Nerds On Site (NERD) AI Stock Analysis

• Market Cap: C$3.21M
• Dividend Yield: N/A
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 13.01%
• EPS Growth: 20.00%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 91,633,340
• 10 Day Avg. Volume: 21,284
• 30 Day Avg. Volume: 29,491
• PEG Ratio: -1.21
• Price to Book (P/B): -1.14
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -3.31
• 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$0.03 ▲(45.00% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is mainly constrained by weak financial performance (ongoing losses, negative cash flow, and negative equity). Technical indicators also lean bearish with the price below key moving averages and negative MACD, while valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Top-line growth above ~19% per the fundamentals indicates sustained demand for IT services and momentum in customer acquisition. Durable revenue expansion supports scaling of recurring offerings and provides a runway to leverage fixed-costs, improving profit leverage over months.

Stable Gross Margin

A steady gross margin near 26% demonstrates resilience in service pricing and consistent service mix. That margin stability gives management a predictable base to target operational improvements and convert incremental revenue into operating leverage over the medium term.

Recurring & Networked Business Model

Managed services and a franchise/network model create recurring revenue streams and local delivery scale. This structure supports predictable cash flow, lower customer acquisition costs per location, and a scalable footprint that is durable across business cycles.

Negative Factors

Persistent Losses & Cash Burn

Ongoing net losses and negative operating/free cash flow show the company is consuming cash rather than generating it. That structural cash burn impairs reinvestment ability, forces reliance on external funding, and raises solvency risk if losses persist over quarters.

Negative Shareholders' Equity

Cumulative losses produced negative equity, leaving a thin capitalization profile. Negative equity constrains borrowing capacity, increases refinancing risk, and limits financial flexibility to pursue growth or absorb shocks without dilutive or costly financing.

Inability to Convert Growth to Profit

Despite revenue gains, the company has not converted growth into positive operating profits. This indicates structural cost or efficiency issues in delivery, and without margin improvement the business will struggle to reach self-sustaining cash generation.

Nerds On Site Business Overview & Revenue Model

Company Description

Nerds on Site Inc. provides information technology (IT), hardware, software, and related support services to small to medium-sized enterprises in Canada and the United States. It offers proactive monitoring, disaster recovery and business continuity, managed IT, network security, onsite SMB IT support, Web hosting, and wireless networking services; IT assessment and consulting, outsourcing, and help desk services; Web, application, and database development services; computer, laptop, and PC repair services; and mobility, hosted email, hybrid IP phone solutions. Nerds on Site Inc. was founded in 1995 and is headquartered in London, Canada.

How the Company Makes Money

Nerds On Site generates revenue through a combination of service fees for on-site IT support, subscription-based managed services, and project-based consulting work. Key revenue streams include hourly billing for troubleshooting and repair services, monthly fees for ongoing IT management and support contracts, and fixed-price engagements for specific projects such as system upgrades or network installations. Additionally, the company may benefit from partnerships with software and hardware vendors, allowing them to offer bundled solutions and earn commissions or referral fees for recommending specific products to their clients.

Nerds On Site Financial Statement Overview

Summary

Despite modest revenue growth and stable gross margin (~26%), the company remains unprofitable with negative EBIT/EBITDA, persistent net losses, negative operating/free cash flow, and negative shareholders’ equity, indicating limited financial flexibility and ongoing cash burn risk.

Income Statement

Revenue is growing, with TTM (Trailing-Twelve-Months) up about 5.9% versus the prior period and a steady top-line trend across recent annual reports. However, profitability remains weak: gross margin is stable (~26%), but operating results are still negative (EBIT and EBITDA below zero) and net losses persist in both TTM (Trailing-Twelve-Months) and the last several annual periods. There is some improvement from earlier, deeper losses, but the company has not yet converted growth into sustainable earnings.

Balance Sheet

The balance sheet is pressured by negative shareholders’ equity in TTM (Trailing-Twelve-Months) and the last several annual reports, which signals accumulated losses and limits financial flexibility. Debt is present (TTM (Trailing-Twelve-Months) total debt of roughly 1.7M) while the equity base is negative, increasing refinancing and liquidity risk. Total assets are relatively modest, and overall capitalization appears thin for a business still operating at a loss.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) and across the annual history shown, implying the business is consuming cash rather than funding itself internally. TTM (Trailing-Twelve-Months) cash burn improved versus the most recent annual period, but free cash flow growth is still negative and cash flow does not yet provide a cushion while profitability remains challenged.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	13.36M	12.09M	10.95M	10.53M	9.63M	10.12M
Gross Profit	3.42M	3.22M	2.80M	2.76M	2.53M	2.63M
EBITDA	-76.72K	-140.09K	-282.37K	-586.42K	-780.84K	-1.27M
Net Income	-435.13K	-463.47K	-443.72K	-743.55K	-932.83K	-1.39M
Balance Sheet
Total Assets	1.26M	1.06M	1.31M	1.24M	1.68M	2.34M
Cash, Cash Equivalents and Short-Term Investments	277.56K	160.88K	437.37K	206.79K	279.46K	390.65K
Total Debt	1.67M	1.57M	1.25M	732.07K	500.77K	403.96K
Total Liabilities	3.45M	3.13M	2.75M	2.23M	1.86M	1.59M
Stockholders Equity	-2.09M	-1.95M	-1.44M	-986.83K	-188.75K	744.08K
Cash Flow
Free Cash Flow	-375.18K	-674.98K	-435.30K	-442.55K	-852.64K	-298.78K
Operating Cash Flow	-375.17K	-674.98K	-431.06K	-429.24K	-825.50K	-289.86K
Investing Cash Flow	178.04K	213.79K	-81.96K	-13.32K	-27.13K	-8.92K
Financing Cash Flow	385.32K	394.07K	580.89K	424.41K	741.44K	372.64K

Nerds On Site Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 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:NERD, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.49 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:NERD.

Nerds On Site Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIB.A	71 Outperform	C$21.20B	13.23	16.85%	0.48%	8.43%	0.25%
PVT	64 Neutral	C$43.46M	12.45	7.17%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	45 Neutral	C$132.60M	-5.90	-16.17%	―	3.40%	-691.81%
KNR	44 Neutral	C$104.58M	-3,571.43	-0.42%	―	-59.23%	-100.34%
NERD	42 Neutral	C$3.21M	-7.29	―	―	13.01%	20.00%
DM	41 Neutral	C$13.73M	-0.79	-58.58%	―	-56.02%	91.71%