Haivision Systems (HAI) AI Stock Analysis

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Haivision Systems

(TSX:HAI)

Rating:64Neutral

Price Target:

C$5.50

▲(6.38% Upside)

Haivision Systems' overall stock score is driven by strong technical indicators and positive earnings call sentiment, indicating potential growth. However, financial performance and valuation concerns, particularly negative profitability metrics, weigh down the score. The company's strategic growth plans and market expansion efforts provide a positive outlook, but financial challenges need addressing to improve the stock's attractiveness.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a solid equity base provides financial stability, allowing Haivision to weather economic fluctuations and invest in growth opportunities.

Efficient Cost Management

Efficient cost management, as evidenced by a strong gross profit margin, helps maintain competitiveness and supports long-term profitability despite revenue challenges.

Positive Cash Flow

Positive free cash flow indicates Haivision's ability to generate cash from operations, providing resources for reinvestment and debt servicing, supporting long-term financial health.

Negative Factors

Profitability Challenges

Negative net profit margins highlight profitability challenges, which can limit reinvestment capabilities and affect long-term growth potential if not addressed.

Declining Revenue

Declining revenue trends can signal weakening demand or competitive pressures, potentially impacting market position and long-term growth prospects.

Rising Leverage

Increased leverage may strain financial flexibility, raising risk levels and potentially impacting the company's ability to invest in growth or weather downturns.

Haivision Systems (HAI) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$141.31M

Dividend YieldN/A

Average Volume (3M)13.97K

Price to Earnings (P/E)58.2

Beta (1Y)0.30

Revenue Growth-5.56%

EPS Growth-124.69%

CountryCA

Employees379

SectorTechnology

Sector Strength85

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.01

Shares Outstanding27,332,180

10 Day Avg. Volume26,229

30 Day Avg. Volume13,971

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$5.60

Price Target Upside8.32% Upside

Rating ConsensusHold

Number of Analyst Covering1

Haivision Systems Business Overview & Revenue Model

Company DescriptionHaivision Systems (HAI) is a leading provider of mission-critical, real-time video streaming and networking solutions. The company operates primarily in the video technology and communications sectors, offering a range of products and services designed to deliver high-quality live video over any network. Haivision's core offerings include video encoders and decoders, video management systems, and cloud-based video solutions, which serve industries such as broadcast, enterprise, defense, and government.

How the Company Makes MoneyHaivision Systems generates revenue through the sale of its video streaming and networking products, including hardware like encoders and decoders, as well as software solutions for video management and distribution. The company also earns income from its cloud-based services, which provide customers with scalable video streaming capabilities. Key revenue streams include product sales, subscriptions for cloud services, and service contracts for support and maintenance. Significant partnerships with technology providers and integrators enhance Haivision's market reach and contribute to its earnings.

Haivision Systems Earnings Call Summary

Earnings Call Date:Sep 10, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Jan 28, 2026

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue growth and strategic advancements in product innovation and market expansion, particularly in defense and ISR markets. However, there were challenges such as a decline in gross margins and increased operating expenses that impacted operating income and adjusted EBITDA. Despite these challenges, the company is optimistic about continuing its growth trajectory.

Q3-2025 Updates

Positive Updates

Double-Digit Revenue Growth

Q3 fiscal 2025 revenue was $35 million, up 14.3% or $4.4 million over last year. The company expects to maintain double-digit revenue growth into fiscal 2026 and beyond.

Strong Performance in Control Room Solutions

Revenue from control room solutions, excluding third-party components, has surpassed last year's levels. Third-party component sales are down to 1/3 of last year's level.

Recurring Revenue Growth

Recurring revenue from maintenance, support contracts, and cloud services increased by 12% year-over-year, representing 20.9% of Q3 revenue.

Product Innovations and Industry Recognition

Launch of next-generation AI-based hardware, Kraken X1, and next-generation transmitter platform, Falkon X2. Haivision won the prestigious IBC Innovation Award for live 5G video at the Paris Summer Games.

Strategic Growth in Defense and ISR Markets

Significant contracts in defense markets and increased activity with NATO and other international partners, showing leadership in private 5G networking.

Negative Updates

Gross Margin Decline

Gross margins in Q3 were 72%, 300 basis points lower than last year, mainly due to the timing of deliveries under the U.S. Navy contract.

Increased Operating Expenses

Total expenses in Q3 were $24.9 million, up $3.1 million from last year, driven by sales compensation, R&D investments, currency impacts, and noncash share-based payments.

Operating Income Decline

Operating income in Q3 was $300,000, trailing last year by about $800,000 due to higher expenses.

Adjusted EBITDA Decrease

Q3 adjusted EBITDA was $3.5 million, compared to $4.1 million last year. Year-to-date adjusted EBITDA was $5.8 million, down from $14.4 million last year.

Company Guidance

During Haivision's third quarter 2025 earnings call, the company provided guidance indicating strong future growth expectations. Haivision aims to maintain double-digit revenue growth, returning to its historical CAGR of around 20% per year. The company anticipates achieving double-digit EBITDA growth from 2026 through 2029. In Q3 2025, Haivision reported a 14.3% increase in revenue to $35 million compared to the previous year, although year-to-date revenue remained slightly behind by 1.9%. Recurring revenue increased by 12% year-over-year, reflecting a healthy 20.9% of Q3 revenue. Gross margins for the quarter were 72%, a 300 basis point decrease primarily due to the timing of U.S. Navy contract deliveries. Despite a $3.1 million rise in total expenses, driven by sales compensation, R&D investments, and currency impacts, Haivision is optimistic about its trajectory, with plans to achieve operational efficiencies and higher EBITDA margins as revenues grow. Looking forward, Haivision plans to maintain a flat OpEx in 2025 while delivering continued double-digit revenue growth, setting the stage for a promising fiscal 2026 and beyond.

Haivision Systems Financial Statement Overview

Summary

Haivision Systems shows a mixed financial performance. The balance sheet is strong with a solid equity base, but profitability issues are evident with negative net income and EBIT margins. Cash flow is positive but declining, indicating challenges in sustaining cash generation.

Income Statement

Neutral

The company has shown a volatile revenue trend with a decrease in the latest TTM period. Gross profit margin remains strong, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing profitability challenges. The shift from positive EBIT to a negative figure in the TTM highlights operational inefficiencies.

Balance Sheet

Positive

Haivision Systems maintains a solid equity base with a healthy equity ratio, suggesting financial stability. However, the debt-to-equity ratio has increased, indicating rising leverage. Despite this, the company has managed to keep a reasonable level of liabilities compared to its equity, maintaining financial health.

Cash Flow

Positive

The cash flow position shows some resilience with positive free cash flow, although it has decreased significantly in the TTM period. Operating cash flow aligns well with net income, but the reduction in free cash flow growth suggests potential challenges in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.24M	129.54M	139.86M	125.70M	92.59M	83.11M
Gross Profit	90.28M	94.69M	98.58M	86.33M	69.33M	63.75M
EBITDA	5.34M	15.30M	11.07M	3.06M	-2.67M	9.90M
Net Income	-979.71K	4.70M	-1.27M	-6.19M	-8.78M	5.80M
Balance Sheet
Total Assets	140.88M	141.32M	144.09M	148.60M	122.48M	62.77M
Cash, Cash Equivalents and Short-Term Investments	11.83M	16.47M	8.29M	5.77M	26.84M	15.72M
Total Debt	15.14M	10.27M	16.18M	24.97M	8.59M	7.57M
Total Liabilities	48.79M	44.52M	49.94M	58.35M	33.56M	32.69M
Stockholders Equity	92.09M	96.80M	94.15M	90.25M	88.92M	30.07M
Cash Flow
Free Cash Flow	4.32M	17.49M	14.20M	-6.12M	1.44M	13.61M
Operating Cash Flow	6.73M	19.49M	15.25M	-5.08M	2.22M	13.92M
Investing Cash Flow	-2.61M	-2.20M	-3.07M	-25.76M	-20.32M	-2.54M
Financing Cash Flow	-3.73M	-9.18M	-9.88M	8.58M	30.23M	1.79M

Haivision Systems Technical Analysis

Technical Analysis Sentiment

Positive

Last Price5.17

Price Trends

50DMA

4.80

Positive

100DMA

4.63

Positive

200DMA

4.73

Positive

Market Momentum

MACD

0.05

Negative

RSI

64.22

Neutral

STOCH

73.49

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HAI, the sentiment is Positive. The current price of 5.17 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.80, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 73.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HAI.

Haivision Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAI	64 Neutral	C$141.31M	58.17	-1.32%	―	-5.56%	-124.69%
Sector *	61 Neutral	$36.69B	12.42	-10.22%	1.85%	8.50%	-7.32%
BB	―	$2.29B	―	-1.76%	―	―	―
STC	60 Neutral	C$254.98M	―	-2.67%	―	-1.72%	76.81%
DND	55 Neutral	C$714.03M	―	-39.72%	0.69%	2.47%	19.37%
TIXT	―	$1.23B	30.46	-20.44%	―	―	―
CVO	69 Neutral	C$874.20M	―	-17.77%	―	10.09%	-8.79%

* Technology Sector Average

Performance Comparison

TSE:HAI

Haivision Systems

5.10

-0.58

-10.21%

BlackBerry

3.90

1.50

62.50%

TSE:STC

Sangoma Technologies

7.81

-0.18

-2.25%

TSE:DND

Dye & Durham

10.80

-3.09

-22.25%

TIXT

TELUS International (CDA)

4.48

0.79

21.41%

TSE:CVO

Coveo Solutions

9.27

3.28

54.76%

Haivision Systems Corporate Events

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements

Haivision Reports Strong Q3 Revenue Growth Amid Strategic Expansions

Positive

Sep 10, 2025

Haivision Systems Inc. reported a 14.2% increase in revenue for the third quarter of 2025, reaching $35 million, driven by new product introductions and a growing sales pipeline. Despite a decline in gross margins and adjusted EBITDA, the company remains optimistic about future growth, supported by recent product launches and strategic collaborations, including a significant contract with the U.S. Navy and partnerships with Airbus Defense and Space.

The most recent analyst rating on (TSE:HAI) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on Haivision Systems stock, see the TSE:HAI Stock Forecast page.

Financial Disclosures

Haivision Systems to Release Q3 Fiscal 2025 Financial Results

Neutral

Aug 20, 2025

Haivision Systems Inc. announced it will release its third-quarter fiscal 2025 financial results on September 10, 2025, after market close. The announcement will be followed by a conference call on September 11, 2025, to discuss the results. This release is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:HAI) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on Haivision Systems stock, see the TSE:HAI Stock Forecast page.

Financial Disclosures

Haivision to Release Q3 Fiscal 2025 Financial Results

Neutral

Aug 19, 2025

Haivision Systems Inc. is set to announce its third-quarter fiscal 2025 financial results on September 11, 2025, after market close. The announcement will be followed by a conference call on September 12, 2025, to discuss the results. This upcoming financial disclosure is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:HAI) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on Haivision Systems stock, see the TSE:HAI Stock Forecast page.

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.Date of analysis: Sep 12, 2025