Legend Power Systems (LPS) AI Stock Analysis

• Market Cap: C$11.64M
• Dividend Yield: N/A
• Average Volume (3M): 109.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 27.76%
• EPS Growth: -0.37%
• Country: CA
• Employees: 25
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 155,239,760
• 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: 43 Neutral
• Price Target: C$0.07 ▼(-43.33% Downside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is held down primarily by weak financial fundamentals—large ongoing losses, negative free cash flow, and negative equity. Technicals also point to a continuing downtrend with weak momentum, while valuation is constrained by a negative P/E and no dividend support.

Positive Factors

Recurring service revenue potential

The company earns recurring revenues from software, monitoring, analytics and maintenance tied to installed SmartGATE systems. Durable service contracts can create annuity-like cash flows, improve revenue visibility, and enable upsells that support long-term margin expansion if deployment scales.

Energy-efficiency product-market fit

SmartGATE targets commercial, industrial and institutional buildings seeking electrical efficiency and power-quality gains. Structural demand for building energy optimization and operational cost savings supports long-term addressable market growth and recurring deployments across facility portfolios.

Top-line growth momentum

Revenue increased about 10% year-over-year on a TTM basis, showing early commercial traction and adoption of the SmartGATE offering. Sustained revenue growth, even from a small base, indicates product-market fit and creates a foundation for scaling service revenue and improving operating leverage over months.

Negative Factors

Very weak profitability

Margins are deeply negative, with very low gross margin and extreme operating losses. Persistent weak profitability suggests the core product economics and pricing currently do not cover fixed costs, limiting reinvestment ability and requiring sustained improvement to reach self-sustaining operations.

Negative cash flow / cash burn

Operating and free cash flow are materially negative, indicating ongoing cash burn. Continued negative cash generation increases funding dependence, constrains execution and marketing investments, and raises the risk that management must secure external financing under adverse terms.

Balance-sheet erosion (negative equity)

Equity has turned negative, signaling accumulated losses that have eroded the capital cushion. Negative shareholders' equity limits financial flexibility, can impair borrowing capacity, and elevates insolvency risk if losses continue or capital access tightens.

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 primarily makes money by selling and deploying its SmartGATE voltage optimization systems and related services to building owners and operators. Revenue is typically generated from (1) equipment/system sales (the SmartGATE hardware and associated electrical components), (2) project delivery and installation/commissioning work performed directly by LPS and/or through electrical contractor channels, and (3) ongoing software, monitoring, analytics, maintenance, and support services tied to installed systems (where contracted). In addition, the company may earn revenue through structured customer arrangements where payment is linked to achieved electricity cost savings or other performance-based terms; however, the prevalence and specific structure of such arrangements are not available here and is therefore null. Information on specific major partnerships, channel agreements, or customer concentration that materially drive earnings is not available here and is therefore null.

Legend Power Systems Financial Statement Overview

Summary

Despite ~10.2% TTM revenue growth, profitability and cash generation are very weak (gross margin ~2.5%, EBIT margin ~-149%, net loss ~$2.78M). Cash burn remains heavy (TTM operating cash flow and free cash flow both about -$1.24M), and the balance sheet is pressured by negative equity (~-$0.65M), increasing funding risk even with low absolute debt (~$166k).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 10.18% to ~$1.85M, showing some top-line momentum. However, profitability remains very weak: gross margin is ~2.5% and operating losses are large (EBIT margin about -149%), driving a net loss of ~$2.78M (net margin about -150%). While losses have improved versus earlier years (when net margins were far more negative), the business still lacks a sustainable margin structure.

Balance Sheet

Debt is relatively low in absolute terms (TTM total debt ~$166k), but the capital structure has deteriorated materially: stockholders’ equity is negative in TTM (about -$0.65M), which is a major balance-sheet risk and limits financial flexibility. Total assets are modest (~$1.76M TTM) and the move from positive equity in prior years to negative equity suggests ongoing losses have eroded the cushion for creditors and shareholders.

Cash Flow

Cash generation is weak: TTM operating cash flow is about -$1.24M and free cash flow is also about -$1.24M, indicating continued cash burn. Free cash flow declined meaningfully versus the prior annual period (free cash flow growth about -33.6%). While free cash flow roughly tracks the net loss (free cash flow to net income ~1.0), the core issue is that both earnings and cash flow remain deeply negative.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.85M	1.68M	1.87M	1.11M	2.12M	2.71M
Gross Profit	47.17K	-2.40M	702.85K	194.18K	204.35K	571.25K
EBITDA	-2.57M	-3.09M	-3.11M	-3.91M	-5.14M	-3.61M
Net Income	-2.78M	-3.29M	-3.30M	-4.18M	-5.35M	-3.84M
Balance Sheet
Total Assets	1.76M	2.01M	2.80M	5.23M	6.30M	11.80M
Cash, Cash Equivalents and Short-Term Investments	46.63K	52.75K	236.72K	2.51M	3.09M	9.29M
Total Debt	166.34K	212.12K	324.83K	425.99K	189.16K	304.10K
Total Liabilities	2.41M	2.17M	1.84M	1.23M	953.16K	1.71M
Stockholders Equity	-652.51K	-163.04K	960.53K	3.99M	5.35M	10.09M
Cash Flow
Free Cash Flow	-1.24M	-1.87M	-2.10M	-2.89M	-6.14M	-2.60M
Operating Cash Flow	-1.24M	-1.87M	-2.09M	-2.89M	-6.07M	-2.57M
Investing Cash Flow	0.00	-2.29K	-7.84K	0.00	-62.81K	-28.34K
Financing Cash Flow	642.42K	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: Positive

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 0.09, above the 50-day MA of 0.10, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 7.33 is Positive, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELVA	58 Neutral	C$468.96M	79.82	14.29%	―	46.80%	―
GRID	54 Neutral	C$241.28M	-172.86	-13.77%	―	26.28%	27.86%
LPS	43 Neutral	C$11.64M	-7.82	-1552.79%	―	27.76%	-0.37%
EGT	40 Underperform	C$5.65M	-1.12	26.22%	―	―	―
BES	40 Underperform	C$4.94M	-1.85	―	―	-3.93%	-27.37%

Legend Power Systems Corporate Events

Legend Power Narrows Loss as SmartGATE Demand Lifts Revenue and Margins

Legend Power Systems reported a sharp year-over-year improvement in its fiscal Q1 2026 results, with revenue climbing to $253,000 from $82,000 and gross margin rising to 44% on better pricing and factory utilization. Operating expenses fell 39% due to cost-cutting, narrowing the net loss to $522,000 and the adjusted EBITDA loss to $465,000.

The company highlighted strong operational momentum, citing progress in its U.S. General Services Administration proving-ground project and a growing near-term pipeline exceeding 200 buildings. New franchise partnerships and a building modeling tool are helping quantify SmartGATE’s financial benefits, supporting Legend Power’s strategy to convert record pipeline activity into deployments despite its thin cash position before a recent $1.65 million financing.

The most recent analyst rating on (TSE:LPS) stock is a Hold with a C$0.09 price target. To see the full list of analyst forecasts on Legend Power Systems stock, see the TSE:LPS Stock Forecast page.

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.