Tali Digital (TD1) AI Stock Analysis

• Market Cap: AU$2.24M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -1.16
• 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$0.05 ▼(-23.33% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

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

Proprietary software-based product

Tali's core offering is proprietary, app-based cognitive assessment and training software. Software products have scalable unit economics and low marginal costs, enabling potential recurring licensing or subscription models and sustainable gross margins if adoption and retention improve over time.

Conservative leverage / no debt

The balance sheet shows total debt at zero in 2024–2025 and positive equity, which preserves financial flexibility. Low leverage reduces fixed financing costs and insolvency risk, giving management runway to pursue commercialisation or partnerships during an extended recovery period.

Moderating cash burn

Operating cash outflow improvement from ~-2.0M to ~-0.47M suggests management has reduced burn. Lower cash consumption extends runway, reduces near-term financing pressure, and increases the chance to stabilise revenue or execute partnerships before further dilution becomes necessary.

Negative Factors

Severe revenue decline and volatility

A ~96.6% revenue collapse in 2025 after years of volatility undermines scale and predictability. Without stable or growing top-line, fixed costs from product development and commercialisation cannot be leveraged, making sustainable margins and recurring revenue difficult to achieve.

Persistent negative profitability and margins

Chronic operating and net losses with deeply negative margins erode equity and limit reinvestment in growth. Persistent unprofitability increases the probability of future dilution, constrains hiring or marketing budgets, and weakens the firm's ability to scale commercial operations.

Consistent negative free cash flow

Negative operating and free cash flow across 2020–2025 indicates ongoing cash burn and dependence on external financing. Continued negative FCF restricts product investment and sales capacity, raises execution risk, and increases the likelihood of dilutive capital raises that impact long-term shareholder value.

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

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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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	68.02K	1.19K	2.00K	26.63K	13.16K	34.24K
Gross Profit	-127.29K	1.19K	-449.55K	-1.49M	-3.59M	-2.59M
EBITDA	-969.79K	-711.29K	-1.05M	-2.54M	-7.17M	-4.69M
Net Income	-963.79K	-656.88K	-3.12M	-2.26M	-6.94M	-4.86M
Balance Sheet
Total Assets	2.77M	2.66M	2.19M	8.09M	6.44M	9.83M
Cash, Cash Equivalents and Short-Term Investments	1.26M	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	487.56K	386.89K	41.61K	2.92M	3.01M	2.58M
Stockholders Equity	2.29M	2.27M	2.15M	5.17M	3.43M	7.26M
Cash Flow
Free Cash Flow	-742.53K	-472.81K	-363.35K	-2.82M	-4.34M	-7.37M
Operating Cash Flow	-742.54K	-472.81K	-363.35K	-2.00M	-4.33M	-5.80M
Investing Cash Flow	-1.18M	-1.10M	0.00	-817.64K	-12.63K	-1.57M
Financing Cash Flow	1.25M	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$34.68M	-4.21	-52.26%	―	-36.68%	79.41%
HIQ	44 Neutral	AU$9.49M	-0.96	152.58%	―	-40.05%	-49.57%
ICR	44 Neutral	AU$11.19M	-2.48	-578.72%	―	241.34%	44.19%
TD1	43 Neutral	AU$2.24M	-1.11	-42.29%	―	―	78.95%
GLH	42 Neutral	AU$3.94M	-1.98	20.02%	―	-9.90%	34.07%
PKY	40 Underperform	AU$12.75M	-1.71	-1268.85%	―	-67.78%	37.78%

Tali Digital Corporate Events

TALi Digital Completes YCDI! Digital Overhaul and Targets Growth in 2026

TALi Digital has completed the integration and digital transformation of its YCDI! Education business, migrating its course portfolio to the CANVAS learning management system and launching a modernised website with flexible subscription options to better align with school budgeting cycles. During the quarter, the company intensified customer engagement through electronic campaigns, direct meetings with school leaders, and webinars, while refining sales processes and strengthening its national trainer network to support scalable delivery of face-to-face and hybrid workshops. New early years resources, including redesigned puppets, are being rolled out, and the company is developing targeted new programs such as support for neurodivergent learners and an additional Ready Attention Go module to address attention difficulties, positioning TALi Digital for sustainable growth in Term 1 2026 and beyond through a strategy focused on sales growth, retention, partnerships, and cross-selling.

The most recent analyst rating on (AU:TD1) stock is a Sell with a A$0.05 price target. To see the full list of analyst forecasts on Tali Digital stock, see the AU:TD1 Stock Forecast page.