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$5.13
• Price Target Upside: 55.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$3.00 ▼(-9.09% Downside)

VerticalScope Holdings' overall stock score reflects a mixed outlook. The most significant factors include strong cash flow generation and strategic initiatives in AI and e-commerce, which are offset by declining revenue and profitability challenges. Technical indicators suggest bearish momentum, and valuation metrics highlight the need for improved profitability. The company's strategic focus on AI and e-commerce provides a potential path for future growth.

Positive Factors

E-commerce Revenue Growth

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

AI Initiatives

AI initiatives are expected to drive operational efficiency and user engagement, positioning the company for future growth in a tech-driven market.

Strong Liquidity Position

A strong liquidity position provides financial flexibility for strategic investments and potential M&A, supporting long-term growth objectives.

Negative Factors

Declining Revenue

A significant decline in revenue and user engagement may indicate challenges in maintaining market position and monetization effectiveness.

Programmatic Advertising Challenges

Declining programmatic ad revenue suggests difficulties in adapting to changes in digital ad markets, impacting overall revenue streams.

Net Profitability Issues

Ongoing net losses highlight challenges in achieving profitability, which could affect long-term financial sustainability and investor confidence.

VerticalScope Holdings Business Overview & Revenue Model

Company Description

VerticalScope Holdings (FORA) is a digital media and technology company that specializes in building and managing online communities. The company operates a diverse portfolio of websites and forums, primarily focused on topics such as automotive, sports, technology, and lifestyle. VerticalScope aims to connect enthusiasts and consumers with valuable content, resources, and services in niche markets, leveraging user-generated content and community engagement to drive traffic and interaction across its platforms.

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 positive cash flow generation are offset by declining revenue growth and negative net profitability. The balance sheet reflects moderate leverage, but negative return on equity indicates challenges 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	23.77M
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: Neutral
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FORA, the sentiment is Neutral. The current price of 3.3 is above the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.39, and below the 200-day MA of 5.13, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 92.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FORA.

VerticalScope Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZOMD	67 Neutral	$224.65M	9.66	81.28%	―	50.79%	213.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
OAM	55 Neutral	C$30.98M	-3.32	-22.90%	―	45.36%	-200.67%
FORA	50 Neutral	C$81.65M	-15.72	-6.82%	―	-4.04%	-297.93%
EGLX	41 Neutral	$9.55M	-0.07	-183.15%	―	-53.67%	-127.21%

VerticalScope Holdings Corporate Events

VerticalScope’s Earnings Call: Growth Amidst Challenges

VerticalScope Holdings, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. While the company celebrated significant strides in user engagement and e-commerce growth, it also faced challenges with declining programmatic advertising revenue and an overall drop in total revenue compared to the previous year. Despite these hurdles, the company remains optimistic about future growth, particularly in AI-driven initiatives and e-commerce expansions.

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.