Legend Power Systems (LPS) AI Stock Analysis

• Market Cap: C$14.90M
• Dividend Yield: N/A
• Average Volume (3M): 109.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 27.76%
• EPS Growth: -0.37%
• Country: CA
• Employees: 25
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 141,861,590
• 10 Day Avg. Volume: 95,047
• 30 Day Avg. Volume: 109,118
• PEG Ratio: 1.35
• Price to Book (P/B): -162.31
• Price to Sales (P/S): 15.75
• P/FCF Ratio: -14.13
• 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: 42 Neutral
• Price Target: C$0.10 ▼(-15.83% Downside)

The score is primarily held down by very weak financial performance (sharp revenue contraction, persistent losses and cash burn, and negative equity). Technicals add further downside bias with price below key moving averages and negative MACD, while valuation is also unattractive due to a negative P/E and no dividend support.

Positive Factors

Recurring & services revenue potential

The business model includes recurring revenue via software, monitoring and maintenance contracts tied to installed SmartGATE systems. These service streams can provide more predictable cash flow and customer lock-in over multiple quarters, supporting long-term revenue stability if adoption grows.

Product addresses structural energy efficiency demand

SmartGATE targets persistent industry trends: building energy efficiency and power quality. Structural drivers like rising electricity costs and decarbonization policies support sustained demand for voltage optimization, giving the company a relevant product-market fit over the medium term.

Relatively low nominal debt

Low reported debt provides financial flexibility to manage operations, pursue installations, or bridge short-term funding needs without heavy interest burdens. This reduces immediate solvency pressure compared with highly leveraged peers, supporting survival while restructuring or scaling sales.

Negative Factors

Severe recent revenue collapse

An ~89% revenue decline materially erodes scale economies, undermines the ability to cover fixed costs, and damages sales momentum. Such a large contraction impairs investment in go-to-market and installation capacity and raises execution risk for sustaining or regrowing revenue over ensuing quarters.

Negative equity indicates weakened capital base

The shift to negative equity signals that cumulative losses have eroded shareholder capital, increasing credit risk and the likelihood of dilutive financing. Negative equity can constrain access to non-dilutive capital and limit competitiveness for larger contracts requiring financial strength or performance guarantees.

Persistent operating and free cash flow deficits

Consistent negative operating and free cash flow reflects ongoing cash burn that forces reliance on external financing or equity raises. This restricts investment in sales, R&D, and project delivery capacity, and creates sustained liquidity and execution risk over multiple quarters without a credible path to break-even.

Legend Power Systems Business Overview & Revenue Model

Company Description

Legend Power Systems Inc., together with its subsidiaries, operates as an electrical energy conservation company in Canada and the United States. It assembles, markets, and sells SmartGATE, a patented device that enables dynamic power management of commercial or industrial Buildings. The company was founded in 1987 and is based in Vancouver, Canada.

How the Company Makes Money

Legend Power Systems generates revenue through the sale of its energy management products and services to commercial and industrial clients. The company's key revenue streams include direct sales of its proprietary technology solutions, installation services, and ongoing maintenance contracts. Additionally, LPS may enter into strategic partnerships with utility companies or other energy service providers to expand its market reach and enhance its service offerings. These partnerships can lead to additional revenue opportunities through joint projects or collaborative initiatives aimed at improving energy efficiency across different sectors.

Legend Power Systems Financial Statement Overview

Summary

Financials are severely stressed: revenue collapsed (~89% YoY in 2025), profitability remains deeply negative with 2025 turning to negative gross profit, and operating/free cash flow are consistently negative. The shift to negative equity in 2025 is a major solvency/funding risk despite relatively low nominal debt.

Income Statement

Operating performance remains very weak. Revenue has been highly volatile and recently contracted sharply (2025 revenue down ~89% YoY), and profitability deteriorated materially with a swing to negative gross profit in 2025. Losses are persistent across the period, with consistently deeply negative operating and net margins, indicating the current cost structure is not supported by the revenue base. A modest positive in prior years was occasional improvement in gross margin (e.g., 2024), but it has not translated into sustainable earnings.

Balance Sheet

Leverage is not the primary issue—total debt is relatively low in absolute terms and was modest versus equity historically. However, the balance sheet weakened significantly as equity fell from positive levels to negative in 2025, which is a major credit and dilution risk signal and makes debt-to-equity less meaningful/unstable. Total assets have also trended down meaningfully over time, consistent with ongoing losses and cash burn eroding the capital base.

Cash Flow

Cash generation is consistently negative: operating cash flow and free cash flow have been materially below zero every year shown, indicating ongoing cash burn to sustain operations. While free cash flow improved versus the unusually heavy outflow in 2022 and has generally tracked net losses (suggesting losses are not purely accounting-driven), 2025 still showed sizeable negative free cash flow and a very large deterioration in free cash flow growth, reinforcing liquidity pressure without external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.68M	1.68M	1.87M	1.11M	2.12M	2.71M
Gross Profit	-52.20K	-2.40M	702.85K	194.18K	204.35K	571.25K
EBITDA	-3.09M	-3.09M	-3.11M	-3.91M	-5.14M	-3.61M
Net Income	-3.29M	-3.29M	-3.30M	-4.18M	-5.35M	-3.84M
Balance Sheet
Total Assets	2.01M	2.01M	2.80M	5.23M	6.30M	11.80M
Cash, Cash Equivalents and Short-Term Investments	52.75K	52.75K	236.72K	2.51M	3.09M	9.29M
Total Debt	281.07K	281.07K	324.83K	425.99K	189.16K	304.10K
Total Liabilities	2.17M	2.17M	1.84M	1.23M	953.16K	1.71M
Stockholders Equity	-163.04K	-163.04K	960.53K	3.99M	5.35M	10.09M
Cash Flow
Free Cash Flow	-1.87M	-1.87M	-2.10M	-2.89M	-6.14M	-2.60M
Operating Cash Flow	-1.87M	-1.87M	-2.09M	-2.89M	-6.07M	-2.57M
Investing Cash Flow	-2.29K	-2.29K	-7.84K	0.00	-62.81K	-28.34K
Financing Cash Flow	1.70M	1.70M	-170.81K	2.32M	-160.53K	9.56M

Legend Power Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPS, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LPS.

Legend Power Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELVA	64 Neutral	$694.18M	131.50	16.94%	―	46.80%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRID	57 Neutral	C$296.34M	-234.15	-13.77%	―	26.28%	27.86%
BES	43 Neutral	C$6.04M	-3.48	―	―	-3.93%	-27.37%
LPS	42 Neutral	C$14.90M	-4.38	-341.84%	―	27.76%	-0.37%
EGT	40 Underperform	C$4.75M	-0.44	―	―	―	―

Legend Power Systems Corporate Events

Legend Power Narrows Losses as Pipeline Grows Despite Lower Annual Revenue

Legend Power Systems reported fourth-quarter fiscal 2025 revenue of C$690,284, essentially flat year over year, while its net loss narrowed to C$481,441 from C$832,475 on the back of lower operating expenses and improved gross margin of 25% versus 21% a year earlier. For the full year, revenue declined 10% to C$1.68 million and gross margin compressed to 23% from 38% due to inventory provisions and higher selling costs, but cost-cutting reduced operating expenses and improved adjusted EBITDA, as the company pursues a growing sales pipeline that includes active engagements with major commercial real estate firms covering nearly 200 buildings and participation in the U.S. GSA’s Green Proving Ground program, underscoring its strategic push to capitalize on rising power quality concerns and energy costs.

Legend Power Systems Raises $1.65 Million in Private Placement, Sets Date for Fiscal 2025 Results

Legend Power Systems has closed a non-brokered private placement, raising approximately $1.65 million through the issuance of 13.75 million units at $0.12 per unit, each comprising one common share and one warrant exercisable at the same price until January 2029. Conducted under the Listed Issuer Financing Exemption, the financing will fund operating expenses, material purchases and general working capital, while the company also paid finder fees in cash and warrants in line with TSX Venture Exchange policies; Legend Power further announced it will release its fiscal 2025 results on January 28, 2026 and host a results-and-business-update webinar the following day, signaling continued engagement with investors and stakeholders around its financial and operational progress.

Legend Power Systems Seeks Up to CAD$1.7 Million in New Private Placement

Legend Power Systems has launched a non-brokered private placement under the Listed Issuer Financing Exemption, offering between 11.1 million and 14.2 million units at CAD$0.12 per unit to raise gross proceeds of approximately CAD$1.33 million to CAD$1.70 million. Each unit comprises one common share and one warrant exercisable at CAD$0.12 for 36 months, with potential finder fees and warrants payable, and the proceeds earmarked primarily for operating expenses, material purchases and general working capital, underscoring the company’s need to bolster liquidity as it pursues growth in its building-focused energy management business; the financing may close in multiple tranches by January 31, 2026, subject to stock exchange and other regulatory approvals.

Legend Power Systems Announces Private Placement to Raise Up to CAD$1.7 Million

Legend Power Systems Inc. has announced a non-brokered private placement to raise between CAD$1,333,333 and CAD$1,702,320 through the issuance of up to 14,186,000 units, each comprising one common share and one purchase warrant. The proceeds will primarily be used for operating expenses, material purchases, and general working capital, with the offering expected to close in multiple tranches by January 8, 2026, subject to necessary approvals.