Borqs Technologies (BRQSF) AI Stock Analysis

• Market Cap: $3.51M
• Dividend Yield: N/A
• Average Volume (3M): 9.19K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.46
• Revenue Growth: -13.52%
• EPS Growth: N/A
• Country: US
• Employees: 305
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 28,970,078
• 10 Day Avg. Volume: 5,714
• 30 Day Avg. Volume: 9,194
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.23
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.22
• Enterprise Value/Ebitda: -0.43
• 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: 51 Neutral
• Price Target: $0.11 ▲(12.00% Upside)

The score is held down primarily by weak financial performance—declining revenue, negative equity, and negative operating/free cash flow—despite some support from constructive technical momentum and an extremely low P/E valuation.

Positive Factors

Improving free cash flow

A material reduction in free cash flow loss shows the company is moving toward tighter cash generation and better working capital or cost control. If sustained over multiple quarters, this trend reduces short-term liquidity strain and the need for emergency financing, supporting operational continuity.

Balance sheet remediation

Conversion from a deficit to positive equity materially reduces solvency risk and improves creditor and partner confidence. This structural capital improvement (via receivables, deposits or disposals) provides a firmer platform for operations, financing options, and multi-quarter strategic planning.

Diverse revenue streams & partnerships

A multi-pronged business model—hardware, software, licensing and telecom partnerships—creates multiple demand channels and recurring service opportunities. This diversification supports revenue resilience and cross-selling potential, making medium-term revenue recovery more attainable.

Negative Factors

Sharp revenue decline

A sustained, steep top-line contraction signals weakening market traction or lost contracts. Over several quarters this erodes scale economics, reduces margin leverage, and constrains reinvestment ability, making it harder to restore profitable growth without clear new revenue initiatives.

Persistent negative operating profitability

Continued operating losses indicate the core business fails to cover operating costs. Net income aided by non-operating gains masks underlying performance; without durable operating margin recovery, the firm will depend on asset sales or external capital to fund operations over coming quarters.

Negative operating cash flow

Negative cash flow from operations means the business does not generate internal funding for investments or debt service. Even with partial FCF improvement, persistent negative OCF raises refinancing and liquidity risk, limiting strategic flexibility across the medium term.

Borqs Technologies Business Overview & Revenue Model

Company Description

Borqs Technologies, Inc. provides Android-based smart connected devices and cloud service solutions in the United States, India, China, and internationally. It offers commercial grade Android platform software and service solutions to address vertical market segment needs through the targeted BorqsWare software platform solutions. The company's BorqsWare software platform consists of BorqsWare Client software that has been used in Android phones, tablets, watches, and various Internet-of-things devices; and BorqsWare Server software platform, which includes back-end server software that allows customers to develop their own mobile end-to-end services for their devices. The company serves mobile chipset manufacturers, mobile device original equipment manufacturers, and mobile operators, as well as product solutions of mobile connected devices for enterprise and consumer applications. The company was founded in 2007 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Borqs Technologies generates revenue primarily through the sale of its software and hardware solutions, including IoT platforms and services. Key revenue streams include licensing fees from its software products, sales of embedded solutions for mobile devices, and revenue from partnerships with telecommunications companies and device manufacturers. Additionally, Borqs may benefit from service agreements that provide ongoing support and updates for its products, further contributing to its earnings. Significant partnerships with major players in the telecommunications and smart device sectors also play a crucial role in expanding its market reach and revenue potential.

Borqs Technologies Financial Statement Overview

Summary

Overall financial statement quality is weak: revenue fell sharply from $52.54M (2022) to $27.71M (2024), core profitability remains pressured with negative EBIT/EBITDA, the balance sheet shows negative equity (-$3.41M) indicating solvency risk, and operating/free cash flow are negative despite modest improvement in free cash flow (from -$7.04M in 2023 to -$2.88M in 2024).

Income Statement

Borqs Technologies has shown a concerning decline in revenue from $52.54M in 2022 to $27.71M in 2024, indicating a negative growth trend. The gross profit margin improved slightly in 2024 but remains low at approximately 20.87%. Despite a positive net income of $16.70M in 2024, this is largely due to non-operating activities, as the EBIT remains negative. The company struggles with profitability, evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet of Borqs Technologies reveals significant financial instability. The company has a negative stockholders' equity of $-3.41M in 2024, indicating that liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and the company has a high debt burden. The equity ratio is negative, which poses a risk to financial health and stability.

Cash Flow

Borqs Technologies exhibits weak cash flow performance with negative operating cash flow and free cash flow in 2024. However, there is an improvement from 2023, as free cash flow increased from $-7.04M to $-2.88M. The operating cash flow to net income ratio is negative, suggesting that the reported net income is not supported by cash flow from operations, indicating potential sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.83M	27.71M	32.05M	52.54M	29.56M	26.75M
Gross Profit	8.57M	5.79M	8.09M	11.12M	2.61M	1.60M
EBITDA	-4.37M	19.98M	-25.30M	-14.81M	-41.02M	-25.49M
Net Income	17.36M	16.70M	-26.47M	-34.03M	-55.87M	-35.50M
Balance Sheet
Total Assets	24.27M	25.41M	21.43M	30.14M	53.25M	29.35M
Cash, Cash Equivalents and Short-Term Investments	6.07M	5.85M	4.54M	12.74M	6.12M	3.04M
Total Debt	3.39M	596.00K	5.41M	2.27M	13.39M	17.30M
Total Liabilities	29.55M	29.01M	35.86M	41.30M	70.54M	91.59M
Stockholders Equity	-4.47M	-3.40M	-13.62M	-10.79M	-23.25M	-62.13M
Cash Flow
Free Cash Flow	0.00	-2.88M	-7.04M	-6.24M	-29.52M	-8.27M
Operating Cash Flow	0.00	-2.77M	-6.79M	-5.52M	-28.74M	-8.06M
Investing Cash Flow	0.00	9.89M	-5.01M	-3.37M	-998.00K	3.96M
Financing Cash Flow	0.00	-4.05M	1.84M	14.90M	34.27M	-1.35M

Borqs Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRQSF, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.11, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRQSF.

Borqs Technologies 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%
DTST	56 Neutral	$33.52M	-30.72	-0.97%	―	-20.20%	-799.54%
GLE	54 Neutral	$6.12M	-7.41	-15.17%	―	-53.14%	-325.97%
BRQSF	51 Neutral	$3.51M	0.41	―	―	-13.52%	―
CYCU	44 Neutral	$7.95M	―	-184.82%	―	―	-81.60%

Borqs Technologies Corporate Events

Borqs Technologies Swings to Positive Equity Despite Wider Operating Loss in First Half of 2025

On a Form 6‑K filed for December 2025, Borqs Technologies submitted unaudited consolidated interim financial statements for the six months ended June 30, 2025, showing broadly flat revenue but a significant shift in its balance sheet. Total net revenues for the half‑year were $16.8 million, roughly unchanged from the same period in 2024, with hardware sales rising and software revenues declining. Despite this, gross profit compressed sharply and operating loss widened to $12.3 million, driven mainly by a steep increase in general and administrative expenses, while the company also reported gains from the disposal of subsidiaries. On the balance sheet, cash, time deposits and accounts receivable increased, current liabilities fell markedly, and the company moved from a shareholders’ deficit of $3.6 million at December 31, 2024 to positive shareholders’ equity of $4.6 million by June 30, 2025, suggesting an improved capital position even as underlying operating performance remains under pressure.

The most recent analyst rating on (BRQSF) stock is a Sell with a $0.09 price target. To see the full list of analyst forecasts on Borqs Technologies stock, see the BRQSF Stock Forecast page.