licensing of proprietary neurofeedback software, and subscription services for ongoing access to cognitive enhancement programs. Additionally, Firefly Neuroscience may engage in strategic partnerships with healthcare providers and technology companies to expand its market reach and enhance product offerings, thereby contributing to its revenue growth.

Firefly Neuroscience Financial Statement Overview

Summary

Revenue growth and gross margin improved materially, and the balance sheet is cleaner with no debt and positive equity. However, the company remains deeply unprofitable with very large losses and significant ongoing cash burn, keeping overall financial quality speculative.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose sharply (+82.9%), and gross margin improved to ~58% versus ~38% in 2024, signaling better monetization/unit economics. However, profitability remains very weak: the company is deeply loss-making with an extremely negative net margin (about -27x revenue) and large operating losses, indicating the cost base is far ahead of the current revenue scale. Overall, growth is encouraging, but the earnings profile is still highly speculative.

Balance Sheet

The latest balance sheet shows no debt and positive equity (~$9.7M) with assets of ~$12.4M, which materially reduces financial leverage risk versus prior years that showed negative equity and some debt. The key weakness is that returns remain heavily negative (ROE is strongly below zero), reflecting that losses are eroding shareholder value despite the improved capital structure.

Cash Flow

Cash generation is a major pressure point: TTM (Trailing-Twelve-Months) operating cash flow is -$7.6M and free cash flow is -$7.8M, with free cash flow deteriorating versus the prior year (about -12.5% growth). Cash burn is broadly consistent with reported losses (free cash flow roughly tracks net loss), which suggests losses are translating into real cash outflow rather than being mostly non-cash. The main positive is that the company is not relying on debt to fund the burn, but the runway depends on available liquidity and future financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	783.00K	108.00K	498.00K	0.00	32.00K	13.90M
Gross Profit	516.00K	41.00K	498.00K	0.00	32.00K	2.21M
EBITDA	-19.52M	-10.32M	-2.58M	-3.20M	-3.82M	425.44K
Net Income	-21.19M	-10.46M	-2.60M	-3.79M	-4.38M	413.38K
Balance Sheet
Total Assets	12.41M	4.60M	2.64M	135.00K	953.00K	3.77M
Cash, Cash Equivalents and Short-Term Investments	4.33M	1.81M	2.14M	58.00K	653.00K	1.86M
Total Debt	0.00	694.00K	0.00	0.00	1.79M	495.60K
Total Liabilities	2.75M	4.98M	2.53M	2.25M	3.97M	2.16M
Stockholders Equity	9.66M	-375.00K	109.00K	-2.11M	-3.01M	1.61M
Cash Flow
Free Cash Flow	-7.79M	-6.57M	-2.56M	-2.89M	-3.82M	358.72K
Operating Cash Flow	-7.61M	-6.16M	-2.17M	-2.89M	-3.82M	423.26K
Investing Cash Flow	-2.54M	-477.00K	-386.00K	262.00K	1.60M	-64.55K
Financing Cash Flow	13.24M	6.30M	4.64M	2.04M	2.04M	460.00K

Firefly Neuroscience Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFF, the sentiment is Negative. The current price of 1.05 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 1.04, and below the 200-day MA of 2.25, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of 21.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIFF.

Firefly Neuroscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRTC	54 Neutral	$4.96B	-98.03	-36.57%	―	25.45%	66.62%
NMTC	48 Neutral	$34.36M	-4.30	-91.34%	―	250.35%	83.06%
CGTX	47 Neutral	$92.69M	-2.29	-109.73%	―	―	50.39%
AIFF	44 Neutral	$9.94M	-0.28	-404.29%	―	-86.22%	24.44%

Firefly Neuroscience Corporate Events

Firefly Neuroscience Restructures Warrants to Raise New Capital

On December 16, 2025, Firefly Neuroscience, Inc. entered into a Warrants Cancellation and Exchange Agreement with certain investors to restructure previously issued equity warrants. The company agreed to cancel June 16, 2025 warrants covering 800,000 common shares at exercise prices of $3.50 and $4.00 per share and replace them with new 2025 warrants for the same total number of shares at a significantly reduced exercise price of $0.50 per share, in a private placement relying on exemptions from Securities Act registration.

Under the new arrangement, the warrant holders committed to exercise the new warrants to the maximum extent allowed by specified beneficial ownership limits within ten business days of the exercise date and to continue exercising remaining warrants over time until fully exercised, which could generate up to approximately $400,000 in gross proceeds for Firefly Neuroscience. The company plans to use any proceeds for working capital and general corporate purposes, and disclosed that there were no prior material relationships between the company and the warrant investors, signaling a balance-sheet-focused transaction designed to secure additional capital on more exercise-friendly terms for investors.