Tali Digital (TD1) AI Stock Analysis

• Market Cap: AU$2.62M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -1.55
• Revenue Growth: N/A
• EPS Growth: 78.95%
• Country: AU
• Employees: 5
• Sector: Technology
• Sector Strength: 88
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.01
• Shares Outstanding: 46,727,478
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.07
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2806.10
• P/FCF Ratio: -7.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 43 Neutral
• Price Target: AU$0.06 ▼(-6.67% Downside)

The score is primarily constrained by weak financial performance (sharp revenue decline, persistent losses, and ongoing negative free cash flow). Technical signals also indicate weak momentum (negative MACD, RSI below 50, and price below the 20-day average). Valuation is difficult to support given negative earnings and no stated dividend yield.

Positive Factors

Balance Sheet Health

A strong balance sheet with minimal debt provides financial stability and flexibility, allowing the company to navigate challenging periods without the burden of high-interest obligations.

Strategic Acquisition

The acquisition and integration of YCDI enhance the company's digital offerings and market reach, positioning it for growth in the education sector through strategic partnerships and expanded customer engagement.

Shareholder Support

Strong shareholder support at the AGM reflects confidence in the company's strategic direction and initiatives, which is crucial for long-term stability and growth.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in sustaining business operations and market presence, potentially impacting long-term viability if not addressed.

Persistent Losses

Continued losses and negative profitability strain financial resources, necessitating external funding and potentially leading to shareholder dilution.

Negative Cash Flow

Persistent negative cash flow indicates an inability to self-fund operations, increasing reliance on external capital, which can be unsustainable long-term.

Tali Digital Business Overview & Revenue Model

Company Description

TALi Digital Limited, a digital health company, delivers diagnostic and therapeutic solutions to improve cognitive function and behaviour in Australia. The company offers TALi DETECT, a 20-30 minute evidence-based digital screening program comprising cognitive performance tasks to determine how a child's attention skills are developing against their peers; and TALi TRAIN, a digital cognitive training program to improve selective attention and numeracy skills, as well as improvements in inattentive and hyperactive behaviour in some children. It has a strategic licensing agreement with Akili Interactive Labs, Inc for pediatric cognition products. The company was formerly known as Novita Healthcare Limited and changed its name to TALI Digital Limited in December 2019. TALi Digital Limited was incorporated in 2004 and is based in Camberwell, Australia.

How the Company Makes Money

Tali Digital generates revenue primarily through the sale and licensing of its cognitive assessment and training tools to educational institutions, healthcare providers, and directly to consumers. The company may also derive income from partnerships with educational technology companies and collaborations with research organizations. Additionally, Tali Digital could potentially earn revenue through grants or funding for research and development in cognitive science and related fields. Key revenue streams include subscription fees for its digital platforms and potential licensing agreements with other organizations interested in integrating Tali's technology into their offerings.

Tali Digital Financial Statement Overview

Summary

Financials are weak: revenue collapsed in the latest year and profitability remains deeply negative. Cash flow is consistently negative (ongoing cash burn), though burn has moderated recently. The balance sheet is a relative positive with minimal/no debt, but continued losses increase financing and dilution risk.

Income Statement

Revenue has been highly volatile and has collapsed in the most recent year (2025 annual revenue down ~96.6% vs. 2024), following several years of inconsistent growth. Profitability remains very weak: the company is generating large operating and net losses relative to a small revenue base, with deeply negative margins across the period (2020–2025). A positive is that net loss narrowed materially in 2025 versus 2024, but the core issue is the lack of sustainable revenue scale and persistent losses.

Balance Sheet

Leverage is conservative, with total debt at zero in 2024 and 2025 and low debt levels historically (debt-to-equity near zero to ~0.15). However, profitability has been consistently negative, leading to weak returns on equity and creating ongoing risk of equity dilution if losses persist. Equity is still positive, and total assets exceed equity by a relatively modest amount, but the balance sheet strength is being pressured by repeated losses.

Cash Flow

Cash generation is weak, with negative operating cash flow and negative free cash flow every year shown (2020–2025), indicating ongoing cash burn. The good news is the cash burn appears to be moderating recently (operating cash outflow improved from roughly -2.0M in 2023 to about -0.47M in 2025), but cash flow still does not support self-funded operations. Free cash flow remains negative, implying continued reliance on external funding over time.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.32K	1.19K	2.00K	26.63K	13.16K	34.24K
Gross Profit	1.19K	1.19K	-449.55K	-1.49M	-3.59M	-2.59M
EBITDA	-680.76K	-711.29K	-1.05M	-2.54M	-7.17M	-4.69M
Net Income	-656.88K	-656.88K	-3.12M	-2.26M	-6.94M	-4.86M
Balance Sheet
Total Assets	2.66M	2.66M	2.19M	8.09M	6.44M	9.83M
Cash, Cash Equivalents and Short-Term Investments	1.30M	1.30M	2.13M	2.99M	1.85M	2.73M
Total Debt	0.00	0.00	0.00	505.49K	504.12K	55.79K
Total Liabilities	386.89K	386.89K	41.61K	2.92M	3.01M	2.58M
Stockholders Equity	2.27M	2.27M	2.15M	5.17M	3.43M	7.26M
Cash Flow
Free Cash Flow	-472.81K	-472.81K	-363.35K	-2.82M	-4.34M	-7.37M
Operating Cash Flow	-472.81K	-472.81K	-363.35K	-2.00M	-4.33M	-5.80M
Investing Cash Flow	-1.10M	-1.10M	0.00	-817.64K	-12.63K	-1.57M
Financing Cash Flow	747.00K	747.00K	-503.74K	3.96M	3.46M	6.17M

Tali Digital 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%
EMD	49 Neutral	AU$46.78M	-8.29	-81.30%	―	-36.68%	79.41%
ICR	44 Neutral	AU$16.17M	-5.42	―	―	241.34%	44.19%
TD1	43 Neutral	AU$2.62M	-2.80	-29.86%	―	―	78.95%
GLH	41 Neutral	AU$4.53M	-5.17	―	―	-9.90%	34.07%
HIQ	40 Underperform	AU$9.56M	-1.03	―	―	-40.05%	-49.57%
PKY	35 Underperform	AU$7.09M	-1.43	―	―	-67.78%	37.78%

Tali Digital Corporate Events

Tali Digital Issues Unquoted Equity Securities

Tali Digital Limited announced the issuance of 1,250,000 unquoted equity securities, specifically options expiring on November 27, 2028, with an exercise price of $0.10. This issuance is part of a previously announced transaction and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and providing strategic financial flexibility.

Tali Digital Announces Cessation of Securities

Tali Digital Limited announced the cessation of 50,000 securities due to the expiry of options that were not exercised or converted by the deadline of November 26, 2025. This cessation of securities may impact the company’s capital structure, but it also reflects a routine financial adjustment that stakeholders should be aware of.

TALi Digital Announces Change of Business Address

TALi Digital Limited has announced a change in its registered office and principal place of business to a new address in Hawthorn East, Victoria, effective 14 November 2025. This move signifies a strategic step in the company’s operations, potentially impacting its business processes and stakeholder interactions. The company’s focus on enhancing cognitive care through innovative digital solutions and its recent acquisition of You Can Do It! Education underscores its commitment to expanding its influence in both the health and education sectors.

TALi Digital Secures Shareholder Support at AGM

TALi Digital Limited announced that all resolutions were passed at its Annual General Meeting, indicating strong shareholder support for its strategic initiatives. The meeting results, conducted via Zoom, reflect the company’s ongoing efforts to strengthen its market position and commitment to delivering innovative cognitive and educational solutions.

Tali Digital Announces Major Securities Issue to Boost Capital

Tali Digital Limited has announced a proposed issue of 125,000,000 securities, set to be issued on November 14, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s market positioning by increasing its capital base, which could be used for further development and expansion of its cognitive training products.

Tali Digital Announces Security Consolidation

Tali Digital Limited has announced a security consolidation involving its ordinary fully paid shares and options with various expiration dates and prices. The consolidation is set to begin trading on a deferred settlement basis starting November 14, 2025, with the record date on November 17, 2025, and the issue date on November 24, 2025. This reorganization aims to streamline the company’s securities structure, potentially impacting stakeholders by altering the trading dynamics and share value.

TALi Digital Advances Integration and Growth Strategy with YCDI Acquisition

TALi Digital Limited has successfully integrated its newly acquired subsidiary, YCDI Education Australia, marking the completion of its first full quarter under new ownership. The company is advancing its digital transformation strategy, with the migration to the CANVAS Learning Management System set for January 2026. Despite facing short-term challenges in subscription sales due to new processes and technology upgrades, YCDI is positioned for growth with strategic partnerships and enhanced customer engagement. The company has also strengthened its operational processes and expanded its market opportunities through partnerships with wellbeing providers, aiming to boost its presence in both face-to-face and online educational workshops.