Airiq Inc (IQ) AI Stock Analysis

• Market Cap: C$15.36M
• Dividend Yield: N/A
• Average Volume (3M): 13.76K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.73
• Revenue Growth: 4.42%
• EPS Growth: -53.42%
• Country: CA
• Employees: 20
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 29,537,073
• 10 Day Avg. Volume: 18,469
• 30 Day Avg. Volume: 13,763
• PEG Ratio: -0.19
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 12.89
• 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: 68 Neutral
• Price Target: C$0.57 ▲(6.98% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven by strong technical momentum (price above major moving averages and positive MACD) and a low-risk balance sheet with continued revenue growth. These positives are tempered by compressed profitability, negative free cash flow, and a stretched valuation (high P/E), which raises execution risk if margins and cash conversion do not improve.

Positive Factors

High gross margins & steady revenue growth

Sustained ~60% gross margins combined with TTM revenue growth indicate durable product economics and pricing power in the application software model. This margin cushion supports reinvestment in R&D and sales, and gives time to restore operating leverage if SG&A is optimized.

Very conservative balance sheet

Zero debt and a strong equity base materially reduce financial distress risk and preserve strategic optionality. This financial flexibility supports investment, M&A, or endurance through downturns without near-term refinancing pressure, a durable advantage for a growing software firm.

Positive operating cash flow (earnings quality)

Operating cash generation that exceeds reported net income signals high earnings quality and core business cash conversion. Over time this supports self-funded growth and reduces reliance on external capital, even if FCF is currently depressed by investment spend.

Negative Factors

Compressed profitability

A marked drop in EBIT and net margins erodes the company's ability to convert revenue into sustainable earnings. If higher operating costs or adverse mix persist, low profitability will constrain free cash flow, reinvestment capacity, and long-term return potential absent margin recovery.

Negative free cash flow

Persistent negative FCF, driven by capex or working-capital needs, creates a structural funding requirement that can deplete reserves or force external financing. Over several quarters this limits the company's ability to self-fund growth initiatives or buffer against margin volatility.

Modest returns and small scale

Low ROE and small operational scale imply limited capital efficiency and constrained market leverage. Without faster revenue growth or improved margins, the company may struggle to scale unit economics, limiting long-term profitability and making it harder to absorb fixed costs.

Airiq Inc Business Overview & Revenue Model

Company Description

AirIQ Inc. provides wireless asset management and location services in Canada. The company also develops and operates telematics asset management system by digitized mapping, wireless communications, internet, and the global positioning system. Its web-based platform provides fleet operators and vehicle owners with a suite of asset management solutions to monitor, manage, and protect their assets. In addition, the company offers its services through online or a mobile app, including instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts, and vehicle disabling and unauthorized movement alerts. AirIQ Inc. was incorporated in 1997 and is headquartered in Pickering, Canada.

How the Company Makes Money

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Airiq Inc Financial Statement Overview

Summary

Revenue growth remains solid (TTM +7.2%) with strong gross margins (~60%) and a very conservative balance sheet (no debt). Offsetting this, profitability has compressed materially (net margin ~3.9%, EBIT margin ~3.5%) and free cash flow is negative in TTM, indicating weaker near-term earnings conversion and cash generation.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 7.2%, indicating continued top-line momentum, supported by consistently strong gross margins (~60%). However, profitability has compressed meaningfully in TTM: net margin is ~3.9% and EBIT margin ~3.5%, well below prior annual levels, suggesting higher operating costs and/or a less favorable mix. Overall, the business shows solid product economics but weaker near-term earnings conversion.

Balance Sheet

The balance sheet is very conservative with zero total debt in the latest periods and a large equity base (TTM equity ~$8.2M vs. assets ~$9.3M), implying limited financial leverage risk. Return on equity is modest in TTM (~2.7%), reflecting the recent step-down in profitability rather than balance sheet strain. Strength is clear financial flexibility; the main weakness is low current returns generated on that equity.

Cash Flow

Operating cash flow is positive in TTM (~$1.26M) and modestly exceeds net income (about 1.19x), which is a healthy earnings-quality signal. The key issue is cash investment/spending: free cash flow is negative in TTM (~-$0.67M) and below net income, pointing to elevated capex/working-capital needs that are pressuring near-term cash generation despite positive operations.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.97M	5.54M	5.51M	5.05M	4.37M	3.71M
Gross Profit	3.40M	3.40M	3.35M	3.04M	2.68M	2.49M
EBITDA	1.28M	874.00K	1.54M	1.47M	1.05M	886.00K
Net Income	294.00K	203.00K	869.00K	3.69M	567.00K	449.00K
Balance Sheet
Total Assets	9.26M	9.14M	9.11M	8.44M	4.56M	3.91M
Cash, Cash Equivalents and Short-Term Investments	1.38M	3.09M	3.13M	2.18M	1.90M	1.83M
Total Debt	0.00	0.00	0.00	0.00	54.00K	117.00K
Total Liabilities	1.05M	1.04M	1.21M	1.48M	1.39M	1.19M
Stockholders Equity	8.22M	8.10M	7.90M	6.96M	3.17M	2.72M
Cash Flow
Free Cash Flow	-670.00K	83.00K	993.00K	399.00K	251.00K	-361.00K
Operating Cash Flow	1.26M	992.00K	1.65M	1.07M	1.21M	253.00K
Investing Cash Flow	-2.69M	-909.00K	-656.00K	-673.00K	-960.00K	-614.00K
Financing Cash Flow	-288.00K	-120.00K	-44.00K	-123.00K	-180.00K	-21.00K

Airiq Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IQ, the sentiment is Neutral. The current price of 0.53 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.54, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IQ.

Airiq Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQ	68 Neutral	C$15.36M	35.24	3.62%	―	4.42%	-53.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RW	57 Neutral	C$11.66M	327.70	446.71%	―	15.42%	―
AXE	48 Neutral	C$13.70M	-4.34	―	―	-22.45%	-144.97%
ADCO	47 Neutral	C$7.59M	-7.90	-4.82%	―	7.41%	55.10%
VQS	45 Neutral	C$7.68M	-2.20	-8232.51%	―	-0.83%	-8.33%

Airiq Inc Corporate Events

AirIQ Posts Record Recurring Revenue Growth on Strong Q3 and Acquisition Boost

AirIQ Inc. reported strong third-quarter results for the period ended December 31, 2025, driven by record recurring revenue growth. The company’s recurring revenue rose 33% to $1.6 million, helping lift total revenue 31% to $1.7 million and boosting net income nearly fourfold to $103,000.

Gross profit increased 29% to $1.05 million, underscoring improved scale and operating leverage in its IoT asset management business. AirIQ also completed an acquisition expected to add about $450,000 in annual recurring revenue at a 70% margin, supporting its strategy to build a higher-margin, subscription-driven model and reinforcing its positioning in the telematics and fleet management market.

The most recent analyst rating on (TSE:IQ) stock is a Hold with a C$0.62 price target. To see the full list of analyst forecasts on Airiq Inc stock, see the TSE:IQ Stock Forecast page.