Hydrograph Clean Power (HG) AI Stock Analysis

• Market Cap: C$2.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 331.08%
• EPS Growth: 15.77%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 340,175,480
• 10 Day Avg. Volume: 1,572,052
• 30 Day Avg. Volume: 1,623,360
• PEG Ratio: -2.99
• Price to Book (P/B): 40.88
• Price to Sales (P/S): 9903.17
• P/FCF Ratio: -86.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$8.00 ▲(193.04% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial performance—large ongoing losses and negative free cash flow—despite strong revenue growth and a low-leverage balance sheet. Technicals are a near-term positive with a strong uptrend and bullish MACD, but overbought signals add risk. Valuation remains unattractive/unclear due to negative earnings and no dividend support.

Positive Factors

Revenue Growth

TTM revenue growth of +45.6% signals accelerating end-market demand and early product adoption. This durable top-line expansion suggests the company is moving customers from testing toward larger orders, supporting scale economies and a potential path to improved margins over the next 2–6 months if cost structure tightens.

Balance Sheet Strength

A debt-to-equity near 0.006 indicates minimal leverage, giving Hydrograph flexibility to fund production scale-up and commercialization without near-term solvency pressure. Low leverage reduces refinancing risk and preserves capacity to raise capital or invest in capacity as revenue scales, a durable structural strength.

Scalable Commercialization Model

The business model emphasizes scalable graphene production and a clear customer qualification pathway from R&D pilots to recurring commercial sales. That structure supports durable revenue expansion as customers validate applications, enabling higher-volume, lower-cost production and stronger long-term commercial traction if adoption continues.

Negative Factors

Negative Margins

Negative gross profit and a net margin near -188% show the company’s cost base exceeds revenues, implying weak pricing power or immature production efficiency. Absent a sustained gross-margin inflection, profitability will remain elusive and undermine the business's ability to self-fund growth over the next several quarters.

Persistent Cash Burn

Operating cash flow of roughly -$6.3M and free cash flow of -$7.0M TTM indicate the company continues to rely on external capital to run operations. Persistent negative cash generation raises financing and dilution risk, and could limit the pace of commercialization or capacity investments if margins don't improve.

Negative Returns on Capital

A ROE around -1.13 reflects ongoing capital destruction: invested equity is not generating positive returns. Continued negative returns will erode the equity cushion over time, increasing solvency and funding pressure and making it harder to attract capital on favourable terms within the next several months.

Hydrograph Clean Power Business Overview & Revenue Model

Company Description

HydroGraph Clean Power Inc. manufactures and sells developing and commercializing processes to manufacture hydrogen and high-quality graphene in Canada and internationally. It engages in the exploitation of patented technology to produce graphene, hydrogen, syngas, methane and other products. The company was formerly known as Carbon-2D Graphene Inc and changed its name to HydroGraph Clean Power Inc. in March 2021. HydroGraph Clean Power Inc. was incorporated in 2017 and is based in Toronto, Canada.

How the Company Makes Money

Hydrograph Clean Power makes money primarily by selling graphene (and potentially other graphene-based/nanomaterial products) to customers that incorporate these materials into their own products and manufacturing processes. The company’s revenue model centers on: (1) Product sales: generating revenue from supply agreements and purchase orders for graphene materials, typically priced based on specifications such as purity, volume, and form factor (e.g., powder or dispersion) and delivered in quantities that may range from R&D-scale to commercial-scale as customers move from testing to adoption. (2) Customer qualification and scale-up pathway: revenue can start with smaller, higher-margin pilot/R&D orders used for customer validation and application development, with the potential to expand into recurring, larger-volume sales if customers qualify the material for production use. (3) Application-driven demand: earnings are influenced by adoption in end markets where graphene can provide measurable performance improvements (e.g., strength, conductivity, barrier properties), which can justify premium pricing and repeat purchasing. Specific details on major partnerships, contract structures (e.g., long-term offtake), pricing, customer concentration, and the split of revenue across products and end markets are not available in the provided prompt; therefore, those data points are null.

Hydrograph Clean Power Financial Statement Overview

Summary

Despite strong TTM revenue growth (+45.6%) and low leverage, results are dominated by deep unprofitability (negative gross profit and very negative net margin) and persistent cash burn (TTM operating cash flow about -$6.3M; free cash flow about -$7.0M). Solvency looks solid today, but ongoing losses and negative returns (ROE around -1.13) keep financial quality weak.

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing strongly (+45.6%), but the business remains deeply unprofitable. Gross profit is negative and operating losses are large, translating into extremely negative margins (net margin roughly -188% in TTM), which signals weak pricing power and/or high cost structure at the current scale. While the net loss in TTM is smaller than the latest annual period, profitability has not yet shown a durable inflection.

Balance Sheet

The balance sheet is a relative bright spot: leverage is very low (debt-to-equity near 0.006 in the latest periods), with equity funding the asset base. That said, returns remain materially negative (return on equity around -1.13 in TTM), reflecting ongoing losses and continued erosion risk if losses persist. Overall, solvency looks solid today, but the equity cushion ultimately depends on the pace of cash burn.

Cash Flow

Cash generation remains weak, with TTM (Trailing-Twelve-Months) operating cash flow around -$6.3M and free cash flow around -$7.0M, indicating the company is still funding operations with external capital. Free cash flow has improved versus the last annual period, but it is still meaningfully negative, and cash flow remains closely tied to losses rather than self-funding operations. The primary risk is sustained cash burn until revenue scales to a profitable level.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.16K	6.17K	7.40K	5.10K	6.29K
Gross Profit	-3.22M	-51.69K	-19.08K	1.67K	6.29K
EBITDA	-7.86M	-5.02M	-4.66M	-2.76M	-1.55M
Net Income	-8.17M	-5.33M	-4.96M	-2.98M	-1.51M
Balance Sheet
Total Assets	13.51M	5.40M	5.88M	7.94M	6.53M
Cash, Cash Equivalents and Short-Term Investments	8.72M	780.97K	510.43K	2.80M	218.35K
Total Debt	62.29K	188.94K	246.07K	318.09K	379.33K
Total Liabilities	3.05M	731.07K	1.01M	452.35K	4.75M
Stockholders Equity	10.45M	4.67M	4.87M	7.49M	2.25M
Cash Flow
Free Cash Flow	-4.94M	-4.16M	-4.17M	-5.42M	-1.75M
Operating Cash Flow	-4.77M	-4.07M	-3.55M	-3.58M	-726.68K
Investing Cash Flow	-449.81K	-81.43K	-620.99K	-1.84M	-1.03M
Financing Cash Flow	13.15M	4.48M	1.82M	2.80M	7.54M

Hydrograph Clean Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HG, the sentiment is Positive. The current price of 2.73 is below the 20-day moving average (MA) of 6.81, below the 50-day MA of 4.75, and above the 200-day MA of 2.61, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 60.49 is Neutral, neither overbought nor oversold. The STOCH value of 46.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HG.

Hydrograph Clean Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNP	76 Outperform	C$2.55B	22.34	26.65%	―	30.36%	181.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HG	52 Neutral	C$2.87B	-49.83	-86.76%	―	331.08%	15.77%
NEO	50 Neutral	C$1.06B	108.72	-1.58%	2.55%	8.04%	-195.66%
GMG	44 Neutral	C$268.52M	-3.44	-414.40%	―	6.29%	-3.71%
CNO	42 Neutral	C$13.88M	-2.61	-86.94%	―	-15.84%	-375.96%
NANO	42 Neutral	C$106.41M	-4.53	-64.75%	―	―	56.03%

Hydrograph Clean Power Corporate Events

HydroGraph Raises C$30 Million to Accelerate Texas Expansion and Graphene Scale-Up

HydroGraph Clean Power has closed a C$29.999 million best-efforts, fully marketed brokered private placement, issuing 5,882,348 units at C$5.10 each, with each unit comprising one common share and half a warrant. The warrants are exercisable at C$6.10 for 36 months and may be subject to accelerated expiry if the share price meets specified trading thresholds.

Net proceeds will fund the establishment and staffing of a new Texas headquarters, development of a second graphene production facility in Texas, expanded marketing and sales, ongoing R&D, intellectual property initiatives, strategic partnerships, and general working capital. Management framed the financing as a key milestone that supports scaling operations and reinforces HydroGraph’s competitive position in ultra-pure graphene solutions.

Canaccord Genuity acted as lead agent and sole bookrunner, earning cash commissions and broker warrants, while directors and senior officers agreed to a four-month voluntary lock-up. The securities issued carry defined hold periods under Canadian securities law and are restricted from offering or sale in the United States without applicable registration exemptions.

The most recent analyst rating on (TSE:HG) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Hydrograph Clean Power stock, see the TSE:HG Stock Forecast page.

HydroGraph targets C$30 million to fund Texas expansion and graphene scale-up

HydroGraph Clean Power has launched a best-efforts, fully marketed brokered private placement of up to 5,882,348 units at C$5.10 per unit, seeking gross proceeds of approximately C$30 million. Each unit comprises one common share and one-half warrant, with whole warrants exercisable at C$6.10 for 36 months, and the financing is led by Canaccord Genuity on behalf of a syndicate of agents.

The company plans to use the net proceeds to establish and staff a new Texas headquarters, advance a second graphene production facility in Texas, expand marketing and sales, support research and development, and bolster its intellectual property and partnerships. The offering, expected to close around March 5, 2026 subject to approvals, is structured under the Listed Issuer Financing Exemption, and the resulting securities will be eligible for major Canadian registered investment accounts, potentially broadening HydroGraph’s investor base and supporting its scale-up strategy.

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

HydroGraph Wins U.S., UK and EU Green Light for Commercial Graphene Sales

HydroGraph Clean Power has secured key regulatory clearances for its graphene materials in the United States, United Kingdom and European Union, paving the way for commercial-scale sales. The U.S. Environmental Protection Agency has issued a TSCA Section 5(e) Order authorizing manufacture, processing, distribution and use of HydroGraph’s turbostratic graphene products under defined operating and safety conditions.

In parallel, HydroGraph received UK REACH and EU REACH registrations for graphene, providing regulatory certainty for customers and enabling commercial manufacture and supply across Great Britain and EU member states. These approvals support the company’s existing UK technical base, its Compounding Partner Program and multiple ongoing development projects, positioning HydroGraph to expand revenue-generating agreements and scale graphene-enhanced applications in polymers, composites, coatings, energy storage and advanced materials.

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

HydroGraph Names Veteran Finance Executive John Neale as New CFO

HydroGraph Clean Power has appointed John Neale as chief financial officer, effective Feb. 20, 2026, while former CFO Matt Anderson moves into the role of vice president of finance. Neale will oversee finance, legal, human resources and technology functions as the company scales its graphene business with global enterprise and government customers.

Neale brings more than two decades of finance leadership across technology, B2B and manufacturing firms, including recent CFO roles at L7 Informatics and Rollick, where he helped raise growth capital and drive operational improvements. To align incentives with long-term performance, HydroGraph granted Neale 938,538 stock options vesting in equal annual tranches over four years, underscoring the strategic importance of his role in supporting commercial scale-up and capital markets activity.

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

HydroGraph Taps Hubron International to Expand Global Reach for Fractal Graphene

HydroGraph Clean Power has added UK-based Hubron International to its Compounding Partner Program, expanding a qualified network of plastics compounders that support the use of Fractal Graphene in thermoplastics. Hubron brings 90 years of expertise in black masterbatch, conductive polymer compounds and carbon-based nanomaterials, along with 24/7 manufacturing and multiple compounding technologies.

By leveraging Hubron’s global distributor network, HydroGraph expects broader access to markets such as automotive, construction, electronics, film, pipe, wire and cable, and technical compounding. The partnership is intended to speed delivery of graphene-enabled composite materials and strengthen Hubron’s positioning as a provider of nanomaterial-enhanced solutions through flexible manufacturing and toll compounding under customer brands.

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

HydroGraph to Add Two Hyperion Reactors in Texas-Focused Graphene Expansion

HydroGraph Clean Power is expanding its graphene production capabilities with the construction of two additional Hyperion reactors, each designed to produce around 10 tons per year of its FGA-1 ultra-pure fractal graphene using its proprietary explosion-synthesis technology. The reactors, mirroring the footprint of the company’s existing commercial unit, will be commissioned in Manhattan, Kansas before being integrated into new facilities under construction in Austin, Texas, forming part of a broader planned manufacturing build-out in south Texas that includes a larger reactor cluster and dedicated acetylene pipeline supply; the move is aimed at delivering scalable, repeatable capacity to support rising customer demand and to cement HydroGraph’s position as a reliable supplier for large-scale industrial applications of graphene.

The most recent analyst rating on (TSE:HG) stock is a Sell with a C$4.00 price target. To see the full list of analyst forecasts on Hydrograph Clean Power stock, see the TSE:HG Stock Forecast page.

HydroGraph Deepens Manchester Graphene Partnership With Tier 1 Upgrade

HydroGraph Clean Power has deepened its partnership with the University of Manchester’s Graphene Engineering Innovation Centre by moving from Tier 2 to Tier 1 membership, a step that will give the Canadian graphene producer its own dedicated lab space in Manchester and broader access to GEIC’s facilities and technical expertise. The upgraded status builds on two years of joint work that has produced more than 75 graphene-enhanced product development projects across industries and coincides with HydroGraph’s ramp-up from pilot production to roughly one ton of graphene per month, with further capacity planned as it adds reactors and a new Texas facility. The expanded collaboration is expected to speed the transition of projects from lab validation to industrial trials, strengthen ties with strategic partners such as the U.S. Army Research Laboratory, and reinforce Manchester’s position as a global hub for commercial graphene innovation, while potentially accelerating HydroGraph’s commercialisation efforts in both Europe and North America.

The most recent analyst rating on (TSE:HG) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Hydrograph Clean Power stock, see the TSE:HG Stock Forecast page.