illumin Holdings (ILLM) AI Stock Analysis

• Market Cap: C$54.74M
• Dividend Yield: N/A
• Average Volume (3M): 85.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 17.97%
• EPS Growth: 3.79%
• Country: CA
• Employees: 216
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.04
• Shares Outstanding: 51,639,600
• 10 Day Avg. Volume: 126,232
• 30 Day Avg. Volume: 85,445
• PEG Ratio: -1.02
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 23.00
• 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$1.67
• Price Target Upside: 59.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$1.00 ▼(-4.76% Downside)

illumin Holdings' overall stock score is primarily impacted by its financial performance and valuation challenges. While there is revenue growth and strategic initiatives in place, the company's profitability and cash flow issues, combined with mixed technical indicators, weigh heavily on the score. The earnings call provided some positive insights, but significant hurdles remain.

Positive Factors

Exchange Service Revenue Growth

The significant growth in Exchange service revenue indicates a successful strategic pivot towards outcomes-based platforms, enhancing long-term revenue streams.

Self Service Revenue Growth

The robust growth in Self service revenue, despite a large client pause, reflects strong demand and potential for future expansion in this segment.

Operational Restructuring

Operational restructuring and cost management efforts are likely to improve profitability and platform leverage, supporting long-term financial health.

Negative Factors

Decline in Managed Service Revenue

The decline in Managed service revenue highlights challenges in adapting to market conditions, potentially impacting overall revenue stability.

Decreased Gross Margin

The reduction in gross margin suggests increased costs and pricing pressures, which could affect profitability if not addressed.

Increased Net Loss

The rising net loss indicates ongoing financial challenges, necessitating improvements in operational efficiency to ensure long-term viability.

illumin Holdings Business Overview & Revenue Model

Company Description

illumin 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 Money

Illumin Holdings generates revenue primarily through its equity stakes in its portfolio companies, which contribute earnings via product sales, subscription services, and licensing agreements. The company benefits from management fees charged to its subsidiaries and joint ventures, as well as profit-sharing arrangements based on performance metrics. Additionally, Illumin Holdings engages in strategic partnerships with industry leaders, which can lead to co-development projects and shared revenue opportunities. The diversification of its investments across high-growth sectors further mitigates risks and enhances overall profitability.

illumin Holdings Financial Statement Overview

Summary

illumin Holdings faces challenges in profitability and cash flow management, despite a stable balance sheet. The negative EBIT and EBITDA margins, along with concerning cash flow metrics, indicate operational inefficiencies and potential liquidity issues.

Income Statement

illumin Holdings has shown a slight revenue growth in the TTM period, but profitability metrics such as EBIT and EBITDA margins are negative, indicating operational challenges. The gross profit margin remains healthy, but the net profit margin is minimal, reflecting struggles in converting revenue into profit.

Balance Sheet

The company's debt-to-equity ratio is low, suggesting a conservative leverage approach. However, the return on equity is very low, indicating inefficiencies in generating returns for shareholders. The equity ratio is stable, showing a solid capital structure.

Cash Flow

The cash flow situation is concerning, with negative free cash flow growth and a low free cash flow to net income ratio. Operating cash flow is positive but insufficient to cover net income effectively, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.37M	140.39M	126.32M	121.04M	122.03M	104.89M
Gross Profit	64.55M	65.46M	60.30M	60.79M	63.56M	54.09M
EBITDA	-6.10M	323.00K	-5.89M	-665.00K	19.01M	15.75M
Net Income	-5.69M	867.00K	-10.99M	-754.00K	11.75M	3.69M
Balance Sheet
Total Assets	108.82M	125.82M	116.89M	141.65M	149.83M	72.43M
Cash, Cash Equivalents and Short-Term Investments	43.20M	55.95M	55.45M	85.94M	102.21M	22.64M
Total Debt	4.88M	6.26M	7.99M	10.87M	11.01M	17.15M
Total Liabilities	38.47M	46.79M	36.20M	38.52M	36.77M	40.38M
Stockholders Equity	70.36M	79.03M	80.70M	103.13M	113.06M	32.05M
Cash Flow
Free Cash Flow	-7.39M	4.18M	-6.63M	-2.05M	17.37M	13.98M
Operating Cash Flow	1.46M	10.13M	-1.39M	1.78M	19.69M	19.29M
Investing Cash Flow	-8.85M	-5.95M	-5.24M	-3.83M	-2.33M	-5.32M
Financing Cash Flow	-3.14M	-7.54M	-22.99M	-19.35M	58.81M	1.25M

illumin Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.05
• 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:ILLM, the sentiment is Neutral. The current price of 1.05 is above the 20-day moving average (MA) of 0.99, below the 50-day MA of 1.08, and below the 200-day MA of 1.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ILLM.

illumin Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KDOZ	63 Neutral	C$52.52M	61.90	9.46%	―	32.71%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FORA	49 Neutral	C$67.33M	-9.04	-6.82%	―	-4.04%	-297.93%
EAGR	48 Neutral	C$23.87M	-2.29	-26.04%	―	-6.22%	-439.10%
ILLM	47 Neutral	C$54.74M	-9.62	-7.86%	―	17.97%	3.79%
SPN	45 Neutral	C$15.11M	-8.06	-22.44%	―	1.45%	19.48%
EQ	44 Neutral	C$67.51M	-45.97	―	―	5.43%	68.55%

illumin Holdings Corporate Events

illumin Holdings Reports Q3 2025 Financial Results with Strategic Shift

illumin Holdings reported a 5% year-over-year increase in third-quarter revenue to $38.2 million, driven by significant growth in Exchange service revenue. Despite a decrease in Managed service revenue due to market uncertainty, the company onboarded 23 new Self service clients, positioning itself for long-term growth. The company is shifting towards a scalable, technology-led revenue model with a focus on cash flow generation, appointing a new Chief Revenue Officer to aid in this transition. While facing challenges in Managed service, illumin is committed to platform innovation and sales execution to scale its Exchange and Self service offerings.

illumin Holdings to Announce Q3 2025 Financial Results

illumin Holdings Inc. announced it will release its third quarter 2025 financial results on November 7, 2025, before market open. A live webcast featuring CEO Simon Cairns and CFO Elliot Muchnik will follow, providing insights into the results and allowing for a Q&A session. This announcement is significant for investors and stakeholders as it provides an opportunity to understand the company’s financial health and strategic direction.

illumin Holdings Unveils New Brand Identity and Platform Enhancements

illumin Holdings Inc. has launched a new brand identity and tagline, ‘See More. Achieve More.’, during Advertising Week in New York. This rebranding marks a significant transformation for the company, emphasizing its commitment to innovation and customer-centric solutions in the digital advertising industry. The company has enhanced its platform to offer faster campaign launches, streamlined workflows, and advanced forecasting tools, aiming to empower marketers and set a new standard in programmatic advertising.