Advantex Marketing International (ADX) AI Stock Analysis

• Market Cap: C$1.33M
• Dividend Yield: N/A
• Average Volume (3M): 434.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 29.28%
• EPS Growth: -10.64%
• Country: CA
• Employees: 52
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 265,390,080
• 10 Day Avg. Volume: 434,939
• 30 Day Avg. Volume: 434,939
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: C$0.01 ▲(0.00% Upside)

The score is primarily held down by weak financial performance: persistent deep losses, negative equity, leverage pressure, and negative recent cash flow. Corporate events are a partial offset due to positive growth plans and added financing capacity, while valuation remains difficult to support given losses and technicals cannot be assessed due to missing indicators.

Positive Factors

Revenue Growth

The 4.2% revenue growth in Q2 2025 indicates the company's ability to enhance its market offerings and partnerships, particularly through the Aeroplan program, which could lead to sustained revenue improvements over time.

Operational Efficiency

Positive EBIT and EBITDA margins suggest that Advantex Marketing International is achieving operational efficiency, which can support profitability improvements if revenue growth continues.

Strategic Partnerships

Strategic partnerships enhance the reach and effectiveness of ADX's marketing solutions, providing a durable competitive advantage and potential for sustained revenue growth.

Negative Factors

Financial Instability

Negative equity and cash flow highlight financial instability, posing risks to long-term sustainability and limiting the company's ability to invest in growth opportunities.

High Leverage

High leverage, indicated by negative equity, increases financial risk and may constrain Advantex's ability to respond to market changes or invest in strategic initiatives.

Negative Cash Flow

Negative operating cash flow suggests inefficiencies in converting revenue to cash, which can hinder the company's ability to fund operations and growth without external financing.

Advantex Marketing International Business Overview & Revenue Model

Company Description

Advantex Marketing International Inc. operates as an aggregator of independent merchants in Canada. The company operates through Merchant Cash Advance, Program, and Aeroplan Program segments. It also provides merchant cash advance (MCA) and loyalty marketing services to its community of merchants. The MCA meets working capital needs of merchants; and loyalty marketing provides merchants an economic way to market their establishments through its re-seller relationship with Aeroplan loyalty program. In addition, the company provides the Aeroplan program that allows members to earn aeroplan points on purchases at merchants. Further, the company's merchant partners operate in various business segments, including restaurants; independent inns, resorts, and selected hotels; spas; retailers of men's and ladies fashion, footwear, and accessories; florists and garden centers; health and beauty centers; gift stores; and home décor. Advantex Marketing International Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

How the Company Makes Money

Advantex Marketing International (ADX) generates revenue through a combination of service fees, transaction fees, and partnership agreements. The company charges merchants and businesses fees for implementing and managing loyalty programs. Additionally, ADX earns transaction fees from the increased sales generated through its marketing initiatives. Strategic partnerships with financial institutions and card issuers also contribute to its revenue, as these collaborations enhance the reach and effectiveness of ADX's marketing solutions, driving further engagement and sales for its clients.

Advantex Marketing International Financial Statement Overview

Summary

Advantex Marketing International faces considerable financial challenges with persistent net losses and high leverage. The company has a negative stockholders' equity and negative operating cash flow, indicating financial instability. Despite some operational efficiency evidenced by positive EBIT and EBITDA margins, the overall financial health is concerning due to significant debt and cash flow issues.

Income Statement

The company has experienced significant volatility in revenue and profitability. The TTM shows a gross profit margin of 42.0%, but a substantial negative net profit margin of -117.9% due to considerable net losses. Revenue growth is inconsistent, with recent TTM revenues higher than the previous year, but not reaching 2020 levels. EBIT and EBITDA margins are positive at 20.8% and 20.7% respectively in the TTM, indicating some operational efficiency despite net losses.

Balance Sheet

The balance sheet reveals significant financial strain with a negative stockholders' equity of -$15.3 million. The company's debt-to-equity ratio is not calculable due to negative equity, highlighting high leverage. The equity ratio is also negative. The company's financial stability is at risk with a high total debt level and declining asset base.

Cash Flow

Operating cash flow is negative in the TTM, reflecting cash flow challenges. The free cash flow growth rate is not stable, with the latest TTM showing a negative free cash flow of -$61,348. The operating cash flow to net income and free cash flow to net income ratios are negative, indicating inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.73M	1.93M	870.86K	2.11M	1.74M	1.23M
Gross Profit	1.19M	714.15K	-136.25K	1.65M	997.89K	861.23K
EBITDA	1.25M	1.38M	559.84K	-95.57K	-680.00K	-477.59K
Net Income	-2.77M	-2.63M	-2.70M	-2.53M	-2.71M	-2.09M
Balance Sheet
Total Assets	7.53M	8.20M	5.31M	6.07M	3.53M	1.95M
Cash, Cash Equivalents and Short-Term Investments	107.09K	96.25K	58.03K	340.43K	93.19K	82.61K
Total Debt	20.78M	20.81M	16.23M	15.19M	11.05M	7.23M
Total Liabilities	24.34M	24.52M	19.65M	18.78M	13.87M	9.96M
Stockholders Equity	-16.81M	-16.32M	-14.33M	-12.71M	-10.34M	-8.01M
Cash Flow
Free Cash Flow	-1.34M	-2.09M	284.91K	-2.66M	-2.61M	1.82M
Operating Cash Flow	-1.34M	-2.09M	284.91K	-2.66M	-2.61M	1.82M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	1.28M	2.13M	-567.31K	2.91M	2.62M	-1.91M

Advantex Marketing International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KDOZ	71 Outperform	C$47.27M	55.56	9.46%	―	32.71%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SPN	50 Neutral	C$12.36M	-8.06	-22.44%	―	1.45%	19.48%
ILLM	47 Neutral	C$56.03M	-9.34	-7.86%	―	17.97%	3.79%
ADX	44 Neutral	C$1.33M	-0.96	―	―	29.28%	-10.64%
EQ	44 Neutral	C$66.81M	-45.50	―	―	5.43%	68.55%
GKO	43 Neutral	C$3.59M	-1.83	―	―	―	32.97%

Advantex Marketing International Corporate Events

Advantex Extends Debenture Maturity and Amends Terms

Advantex Marketing International Inc. announced an amendment to its 9% Senior Secured Non Convertible Debentures, extending the maturity date from December 31, 2025, to December 31, 2027, and deferring interest payments to the same date. Additionally, a penalty payment clause has been added, stipulating a 2.25% penalty if the principal and interest are not repaid by the new maturity date. This amendment provides Advantex with extended financial flexibility, potentially impacting its financial stability and stakeholder confidence.

Advantex Reports Strong Fiscal 2025 Results and Strategic Growth Plans

Advantex Marketing International Inc. reported a significant financial improvement for Fiscal 2025, with a 33% increase in total revenue driven by the Merchant Cash Advance (MCA) program and the Aeroplan loyalty marketing program. The company’s strategic expansion and new funding agreements have positioned it for further growth, despite economic uncertainties, by enhancing its origination capacity and maintaining competitive credit standards.

Advantex Secures $20 Million Financing to Boost Small Business Lending

Advantex Marketing International Inc. has announced that its subsidiary, Advantex Dining Corporation, has secured a financing arrangement with a new funder, enabling it to originate up to $20 million in small business financing. This strategic move is expected to significantly enhance Advantex’s small business financing capabilities and long-term revenue potential, positioning the company for future growth.