illumin Holdings (ILLM) AI Stock Analysis

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illumin Holdings

(TSX:ILLM)

Rating:50Neutral

Price Target:

C$2.00

▲(9.89%Upside)

illumin Holdings shows mixed financial performance with challenges in profitability, despite revenue growth. The stock is in a bearish technical phase, and a high P/E ratio indicates potential overvaluation. Positive corporate events provide some optimism, but operational inefficiencies and liquidity concerns weigh down the overall score.

illumin Holdings (ILLM) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$94.10M

Dividend YieldN/A

Average Volume (3M)87.58K

Price to Earnings (P/E)500.0

Beta (1Y)1.63

Revenue Growth15.82%

EPS GrowthN/A

CountryCA

Employees216

SectorCommunication Services

Sector Strength83

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)-0.04

Shares Outstanding51,704,784

10 Day Avg. Volume60,332

30 Day Avg. Volume87,580

Financial Highlights & Ratios

PEG Ratio-6.23

Price to Book (P/B)1.27

Price to Sales (P/S)0.00

P/FCF Ratio155.91

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$2.63

Price Target Upside44.51% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

illumin Holdings Business Overview & Revenue Model

Company Descriptionillumin Holdings Inc., a technology company, provides digital media solutions in the United States, Canada, Europe, Latin America, and internationally. The company offers a programmatic marketing platform that enables advertisers to connect with their audiences across online display, video, social, and mobile campaigns. Its platform also allows advertisers to manage their purchasing of online display advertising in real-time using programmatic ad buying. In addition, the company offers illumin, an advertising automation technology that provides planning, media buying, and omnichannel intelligence; and allows advertisers to map their consumer journey playbooks across screens and execute in real-time using programmatic technology. It serves Fortune 500 enterprises and small to mid-sized businesses. The company was formerly known as AcuityAds Holdings Inc. and changed its name to illumin Holdings Inc. in June 2023. illumin Holdings Inc. is headquartered in Toronto, Canada.

How the Company Makes Moneyillumin Holdings generates revenue through a multi-faceted approach, leveraging its diversified portfolio. Key revenue streams include subscription fees from its software as a service (SaaS) products, service fees from digital marketing campaigns, and consulting charges for data analytics services. The company also engages in strategic partnerships with other technology firms to expand its market reach and enhance its service offerings. These collaborations often result in joint ventures or shared revenue models that contribute significantly to its earnings.

illumin Holdings Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q3-2024)

% Change Since: -9.00%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call reflects strong revenue growth across all business segments, particularly in illumin self-service and programmatic revenue, alongside a significant increase in adjusted EBITDA. However, the company faced challenges with a net loss for the quarter and increased operating expenses, despite a decrease in cash reserves. The positive revenue trends and strategic initiatives indicate an optimistic outlook for future growth, though financial challenges remain.

Q3-2024 Updates

Positive Updates

Record Total Revenue

Reported record total revenue of $36.3 million, a 23% increase year-over-year.

illumin Self-Serve Revenue Growth

illumin self-service revenue increased by 64% compared to Q3 2023, reaching $8.4 million and representing 23% of total revenue.

Adjusted EBITDA Increase

Adjusted EBITDA rose by 200% compared to the same period in 2023.

Programmatic Revenue Growth

Programmatic revenue grew by 39% during the quarter.

Managed Services Revenue Growth

Managed services revenue experienced year-over-year growth for the first time in over a year.

Negative Updates

Net Loss for the Quarter

Reported a net loss of $1.1 million compared to a profit of $800,000 in the same period last year, mainly due to a net foreign exchange loss and lower income taxes.

Cash and Cash Equivalents Decrease

Cash and cash equivalents decreased to $51.4 million from $55.5 million at the end of 2023, primarily due to share repurchases and investments.

Higher Operating Expenses

Total operating expenses for the third quarter were approximately $18 million, up from $16.8 million during the same period in 2023.

Company Guidance

During the third quarter 2024 earnings call for ILLM.TO, the company reported a record total revenue of $36.3 million, marking a 23% increase on a year-over-year basis. The illumin self-service business was a significant contributor, with revenue reaching $8.4 million—a 64% rise from Q3 2023—and representing 23% of the total company revenue. Programmatic revenue also grew by 39%, while managed services revenue saw a 3% increase, marking the first year-over-year growth for managed services in over a year. Adjusted EBITDA witnessed a substantial 200% improvement compared to the same period in 2023, driven by enhanced sales initiatives targeting higher spend customers and improvements in the platform's reporting and automation tools. The company onboarded 29 new illumin self-service clients, benefiting from integrations with walled gardens and CTV support. Despite higher operating expenses, the gross margin remained consistent at 47%. The call concluded with an optimistic outlook for solid fourth-quarter revenue growth, attributed to recent organizational and strategic changes.

illumin Holdings Financial Statement Overview

Summary

illumin Holdings displays mixed financial health. There is modest revenue growth but the company struggles with profitability, indicated by negative EBIT and low net profit margins. The balance sheet shows low leverage but declining assets and equity suggest challenges. Cash flow management is adequate, though free cash flow volatility highlights potential liquidity issues.

Income Statement

Neutral

The company has shown a modest revenue growth rate of 2.94% in the TTM compared to the previous year. However, profitability metrics are concerning, with a negative EBIT margin and a net profit margin of only 0.10% for the TTM period, indicating operating struggles. The gross profit margin remains stable but is overshadowed by persistent negative EBIT and EBITDA margins.

Balance Sheet

Neutral

The balance sheet reflects a relatively strong equity position, with a high equity ratio of approximately 71.45% in the TTM period. The debt-to-equity ratio is low at 0.07, indicating minimal leverage and financial risk. However, the company has experienced declining total assets and equity over the years, suggesting potential challenges in asset management and growth.

Cash Flow

Neutral

The cash flow statement shows positive operating cash flow in the TTM, but free cash flow has sharply declined compared to the previous period, indicating pressure on liquidity. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to net earnings. However, the volatility in free cash flow growth is a concern.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
144.52M	140.39M	126.32M	121.04M	122.03M	104.89M
	Gross Profit
65.67M	65.46M	60.30M	60.79M	63.56M	54.09M
	EBIT
-4.95M	-5.03M	-11.38M	-5.52M	9.39M	6.99M
	EBITDA
-851.00K	323.00K	-5.89M	-665.00K	19.01M	15.75M
	Net Income Common Stockholders
151.00K	867.00K	-10.99M	-753.44K	11.75M	3.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.45M	55.95M	55.45M	85.94M	102.21M	22.64M
	Total Assets
116.89M	125.82M	116.89M	141.65M	149.83M	72.43M
	Total Debt
7.99M	6.26M	7.99M	10.87M	11.01M	17.15M
	Net Debt
-47.46M	-49.69M	-47.46M	-75.07M	-91.20M	-5.49M
	Total Liabilities
36.20M	46.79M	36.20M	38.52M	36.77M	40.38M
	Stockholders Equity
80.70M	79.03M	80.70M	103.13M	113.06M	32.05M
Cash Flow		Free Cash Flow
631.00K	4.18M	-6.63M	-2.05M	17.37M	13.98M
	Operating Cash Flow
6.55M	10.13M	-1.39M	1.78M	19.69M	19.29M
	Investing Cash Flow
-5.92M	-5.95M	-5.24M	-3.83M	-2.33M	-5.32M
	Financing Cash Flow
-5.52M	-7.54M	-22.99M	-19.35M	58.81M	1.25M

illumin Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.82

Price Trends

50DMA

1.93

Negative

100DMA

2.28

Negative

200DMA

2.04

Negative

Market Momentum

MACD

-0.03

Negative

RSI

43.29

Neutral

STOCH

51.85

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ILLM, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.86, below the 50-day MA of 1.93, and below the 200-day MA of 2.04, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ILLM.

illumin Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	74 Outperform	C$63.74M	11.01	9.94%	―	25.69%	―
Sector *	61 Neutral	$14.35B	5.84	-4.31%	3.69%	2.75%	-35.67%
ILLM	50 Neutral	C$94.10M	500.00	0.19%	―	15.82%	―
EQ	45 Neutral	C$67.51M	―	-451.55%	―	-1.01%	84.17%
PNC.A		C$140.63M	―		―	―	―
SPN	49 Neutral	C$20.03M	―	-0.29%	―	-18.13%	60.10%
ZMDTF		$83.99M	6.42	82.67%	―	―	―

* Communication Services Sector Average

Performance Comparison

TSE:ILLM

illumin Holdings

1.80

0.30

20.00%

TSE:EQ

EQ Inc

0.98

-0.17

-14.78%

TSE:TBRD

Thunderbird Entertainment Group Inc

1.55

-0.23

-12.92%

TSE:PNC.A

Postmedia Ntwrk C J

1.38

<0.01

0.73%

TSE:SPN

Snipp Interactive

0.07

-0.03

-30.00%

ZMDTF

Zoomd Technologies

0.83

0.77

1283.33%

illumin Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures

illumin Holdings Sees 17% Revenue Growth in Q1 2025, Bolstered by Exchange Services

Positive

May 9, 2025

illumin Holdings reported a 17% increase in first-quarter revenue for 2025, reaching $29.1 million, driven by a significant 148% rise in Exchange service revenue. Despite a decrease in Managed service revenue due to geopolitical and macroeconomic uncertainties, the company successfully onboarded 18 new Self-service clients, indicating a strategic focus on high-spend clients and long-term growth. The company continues to invest in its Self-service and Exchange platforms while managing costs and maintaining liquidity, aiming to enhance marketing and sales performance and product differentiation in a competitive market.

Financial Disclosures

illumin Holdings to Announce Q1 2025 Financial Results

Neutral

Apr 22, 2025

illumin Holdings Inc. has announced that it will release its first quarter 2025 financial results on May 9, 2025, before the market opens. A live webcast will be held on the same day, where the CEO and CFO will discuss the results, followed by a Q&A session. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.