WAY 2 VAT LTD (W2V) AI Stock Analysis

• Market Cap: AU$31.05M
• Dividend Yield: N/A
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 53.50%
• EPS Growth: 55.30%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.02
• Shares Outstanding: 221,807,160
• 10 Day Avg. Volume: 3,217,283
• 30 Day Avg. Volume: 3,217,283
• PEG Ratio: 0.02
• Price to Book (P/B): -3.82
• Price to Sales (P/S): 1.68
• P/FCF Ratio: -1.39
• 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: 47 Neutral
• Price Target: AU$0.13 ▲(60.00% Upside)

The score is primarily held back by weak financial performance—especially deeply negative profitability and a high-risk balance sheet with negative equity—despite strong revenue growth and high gross margins. Technicals provide some support with price strength versus the 20-day average, but momentum indicators are nearing overbought levels. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

High gross margin

An 82% gross margin indicates the core VAT consultancy and recovery services convert revenue to gross profit efficiently. This durable margin suggests scalable professional services and pricing power versus direct cost, providing a structural foundation for future operating leverage if overheads are controlled.

Robust revenue growth

Sustained top-line growth above 30% demonstrates expanding market demand for VAT compliance and advisory services and successful client acquisition. Over a multi-month horizon, this growth supports scale economies, enlarges recurring fee potential, and strengthens the company’s addressable market position in tax automation and consultancy.

Improving free cash flow

A 53% improvement in free cash flow signals better cash management and operational discipline. While FCF remains negative, the positive trajectory reduces short-term funding pressure, improves the prospect of self-funded growth, and makes achieving sustained positive cash generation more likely over the medium term.

Negative Factors

Deeply negative profitability

Extremely negative net and EBIT margins reflect that operating costs and non-operating items far exceed gross profit. This structural loss-making undermines equity accumulation and makes profitability recovery essential; without durable margin improvement the business will remain reliant on external capital and at higher risk.

Negative equity on balance sheet

Negative shareholders' equity indicates liabilities exceed assets, materially weakening financial flexibility. This structural balance sheet weakness limits borrowing capacity, increases refinance and covenant risk, and raises the likelihood of dilutive capital raises or distressed outcomes if operating losses persist.

Operating cash flow still negative

Persistently negative operating cash flow shows core operations do not yet generate sufficient cash to fund working capital or investment. Despite improving FCF growth, ongoing cash burn creates runway and funding risk, forcing reliance on external financing and constraining strategic investments over the medium term.

WAY 2 VAT LTD Business Overview & Revenue Model

Company Description

WAY 2 VAT LTD (W2V) is a specialized consultancy firm focused on providing value-added tax (VAT) solutions to businesses across various sectors, including retail, e-commerce, and logistics. The company offers a suite of services that encompass VAT compliance, recovery, advisory, and training, aimed at helping businesses navigate the complexities of VAT regulations and optimize their tax positions.

How the Company Makes Money

WAY 2 VAT LTD generates revenue primarily through its consultancy services, which include VAT compliance and advisory services charged on a fee-for-service basis. The company also earns income from training programs and workshops designed to educate businesses about VAT regulations and best practices. Additionally, W2V may have revenue-sharing agreements or partnerships with technology providers that enhance its VAT recovery solutions, allowing it to earn a commission on software sales or implementations linked to its services.

WAY 2 VAT LTD Financial Statement Overview

Summary

WAY 2 VAT LTD shows substantial revenue growth but continues to struggle with profitability and financial stability. Persistent net losses, high leverage, and negative equity pose significant risks to long-term viability, overshadowing the positive gross profit margin.

Income Statement

WAY 2 VAT LTD shows significant revenue growth, increasing from 408,000 in 2019 to 3,007,000 in 2024. However, the company consistently incurs net losses, with a negative net profit margin and deteriorating EBIT and EBITDA margins. The gross profit margin remains positive, suggesting the company can cover direct costs, but high operational expenses lead to overall losses.

Balance Sheet

The balance sheet reveals high leverage, with a negative stockholders' equity and increasing debt levels, leading to a worsening debt-to-equity ratio. The negative equity ratio indicates financial instability. The return on equity is also negative, reflecting ongoing losses. However, the company maintains some liquidity with cash and cash equivalents, though significantly reduced over recent years.

Cash Flow

Operating cash flow remains negative, indicating cash outflows from core operations. Free cash flow is similarly negative, limiting reinvestment capabilities. Financing activities provide some relief, with positive cash inflow due to funding activities. However, the company's reliance on external financing poses risks, especially given the ongoing operational cash deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68M	3.01M	2.05M	1.30M	1.32M	1.03M
Gross Profit	2.28M	2.47M	1.62M	1.00M	1.05M	857.00K
EBITDA	-2.03M	-2.99M	-3.74M	-4.34M	-4.54M	-3.23M
Net Income	-2.71M	-3.62M	-4.25M	-4.56M	-6.38M	-2.30M
Balance Sheet
Total Assets	5.86M	4.48M	4.15M	4.51M	5.18M	9.27M
Cash, Cash Equivalents and Short-Term Investments	567.99K	76.00K	493.00K	1.03M	3.13M	7.62M
Total Debt	2.17M	2.22M	1.90M	848.00K	1.09M	1.09M
Total Liabilities	5.74M	5.80M	5.15M	4.31M	2.36M	2.58M
Stockholders Equity	116.49K	-1.32M	-1.00M	207.00K	2.82M	6.69M
Cash Flow
Free Cash Flow	-3.61M	-3.62M	-3.81M	-4.62M	-4.11M	-2.74M
Operating Cash Flow	-3.60M	-3.60M	-3.80M	-4.61M	-4.08M	-2.68M
Investing Cash Flow	-11.66K	-16.00K	-5.00K	-9.00K	-29.00K	-56.00K
Financing Cash Flow	2.06M	3.10M	3.13M	1.51M	5.30M	2.00M

WAY 2 VAT LTD 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%
W2V	47 Neutral	AU$31.05M	-3.04	-2883.97%	―	53.50%	55.30%
PIL	42 Neutral	AU$10.04M	―	―	―	-64.36%	57.89%
KNO	42 Neutral	AU$4.97M	-3.19	-23.31%	―	2.15%	-900.00%
SPX	37 Underperform	AU$13.55M	-1.89	-97.38%	―	106.21%	-60.61%
EAT	37 Underperform	AU$27.48M	-2.76	―	―	12.88%	-22.58%

WAY 2 VAT LTD Corporate Events

WAY 2 VAT LTD Issues 75 Million Unquoted Securities

WAY 2 VAT LTD announced the issuance of 75,000,000 unquoted securities, set to expire on December 15, 2028, as part of a previously disclosed transaction. This move is likely to impact the company’s financial structure and could influence its market positioning by potentially increasing its capital resources.

Way2VAT Issues New Shares to Bolster Financial Position

Way2VAT Limited has issued 88,125,000 fully paid ordinary shares without disclosure to investors, in compliance with relevant provisions of the Corporations Act. This move is part of the company’s ongoing efforts to enhance its financial standing and operational capabilities, potentially strengthening its position in the fintech industry and impacting its stakeholders positively.

WAY 2 VAT LTD Announces Quotation of New Securities on ASX

WAY 2 VAT LTD announced the quotation of 88,125,000 ordinary fully paid securities on the ASX, effective December 15, 2025. This move is part of previously announced transactions and could potentially enhance the company’s market presence and liquidity, benefiting stakeholders by increasing the company’s capital and investment opportunities.

Way 2 VAT Ltd Updates Articles of Association to Enhance Operations and Social Responsibility

Way 2 VAT Ltd has amended and restated its Articles of Association, which outlines the company’s purpose, share capital, and shareholder liability. This update emphasizes the company’s commitment to lawful activities and its capacity to support charitable causes, potentially enhancing its corporate social responsibility profile and stakeholder engagement.

Way2VAT Secures Shareholder Approval for Key Resolutions

Way2VAT Limited announced that all resolutions proposed at its Extraordinary General Meeting were passed by the requisite majority. This development is significant for the company’s operational strategies, as the resolutions include ratification and approval of share placements and amendments to the company’s articles of association, potentially impacting its financial structure and stakeholder relations.

WAY 2 VAT LTD Unveils Strategic Growth Initiative

WAY 2 VAT LTD has announced a strategic growth initiative centered around four key pillars: human capital, technology, existing global clients, and expansion into real-time e-invoicing. This strategy aims to enhance their AI unified SaaS platform, improve real-time invoice validation, and strengthen VAT compliance services. The company’s focus on mergers and acquisitions, alongside organic growth, is expected to bolster its market position and offer improved services to stakeholders.

WAY 2 VAT LTD. Announces Security Consolidation

WAY 2 VAT LTD. has announced a security consolidation for its various options and ordinary shares. This reorganization is set to commence trading on a deferred settlement basis starting December 16, 2025, with a record date of December 17, 2025, and an issue date of December 24, 2025. This move is likely aimed at streamlining the company’s securities, potentially impacting its market positioning and offering implications for stakeholders as it adjusts its financial structure.

Way2VAT Ltd Schedules Extraordinary General Meeting for Share Ratification

Way2VAT Ltd has announced an extraordinary general meeting (EGM) to be held virtually on December 10, 2025, at 4:00 PM AEDT. The meeting will focus on the ratification of Tranche 1 Placement Shares, with shareholders encouraged to vote by proxy if unable to attend. The company has outlined specific voting exclusions and conditions for the resolution, which aims to ratify the prior issue of 254,428,032 shares under Listing Rule 7.1.