VerticalScope Holdings (FORA) AI Stock Analysis

• Market Cap: C$81.65M
• Dividend Yield: N/A
• Average Volume (3M): 17.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -4.04%
• EPS Growth: -297.93%
• Country: CA
• Employees: 191
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.03
• Shares Outstanding: 18,529,820
• 10 Day Avg. Volume: 11,327
• 30 Day Avg. Volume: 17,389
• PEG Ratio: 97.24
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 6.80
• 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$5.90
• Price Target Upside: 59.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$4.00 ▲(8.11% Upside)

VerticalScope Holdings' overall stock score is primarily driven by its mixed financial performance and positive technical indicators. While the company shows strength in cash flow and technical momentum, challenges in profitability and valuation weigh on the score. The optimistic outlook from the earnings call, particularly regarding AI initiatives, provides a positive future growth potential.

Positive Factors

E-commerce Revenue Growth

The significant growth in e-commerce revenue indicates successful strategic expansion and diversification, enhancing long-term revenue streams.

AI Initiatives

AI initiatives are expected to drive engagement and operational efficiency, positioning the company for sustained competitive advantage in digital media.

Adjusted EBITDA Improvement

Improved EBITDA and strong margins reflect operational efficiency and effective cost management, supporting financial stability and growth potential.

Negative Factors

Decline in Revenue

A significant revenue decline suggests challenges in maintaining user engagement and monetization, potentially impacting long-term growth.

Challenges with Programmatic Advertising

The decline in programmatic advertising revenue indicates difficulties in a key revenue stream, affecting overall financial performance.

Net Loss for the Quarter

Reporting a net loss highlights ongoing profitability challenges, which may hinder the company's ability to invest in growth initiatives.

VerticalScope Holdings Business Overview & Revenue Model

Company Description

VerticalScope Holdings Inc., a technology company, operates a cloud-based digital community platform in Canada. It provides digital advertising services, including direct advertising campaigns, custom content solutions, and programmatic advertising; and e-commerce solutions. The company also focus on hyper-specific subjects that engender strong affinity from online communities of enthusiasts, super fans, experts, pros, hobbyists, and armchair analysts. Its brands include communities for watch geeks, audio nerds, motorheads, fitness-obsessed, mountain bikers, DIYers, deal junkies, and enthusiasts. The company serves approximately 106 million monthly active users and 56 million registered community members in approximately one thousand and two hundred online communities. VerticalScope Holdings Inc. was founded in 1999 and is headquartered in Toronto, Canada.

How the Company Makes Money

VerticalScope generates revenue primarily through advertising, which includes display ads, sponsored content, and affiliate marketing partnerships. The company monetizes its extensive user base and high-traffic websites by offering targeted advertising solutions to brands looking to reach specific audiences. Additionally, VerticalScope may engage in strategic partnerships with businesses that align with its community interests, enhancing revenue streams through collaborative marketing efforts. The company also benefits from data analytics, allowing it to optimize ad placements and improve engagement, which in turn boosts revenue potential.

VerticalScope Holdings Financial Statement Overview

Summary

VerticalScope Holdings shows a mixed financial performance. Strong gross profit margins and cash flow generation are offset by declining revenue growth and negative net profitability. The balance sheet reflects moderate leverage, but the negative return on equity indicates issues in generating shareholder value.

Income Statement

VerticalScope Holdings shows a mixed performance in its income statement. The company has experienced a decline in revenue growth with a negative growth rate of -3.16% in the TTM period. Gross profit margin is relatively strong at 68.84%, indicating efficient cost management. However, the net profit margin is negative at -2.13%, reflecting ongoing profitability challenges. EBIT and EBITDA margins are modest at 5.30% and 31.45%, respectively, suggesting some operational efficiency but insufficient to drive net profitability.

Balance Sheet

The balance sheet of VerticalScope Holdings indicates moderate financial stability. The debt-to-equity ratio stands at 0.53, showing a manageable level of leverage. However, the return on equity is negative at -1.77%, pointing to challenges in generating returns for shareholders. The equity ratio is not directly provided, but the company maintains a reasonable balance between debt and equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 4.22% growth in free cash flow. The operating cash flow to net income ratio is strong at 2.99, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.65, suggesting that a significant portion of net income is converted into free cash flow, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.75M	69.05M	60.90M	80.49M	65.76M	56.92M
Gross Profit	51.41M	40.96M	34.22M	45.67M	38.95M	35.46M
EBITDA	17.72M	23.68M	18.55M	14.71M	440.34K	8.54M
Net Income	-3.66M	-15.86K	-4.95M	-24.77M	-12.26M	-1.51M
Balance Sheet
Total Assets	134.14M	132.41M	152.95M	177.56M	217.03M	87.68M
Cash, Cash Equivalents and Short-Term Investments	8.14M	5.19M	6.02M	8.77M	20.49M	4.60M
Total Debt	46.27M	40.82M	61.52M	61.64M	84.06M	104.70M
Total Liabilities	56.49M	49.72M	72.27M	96.06M	120.79M	110.23M
Stockholders Equity	77.64M	82.69M	80.69M	81.50M	96.24M	-22.54M
Cash Flow
Free Cash Flow	14.99M	22.61M	13.25M	10.92M	-4.09M	9.39M
Operating Cash Flow	22.28M	24.77M	15.51M	20.64M	19.60M	14.10M
Investing Cash Flow	-11.33M	-2.13M	-17.07M	-9.66M	-87.76M	-3.45M
Financing Cash Flow	-9.05M	-23.38M	-1.13M	-22.47M	84.40M	-11.19M

VerticalScope Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.70
• 50DMA: Positive
• 100DMA: Positive
• 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:FORA, the sentiment is Negative. The current price of 3.7 is below the 20-day moving average (MA) of 3.71, above the 50-day MA of 3.42, and below the 200-day MA of 5.86, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FORA.

VerticalScope Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZOMD	79 Outperform	$224.65M	9.66	85.19%	―	91.28%	623.60%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FORA	57 Neutral	C$81.65M	-15.72	-6.82%	―	-4.04%	-297.93%
OAM	48 Neutral	C$30.98M	-3.32	-18.02%	―	46.80%	-82.67%
EGLX	39 Underperform	$9.55M	-0.07	-186.28%	―	-56.63%	-25.99%

VerticalScope Holdings Corporate Events

VerticalScope Achieves Strong Sequential Growth in Q3 2025

VerticalScope Holdings Inc. reported significant sequential growth in key financial metrics for Q3 2025, including a 21% year-over-year increase in ARPU and a 45% sequential rise in Adjusted EBITDA. Despite a 17% year-over-year revenue decline due to lower MAU, the company saw improvements in monetization and traffic sources, particularly through AI-driven initiatives like the AI-powered community assistant, Fora Frank. The company also achieved a 56% sequential increase in Free Cash Flow, reflecting strong operational efficiencies and positioning it for future growth opportunities.

The most recent analyst rating on (TSE:FORA) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.

VerticalScope Partners with TollBit to Monetize Community Content through AI Licensing

VerticalScope Holdings has partnered with TollBit to monetize its extensive collection of community-generated content by licensing it to AI companies. This collaboration aims to establish a scalable framework for content licensing, ensuring fair compensation and creating new revenue streams while protecting the integrity of its forums. The partnership is expected to enhance VerticalScope’s positioning in the AI-driven content discovery landscape, providing AI systems with access to high-quality, domain-specific knowledge that is crucial for training and development.

The most recent analyst rating on (TSE:FORA) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.

VerticalScope Reports Q2 2025 Financial Results, Focuses on AI and Long-term Growth

VerticalScope Holdings Inc. reported its second quarter 2025 financial results, highlighting a revenue of $14.5 million and a net loss of $1.8 million, attributed to a decline in monthly active users and increased investments in AI and traffic diversification. Despite these challenges, the company is focusing on long-term growth by enhancing user experience and monetizing its audience through AI-powered innovations. The company maintains a strong balance sheet with $64.1 million in available liquidity, supporting its strategic investments aimed at driving long-term value creation for shareholders.

The most recent analyst rating on (TSE:FORA) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.