Diagnos (ADK) AI Stock Analysis

• Market Cap: C$36.12M
• Dividend Yield: N/A
• Average Volume (3M): 342.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -48.53%
• EPS Growth: -9.66%
• Country: US
• Employees: 16
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.01
• Shares Outstanding: 120,412,550
• 10 Day Avg. Volume: 531,548
• 30 Day Avg. Volume: 342,665
• PEG Ratio: -0.45
• Price to Book (P/B): -6.56
• Price to Sales (P/S): 117.69
• P/FCF Ratio: -9.28
• 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: 50 Neutral
• Price Target: C$0.30 ▼(-16.67% Downside)

The score is held down primarily by very weak financial performance (large losses, negative equity, and ongoing cash burn). Technicals are comparatively supportive with an uptrend and positive momentum, but valuation is hindered by loss-making results and no dividend data.

Positive Factors

Recurring subscription licensing

A subscription/licensing model creates durable, recurring revenue and higher customer lifetime value versus one-off sales. Over 2-6 months this supports predictable revenue streams, improves upsell opportunities, and makes scaling commercial spend more efficient as adoption grows in clinical accounts.

Proprietary AI diagnostic platform

Owning a specialized deep-learning platform for medical imaging provides a structural competitive advantage: IP, clinical validation pathways, and data-network effects. These factors can create switching costs and sustain differentiation as customers integrate the tool into clinical workflows.

Exposure to secular healthcare AI markets

Operating across imaging, telemedicine and analytics positions the company in multiple growing addressable markets. Structural demand for diagnostics, remote care, and analytics supports long-term commercial opportunity and cross-sell potential, enabling durable revenue expansion if execution improves.

Negative Factors

Deeply negative profitability

Sustained, large negative margins indicate the core business is not covering costs and profit recovery will require significant revenue growth or cost restructuring. Over a multi-month horizon, these losses impair reinvestment capacity and increase reliance on external capital or dilution to sustain operations.

Stressed balance sheet with negative equity

Negative equity and material debt constrain financial flexibility, making it harder to secure favorable financing or absorb setbacks. This structural weakness increases refinancing and covenant risk, limits strategic investments, and raises the probability of dilution or restrictive financing terms.

Persistent cash burn

Consistent negative operating and free cash flow shows the business consumes cash rather than self-funds growth. Over months this forces dependence on external funding, which can dilute shareholders or increase leverage, and limits the company's ability to sustain R&D, commercialization, and regulatory initiatives.

Diagnos Business Overview & Revenue Model

Company Description

DIAGNOS Inc. provides software-based services primarily in Canada, the United States, Colombia, Spain, Mexico, Saudi Arabia, and Costa Rica. The company offers healthcare services through Computer Assisted Retina Analysis, a web-based software tool that assists healthcare professionals for the detection of diabetic retinopathy; and allows eye care specialist to visualize both normal retinal landmarks and pathological changes. It also provides various consulting services in the fields of data analysis and artificial intelligence. The company was founded in 1998 and is headquartered in Brossard, Canada.

How the Company Makes Money

Diagnos generates revenue primarily through the licensing of its AI diagnostic software and services to healthcare institutions. Their business model includes subscription fees for ongoing access to the CARA platform, which provides continuous updates and support. Additionally, Diagnos may earn revenue through partnerships with healthcare providers and pharmaceutical companies, collaborating on research and development initiatives that integrate their technology. The company may also explore revenue through consulting services, offering training and expertise to clients on how to effectively utilize their AI tools in clinical settings. By expanding its network of partnerships and enhancing its product offerings, Diagnos aims to increase its market share and revenue streams.

Diagnos Financial Statement Overview

Summary

Financial fundamentals are very weak: revenue is declining (-8.7% TTM) with deeply negative margins (gross -16.4%, EBITDA -51.8%, net -60.3%), negative shareholders’ equity (~-$1.54M), and continued cash burn (operating cash flow ~-$4.06M; free cash flow ~-$4.08M). Modest debt reduction is a small offset but does not change the overall high risk profile.

Income Statement

TTM (Trailing-Twelve-Months) results show very weak profitability: revenue is down (-8.7% growth) and margins are deeply negative (gross margin -16.4%, EBITDA margin -51.8%, net margin -60.3%), indicating the core business is not covering its cost base. While losses were already present in prior annual periods, the TTM picture reflects a notable deterioration versus the most recent annual report, with profitability moving further away from breakeven.

Balance Sheet

The balance sheet is stressed, highlighted by negative shareholders’ equity in TTM (approximately -$1.54M), which reduces financial flexibility and increases financing risk. Total debt remains meaningful (about $2.39M TTM) and leverage is difficult to assess cleanly when equity is negative, but the overall profile points to a constrained capital structure. A positive item is that total debt is lower than the most recent annual period, suggesting some deleveraging, though not enough to offset the negative equity position.

Cash Flow

Cash generation is weak: TTM operating cash flow is negative (about -$4.06M) and free cash flow is also negative (about -$4.08M), implying the business is consuming cash rather than funding itself. While free cash flow growth is shown as positive in TTM, absolute cash burn remains large, and cash flow is not providing a stabilizing backstop to ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.00K	103.80K	170.16K	438.83K	267.07K	331.52K
Gross Profit	-1.30M	-943.56K	35.80K	-418.30K	-347.53K	-473.45K
EBITDA	-4.09M	-3.56M	-2.45M	-2.10M	-2.45M	-1.93M
Net Income	-4.76M	-4.29M	-3.12M	-2.61M	-2.05M	-3.38M
Balance Sheet
Total Assets	1.17M	3.64M	663.79K	1.54M	1.95M	2.43M
Cash, Cash Equivalents and Short-Term Investments	737.25K	3.24M	219.01K	920.91K	1.36M	1.87M
Total Debt	2.39M	3.07M	3.19M	1.19M	471.68K	337.55K
Total Liabilities	2.71M	3.40M	3.72M	1.66M	818.19K	614.78K
Stockholders Equity	-1.54M	233.11K	-3.05M	-113.51K	1.13M	1.82M
Cash Flow
Free Cash Flow	-4.08M	-3.65M	-2.16M	-2.07M	-1.40M	-2.66M
Operating Cash Flow	-4.06M	-3.64M	-2.15M	-2.04M	-1.36M	-2.64M
Investing Cash Flow	1.82M	-3.11M	-14.02K	503.52K	262.93K	-759.98K
Financing Cash Flow	2.24M	6.62M	2.08M	1.60M	882.82K	3.83M

Diagnos Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADK, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.33, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ADK.

Diagnos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CHS	53 Neutral	C$13.64M	-3.73	―	―	16.04%	-455.38%
ADK	50 Neutral	C$36.12M	-6.39	―	―	-48.53%	-9.66%
AIDR	48 Neutral	C$67.98M	-4.53	-207.53%	―	―	7.04%
UDOC	44 Neutral	C$12.09M	-2.77	―	―	―	48.94%
NARA	42 Neutral	C$8.15M	-1.76	―	―	―	81.01%
DMED	33 Underperform	C$8.19M	-5.17	―	―	―	-67.11%

Diagnos Corporate Events

Diagnos Hires Investor Brand Network to Boost Market Visibility

Diagnos Inc. has engaged Investor Brand Network (IBN) to provide corporate communication and market awareness services in a one-year agreement starting January 10, 2026, with monthly cash compensation of US$6,400. The mandate is intended to refine and strengthen Diagnos’s market visibility and investor outreach with a view to maximizing shareholder value, and the arrangement, which is at arm’s length and involves no current equity interest by IBN, remains subject to acceptance by the TSX Venture Exchange.

The most recent analyst rating on (TSE:ADK) stock is a Sell with a C$0.29 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

Diagnos Advances Global Regulatory Push for AI Eye-Health Platform CARA

Diagnos Inc. has outlined significant progress in its regulatory strategy for CARA, its AI platform for early detection of eye-related health issues, across three key jurisdictions. The company has formally submitted CARA for marketing approval to the Saudi Food and Drug Authority, is in active alignment with Health Canada’s medical device requirements ahead of a planned application this quarter, and has clarified the pathway to 510(k) clearance with the U.S. Food and Drug Administration. Management views securing these authorizations as a priority milestone expected to act as a catalyst for commercial expansion and to strengthen the company’s competitive positioning and value proposition for stakeholders in the growing medical AI market.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.36 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

DIAGNOS Appoints New Chief AI Scientist to Propel Healthcare Innovation

DIAGNOS has appointed Dr. Ismail Ben Ayed as Chief Artificial Intelligence Scientist to drive innovation in healthcare through advanced AI technologies. Dr. Ben Ayed will focus on developing next-generation AI tools for the CARA System, strengthening partnerships, and accelerating the creation of clinically validated AI models to transform preventative healthcare.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.33 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

Diagnos Inc. Closes $4 Million Oversubscribed Private Placement

Diagnos Inc. has successfully closed an oversubscribed $4 million brokered private placement led by Centurion One Capital. The funds will be used to advance regulatory initiatives with Health Canada and the FDA, accelerate product development, and expand commercial deployments, thereby enhancing the company’s ability to deliver long-term value to shareholders.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.33 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

Diagnos Inc. Upsizes Private Placement to $3.65M Amid Strong Demand

Diagnos Inc. has announced an increase in its brokered private placement to $3.65 million, led by Centurion One Capital, due to strong investor demand. The proceeds will be used for regulatory affairs, product development, business development, and general corporate purposes, with the offering expected to close on or around December 3, 2025. This move reflects the company’s strategic efforts to bolster its financial resources and enhance its market position, potentially impacting stakeholders positively by expanding its operational capabilities.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

Diagnos Inc. Extends Stock Warrant Exercise Period

Diagnos Inc. has announced its intention to extend the exercise period of 3,502,931 stock warrants from December 5, 2025, to August 5, 2026, pending approval from the TSX Venture Exchange. This extension maintains the exercise price at $0.40 per common share, potentially providing stakeholders with more time to capitalize on their investments, thereby reinforcing Diagnos’s commitment to its financial strategy and market presence.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

Diagnos Inc. Launches $2 Million Private Placement to Support Growth

Diagnos Inc. has announced a brokered private placement led by Centurion One Capital to raise approximately $2 million through the sale of units, each comprising one common share and one warrant. The proceeds will be used for regulatory affairs, product development, business development, and general corporate purposes, with the offering expected to close by December 3, 2025, pending necessary approvals. The initiative highlights Diagnos’s strategic efforts to bolster its financial resources for operational and developmental enhancements, potentially strengthening its market position and offering opportunities for related parties to participate in the investment.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.

DIAGNOS Appoints Philippe Couillard as Chairman Amid Expansion Efforts

DIAGNOS has appointed Dr. Philippe Couillard as the Chairman of its Board of Directors, a move expected to strengthen its governance and leadership. This appointment comes as DIAGNOS advances regulatory approvals for its AI-enabled software product, CARA, in major markets including Canada, the United States, and Saudi Arabia, positioning the company for significant growth.

The most recent analyst rating on (TSE:ADK) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Diagnos stock, see the TSE:ADK Stock Forecast page.