Martello Technologies Group Inc (MTLO) AI Stock Analysis

• Market Cap: C$5.84M
• Dividend Yield: N/A
• Average Volume (3M): 44.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -13.42%
• EPS Growth: -126.00%
• Country: CA
• Employees: 75
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.01
• Shares Outstanding: 583,707,460
• 10 Day Avg. Volume: 55,661
• 30 Day Avg. Volume: 44,832
• PEG Ratio: 0.02
• Price to Book (P/B): 12.73
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -34.35
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.01 ▲(0.00% Upside)

Martello Technologies Group Inc faces substantial financial difficulties, with declining revenues and persistent losses being the most significant concerns. The technical indicators suggest a bearish trend, and the valuation metrics are unfavorable due to negative earnings. While recent corporate events, such as securing a loan and restructuring, offer some hope for future improvement, they also highlight ongoing operational challenges.

Positive Factors

Business Model Strength

The diverse revenue streams from software sales and subscriptions provide a stable foundation, enhancing long-term revenue predictability and resilience.

Market Position

Specialization in network performance management positions Martello as a key player in optimizing IT infrastructure, crucial for cloud service environments.

Industry Trends

Growing demand for cloud services and unified communications supports long-term growth potential for Martello's solutions in a digital-first world.

Negative Factors

Revenue Decline

Persistent revenue decline signals challenges in market competitiveness and product adoption, impacting long-term growth prospects.

Negative Equity

Negative equity highlights financial vulnerability, limiting the company's ability to invest in growth and weather economic downturns.

Cash Flow Difficulties

Negative cash flows indicate reliance on external financing, raising concerns about the company's ability to sustain operations without strategic changes.

Martello Technologies Group Inc Business Overview & Revenue Model

Company Description

Martello Technologies Group Inc (MTLO) is a Canadian technology company specializing in the development of software solutions that enhance network performance and user experience. Operating primarily in the IT sector, Martello offers products and services that focus on monitoring, analytics, and optimization of network systems. Their core offerings include solutions for Microsoft 365 and other cloud services, aimed at ensuring consistent performance and reliability for enterprise clients.

How the Company Makes Money

Martello Technologies generates revenue through a combination of software licensing, subscription-based services, and professional services. The company offers various pricing models for its products, including one-time fees for licenses and recurring revenue from subscriptions for its monitoring and optimization tools. Key revenue streams include sales from its flagship products, partnerships with major technology firms for integration services, and consulting services that help clients implement and optimize their network performance solutions. Additionally, strategic partnerships with companies in the cloud services sector enhance their market reach and contribute to their sales growth.

Martello Technologies Group Inc Financial Statement Overview

Summary

Martello Technologies Group Inc demonstrates significant financial challenges, characterized by declining revenues, persistent losses, and negative equity. The company's operational inefficiencies and reliance on external financing are concerning, indicating a need for strategic changes to improve financial stability and performance.

Income Statement

The revenue has been declining over the past few years with a significant drop in the most recent year. The company has consistently reported negative net profit margins due to persistent losses. Both EBIT and EBITDA margins remain negative, indicating operational challenges. Despite high gross profit margins, the lack of revenue growth and profitability is concerning.

Balance Sheet

The company has a negative stockholders' equity as of the latest period, indicating financial instability. The debt-to-equity ratio is unfavorable due to negative equity, highlighting potential leverage risks. Although cash reserves are present, the overall equity ratio and return on equity are weak, which reflects a precarious financial position.

Cash Flow

Operating cash flow and free cash flow have been negative, reflecting cash flow difficulties. The free cash flow to net income ratio is not meaningful due to negative figures. The company is heavily reliant on external financing to support its operations, which could pose sustainability risks.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.18M	15.77M	14.53M	16.10M	17.54M	16.83M
Gross Profit	11.26M	13.83M	12.53M	15.91M	15.91M	15.63M
EBITDA	-9.17M	-1.95M	-2.09M	-3.34M	-4.45M	-1.27M
Net Income	-12.99M	-5.74M	-5.70M	-25.19M	-8.22M	-6.37M
Balance Sheet
Total Assets	8.64M	20.56M	19.23M	41.94M	49.69M	25.24M
Cash, Cash Equivalents and Short-Term Investments	2.11M	7.72M	6.69M	2.22M	5.02M	8.52M
Total Debt	12.95M	10.97M	12.40M	10.64M	11.39M	11.05M
Total Liabilities	21.31M	19.82M	22.33M	22.26M	23.05M	10.15M
Stockholders Equity	-12.67M	738.68K	-3.10M	-1.27M	19.68M	26.63M
Cash Flow
Free Cash Flow	-4.18M	-273.77K	-3.08M	-4.67M	-6.40M	-3.72M
Operating Cash Flow	-4.17M	-253.39K	-3.06M	-4.65M	-6.35M	-3.61M
Investing Cash Flow	-6.83K	-20.38K	-13.88K	-14.34K	-8.36M	-3.11M
Financing Cash Flow	1.70M	5.79M	2.00M	2.02M	1.23M	20.21M

Martello Technologies Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTLO, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MTLO.

Martello Technologies Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EONX	57 Neutral	C$41.54M	―	―	―	79.84%	70.95%
PLUR	50 Neutral	C$15.71M	-1.02	―	―	17.18%	79.56%
OPT	46 Neutral	C$1.43M	-0.07	―	―	-3.95%	7.90%
NBVA	46 Neutral	C$12.98M	―	-24.65%	―	-69.94%	-281.40%
MTLO	44 Neutral	C$5.84M	-0.82	―	―	-13.42%	-126.00%
VENZ	27 Underperform	$4.77M	―	-79.05%	―	―	0.75%

Martello Technologies Group Inc Corporate Events

Martello Secures $2M Loan from Wesley Clover International

Martello Technologies Group Inc. has secured a CAD$2 million loan from Wesley Clover International, an investment firm controlled by Martello’s Chairman, Terence Matthews. The loan, which carries an 8% annual interest rate and matures in August 2028, will be used for general corporate purposes. This transaction is considered a ‘related party transaction’ under Canadian securities regulations, and was approved by the company’s board, excluding Matthews. This financial move is expected to support Martello’s operations and potentially strengthen its market position in the enterprise collaboration solutions industry.

Martello Technologies Reports Q2 FY26 Financial Results and Strategic Restructuring

Martello Technologies announced its financial results for Q2 FY26, highlighting an operational restructuring aimed at accelerating cash flow and laying the groundwork for future growth. The company is focusing on the Mitel Performance Analytics (MPA) product line, integrating AI capabilities and expanding platform support, which remains a stable source of recurring revenue. Despite a decline in revenue due to lower renewal rates of legacy products, Martello sees growth potential in AI management and assurance solutions, supported by a recent amendment to its loan agreement with Wesley Clover International.

Martello Technologies Restructures to Focus on AI and Mitel

Martello Technologies Group Inc. announced an operational restructuring, transitioning its Vantage DX product to End of Sale status to focus on its Mitel business and explore AI innovations in IT monitoring. This strategic realignment aims to enhance profitability and operational efficiency, despite reducing the global workforce by approximately 50%. The company will continue supporting existing Vantage DX customers while concentrating on Mitel Performance Analytics and new AI-driven innovations.