illumin Holdings (ILLM) AI Stock Analysis

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illumin Holdings

(TSX:ILLM)

Rating:58Neutral

Price Target:

C$2.00

▼(-6.98% Downside)

The overall stock score of 58 reflects a mixed outlook for illumin Holdings. The company's strong balance sheet and recent corporate event showcasing significant revenue growth are positive factors. However, these are offset by concerning valuation metrics and ongoing profitability challenges. Investors should weigh the company's potential for strategic growth against its high valuation and operational efficiency needs.

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

Market Cap

C$113.55M

Dividend YieldN/A

Average Volume (3M)129.31K

Price to Earnings (P/E)611.1

Beta (1Y)1.72

Revenue Growth15.82%

EPS GrowthN/A

CountryCA

Employees216

SectorCommunication Services

Sector Strength79

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)-0.11

Shares Outstanding51,612,724

10 Day Avg. Volume131,281

30 Day Avg. Volume129,314

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$2.92

Price Target Upside35.81% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

illumin Holdings Business Overview & Revenue Model

Company Descriptionnull

How the Company Makes Moneynull

illumin Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q3-2024)

% Change Since: 7.50%|

Next Earnings Date:Nov 06, 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 shows modest revenue growth of 2.94% TTM, but struggles with profitability as indicated by negative EBIT and low net profit margins. The balance sheet is strong with low leverage, but declining assets and equity suggest risks. Cash flow management is adequate, though volatile free cash flow poses liquidity concerns.

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.

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

illumin Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.15

Price Trends

50DMA

1.97

Positive

100DMA

2.02

Positive

200DMA

2.11

Positive

Market Momentum

MACD

0.05

Positive

RSI

54.95

Neutral

STOCH

63.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ILLM, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 1.97, and above the 200-day MA of 2.11, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ILLM.

illumin Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	77 Outperform	C$73.99M	12.43	9.94%	―	25.69%	―
ILLM	58 Neutral	C$113.55M	611.11	0.19%	―	15.82%	―
Sector *	56 Neutral	C$4.19B	4.84	-10.91%	5.40%	-6.69%	-29.36%
EQ	42 Neutral	C$66.81M	―	-451.55%	―	-1.01%	84.17%
PNC.A	―	$148.08M	―		―	―	―
SPN	54 Neutral	C$18.60M	―	-0.29%	―	-11.74%	99.29%
ZMDTF	―	$93.50M	7.38	82.67%	―	―	―

* Communication Services Sector Average

Performance Comparison

TSE:ILLM

illumin Holdings

2.20

0.76

52.78%

TSE:EQ

EQ Inc

0.96

-0.18

-15.79%

TSE:TBRD

Thunderbird Entertainment Group Inc

1.75

0.02

1.16%

TSE:PNC.A

Postmedia Ntwrk C J

1.52

0.18

13.43%

TSE:SPN

Snipp Interactive

0.06

-0.02

-25.00%

ZMDTF

Zoomd Technologies

1.03

0.91

758.33%

illumin Holdings Corporate Events

Financial Disclosures

illumin Holdings to Announce Q2 2025 Financial Results on August 7

Neutral

Jul 17, 2025

illumin Holdings Inc. has announced that it will release its second quarter 2025 financial results on August 7, 2025, before the market opens. The company will host a live webcast on the same day, where CEO Simon Cairns and CFO Elliot Muchnik will discuss the results and engage in a Q&A session. This announcement underscores illumin’s commitment to transparency and engagement with investors and analysts, potentially impacting its market perception and stakeholder relations.

The most recent analyst rating on (TSE:ILLM) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on illumin Holdings stock, see the TSE:ILLM Stock Forecast page.

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.

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: Jul 17, 2025