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Siyata Mobile Inc. (SYTA)
:SYTA
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Siyata Mobile
(NASDAQ:SYTA)
Rating:41Neutral
Price Target:
$4.00
▲(0.50%Upside)
Positive Factors
Financial Performance
Siyata Mobile reported first-quarter revenue of $2.5M, which was above the estimate of $2.0M, indicating better-than-expected financial performance.
Merger Agreement
Siyata Mobile announced a definitive merger agreement with Core Gaming, Inc., in a transaction valued at ~$160M, expected to provide improved access to capital and focus on AI-driven mobile games.
Strategic Actions
Recent strategic actions by the company are expected to unlock new growth opportunities and position it for long-term success.
Negative Factors
Financial Challenges
SYTA reported 4Q24 results with revenue significantly lower than estimates, and an adjusted EBITDA loss wider than expected, indicating financial challenges.
Liquidity Concerns
Despite a slight increase in revenue estimates, additional capital is expected to be required by the third quarter, highlighting potential liquidity concerns.
Revenue Uncertainty
Given limited visibility into timing of contracts and the upcoming merger, revenue estimates for 2025E have been lowered, reflecting uncertainty in financial performance.
Siyata Mobile (SYTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.73M
Dividend YieldN/A
Average Volume (3M)3.26M
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue Growth33.58%
EPS Growth83.29%
CountryUS
Employees23
SectorTechnology
Sector Strength89
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-2.35
Shares Outstanding8,893,185
10 Day Avg. Volume5,197,471
30 Day Avg. Volume3,263,839
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.61
Price to Sales (P/S)0.00
P/FCF Ratio-0.64
Enterprise Value/Market Cap0.33
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit9.30
Enterprise Value/Ebitda-0.18
Forecast
1Y Price Target
$2.00Price Target Upside-49.75% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Siyata Mobile Business Overview & Revenue Model
Company DescriptionSiyata Mobile Inc. (SYTA) is a global developer and provider of cellular communications solutions for enterprise customers, primarily focusing on the commercial vehicle and first responder markets. The company offers innovative products such as in-vehicle communications devices and cellular boosters, which enhance communication capabilities and connectivity in challenging environments. Siyata Mobile operates in the telecommunications and technology sectors, aiming to improve communication efficiency and safety for its clients.
How the Company Makes MoneySiyata Mobile generates revenue through the sale of its communication devices and solutions, which include in-vehicle cellular devices and signal boosters. The company's products are distributed through various sales channels, including partnerships with wireless carriers, industrial equipment distributors, and direct sales to enterprises and government agencies. Additionally, Siyata Mobile may leverage strategic partnerships to expand its market reach and enhance its product offerings, contributing to its overall revenue. The company's earnings are driven by the demand for reliable and efficient communication solutions in sectors such as transportation, logistics, and public safety.
Siyata Mobile Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2024)
| % Change Since: 201.52%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call reported significant revenue growth and a strong performance in the U.S. market, alongside an optimistic outlook with the upcoming 5G product launch. However, increased expenses, negative EBITDA, and decreased working capital present challenges. The positive revenue achievements are somewhat offset by financial strains.Q3-2024 Updates
Positive Updates
Record Revenue Growth
Revenue for Q3 2024 was $5.9 million, a 218% increase compared to $1.8 million in Q3 2023 and a 210% increase from $1.9 million in Q2 2024. This was the strongest revenue quarter ever in the company's history.
U.S. Market Dominance
Revenue from the U.S. market was $4.8 million, representing 81% of total revenue, compared to $1.3 million or 69% of total revenue in Q3 2023.
Increase in Gross Margin
Gross margin percentage for Q3 2024 was 29%, up from 26.6% in Q3 2023. Gross margin dollars rose from $500,000 to $1.7 million, a $1.2 million positive variance.
Strong Product Demand
Increased demand for the SD7 handset and accessories contributed significantly to the revenue growth.
5G Product Portfolio Launch
An exciting 5G product portfolio is planned for launch in 2025, with T-Mobile already set to launch part of this portfolio.
Negative Updates
Increased SG&A Expenses
SG&A expenses were $4.7 million in Q3 2024, up from $2.7 million in Q3 2023, primarily due to marketing expenses related to investor awareness.
Negative Adjusted EBITDA
Adjusted EBITDA for Q3 2024 was negative $3.3 million compared to negative $1.6 million in Q3 2023, a $1.8 million negative variance driven by increased marketing expenses.
Decrease in Working Capital
Working capital as of September 30, 2024, was $200,000, down from $1.3 million as of December 31, 2023, a decrease of $1.1 million.
Slight Decrease in Gross Margin Percentage
Gross margin percentage for the 9 months ended September 30, 2024, was 27.3%, down from 28.2% in the same period of 2023, a decrease of 0.9%.
Company Guidance
During the Siyata Mobile Third Quarter 2024 earnings call, significant financial metrics were highlighted. The company reported a revenue of $5.9 million for Q3 2024, marking a 218% increase from $1.8 million in Q3 2023. The U.S. market contributed $4.8 million, or 81% of the total revenue, up from $1.3 million, or 69%, in the previous year. Gross margin improved to 29% from 26.6% in Q3 2023, with gross margin dollars increasing by $1.2 million to $1.7 million. However, SG&A expenses rose to $4.7 million, a $2 million increase, largely due to marketing for investor awareness. The adjusted EBITDA was negative $3.3 million, a $1.8 million decline from Q3 2023. Working capital decreased to $200,000 by September 30, 2024, from $1.3 million at the end of 2023. For the first nine months of 2024, total revenue reached $10.1 million, a $3.8 million increase from the same period in 2023, while gross margin dollars rose by $1 million to $2.8 million. Despite these challenges, the company remains optimistic about future growth, driven by the adoption of their PTT product portfolio and the upcoming launch of their 5G products.Siyata Mobile Financial Statement Overview
Summary
Siyata Mobile faces significant financial challenges with consistent losses, high leverage, and negative cash flows. The income statement shows erratic revenue growth with negative EBIT and EBITDA margins. The balance sheet reflects high leverage and diminishing equity, while cash flows remain persistently negative, indicating operational and financial risks.Income Statement
Siyata Mobile has faced challenges in achieving profitability, with consistent negative net income over the years. The gross profit margin has been relatively weak, indicating potential issues with cost management or pricing strategy. Revenue growth showed some positive momentum in recent years but remains erratic, with significant fluctuations. The negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.35
Negative
Balance Sheet
The company's balance sheet reflects high leverage with a significant debt-to-equity ratio, posing a financial risk. There is a noticeable decline in stockholders' equity over time, impacting financial stability. The equity ratio has weakened, indicating a decrease in asset financing through equity. However, the company maintains a level of asset base, although cash reserves are diminishing.40
Negative
Cash Flow
Siyata Mobile's cash flow statements reveal persistent negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, reflecting ongoing cash flow issues. Free cash flow growth remains negative, limiting the company's ability to reinvest or reduce debt effectively. Financing activities have been essential to sustain operations, which may not be sustainable long-term.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.63M | 8.23M | 6.48M | 7.55M | 5.99M |
| Gross Profit | 2.14M | 2.66M | 1.39M | 1.87M | 1.58M |
| EBITDA | -21.11M | -11.04M | -19.34M | -17.42M | -11.64M |
| Net Income | -25.27M | -12.93M | -9.94M | -25.31M | -15.34M |
Balance Sheet | |||||
| Total Assets | 14.89M | 15.51M | 16.14M | 12.05M | 31.09M |
| Cash, Cash Equivalents and Short-Term Investments | 181.73K | 898.77K | 1.91M | 1.62M | 5.47M |
| Total Debt | 4.40M | 2.20M | 939.00K | 4.39M | 7.05M |
| Total Liabilities | 10.97M | 5.81M | 6.90M | 9.56M | 9.81M |
| Stockholders Equity | 3.92M | 9.71M | 9.24M | 2.49M | 21.28M |
Cash Flow | |||||
| Free Cash Flow | -17.11M | -10.62M | -17.27M | -15.56M | -11.52M |
| Operating Cash Flow | -15.08M | -8.34M | -13.85M | -12.57M | -9.99M |
| Investing Cash Flow | -3.36M | -2.27M | -3.56M | -3.12M | -1.53M |
| Financing Cash Flow | 17.72M | 9.60M | 17.57M | 1.01M | 25.35M |
Siyata Mobile Technical Analysis
Positive
3.98
Price Trends
2.78
Positive
2.52
Positive
5.52
Negative
Market Momentum
0.27
Negative
61.07
Neutral
76.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYTA, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.78, and below the 200-day MA of 5.52, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYTA.
Siyata Mobile Risk Analysis
Siyata Mobile disclosed 67 risk factors in its most recent earnings report. Siyata Mobile reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We also conduct our operations in Israel. Conditions in Israel, including the recent attack by Hamas and other terrorist organizations from the Gaza Strip and Israel's war against them, may affect our operations. Q4, 2023
2.
Our financial condition and results of operations as well as those of potential customers could be adversely affected by the Middle East War, which may cause a material adverse effect on the level of economic activity around the world, including in the markets we serve. Q4, 2023
Siyata Mobile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $33.87B | 5.80 | -11.87% | 1.82% | 5.31% | -18.50% | |
53 Neutral | $6.56M | ― | -21.35% | ― | -4.85% | 43.93% | |
50 Neutral | $14.46M | ― | -137.03% | ― | 47.05% | -22.31% | |
46 Neutral | $5.43M | ― | -97.40% | ― | -29.78% | 45.35% | |
41 Neutral | $36.73M | ― | -400.46% | ― | 33.58% | 83.29% | |
37 Underperform | $5.48M | ― | -933.63% | ― | 72.95% | 74.56% | |
37 Underperform | $12.17M | ― | -322.86% | ― | -37.74% | -79666.67% |
* Technology Sector Average
Performance Comparison
SYTA
Siyata Mobile
3.98
-134.62
-97.13%
BOXL
Boxlight
2.15
-0.85
-28.33%
SONM
Sonim Technologies
0.69
-4.42
-86.50%
MITQ
Moving iMage Technologies
0.66
0.03
4.76%
ASNS
Actelis Networks, Inc.
0.61
-1.07
-63.69%
MOB
Mobilicom Ltd. ADR
2.90
1.85
176.19%
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.