EQ Inc (EQ) AI Stock Analysis

• Market Cap: C$66.11M
• Dividend Yield: N/A
• Average Volume (3M): 18.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 5.43%
• EPS Growth: 68.55%
• Country: CA
• Employees: 35
• Sector: General
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 69,593,956
• 10 Day Avg. Volume: 20,670
• 30 Day Avg. Volume: 18,945
• PEG Ratio: 0.97
• Price to Book (P/B): -72.04
• Price to Sales (P/S): 7.48
• P/FCF Ratio: -345.98
• 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$0.90 ▼(-7.96% Downside)

The overall stock score of 44 reflects significant financial challenges and a weak valuation. The most impactful factor is the company's financial instability, characterized by negative profitability and high leverage. Technical analysis provides a neutral outlook, while the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The improvement in revenue growth suggests that EQ Inc is expanding its market reach and product adoption, which could enhance long-term business sustainability.

Cash Flow Improvement

The significant increase in free cash flow indicates better cash generation, which can support future investments and reduce financial risk.

Product Offering

EQ's focus on AI and data analytics in fintech positions it well in a growing industry, potentially driving long-term demand for its innovative solutions.

Negative Factors

Negative Profitability

Ongoing negative profitability highlights challenges in achieving sustainable earnings, which could hinder long-term financial health.

High Leverage

High leverage and negative equity pose substantial risks, limiting financial flexibility and increasing the potential for solvency issues.

Margin Sustainability

Sustained negative profit margins indicate challenges in cost management and pricing power, potentially affecting long-term profitability.

EQ Inc Business Overview & Revenue Model

Company Description

EQ Inc (EQ) is a technology company that specializes in developing innovative solutions for the financial services sector, focusing on enhancing customer engagement and operational efficiency through advanced data analytics and artificial intelligence. The company primarily operates in the fintech sector, offering a suite of products that include customer relationship management tools, data-driven marketing solutions, and AI-powered analytics platforms designed to help financial institutions optimize their services and improve customer satisfaction.

How the Company Makes Money

EQ generates revenue through multiple streams, primarily by offering subscription-based services for its software products, which provide ongoing access to its platforms and updates. Additionally, the company earns money through consulting services, where it helps financial institutions implement its solutions effectively. Key partnerships with established financial institutions and technology providers enhance EQ's market presence and create opportunities for co-developing products, thereby contributing to its earnings. The company also benefits from performance-based pricing models in certain contracts, allowing it to capture value based on the effectiveness of its solutions in driving customer engagement and operational improvements.

EQ Inc Financial Statement Overview

Summary

EQ Inc faces significant financial challenges with negative net income and EBIT margins. Despite a slight improvement in revenue growth and cash flow, the company struggles with profitability and financial stability. High leverage and negative equity pose substantial risks.

Income Statement

EQ Inc's income statement shows a challenging financial position with consistent negative net income and EBIT margins over the years. The TTM data indicates a slight improvement in revenue growth at 5.9%, but the net profit margin remains negative at -5.2%. The gross profit margin is relatively stable at around 41.7%, suggesting some efficiency in cost management. However, the company continues to struggle with profitability, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates high financial risk and potential solvency issues. The return on equity is positive in the TTM period, but this is due to negative equity, which distorts the metric. Overall, the balance sheet reflects significant financial instability and leverage concerns.

Cash Flow

Cash flow analysis shows some positive trends, with a substantial improvement in free cash flow growth at 143.2% in the TTM period. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow to net income ratio remains low, suggesting limited cash available after capital expenditures. Despite improvements, cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.22M	9.85M	9.96M	10.98M	12.09M	10.42M
Gross Profit	4.29M	4.06M	4.51M	4.05M	4.98M	4.72M
EBITDA	-636.00K	41.00K	-4.92M	-5.65M	-5.22M	-2.55M
Net Income	-1.47M	-897.00K	-5.90M	-6.43M	-6.11M	-3.96M
Balance Sheet
Total Assets	3.60M	6.12M	5.61M	10.15M	19.05M	9.98M
Cash, Cash Equivalents and Short-Term Investments	775.00K	634.00K	381.00K	1.25M	8.76M	3.21M
Total Debt	1.24M	2.08M	1.57M	79.00K	93.00K	2.22M
Total Liabilities	5.95M	7.14M	6.19M	4.91M	7.61M	5.43M
Stockholders Equity	-2.35M	-1.02M	-585.00K	5.24M	11.44M	4.55M
Cash Flow
Free Cash Flow	552.00K	-213.00K	-2.29M	-6.24M	-3.86M	-3.39M
Operating Cash Flow	1.22M	463.00K	-1.68M	-5.62M	-3.09M	-2.75M
Investing Cash Flow	-663.00K	-668.00K	-637.00K	-1.88M	-1.36M	-1.58M
Financing Cash Flow	-249.00K	452.00K	1.45M	-45.00K	10.00M	3.83M

EQ Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQ, the sentiment is Negative. The current price of 0.98 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.95, and above the 200-day MA of 0.97, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EQ.

EQ Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KDOZ	68 Neutral	C$56.46M	68.25	9.46%	―	32.71%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SPN	50 Neutral	C$10.99M	-6.45	-22.44%	―	1.45%	19.48%
ILLM	47 Neutral	C$51.64M	-9.16	-7.86%	―	17.97%	3.79%
GKO	46 Neutral	C$4.78M	-2.44	―	―	―	32.97%
EQ	44 Neutral	C$66.11M	-45.02	―	―	5.43%	68.55%
ADX	44 Neutral	C$1.33M	-0.96	―	―	29.28%	-10.64%

EQ Inc Corporate Events

EQ Works Extends Multi-Year Data and Analytics Partnership with Major Canadian Media Company

EQ Works has renewed a three-year engagement with one of Canada’s leading media and entertainment companies, reinforcing a long-standing relationship that has historically generated more than $6 million in engagements. The expanded agreement broadens collaboration across data insights, advanced audience targeting, operational efficiency and real-time measurement, and will see deeper use of EQ’s proprietary geospatial and behavioural data, end-to-end media workflow tools, and AI-powered analytics and reporting. By providing a unified, always-on view of campaign performance and enhancing automation and optimization at every stage of the media lifecycle, the deal is expected to strengthen EQ’s position in the Canadian advertising and media technology market while offering its partner’s analysts, marketers, and advertisers more efficient, measurable, and data-rich campaign execution.

The most recent analyst rating on (TSE:EQ) stock is a Hold with a C$0.90 price target. To see the full list of analyst forecasts on EQ Inc stock, see the TSE:EQ Stock Forecast page.

EQ Works Launches AI-Powered Real Estate Platform with Major QSR Deal

EQ Works has launched ‘Clearlake for Real Estate,’ an AI-powered platform designed to optimize real estate site selection and store performance for businesses. The platform, which integrates various data sources for predictive insights, has secured a multi-year deal with a leading Canadian quick serve restaurant organization, covering over 1,000 locations. This strategic move positions EQ Works at the forefront of data, AI, and location intelligence, offering clients faster and more accurate decision-making capabilities to minimize risks and enhance revenue potential.

The most recent analyst rating on (TSE:EQ) stock is a Sell with a C$1.00 price target. To see the full list of analyst forecasts on EQ Inc stock, see the TSE:EQ Stock Forecast page.

EQ Inc. Reports Strong Third Quarter Growth with 56% Increase in Rewards Division

EQ Inc. reported a 56% growth in its Rewards Division for the third quarter, with overall revenue reaching $2.5 million, marking an improvement from the previous year. The company saw a 38% improvement in adjusted EBITDA and a gross margin increase to 45%, reflecting its strategic focus on recurring, higher-margin revenue. This progress underscores EQ’s commitment to expanding data capabilities and strengthening its market position in data-driven and AI-powered solutions, positioning the company for sustainable growth.

The most recent analyst rating on (TSE:EQ) stock is a Sell with a C$1.00 price target. To see the full list of analyst forecasts on EQ Inc stock, see the TSE:EQ Stock Forecast page.