Hub (HUBC) AI Stock Analysis

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Hub

(NASDAQ:HUBC)

Rating:38Underperform

Price Target:

$1.50

▼(-17.13%Downside)

Hub's overall stock score is primarily driven by its poor financial performance, characterized by significant revenue decline, negative equity, and cash flow challenges. Technical indicators further suggest bearish momentum. Despite some positive strategic initiatives highlighted in the earnings call, these have not yet translated into financial stability, keeping the stock score low.

Hub (HUBC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.67M

Dividend YieldN/A

Average Volume (3M)1.03M

Price to Earnings (P/E)―

Beta (1Y)0.06

Revenue Growth-30.70%

EPS Growth82.02%

CountryUS

Employees322

SectorTechnology

Sector Strength87

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.36

Shares Outstanding3,045,974

10 Day Avg. Volume1,729,630

30 Day Avg. Volume1,028,540

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)163.81

Price to Sales (P/S)0.00

P/FCF Ratio-43.67

Enterprise Value/Market Cap188.23

Enterprise Value/Revenue7.54

Enterprise Value/Gross Profit259.98

Enterprise Value/Ebitda-8.54

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Hub Business Overview & Revenue Model

Company DescriptionHub Cyber Security Ltd. (HUBC) is a prominent company in the cybersecurity sector, specializing in providing advanced cyber defense solutions. With a strong focus on secure computing services, Hub offers a range of products and services designed to protect sensitive data and systems for various industries, including finance, healthcare, and government. The company is known for its innovative approach to cybersecurity, leveraging cutting-edge technology to deliver robust protection against cyber threats.

How the Company Makes MoneyHub Cyber Security Ltd. makes money by offering a variety of cybersecurity products and services that cater to the needs of businesses and organizations seeking to protect their digital assets. The company's revenue model primarily revolves around the sale of software licenses, subscription-based security services, and consulting fees for cybersecurity assessments and custom solutions. Additionally, Hub benefits from strategic partnerships with technology firms and government contracts, which enhance its market presence and revenue potential. Its focus on innovation and the growing demand for cybersecurity solutions contribute significantly to its earnings.

Hub Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q4-2024)

% Change Since: -23.31%|

Next Earnings Date:Aug 27, 2025

Earnings Call Sentiment Positive

Despite a decline in revenue and increased liabilities, Hub Cybersecurity has demonstrated strong strategic realignment, cost reductions, and significant contract wins. The company's focus on high-margin business segments and operational efficiency has led to improved margins and a promising outlook for future growth.

Q4-2024 Updates

Positive Updates

Strategic Realignment and Margin Improvement

Hub Cybersecurity's gross margin improved significantly to 25.6% in H2 2024, up by 15.4% compared with H2 2023 due to strategic realignment towards higher margin business segments.

Significant Engagement with Bank of San Marino

In March, Hub was awarded a EUR 20 million engagement by the Bank of San Marino to modernize its entire digital banking infrastructure, expected to deliver in full this year.

Operational Cost Reductions

Operating expenses for H2 2024 aggregated to $14.7 million, reflecting a significant 29% reduction compared to $20.9 million in H2 2023.

Strategic US Expansion

Hub is scaling its US presence with a new office in New York City and aggressively hiring world-class talent to support demand across North America.

Long-term Recurring Revenue Growth

Over 60% of 2024 revenue came from long-term recurring contracts across financial services and critical infrastructure.

Negative Updates

Revenue Decline

Revenue for the second half of 2024 was $13.8 million compared to $17.6 million in H2 2023, reflecting a deliberate strategic pivot.

Increased Liabilities

Liabilities rose to $108 million from $83 million, driven largely by a warrant liability tied to a fundraising round.

Company Guidance

During the Hub Cybersecurity 2024 financial results call, several key metrics and strategic initiatives were highlighted. The company reported a revenue of $13.8 million for the second half of 2024, down from $17.6 million in the same period in 2023, while full-year revenue was $39.6 million compared to $42.7 million in 2023. Despite a leaner revenue base, the gross margin improved significantly to 25.6% in H2 2024, up by 15.4% compared to H2 2023, driven by strategic realignment towards higher-margin business segments. Operating expenses were reduced by 29% in H2 2024 compared to the prior year, aggregating to $14.7 million. The operating loss also improved by 38% in H2 2024, dropping from $77 million in 2022 to $26 million in 2024. Hub's secured data fabric platform, with margins of 80% to 90%, is set to be the primary growth driver, with the company expecting a marked transformation in its business mix starting in 2025. The focus remains on expanding their US presence and targeting high-priority sectors like transportation, with an anticipated first signed contract in 2025. Hub's commitment to compliance and transparency has been reinforced with a new leadership team and strengthened governance frameworks.

Hub Financial Statement Overview

Summary

Hub is facing significant financial challenges with declining revenues, high leverage, and persistent losses. The balance sheet is concerning with negative equity, and cash flow issues highlight sustainability concerns.

Income Statement

Negative

Hub has faced significant revenue decline over the years, with a notable drop from $79.74 million in 2022 to $29.56 million in 2024. The gross profit margin remains low, and both EBIT and net income have been negative, reflecting substantial operational and net losses. These factors significantly impact the company's income statement performance.

Balance Sheet

Very Negative

The balance sheet shows a concerning financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is unfavorable, highlighting high leverage. The equity ratio is negative due to the accumulated losses and high debt, indicating financial instability.

Cash Flow

Negative

Cash flow analysis reveals consistent negative free cash flow, indicating cash outflow challenges. Operating cash flow is negative, showing the company is not generating sufficient cash from operations. Financing activities are primarily funding operations, posing sustainability concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.56M	42.66M	50.00M	33.20M	34.90M
Gross Profit	3.45M	750.00K	-2.04M	―	―
EBITDA	-23.63M	-68.35M	-72.17M	―	―
Net Income	-39.76M	-87.45M	-81.59M	-13.72M	―
Balance Sheet
Total Assets	27.42M	32.59M	74.79M	120.21M	20.49M
Cash, Cash Equivalents and Short-Term Investments	3.08M	3.52M	3.99M	13.97M	―
Total Debt	40.48M	28.77M	19.90M	23.15M	―
Total Liabilities	108.23M	83.32M	65.98M	54.47M	11.96M
Stockholders Equity	-80.79M	-53.51M	6.41M	64.70M	―
Cash Flow
Free Cash Flow	-17.19M	-16.50M	-24.06M	―	―
Operating Cash Flow	-17.11M	-16.20M	-23.43M	―	―
Investing Cash Flow	-452.00K	2.14M	-6.55M	-15.95M	―
Financing Cash Flow	17.18M	12.93M	20.66M	34.56M	―

Hub Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.81

Price Trends

50DMA

2.36

Negative

100DMA

3.77

Negative

200DMA

4.81

Negative

Market Momentum

MACD

-0.16

Positive

RSI

36.81

Neutral

STOCH

14.97

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBC, the sentiment is Negative. The current price of 1.81 is below the 20-day moving average (MA) of 2.10, below the 50-day MA of 2.36, and below the 200-day MA of 4.81, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUBC.

Hub Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
SOS	50 Neutral	$18.63M	―	-3.13%	―	-35.46%	60.83%
APCX	45 Neutral	$8.15M	―	-220.48%	―	-25.38%	67.34%
RVYL	41 Neutral	$10.37M	―	-309.32%	―	-23.82%	56.13%
HUBC	38 Underperform	$5.67M	―	163.42%	―	-30.70%	82.02%

* Technology Sector Average

Performance Comparison

HUBC

Hub

1.86

-5.46

-74.59%

SOS

6.15

-6.15

-50.00%

APCX

AppTech

0.24

-0.76

-76.00%

RVYL

Ryvyl

0.65

-1.58

-70.85%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025