ImagineAR (IP) AI Stock Analysis

• Market Cap: C$4.46M
• Dividend Yield: N/A
• Average Volume (3M): 263.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -67.21%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 297,620,540
• 10 Day Avg. Volume: 136,997
• 30 Day Avg. Volume: 263,979
• PEG Ratio: -0.14
• Price to Book (P/B): -3.52
• Price to Sales (P/S): 373.06
• P/FCF Ratio: -7.71
• 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: 43 Neutral
• Price Target: C$0.02 ▼(-5.00% Downside)

The score is driven primarily by very weak financial performance (shrinking revenue, large losses, ongoing cash burn, and negative equity). Technicals are mixed, with a short-term lift but a still-weak longer-term trend and negative MACD. Valuation is constrained by loss-making results (negative P/E) and no stated dividend yield.

Positive Factors

Low Absolute Debt

Modest absolute indebtedness reduces near-term solvency pressure and interest burden, preserving optionality. For a cash‑burning software firm, low leverage helps maintain flexibility to raise growth capital or pivot strategy without immediate refinancing stress, a durable structural benefit.

Platform Exposure to AR Secular Trend

Operating a platform for AR experiences aligns the company with a multi‑year structural shift toward immersive digital engagement across marketing, retail and events. A scalable platform model can leverage content reuse and client stickiness, supporting durable long‑term TAM capture if execution stabilizes.

Improving Cash Burn Trend

A reduction in cash consumption, even if losses remain, indicates progress on cost structure or revenue mix changes. Sustained improvement in operating cash outflow over multiple quarters would materially lower financing needs and increase runway, improving the odds of reaching cash‑flow break‑even.

Negative Factors

Sharp Revenue Contraction

Persistent and material top‑line decline undermines scalable software economics: it shrinks gross margins, prevents fixed cost absorption, and erodes customer momentum. Without reversing revenue shrinkage, sustainable profitability and market position remain unlikely over the medium term.

Persistent Negative Cash Generation

Ongoing negative operating and free cash flow steadily depletes resources and forces reliance on external capital. Over months, continued cash burn increases dilution risk, limits investment in product or sales, and constrains the company’s ability to execute on long‑term strategic initiatives.

Negative Shareholders' Equity and Small Asset Base

Negative equity and a tiny asset base reduce the firm’s loss‑absorbing capacity and financial credibility. This structural weakness hampers access to debt or partnership financing, raises insolvency risk if losses persist, and constrains the company’s ability to scale operations over time.

ImagineAR Business Overview & Revenue Model

Company Description

ImagineAR Inc. provides an augmented reality (AR) platform that enables businesses, sports teams, and organizations to create and implement their own AR campaigns with no programming or technology experience. Its products include ImagineAR Augmented Reality Platform that allows the choice of engagement by marker, location, and Web-based activation; ImagineAR.com, an AR-as-a-service platform for desktops; ImagineAR mobile app; ImagineAR SDK/API; ImagineAR White-Label Mobile App; ImagineAR Cloud, a centralized content management system, where AR is securely stored and managed; and WebAR services. The company serves the retail, sports/live events, advertising/promotions, e-sports, and fundraising industries. The company was formerly known as Imagination Park Technologies Inc. and changed its name to ImagineAR Inc. in April 2020. ImagineAR Inc. was incorporated in 2011 and is headquartered in Vancouver, Canada.

How the Company Makes Money

ImagineAR generates revenue through a SaaS (Software as a Service) model, offering subscription-based access to its AR platform. Clients pay for the usage of the platform, which can include features like AR content creation, deployment, and analytics. Additionally, the company may earn revenue from strategic partnerships with sports teams, retail brands, and entertainment companies that use its technology to enhance fan and customer engagement. Licensing fees for proprietary technology and custom AR solutions for large-scale clients can also contribute to its income.

ImagineAR Financial Statement Overview

Summary

Financial quality is very weak: sharp revenue contraction over the last two years, deeply negative profitability (large operating and net losses), persistent operating/free cash flow burn, and negative shareholders’ equity. Low absolute debt is a minor positive but does not offset the strained fundamentals.

Income Statement

Operating performance remains very weak. Revenue has contracted sharply over the last two years (2025 down ~25% after 2024 down ~1%), and profitability is deeply negative with gross profit losses and very large operating and net losses (2025 net margin roughly -126%). The main positive is that losses were even larger in some prior years (e.g., 2020–2022), but the recent collapse in revenue and persistently negative margins indicate the business has not found a sustainable cost/revenue structure.

Balance Sheet

Leverage is not the primary issue—total debt is modest in absolute terms (about 346k in 2025) and was even zero in 2024. However, the balance sheet is structurally pressured by negative shareholders’ equity in recent years (2023–2025), which reduces financial flexibility and makes the company more vulnerable to ongoing losses. Total assets are also small (about 429k in 2025), limiting the cushion available to absorb continued cash burn.

Cash Flow

Cash generation is consistently negative, with operating cash flow and free cash flow both materially below zero every year shown (2025 operating cash flow about -1.09M). While 2025 free cash flow was modestly better than 2024 (positive growth in the loss level), the core issue remains: the business is consuming cash rather than generating it, and cash burn continues to track closely with net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.03K	22.50K	45.31K	192.66K	61.35K	353.77K
Gross Profit	-2.05M	-1.58M	-1.12M	-497.00K	-73.69K	-3.19M
EBITDA	-3.12M	-2.77M	-2.15M	-1.77M	-4.04M	-6.08M
Net Income	-3.11M	-2.84M	-2.16M	-1.79M	-4.07M	-6.11M
Balance Sheet
Total Assets	374.83K	428.58K	153.46K	209.43K	643.13K	4.33M
Cash, Cash Equivalents and Short-Term Investments	316.78K	119.05K	101.90K	110.75K	481.24K	4.21M
Total Debt	331.23K	346.16K	0.00	40.00K	62.27K	47.90K
Total Liabilities	2.60M	2.81M	1.65M	1.07M	602.24K	479.76K
Stockholders Equity	-2.22M	-2.38M	-1.50M	-858.89K	40.89K	3.85M
Cash Flow
Free Cash Flow	-981.57K	-1.09M	-868.33K	-791.48K	-3.73M	-3.36M
Operating Cash Flow	-981.57K	-1.09M	-868.33K	-791.48K	-3.71M	-3.36M
Investing Cash Flow	0.00	0.00	0.00	-4.88K	-36.88K	-11.21K
Financing Cash Flow	1.23M	1.11M	859.48K	425.88K	20.00K	2.92M

ImagineAR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IP, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IP.

ImagineAR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAI	67 Neutral	C$228.69M	1,201.43	-1.32%	―	-5.56%	-124.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CTRL	47 Neutral	C$42.36M	-4.14	―	―	-24.81%	-131.85%
IP	43 Neutral	C$4.46M	-1.23	―	―	-67.21%	―

ImagineAR Corporate Events

ImagineAR Terminates Niagara Immersive Center Project Agreements

ImagineAR announced the termination of agreements for the Niagara Immersive Center project due to economic and market conditions that have made the project unviable. The termination was initiated by the project’s owner, citing economic uncertainty, increased financing risk, and tariff-related cost pressures as key factors. Although the agreements have been terminated, ImagineAR has no outstanding obligations, and there remains a possibility of future engagement if economic conditions improve.

ImagineAR Secures $350K in First Tranche of Private Placement

ImagineAR Inc. has successfully closed the first tranche of its $700,000 non-brokered private placement, raising $350,013.37 through the issuance of 11,667,112 units. Each unit consists of a common share and a warrant, with the proceeds intended for general working capital, operations, and sales/marketing efforts. This funding round is expected to bolster ImagineAR’s operational capabilities and market reach, enhancing its position in the augmented reality sector. The completion of the offering is contingent upon receiving necessary regulatory approvals.

ImagineAR Inc. Announces $700,000 Private Placement to Enhance Operations

ImagineAR Inc. has announced a non-brokered private placement financing of up to $700,000 through the issuance of 23,333,333 units at $0.03 per unit. The proceeds will be used for general working capital, operations, legal, and sales/marketing of products. This move is expected to bolster the company’s financial position and support its ongoing operations and market expansion efforts.