Nerds On Site (NERD) AI Stock Analysis

• Market Cap: C$2.29M
• Dividend Yield: N/A
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• 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

Recurring revenue / managed services

Recurring managed-services contracts create predictable, sticky revenue and higher customer lifetime value. Over a multi-month horizon this supports revenue visibility, cross-sell of add-ons, and potential margin improvement as fixed costs are absorbed with scale.

Top-line growth

Consistent revenue growth near 19% indicates products and services are finding market traction. Durable top-line expansion provides the runway to invest in operations, expand the technician network, and leverage fixed costs toward future profitability if growth sustains.

Stable gross margin

A stable gross margin around 26% shows the core service economics are steady. That baseline margin supports potential operating leverage: with scalable technician networks and recurring contracts, incremental revenue can more directly contribute to improving operating results over time.

Negative Factors

Negative shareholders' equity

Persistently negative shareholders' equity reflects cumulative losses and weak capitalization. This structural weakness raises refinancing risk, limits ability to absorb shocks, and makes access to equity financing or favorable debt terms more difficult over the medium term.

Negative operating and free cash flow

Ongoing negative operating and free cash flow means the business is burning cash rather than self-funding growth. That constrains reinvestment in field technicians, systems, and sales, and increases dependence on external financing which can dilute shareholders or raise costs.

Sustained net losses and negative EBITDA

Continued operating losses and negative EBITDA show the company has not yet converted revenue into sustainable earnings. This undermines long-term profitability prospects, limits retained earnings to fund growth, and prolongs the timeline to durable positive returns.

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 35.22 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	$20.96B	15.49	16.37%	0.48%	8.43%	0.25%
PVT	64 Neutral	C$43.20M	10.70	7.10%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	45 Neutral	$131.05M	60.68	-13.00%	―	3.40%	-691.81%
NERD	44 Neutral	C$2.29M	-4.02	―	―	13.01%	20.00%
KNR	44 Neutral	C$104.58M	2.69	-0.43%	―	-59.23%	-100.34%
DM	41 Neutral	C$7.63M	-1.20	-212.14%	―	-56.02%	91.71%