Nerds On Site (NERD) AI Stock Analysis

• Market Cap: C$2.75M
• Dividend Yield: N/A
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• 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: 44 Neutral
• Price Target: C$0.02 ▲(20.00% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily weighed down by weak financial performance—persistent losses, negative equity, and negative operating/free cash flow—despite modest revenue growth. Technical indicators also reflect a generally weak trend with negative momentum. Valuation does not provide support because earnings are negative and no dividend yield is available.

Positive Factors

Revenue Growth

Reported revenue growth (Fundamentals.RevenueGrowth ~19.1%) indicates the business is expanding top-line demand. Durable revenue expansion supports scale, giving the company room over months to leverage fixed costs, invest in recurring services, and potentially improve operating leverage if growth continues.

Stable Gross Margin

A stable gross margin near 26% suggests consistent unit economics across services. Predictable gross margins provide a foundation for margin improvement through operational efficiencies and higher-margin recurring services, supporting a lasting path to improved profitability if fixed costs are controlled.

Recurring & Franchise Model

The mix of recurring managed-service contracts and a franchise/network model creates durable revenue streams and scalable delivery. Recurring contracts drive retention and predictability, while a technician network helps expand coverage with lower incremental investment, aiding steady long-term cash generation if adoption grows.

Negative Factors

Negative Shareholders' Equity

Negative shareholders' equity reflects accumulated losses and weak capitalization. This structural weakness raises refinancing and liquidity risk, limits strategic flexibility for investments or acquisitions, and makes the company more dependent on external financing over the coming months.

Negative Operating Cash Flow

Continued negative operating and free cash flow indicate the business is burning cash rather than funding growth internally. This persistent cash burn constrains reinvestment in sales, tech, or expansion, increasing reliance on external capital and raising execution risk for scaling recurring revenue.

Persistent Net Losses

Ongoing negative EBIT/EBITDA and net losses show the company has not converted revenue growth into sustainable earnings. Structural cost or pricing issues may be present; until margins flip positive, the firm faces long-term profitability risk and limited internal funds for strategic initiatives.

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

The company makes money primarily by charging fees for IT services delivered to customers, including (1) project and break-fix work billed per job, per hour, or per engagement (e.g., troubleshooting, installations, upgrades, and network setup), and (2) recurring revenue from ongoing support arrangements such as managed services/maintenance-style contracts that provide continuous IT support and monitoring. In addition, Nerds On Site has historically operated with a franchise or license/network model in which technicians pay fees/royalties or similar payments to participate in the Nerds On Site system, use the brand, and receive leads/operational support; the specific fee structure or current mix is null. The company may also earn ancillary revenue tied to technology procurement and implementations (e.g., resale margins, referral/affiliate fees, or partner incentives from third-party software/hardware vendors), but specific partnerships, commission rates, or material partner relationships are null.

Nerds On Site Financial Statement Overview

Summary

Revenue is growing modestly, but profitability is still weak with negative EBIT/EBITDA and ongoing net losses. Financial risk is elevated due to negative shareholders’ equity and continued negative operating and free cash flow (cash burn), despite some improvement versus prior periods.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.03, 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 Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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	70 Outperform	C$21.19B	15.49	16.37%	0.48%	8.43%	0.25%
PVT	64 Neutral	C$42.54M	10.70	7.10%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	45 Neutral	$129.11M	60.68	-13.00%	―	3.40%	-691.81%
NERD	44 Neutral	C$2.75M	-4.02	―	―	13.01%	20.00%
KNR	44 Neutral	C$104.58M	2.69	-0.43%	―	-59.23%	-100.34%
DM	42 Neutral	C$6.87M	-1.20	-212.14%	―	-56.02%	91.71%