EQ Inc (EQ) AI Stock Analysis

• Market Cap: C$66.11M
• Dividend Yield: N/A
• Average Volume (3M): 16.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 3.62%
• EPS Growth: 89.91%
• 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: 14,728
• 30 Day Avg. Volume: 16,209
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$1.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: C$1.00 ▲(5.26% Upside)

EQ Inc's overall stock score is primarily impacted by its weak financial performance, characterized by negative margins and cash flow issues. Technical analysis provides some positive signals, but valuation remains unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Despite financial challenges, EQ Inc's revenue growth indicates potential for market expansion and improved product adoption, supporting long-term business prospects.

Business Model

A diversified revenue model with recurring subscription fees provides a stable income stream, enhancing financial predictability and resilience against market fluctuations.

Partnerships

Strategic partnerships expand EQ's market reach and service offerings, potentially leading to joint ventures and increased client base, strengthening its competitive position.

Negative Factors

Negative Margins

Persistent negative margins indicate operational inefficiencies, which could hinder profitability and limit reinvestment capacity, affecting long-term growth.

Cash Flow Challenges

Significant cash flow decline highlights liquidity issues, potentially restricting operational flexibility and investment in growth initiatives.

Balance Sheet Instability

A weak balance sheet with negative equity and high debt levels poses solvency risks, threatening financial stability and long-term viability.

EQ Inc Business Overview & Revenue Model

Company Description

EQ Inc (EQ) is a technology-driven company specializing in innovative solutions for the financial services sector. The company focuses on providing advanced data analytics, artificial intelligence, and cloud-based services to enhance decision-making and operational efficiency for its clients. EQ operates primarily in the fintech sector, catering to a diverse range of businesses, from startups to established financial institutions, by offering products such as risk management tools, customer engagement platforms, and investment analytics solutions.

How the Company Makes Money

EQ Inc generates revenue through multiple streams primarily based on subscription fees for its software services, consulting fees for custom implementations, and transaction-based fees for specific services. The company’s subscription model allows clients to access its platforms for a recurring fee, which provides a steady income stream. Additionally, EQ partners with various financial institutions and technology providers, enhancing its service offerings and expanding its market reach. These partnerships often lead to joint ventures or co-branded solutions, contributing to EQ's overall revenue by increasing its visibility and client base.

EQ Inc Financial Statement Overview

Summary

EQ Inc faces severe financial challenges across all verticals. Declining revenues and negative profitability mark the income statement, while the balance sheet reflects high leverage and negative equity. Although cash flow shows slight operational improvement, free cash flow remains negative. The company must address these financial deficiencies to stabilize and achieve sustainable growth.

Income Statement

EQ Inc has experienced declining revenue from $12.09M in 2021 to $9.73M in TTM (Trailing-Twelve-Months), indicating a negative growth trajectory. The gross profit margin for TTM stands at 41.13%, which is moderately healthy, but the company has consistently reported negative EBIT and net income, with a TTM net profit margin of -8.79%. These factors highlight significant profitability challenges.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative equity of -$1.86M in TTM, reflecting high leverage and potential financial instability. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is negative, indicating complete reliance on liabilities.

Cash Flow

EQ Inc's cash flow position shows some improvement, with TTM operating cash flow at $615K, but free cash flow remains negative at -$61K. The operating cash flow to net income ratio is favorable, but the negative free cash flow to net income ratio underscores ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.21M	9.85M	9.96M	10.98M	12.09M	10.42M
Gross Profit	4.26M	4.06M	4.51M	4.05M	4.98M	4.72M
EBITDA	289.00K	41.00K	-4.92M	-5.65M	-5.22M	-2.55M
Net Income	-531.00K	-897.00K	-5.90M	-6.43M	-6.11M	-3.96M
Balance Sheet
Total Assets	4.42M	6.12M	5.61M	10.15M	19.05M	9.98M
Cash, Cash Equivalents and Short-Term Investments	622.00K	634.00K	381.00K	1.25M	8.76M	3.21M
Total Debt	1.48M	2.08M	1.57M	79.00K	93.00K	2.22M
Total Liabilities	6.43M	7.14M	6.19M	4.91M	7.61M	5.43M
Stockholders Equity	-2.01M	-1.02M	-585.00K	5.24M	11.44M	4.55M
Cash Flow
Free Cash Flow	227.00K	-213.00K	-2.29M	-6.24M	-3.86M	-3.39M
Operating Cash Flow	902.00K	463.00K	-1.68M	-5.62M	-3.09M	-2.75M
Investing Cash Flow	-665.00K	-668.00K	-637.00K	-1.88M	-1.36M	-1.58M
Financing Cash Flow	180.00K	452.00K	1.45M	-45.00K	10.00M	3.83M

EQ Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.95
• 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 0.95 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.97, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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
BRM	72 Outperform	C$33.57M	10.50	33.38%	―	24.01%	-11.48%
KDOZ	63 Neutral	C$27.57M	52.50	5.76%	―	17.05%	―
Sector *	55 Neutral	$6.69B	3.93	-15.92%	6.10%	10.91%	7.18%
EQ	47 Neutral	C$66.11M	―	-451.55%	―	3.62%	89.91%
SPN	47 Neutral	C$16.59M	―	-23.80%	―	-2.43%	40.00%
ILLM	42 Neutral	C$77.42M	597.22	-6.27%	―	22.89%	-15.21%
ADX	39 Underperform	C$1.33M	―	18.87%	―	29.14%	23.53%

EQ Inc Corporate Events

EQ Inc. Reports Steady Q1 Revenue and Strategic Board Appointments

EQ Inc. reported steady revenue of $1.4 million for the first quarter of 2025, with a significant growth in pipeline activities and proposals. The company is focusing on expanding into new customer segments and leveraging its AI-driven products to enhance client value and establish a sustainable revenue model. EQ’s gross margin improved to 40%, and the company anticipates higher revenues in the upcoming quarters. Additionally, EQ elected three new board members, aiming to strengthen its strategic vision and shareholder value.