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Haivision Systems, Inc. (TSE:HAI)
TSX:HAI
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Haivision Systems
(TSX:HAI)
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Rating:65Neutral
Price Target:
C$5.50
▼(-14.46% Downside)
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.
Positive Factors
Revenue Growth
Haivision's ability to achieve double-digit revenue growth indicates strong market demand and effective sales strategies, which can support long-term business expansion.
Product Innovation
Introducing innovative products like Kraken X1 and Falkon X2 positions Haivision as a leader in technology, enhancing its competitive edge and market appeal.
Strategic Market Expansion
Expanding into defense markets and partnerships with NATO strengthens Haivision's market position and diversifies its revenue streams, supporting long-term growth.
Negative Factors
Profitability Challenges
Negative net profit margins indicate operational inefficiencies, which may hinder Haivision's ability to reinvest in growth and innovation.
Gross Margin Decline
Declining gross margins can pressure profitability, limiting Haivision's ability to maintain competitive pricing and invest in future growth initiatives.
Rising Operating Expenses
Increased operating expenses, driven by sales and R&D, could strain financial resources, impacting Haivision's ability to achieve sustainable profitability.
Haivision Systems (HAI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$154.73M
Dividend YieldN/A
Average Volume (3M)16.91K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-5.56%
EPS Growth-124.69%
CountryCA
Employees379
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.11
Shares Outstanding27,192,580
10 Day Avg. Volume17,895
30 Day Avg. Volume16,911
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)1.45
Price to Sales (P/S)1.08
P/FCF Ratio8.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$8.00Price Target Upside24.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Haivision Systems Business Overview & Revenue Model
Company DescriptionHaivision Systems Inc. provides infrastructure solutions worldwide. It offers Makito Series, a range of products designs to encode and decode 4K/UHD HEVC and H.264 video formats, and low latency end-to-end streaming over IP suitable for live and interactive video applications; KB Series, a software encoder and transcoder that delivers high-quality video streaming for resolutions up to 4K/UHD; Kraken, a software-based high-low latency tactical live video encoder and transcoder for video streams to traverse different networks and feed enterprise distribution networks; Haivision Media Platform, a software platform provides low latency and live video distribution; Haivision/CineMassive CineNet, a software platform for situational awareness and real-time decision making in mission-critical command and control environments; Haivision Element Management System, a cloud software-based solution which enables the streamlined management and monitoring of geographically distributed edge devices within a single web-based graphical user interface; Haivision SRT Gateway, a hybrid software-based solution for secure routing of live video streams across different types of IP networks; Haivision Hub, a cloud-based service for live and low latency media routing across the Microsoft Azure network; Haivision Connect, a cloud software as a service platform for delivering live and on-demand content to video portals and web sites; Haivision Connect DVR, a cloud-based service that connects multi-site ministries; and SRT Streaming Protocol that optimizes streaming performance across unpredictable networks. It also provides playing back and displaying solutions; and online streaming services. It serves broadcast, enterprise, government, house of worship, medical, and military and defense industries. The company was formerly known as Hajtek Vision Inc. and changed its name to Haivision Systems Inc. in June 2004. The company was incorporated in 2004 and is headquartered in Montreal, Canada.
How the Company Makes MoneyHaivision makes money through a combination of hardware sales, software licensing, and cloud services subscriptions. The primary revenue streams include the sale of high-performance video encoding and decoding hardware, which is utilized in live broadcasting and video conferencing. Additionally, the company generates revenue from its software solutions, including video management and streaming software, which can be licensed to customers for ongoing use. Cloud services, such as video streaming and content delivery solutions provided on a subscription basis, also contribute significantly to Haivision's revenue. Strategic partnerships with major technology firms and integration with broadcasting systems enhance the company's market reach and can lead to increased sales opportunities, further bolstering its earnings.
Haivision Systems Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The call emphasized a strong, improving business trajectory highlighted by a record Q4 ($40.2M) and robust Q4 YoY growth of 33.3%, meaningful Q4 adjusted EBITDA improvement (up 140% to $7.1M) and product momentum (Falkon X2, Kraken X1) along with a large commercial partnership (Minor League Baseball). Recurring revenues grew and the company built cash while reaffirming fiscal 2026 guidance of >$150M and expecting a >50% increase in adjusted EBITDA. Offsetting these positives were full‑year operating losses and a decline in full‑year adjusted EBITDA, rising expenses from strategic investments, a nonrecurring litigation charge, and seasonal/backlog concentration that may pressure some near‑term quarters. Management framed the results as an inflection point toward sustained double‑digit revenue and EBITDA growth, though realization of the >20% EBITDA target depends on reaching higher scale (around $150–160M+), likely into 2027.Q4-2025 Updates
Positive Updates
Record Quarterly Revenue
Q4 fiscal 2025 revenue was a company record at $40.2 million, the first quarter to eclipse $40 million.
Strong Q4 Year‑over‑Year Growth
Q4 revenue grew 33.3% year‑over‑year (+$10.0M). Full fiscal year revenue was $137.6M, up 6.2% YoY (+$8.1M), with much of the improvement concentrated in the second half.
Adjusted EBITDA and Margin Expansion in Q4
Q4 adjusted EBITDA was $7.1M, up 140% YoY (+$4.1M). Adjusted EBITDA margin in Q4 was 17.6%, approaching the company target of ~20%.
Gross Margin Stability
Q4 gross margin was 73%, consistent with the prior year. Year‑to‑date gross margin was 72.5%, in line with long‑term expectations.
Recurring Revenue Growth and Mix Improvement
Recurring revenue (maintenance, support, cloud) in Q4 was $7.3M, up 8.6% YoY. Full year recurring revenue was $28.9M, up 10.2% YoY and representing ~21% of full year revenue, contributing to revenue stability and visibility.
Successful Product Launches & Strong Product Demand
Key new products launched in 2025 include the Kraken X1 (AI tactical edge processor) and Falkon X2 (next‑generation transmitter). Falkon X2 is shipping in volume, described as the most successful product launch in company history, and early demand is outstripping original production plans (company increasing inventory/supply to scale).
Major Partnership Win
Haivision was selected as the official video encoder of Minor League Baseball, supporting contribution from stadiums and delivery of over 8,000 games — a notable commercial validation and channel expansion in North America.
Balance Sheet, Cash Flow and Capital Actions
Ended Q4 with $17.2M cash (up $6.3M from prior quarter). Net increase in cash during the quarter was $11.6M after reducing the line of credit by $5.2M. Active buybacks: ~1.1M shares purchased this year (~$4.9M); ~1.8M shares purchased across two NCIBs (~$8.1M). Credit facility capacity $35M with only $2.7M outstanding.
Confidence in 2026 Guidance and Longer‑Term Potential
Management reaffirmed fiscal 2026 guidance of >$150M revenue, expecting double‑digit revenue growth and a 50%+ increase in adjusted EBITDA (leveraging relatively flat OpEx). Company reiterated multi‑year bullish view on mission‑critical markets and private 5G opportunities.
Negative Updates
Full‑Year Adjusted EBITDA Decline and Operating Loss
Full fiscal year adjusted EBITDA was $12.8M versus $17.3M last year (decline). The company reported a full‑year operating loss of $1.2M compared to an operating profit of $5.5M the prior year (a swing of $6.7M).
Increase in Total Expenses
Total expenses rose to $25.4M in Q4 (up $3.6M YoY) and $101M for the full year (up $11.8M YoY). Drivers included higher sales compensation (~$1.2M in Q4), increased R&D (~$1.1M in Q4; $1.9M full year incremental R&D), FX impacts, and noncash share‑based payments.
Nonrecurring Litigation Cost
A $1.7M nonrecurring litigation expense (Vitec case) was recorded during the year; Vitec has appealed and the company has recorded the full liability including damages, interest and trial costs.
Seasonality and Backlog Concentration Risk
Management noted seasonality with Q4 typically the strongest quarter (U.S. government year‑end). Expectation that not every quarter in 2026 will match Q4 levels; Q1 typically lower than Q4 which could impact near‑term quarterly comparatives.
Legacy Third‑Party Components and Margin Impact
Sales of third‑party components declined ~20% for the year, while control room sales (excluding third‑party components) increased over 35%. Legacy systems integration contracts (e.g., Navy) include third‑party components that impact gross margins and mix timing.
Need for Scale to Reach 20%+ EBITDA
Management reiterated a target long‑term adjusted EBITDA margin above 20% but stated scale requirements have increased (now closer to ~$160M revenue) and timing may extend to 2027; full realization depends on achieving and sustaining higher annual revenue at that scale.
Company Guidance
Management reiterated fiscal 2026 guidance of revenues above $150 million (targeting the ~$150–$160M scale where they expect to reach 20%+ adjusted EBITDA), calling for double‑digit revenue growth while keeping operating expenses roughly flat versus FY2025; that operating leverage is expected to drive at least a 50% increase in adjusted EBITDA (i.e., double‑digit EBITDA growth) and move adjusted EBITDA margins up from the Q4 level of 17.6% toward their long‑term target. For context, Q4 FY2025 revenue was $40.2M (up 33.3% YoY) and full‑year revenue was $137.6M, Q4 adjusted EBITDA was $7.1M (17.6% margin) and FY adjusted EBITDA was $12.8M, recurring revenue was $28.9M (~21% of FY revenue), and management noted amortization step‑downs (~$600K and ~$350K per quarter) and a cash/credit position of $17.2M cash and a $35M credit facility with $2.7M drawn.Haivision Systems Financial Statement Overview
Summary
Haivision Systems shows a mixed financial performance. The balance sheet is strong, indicating stability, but the income statement reveals profitability issues with negative net income and EBIT margins. Cash flow generation is positive but declining, highlighting areas for improvement in cash management.Income Statement
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.55
Neutral
Balance Sheet
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.70
Positive
Cash Flow
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.61M | 129.54M | 139.86M | 125.70M | 92.59M | 83.11M |
| Gross Profit | 92.50M | 94.69M | 98.58M | 86.33M | 69.33M | 63.75M |
| EBITDA | 4.29M | 15.30M | 11.07M | 3.06M | -2.67M | 9.90M |
| Net Income | -1.24M | 4.70M | -1.27M | -6.19M | -8.78M | 5.80M |
Balance Sheet | ||||||
| Total Assets | 139.12M | 141.32M | 144.09M | 148.60M | 122.48M | 62.77M |
| Cash, Cash Equivalents and Short-Term Investments | 10.88M | 16.47M | 8.29M | 5.77M | 26.84M | 15.72M |
| Total Debt | 15.16M | 10.27M | 16.18M | 24.97M | 8.59M | 7.57M |
| Total Liabilities | 47.03M | 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 | 1.86M | 17.49M | 14.20M | -6.12M | 1.44M | 13.61M |
| Operating Cash Flow | 3.95M | 19.49M | 15.25M | -5.08M | 2.22M | 13.92M |
| Investing Cash Flow | -2.30M | -2.20M | -3.07M | -25.76M | -20.32M | -2.54M |
| Financing Cash Flow | -4.84M | -9.18M | -9.88M | 8.58M | 30.23M | 1.79M |
Haivision Systems Technical Analysis
Positive
6.43
Price Trends
5.29
Positive
5.12
Positive
4.82
Positive
Market Momentum
0.15
Negative
79.05
Negative
83.97
Negative
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 6.43 is above the 20-day moving average (MA) of 5.52, above the 50-day MA of 5.29, and above the 200-day MA of 4.82, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 79.05 is Negative, neither overbought nor oversold. The STOCH value of 83.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HAI.
Haivision Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$154.73M | -146.14 | -1.32% | ― | -5.56% | -124.69% | |
65 Neutral | C$3.16B | 220.73 | 2.88% | ― | -9.05% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | C$223.69M | -29.42 | -2.18% | ― | -4.34% | 31.52% | |
47 Neutral | C$11.58M | -14.55 | -24.65% | ― | -69.94% | -281.40% | |
45 Neutral | C$14.56M | -1.47 | ― | ― | 17.18% | 79.56% | |
41 Neutral | C$2.92M | -0.44 | ― | ― | -13.42% | -126.00% |
* Technology Sector Average
TSE:HAI
Haivision Systems
6.43
1.51
30.69%
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Haivision Systems Corporate Events
Financial Disclosures
Haivision Systems to Release Q4 and Full Year 2025 Financial Results
Neutral
Dec 11, 2025
Haivision Systems Inc. announced plans to release its financial results for the fourth quarter and full year ending October 31, 2025, on January 14, 2026. The announcement will be followed by a conference call hosted by the management team to discuss the results. This release is significant for stakeholders as it provides 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$5.50 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.