Emerge Commerce Ltd (TSE:ECOM)
:ECOM
Want to see TSE:ECOM full AI Analyst Report?
Top Page
Emerge Commerce Ltd
(ECOM)
Select Model
Select Model
Rating:43Neutral
Price Target:
C$0.09
▼(-34.62% Downside)
Action:Reiterated
Date:05/02/26
Overall score is held down primarily by stressed financial health (negative equity) and still-unprofitable results despite revenue recovery and improved loss profile. Technicals are also weak with the stock trading below major moving averages, while valuation remains unattractive/unclear due to negative earnings and no stated dividend yield.
Positive Factors
Cash generation
Consistent positive operating and free cash flow across 2022–2025 provides internal funding for operations and reinvestment, lowering near-term reliance on external financing. While historically volatile, sustained FCF through 2025 supports working capital and strategic execution over the coming months.
Negative Factors
Negative shareholders' equity
A sustained negative shareholders’ equity position materially weakens financial flexibility and raises solvency and refinancing risk. This structural balance-sheet deficit constrains the company’s ability to raise capital on favorable terms and limits capacity for strategic investments or acquisitions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow across 2022–2025 provides internal funding for operations and reinvestment, lowering near-term reliance on external financing. While historically volatile, sustained FCF through 2025 supports working capital and strategic execution over the coming months.
Read all positive factors
Emerge Commerce Ltd (ECOM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$12.41M
Dividend YieldN/A
Average Volume (3M)166.88K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth35.41%
EPS Growth88.89%
CountryCA
Employees120
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding149,474,580
10 Day Avg. Volume115,498
30 Day Avg. Volume166,883
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)-2.48
Price to Sales (P/S)0.71
P/FCF Ratio11.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Emerge Commerce Ltd Business Overview & Revenue Model
Company Description
Emerge Commerce Ltd (ECOM) is a Canadian online commerce company that specializes in the acquisition and growth of direct-to-consumer brands in the e-commerce sector. ECOM operates across various verticals, including health and wellness, lifestyle...
How the Company Makes Money
Emerge Commerce makes money primarily by selling products online through its portfolio of e-commerce brands. Revenue is generated when customers purchase merchandise via the company’s direct-to-consumer websites (and, where used, third-party marke...
Emerge Commerce Ltd Earnings Call Summary
Earnings Call Date:Nov 28, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jun 01, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant positive trends in GMS growth, revenue increase, and improved profitability metrics, complemented by a strong debt reduction strategy. However, the continued negative adjusted EBITDA and net loss from operations indicate areas needing further improvement. Overall, the positive aspects and strategic shifts outweigh the negatives.Positive Updates
Gross Merchandise Sales (GMS) Growth
GMS accelerated to 10% organic growth year-over-year, reaching $7.4 million in Q3 2024 compared to $6.8 million in Q3 2023.
Negative Updates
Adjusted EBITDA Still Negative
Despite improvements, adjusted EBITDA remains negative at $280,000 for Q3 2024.
Read all updates
Q3-2024 Updates
Positive
Negative
Gross Merchandise Sales (GMS) Growth
GMS accelerated to 10% organic growth year-over-year, reaching $7.4 million in Q3 2024 compared to $6.8 million in Q3 2023.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for EMERGE Commerce, CEO Ghassan Halazon and CFO Kyle Burt-Gerrans provided a comprehensive overview of the company's financial performance and strategic direction. Key highlights included a 10% increase in gross merchandise sales (GMS) year-over-year, reaching $7.4 million, and a 5% rise in revenue to $4.6 million. Excluding the Carnivore Club, revenue grew by 8%. The company reported a gross profit increase of over 6% to $1.8 million, with gross margins improving to 39.3%. Adjusted EBITDA losses were reduced by approximately half compared to the previous year, coming in at negative $280,000. Additionally, EMERGE achieved significant debt reduction, bringing net debt down to $5.5 million after a $10 million debt paydown. The company also implemented cost reductions expected to yield $500,000 in annual savings, which will be fully realized in 2025. These efforts underscore EMERGE's focus on organic growth, operational efficiency, and enhanced profitability as they transition into the new year.Emerge Commerce Ltd Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.66M | 20.42M | 23.83M | 58.17M | 34.83M |
| Gross Profit | 9.57M | 8.25M | 11.88M | 23.79M | 15.11M |
| EBITDA | 619.47K | 908.43K | -15.66M | -4.50M | -1.16M |
| Net Income | -151.52K | -1.03M | -21.26M | -17.38M | -6.56M |
Balance Sheet | |||||
| Total Assets | 10.82M | 7.80M | 22.99M | 59.75M | 80.28M |
| Cash, Cash Equivalents and Short-Term Investments | 4.32M | 3.16M | 2.54M | 5.88M | 7.77M |
| Total Debt | 7.36M | 6.96M | 18.25M | 25.98M | 24.50M |
| Total Liabilities | 18.71M | 16.63M | 32.86M | 49.63M | 53.27M |
| Stockholders Equity | -7.89M | -8.83M | -9.87M | 10.11M | 27.00M |
Cash Flow | |||||
| Free Cash Flow | 1.65M | 127.02K | 2.02M | 1.02M | -3.47M |
| Operating Cash Flow | 1.65M | 129.33K | 2.03M | 1.06M | -3.43M |
| Investing Cash Flow | -396.50K | 11.73M | 7.10M | -44.60K | -27.34M |
| Financing Cash Flow | -179.94K | -11.42M | -9.55M | -3.09M | 26.18M |
Emerge Commerce Ltd Technical Analysis
Negative
0.13
Price Trends
0.10
Negative
0.11
Negative
0.10
Negative
Market Momentum
>-0.01
Positive
39.21
Neutral
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECOM, the sentiment is Negative. The current price of 0.13 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECOM.
Emerge Commerce Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$1.68B | 20.85 | 12.69% | 3.11% | 1.41% | -3.11% | |
65 Neutral | C$368.42M | 67.12 | 5.50% | ― | 24.65% | -28.30% | |
64 Neutral | C$72.04B | 15.86 | 17.65% | 1.08% | -0.34% | 7.11% | |
63 Neutral | C$9.15B | 23.06 | 10.24% | 3.17% | 0.86% | -26.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | C$1.21B | 18.33 | 117.77% | 1.72% | 6.18% | 8.58% | |
43 Neutral | C$12.41M | -14.58 | ― | ― | 35.41% | 88.89% |
* Consumer Cyclical Sector Average
TSE:ECOM
Emerge Commerce Ltd
0.08
0.04
100.00%
TSE:ATD
Alimentation Couche-Tard Inc
79.63
11.88
17.53%
TSE:LNF
Leon's Furniture
24.25
-0.33
-1.35%
TSE:CTC
Canadian Tire
216.00
-17.01
-7.30%
TSE:KITS
Kits Eyecare
11.29
-1.68
-12.95%
TSE:PET
Pet Valu Holdings Ltd.
17.25
-12.05
-41.12%
Emerge Commerce Ltd Corporate Events
Business Operations and StrategyFinancial Disclosures
Emerge Commerce Sets April 29 Date for Q4 2025 Results and Investor Call
Neutral
Apr 14, 2026
Emerge Commerce Ltd. will release its fourth-quarter 2025 financial results on April 29, 2026, before markets open, underscoring continued disclosure around the performance of its portfolio of e-commerce brands. Management will host a conference c...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
EMERGE Highlights Strong Cash Generation at Newly Acquired Viral Loops
Positive
Mar 16, 2026
EMERGE Commerce Ltd. has released additional financial details on Viral Loops, its newly acquired referral marketing platform, highlighting the asset’s strong profitability and cash generation. Viral Loops produced approximately $1.3 million...
Business Operations and StrategyM&A Transactions
Emerge Commerce to Brief Investors on Viral Loops Acquisition and Growth Plans
Positive
Mar 11, 2026
Emerge Commerce Ltd. will host a virtual investor webcast today, led by founder and CEO Ghassan Halazon, to provide a corporate presentation and engage directly with shareholders. The session will cover the recently completed acquisition of referr...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Emerge Commerce Buys Viral Loops to Launch High-Margin B2B Vertical
Positive
Mar 10, 2026
Emerge Commerce Ltd. has completed the acquisition of Viral Loops, a profitable B2B referral marketing platform, from Wishpond Technologies for approximately CA$2.3 million, funded entirely from a recent private placement. Viral Loops, founded in ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Emerge Commerce Raises C$2.7 Million in Upsized Financing to Fund Viral Loops Acquisition
Positive
Mar 7, 2026
Emerge Commerce Ltd. has closed an upsized non-brokered private placement, issuing 27 million units at C$0.10 per unit for gross proceeds of C$2.7 million, each unit comprising one common share and a half warrant exercisable at C$0.15 until March ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Emerge Commerce Upsizes Private Placement to Fully Fund Viral Loops Acquisition
Positive
Feb 23, 2026
Emerge Commerce has upsized its previously announced non-brokered private placement to 25,000,000 units at C$0.10 per unit, for gross proceeds of C$2.5 million, with each unit comprising one common share and one-half warrant exercisable at C$0.15 ...
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.