Multisensor AI Holdings (MSAI) AI Stock Analysis

• Market Cap: $16.92M
• Dividend Yield: N/A
• Average Volume (3M): 295.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.05
• Shares Outstanding: 52,874,447
• 10 Day Avg. Volume: 545,820
• 30 Day Avg. Volume: 295,474
• PEG Ratio: 0.02
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 5.00
• P/FCF Ratio: -2.03
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: -0.75
• 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: 42 Neutral
• Price Target: $0.28 ▼(-19.14% Downside)

The score is primarily weighed down by weak financial performance (steep revenue decline, ongoing losses, and negative operating/free cash flow). Technicals add further pressure with a downtrend and negative MACD, while valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Diversified end markets & recurring revenue

Serving multiple end markets (industrial, security, medical, automotive) and capturing recurring revenue from service agreements and software updates provides structural demand diversification and more predictable revenue streams, reducing reliance on any single cyclical sector over the medium term.

Low financial leverage

Reported debt-to-equity of 0.0 indicates minimal leverage, giving the company durable financial flexibility. With low fixed interest obligations, management can prioritize product development, strategic investments, or absorb operating losses without immediate refinancing pressure.

Recent equity raises improve runway

Material capital raises (registered direct offering and private placement proceeds) materially extend operational runway and fund strategic initiatives like the MSAI Connect platform, reducing immediate liquidity risk and supporting longer-term product and commercial development plans.

Negative Factors

Steep revenue decline

A ~50% trailing twelve-month revenue decline represents a structural loss of scale that erodes unit economics and bargaining power with suppliers and customers. Sustained revenue contraction limits ability to invest in R&D, sales capacity, and margin recovery without dilutive financing or strategic pivots.

Eroding gross margins and profitability

Sharp margin deterioration and persistent negative operating and net margins indicate structural margin pressure from pricing, mix, or cost issues. Without sustainable margin restoration, the business will struggle to cover fixed costs and deliver returns to shareholders, constraining long-term viability.

Negative cash flow and weak returns

Consistent negative operating and free cash flow plus a steep FCF decline force reliance on external capital and increase dilution risk. Coupled with an ROE of -114.9%, the company shows poor capital efficiency, limiting its ability to self-fund growth or absorb shocks over the medium term.

Multisensor AI Holdings Business Overview & Revenue Model

Company Description

MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.

How the Company Makes Money

Infrared Cameras Holdings generates revenue primarily through the sale of its infrared camera systems and associated software solutions. The company has established a diverse revenue model that includes direct sales to end-users, partnerships with distributors, and collaborations with industry-specific integrators. Key revenue streams include government contracts for security and surveillance applications, sales to industrial clients for predictive maintenance and equipment monitoring, and partnerships with healthcare organizations for thermal imaging solutions. Additionally, the company benefits from recurring revenue through service agreements and software updates, which provide ongoing support and enhancements to its products.

Multisensor AI Holdings Financial Statement Overview

Summary

Weak fundamentals: sharp TTM revenue decline (-50.1%), negative profitability (net profit/EBIT margins), and deteriorating gross margin (64.2% in 2021 to 37.5% TTM). Balance sheet leverage improved (debt-to-equity 0.0), but returns remain very poor (ROE -114.9%). Cash flow is strained with negative operating and free cash flow and steep FCF decline (-49.7% TTM).

Income Statement

Multisensor AI Holdings has experienced significant revenue decline, with a TTM revenue growth rate of -50.1%. The company is operating at a loss, as indicated by negative net profit and EBIT margins. The gross profit margin has decreased from 64.2% in 2021 to 37.5% in the TTM period, reflecting reduced profitability.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.0 in the TTM period, indicating reduced leverage. However, the return on equity remains negative at -114.9%, signaling inefficiency in generating returns from equity. The equity ratio is relatively stable, but the company has faced challenges in maintaining positive equity levels in recent years.

Cash Flow

Cash flow metrics indicate financial strain, with negative operating and free cash flows. The free cash flow growth rate is -49.7% in the TTM period, and the operating cash flow to net income ratio is negative, suggesting cash flow issues. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.56M	7.40M	5.43M	7.27M	28.79M
Gross Profit	2.75M	4.82M	3.13M	2.30M	18.50M
EBITDA	-11.33M	-20.76M	-21.09M	-11.41M	4.06M
Net Income	-12.42M	-21.50M	-22.27M	-13.29M	2.31M
Balance Sheet
Total Assets	11.87M	15.48M	16.37M	17.46M	24.70M
Cash, Cash Equivalents and Short-Term Investments	1.16M	4.36M	1.16M	654.00K	3.37M
Total Debt	28.00K	310.00K	7.23M	20.62M	18.39M
Total Liabilities	3.59M	3.19M	16.64M	25.67M	20.27M
Stockholders Equity	8.28M	12.29M	-268.00K	-8.21M	4.44M
Cash Flow
Free Cash Flow	-11.18M	-18.23M	-6.09M	-4.77M	3.00M
Operating Cash Flow	-8.84M	-15.57M	-4.55M	-3.17M	4.41M
Investing Cash Flow	-2.31M	-2.67M	-1.51M	-1.60M	-1.41M
Financing Cash Flow	3.68M	21.59M	6.56M	2.05M	-4.04M

Multisensor AI Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 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 MSAI, the sentiment is Negative. The current price of 0.35 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.46, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 38.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSAI.

Multisensor AI Holdings 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%
BNAI	50 Neutral	$282.75M	-9.06	-218.30%	―	-24.72%	53.60%
ARBE	47 Neutral	$148.05M	-2.79	-142.36%	―	-34.35%	20.88%
DTSS	44 Neutral	$11.83M	-2.75	-93.31%	―	68.56%	89.48%
RVYL	43 Neutral	$7.11M	-0.12	-993.23%	―	-44.25%	82.71%
MSAI	42 Neutral	$16.92M	-0.77	-103.97%	―	―	―
INTZ	42 Neutral	$22.92M	-1.71	-132.37%	―	33.49%	82.01%

Multisensor AI Holdings Corporate Events

Multisensor AI Shareholders Approve Financing and Reverse Split

On October 24, 2025, MultiSensor AI Holdings, Inc. entered into a securities purchase agreement with 325 Capital, LLC and other accredited investors for a $14 million private placement consisting of 34,229,826 shares of common stock and warrants to purchase up to 68,459,652 additional shares, with an initial closing on October 30, 2025 that delivered $2.85 million in gross proceeds and placed the remaining funds in escrow pending shareholder approval. At a special meeting held on December 19, 2025, stockholders representing approximately 52.2% of the company’s voting power approved the issuance of shares in excess of 19.99% of outstanding common stock under the purchase agreement and authorized a reverse stock split at a ratio between 1-for-2 and 1-for-100 at the board’s discretion, clearing the way for release of the remaining private placement proceeds and giving the board flexibility to manage the share structure, which may affect existing shareholders through dilution and potential changes in the stock’s trading dynamics.

The most recent analyst rating on (MSAI) stock is a Hold with a $0.57 price target. To see the full list of analyst forecasts on Multisensor AI Holdings stock, see the MSAI Stock Forecast page.

Multisensor AI Granted Nasdaq Compliance Extension

MultiSensor AI Holdings, Inc. has been notified by Nasdaq that its stock price has been below the required $1.00 per share for continued listing. Despite a brief period of compliance, the company has been granted an extension until May 11, 2026, to meet the requirement. If compliance is not achieved, the company plans to seek stockholder approval for a reverse stock split to maintain its Nasdaq listing.

The most recent analyst rating on (MSAI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Multisensor AI Holdings stock, see the MSAI Stock Forecast page.

Multisensor AI Holdings Raises $13.6M in Stock Offering

On November 4, 2025, MultiSensor AI Holdings, Inc. entered into a common stock purchase agreement with an institutional investor, resulting in a registered direct offering of common stock and pre-funded warrants. The offering, which closed on November 5, 2025, raised approximately $13.6 million in net proceeds, intended for working capital and strategic growth initiatives, including the advancement of the MSAI Connect platform. Roth Capital Partners, LLC acted as the placement agent, receiving a fee of 5% of the gross proceeds. This financial move is expected to bolster MSAI’s operational capabilities and enhance its market positioning.

The most recent analyst rating on (MSAI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Multisensor AI Holdings stock, see the MSAI Stock Forecast page.

Infrared Cameras Holdings Secures $2.85M in Private Placement

On October 24, 2025, MultiSensor AI Holdings, Inc. announced a private placement agreement to raise $14 million through the sale of common stock and warrants, with Roth Capital Partners acting as the placement agent. The initial closing occurred on October 30, 2025, raising $2.85 million, with the remaining funds expected in December 2025, pending stockholder approval. The proceeds will be used for working capital and strategic growth initiatives, including the development of the MSAI Connect platform. The agreement includes a ‘most favored nation’ provision for investors, ensuring they receive any preferable terms from future offerings.

The most recent analyst rating on (MSAI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Infrared Cameras Holdings stock, see the MSAI Stock Forecast page.