Tern plc (TERN) AI Stock Analysis

• Market Cap: £3.36M
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.63
• Revenue Growth: -77.04%
• EPS Growth: 86.67%
• Country: UK
• Employees: 8
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 672,713,700
• 10 Day Avg. Volume: 495,937
• 30 Day Avg. Volume: 1,824,725
• PEG Ratio: 0.02
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 358.23
• P/FCF Ratio: -3.97
• 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: 44 Neutral
• Price Target: 0.63p ▲(25.80% Upside)

Tern plc's overall stock score is primarily impacted by its significant financial challenges, including declining revenue and negative profitability. Technical analysis provides some short-term bullish signals, but overbought conditions pose risks. Poor valuation metrics further weigh on the score, highlighting the need for improved earnings and strategic initiatives.

Positive Factors

Low Debt Levels

A low debt-to-equity ratio indicates minimal leverage, providing Tern plc with financial flexibility and reducing the risk of financial distress.

Investment Strategy

Focusing on early-stage tech investments positions Tern plc to capitalize on high-growth opportunities in digital transformation and IoT sectors.

Equity Stake Revenue Model

The equity stake model allows Tern plc to benefit from capital appreciation and potential dividends, aligning its success with portfolio company growth.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in maintaining growth, potentially impacting long-term financial stability and market competitiveness.

Negative Profitability

Negative profitability suggests operational inefficiencies and the need for strategic initiatives to improve cost management and revenue generation.

Cash Flow Challenges

Negative cash flow highlights the need for improved cash generation from operations to support ongoing investments and financial commitments.

Tern plc Business Overview & Revenue Model

Company Description

Tern Plc is a venture capital firm specializing in growth capital investment. The firm typically invests in the software companies having IoT security, Artificial Intelligence (AI), Machine Learning (ML), Virtual/Augmented Reality (VR/AR) and Data Science, enablement and analytics solutions for the healthcare and industrial sectors. The firm primarily invest in companies based in United Kingdom. Tern Plc is based in London, the United Kingdom. Tern Plc formerly known as Silvermere Energy plc.

How the Company Makes Money

Tern plc generates revenue primarily through capital appreciation from its investments in technology companies. The company's revenue model is centered on equity stakes in its portfolio firms, which may lead to significant returns when these companies grow, either through public offerings or acquisitions. Tern also benefits from potential dividend payouts if its portfolio companies become profitable. Key revenue streams include realized gains from exits and potentially management fees associated with managing its investments. Additionally, Tern may have partnerships with technology firms and venture capital entities that can provide synergies and enhance the growth trajectory of its investee companies, contributing to its earnings.

Tern plc Financial Statement Overview

Summary

Tern plc faces significant financial challenges, with declining revenue, negative profitability, and cash flow issues. The company's low leverage is a positive aspect, but it must focus on reversing revenue declines and improving operational efficiency to enhance profitability and cash flow generation.

Income Statement

Tern plc's income statement reveals significant challenges. The company has experienced a drastic decline in revenue, with a negative growth rate of 75.08% in the most recent year. Net profit margin is deeply negative at -216.76%, indicating substantial losses relative to revenue. Both EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The company needs to address its revenue decline and improve cost management to enhance profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.015, suggesting minimal leverage and a conservative capital structure. However, the return on equity is negative at -35.22%, indicating that the company is not generating returns on shareholders' equity. The equity ratio is relatively healthy, but the company must improve its profitability to enhance shareholder value.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, with a decline in free cash flow growth by 25.81%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The company must focus on improving cash generation from operations to support its financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.40K	17.40K	199.23K	-8.34M	6.10M	2.14M
Gross Profit	29.40K	17.40K	199.23K	66.01K	63.78K	151.16K
EBITDA	-1.13M	-1.18M	-12.67M	-10.25M	0.00	0.00
Net Income	-2.07M	-3.77M	-12.61M	-10.45M	4.58M	803.89K
Balance Sheet
Total Assets	10.94M	11.31M	13.15M	25.18M	32.76M	24.30M
Cash, Cash Equivalents and Short-Term Investments	74.00K	382.21K	297.56K	931.76K	1.96M	2.13M
Total Debt	170.00K	161.11K	418.20K	0.00	0.00	0.00
Total Liabilities	655.00K	597.62K	848.44K	325.00K	342.06K	295.60K
Stockholders Equity	10.29M	10.71M	12.30M	24.85M	32.42M	24.00M
Cash Flow
Free Cash Flow	-1.16M	-1.57M	-1.22M	-2.20M	-1.48M	-1.19M
Operating Cash Flow	-1.16M	-1.57M	-1.22M	-2.20M	-1.48M	-1.19M
Investing Cash Flow	-442.39K	-406.39K	151.92K	-1.63M	-2.50M	-1.86M
Financing Cash Flow	1.55M	1.65M	431.54K	2.80M	3.81M	4.17M

Tern plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.50
• 50DMA: Positive
• 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 GB:TERN, the sentiment is Neutral. The current price of 0.5 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.46, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TERN.

Tern plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TERN	44 Neutral	£3.36M	-6.25	-19.70%	―	-77.04%	86.67%
EXR	43 Neutral	£2.36M	-0.74	-75.42%	―	-38.77%	-1.67%

Tern plc Corporate Events

Tern Plc Faces Funding Challenges with SVV2 Commitment

Tern Plc has announced an update regarding its capital commitment to Sure Valley Ventures Enterprise Capital Fund LP (SVV2). The company has invested approximately £1.3 million into SVV2 but faces challenges in meeting further capital calls due to insufficient funds and limited access to future funding. As a result, Tern has requested relief from its funding obligations, leading to its classification as a ‘defaulting investor’ under the SVV2 Limited Partnership Agreement. This status may affect Tern’s rights to distributions and recovery compared to non-defaulting investors. Despite these challenges, Tern aims to maintain its focus on protecting shareholder interests and long-term value creation from its key portfolio companies.

Tern Plc Extends Convertible Loan Notes in Talking Medicines

Tern Plc has announced the extension of the maturity dates for approximately £0.3 million of convertible loan notes in Talking Medicines Limited to 21 November 2029. This strategic move is expected to enhance Tern’s negotiating position for a potential exit from its investment in Talking Medicines, aligning the terms of the loan notes with previous agreements.

Tern plc Announces Total Voting Rights Update

Tern plc announced that its total issued ordinary share capital consists of 672,713,705 Ordinary Shares, each with one voting right, and none held in Treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

Tern plc Raises £151,136 Through Open Offer Amid Cost-Saving Measures

Tern plc announced the results of its Open Offer, which closed on 14 October 2025, resulting in the issuance of 30,227,239 new Ordinary Shares and raising approximately £151,136. This move follows the failure to pass a resolution at the company’s AGM to issue new shares without pre-emption rights. The company is also implementing cost-saving measures, including a 50% salary reduction for directors and executive managers, to extend its cash runway into Q1 2026. Tern is exploring alternative funding solutions to meet its financial requirements, which may involve more costly or dilutive options.

Tern Plc Aligns Management and Shareholder Interests with New Remuneration Policy

Tern Plc has announced a reduction in the fixed remuneration for its board and executive management, alongside a commitment to distribute proceeds from successful exits of its investments. This move aims to align management and shareholder interests, with a 50% salary cut for key executives and a new performance-aligned remuneration policy. The company is focused on maximizing returns from its portfolio while maintaining strict cost controls, and shareholders are promised a distribution of at least 50% of net proceeds from any investment exit over £1 million.

Tern Plc Launches Open Offer to Raise £642,486

Tern Plc has announced an Open Offer to raise up to £642,486 by issuing up to 128,497,293 Open Offer Shares at a price of 0.50p per share. This initiative is aimed at providing existing shareholders the opportunity to participate proportionally to their current holdings. The company is not underwriting the offer, and the shares are expected to commence trading on AIM on 16 October 2025. The move comes as Tern Plc continues to focus on cost control and operational efficiency amidst a challenging macroeconomic environment for early-stage technology businesses. The company is optimistic about the progress of its portfolio companies, although it acknowledges that immediate exit opportunities may not be favorable.

Tern Plc Extends Loan Facility to Enhance Investment Flexibility

Tern Plc has announced an extension of its loan facility term to preserve cash resources and enhance negotiating flexibility for potential capital requirements of its investments. The repayment date of the loan has been extended to 5 March 2026, with approximately £150,000 remaining outstanding, accruing interest at 1.00% per month.