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NowVertical Group Inc (TSE:NOW)
:NOW
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NowVertical Group Inc (NOW) AI Stock Analysis

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NowVertical Group Inc

(NOW)

Rating:69Neutral
Price Target:
C$0.50
▼(-18.03%Downside)
The overall stock score is primarily influenced by strong corporate events and positive technical analysis. Financial performance shows areas of growth but is tempered by leverage concerns.

NowVertical Group Inc (NOW) vs. iShares MSCI Canada ETF (EWC)

NowVertical Group Inc Business Overview & Revenue Model

Company DescriptionNowVertical Group Inc (NOW) is a vertically integrated technology company specializing in big data analytics and artificial intelligence solutions. The company operates across various sectors, including finance, healthcare, marketing, and government, providing tailored data-driven insights and analytics tools to help organizations optimize their operations and decision-making processes. NOW's core products and services include advanced analytics platforms, consulting services, and industry-specific data solutions designed to enhance business intelligence and operational efficiency for its clients.
How the Company Makes MoneyNowVertical Group Inc makes money through a diversified revenue model that includes the sale of its proprietary analytics platforms and software solutions, subscription-based services, and consulting fees. The company generates income by providing customized data analytics tools and platforms to businesses across multiple industries, which are often sold as software-as-a-service (SaaS) offerings. In addition, NOW earns revenue from professional services, including consulting and implementation support, where they work closely with clients to integrate and optimize their analytics solutions. The company also benefits from strategic partnerships and collaborations with other technology providers and industry leaders, which help expand its market reach and enhance its product offerings.

NowVertical Group Inc Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q3-2024)
|
% Change Since: -8.96%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive performance with significant improvements in EBITDA, revenue growth, and operational income. Despite existing challenges in integration and geographic concentration, the company's financial health and strategic account retention indicate a promising outlook.
Q3-2024 Updates
Positive Updates
EBITDA Milestone
NowVertical achieved an EBITDA of USD 2 million for Q3 2024, marking a 19% EBITDA margin, best in class in the industry.
Revenue Growth
Revenue grew by 9% year-over-year, reaching USD 10.7 million in Q3 2024.
Operational Income Improvement
Income from operations increased by 87% year-over-year, achieving a USD 1.6 million gain in Q3 2024.
Debt Reduction Success
Acquisition-related liabilities were reduced from USD 13.9 million to USD 8.5 million, achieving potential cash savings of USD 7.4 million.
Client Retention
100% renewal rate of strategic accounts in Q3 2024, with the addition of 5 new enterprise clients in Latin America.
Negative Updates
Complex Integration Processes
The integration of Latin American operations is ongoing, with completion still 20-25% away.
Revenue Concentration Challenges
60% of revenue is generated from top 30 clients, highlighting potential risks in client concentration.
Geographic Revenue Distribution
70% of revenue is concentrated in Latin America, indicating a reliance on a single geographic market.
Company Guidance
In the Q3 2024 earnings call for NOW.V, the executives reported a significant improvement in financial metrics, surpassing their own expectations. The company achieved an EBITDA of $2 million, marking a 19% margin against a revenue of $10.7 million for the quarter. Year-over-year, they observed a 9% revenue growth, with operating income improving by 87% and adjusted EBITDA increasing by 26%. The strategic focus on core operations and reduction of administrative costs led to an impressive 439% increase in operating income year-to-date. The company also highlighted the successful renegotiation of acquisition-related liabilities, reducing them from $13.9 million to $8.5 million, including $2 million to be settled in shares. This strategic restructuring has paved the way for sustainable future growth, with NOW.V now targeting a run rate revenue of $43 million and $8 million EBITDA.

NowVertical Group Inc Financial Statement Overview

Summary
NowVertical Group Inc. shows substantial revenue growth and improved cash flow, yet struggles with consistent profitability and high leverage.
Income Statement
58
Neutral
NowVertical Group Inc. has shown substantial revenue growth over the past few years, which is a positive indicator. However, their net profit margin remains concerning, with negative figures in previous years turning slightly positive only recently. The gross profit margin is decent, but the company struggles with consistent profitability as indicated by fluctuating EBIT and EBITDA margins.
Balance Sheet
45
Neutral
The company has a high debt-to-equity ratio, indicating significant leverage which could pose financial risk. Despite this, the equity ratio has been improving, reflecting a gradual strengthening of financial stability. However, the negative equity in previous years is a red flag that needs addressing.
Cash Flow
62
Positive
Positive free cash flow in the latest year is a strong point, showing improvement in cash management. The operating cash flow has turned positive, enhancing the company's ability to generate cash from operations. However, the free cash flow has been volatile, pointing towards inconsistent cash management in previous years.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue46.87M51.70M27.01M4.11M617.07K
Gross Profit23.06M26.64M11.58M2.90M545.96K
EBITDA8.47M2.91M-5.43M-13.17M-468.10K
Net Income1.59M-5.93M-9.55M-7.92M
Balance Sheet
Total Assets43.86M44.85M34.17M26.88M6.80M
Cash, Cash Equivalents and Short-Term Investments4.60M3.14M4.29M11.61M1.60M
Total Debt13.79M19.67M16.53M1.81M4.96M
Total Liabilities42.01M47.50M32.35M13.16M6.02M
Stockholders Equity1.86M-2.65M1.82M13.72M775.64K
Cash Flow
Free Cash Flow2.76M-5.17M-5.08M-710.90K
Operating Cash Flow2.84M-5.10M-4.87M-710.90K
Investing Cash Flow2.37M1.15M-10.81M5.72M
Financing Cash Flow-5.53M2.19M10.72M18.64M400.00

NowVertical Group Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.61
Price Trends
50DMA
0.59
Positive
100DMA
0.54
Positive
200DMA
0.42
Positive
Market Momentum
MACD
<0.01
Positive
RSI
48.48
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOW, the sentiment is Neutral. The current price of 0.61 is below the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.59, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.48 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 Neutral sentiment for TSE:NOW.

NowVertical Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNOW
69
Neutral
C$55.83M14.39679.89%-10.35%
60
Neutral
$64.48M-27.51%5.92%-54.25%
50
Neutral
C$3.14B2.33-63.57%2.47%4.49%-6.15%
49
Neutral
C$18.85M-1525.80%0.55%69.82%
43
Neutral
C$20.99M
271.43%15.04%
37
Underperform
C$26.61M139.48%-19.77%-101.63%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NOW
NowVertical Group Inc
0.59
0.39
195.00%
TSE:MOGO
Mogo Finance Technology
2.64
0.47
21.99%
TSE:PLUR
Plurilock Security Inc
0.24
-0.98
-80.33%
TSE:CTRL
Edge Total Intelligence Inc
0.50
0.10
25.00%
TSE:CLIP
Clip Money Inc.
0.20
-0.08
-28.57%

NowVertical Group Inc Corporate Events

Executive/Board ChangesShareholder Meetings
NowVertical Group Inc. Announces 2025 Shareholder Meeting Results and Equity Grants
Neutral
Jul 7, 2025

NowVertical Group Inc. announced the results of its 2025 Annual General and Special Meeting of Shareholders, where all proposed business matters were approved, including the election of directors and re-appointment of auditors. The company also approved a 10% rolling omnibus equity incentive plan and settled a portion of wages with equity issuance to Andre Garber. Additionally, NowVertical granted equity awards to its board and management team as part of its annual compensation process, aiming to reward and incentivize contributions to the company’s success.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and Strategy
NowVertical’s Integration Strategy Fuels Growth and Margin Expansion
Positive
Jul 2, 2025

NowVertical Group Inc. has announced the success of its ‘One Brand, One Business’ integration strategy, which has led to margin expansion and deeper enterprise penetration across North America and Latin America. The strategy has enabled the company to transition a Fortune 500 technology client to a cross-region reporting program and drive a data-modernization program for a global life-sciences leader. These efforts have resulted in faster commercial insights for clients and a repeatable playbook for NowVertical, contributing to its goal of achieving a $50 million run-rate revenue and $10 million EBITDA target.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and Strategy
NowVertical Group to Present Business Strategy in Upcoming Investor Webinar
Positive
Jun 18, 2025

NowVertical Group Inc. has announced its participation in an investor webinar hosted by Bristol Capital Ltd. on June 24, 2025. The webinar will provide insights into the company’s strategic direction, recent business developments, and growth strategy for 2025 and beyond. Key executives, including the CEO, CDO, and interim CFO, will speak at the event, which will also feature a live Q&A session. This initiative is part of NowVertical’s efforts to engage with investors and stakeholders, highlighting its commitment to transparency and strategic growth in the data and AI solutions sector.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and Strategy
NowVertical Group Enhances Investor Relations with Bristol Capital Engagement
Positive
Jun 2, 2025

NowVertical Group Inc., a leader in data and AI solutions, has engaged Bristol Capital Ltd. to enhance its investor relations and communication services. This partnership aims to strengthen NowVertical’s market engagement and expand its investor base, reflecting the company’s commitment to clear communication as it accelerates growth in the data and AI sector.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Secures $26 Million Financing from HSBC to Boost Growth
Positive
May 30, 2025

NowVertical Group Inc. has secured up to $26 million in financing from HSBC to support its growth strategy. This new financing arrangement simplifies the company’s capital structure by consolidating debt and provides immediate access to capital, enabling NowVertical to pursue strategic acquisitions and enhance its operational agility. The agreement reflects institutional confidence in NowVertical’s integrated business model and positions the company for scalable growth.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
NowVertical Group Inc. Reports Robust Q1 2025 Financial Performance
Positive
May 21, 2025

NowVertical Group Inc. reported strong financial results for Q1 2025, with a 23% year-over-year revenue growth excluding recent divestitures, and a significant increase in income from operations and adjusted EBITDA. The company has achieved its fifth consecutive quarter of growth, demonstrating its transformation into a stable and sustainable business. Strategic initiatives such as renegotiating acquisition-related liabilities and launching new solutions on platforms like Microsoft Azure have strengthened its market position and financial stability, positioning it for continued organic revenue growth.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
NowVertical Group Inc. Reports Strong Q1 2025 Financial Performance and Strategic Achievements
Positive
May 21, 2025

NowVertical Group Inc. reported a strong first quarter for 2025, with a 23% year-over-year revenue growth, excluding recent divestitures, and a significant increase in income from operations and adjusted EBITDA. The company has successfully renegotiated acquisition-related liabilities, resulting in substantial cash savings and improved payment schedules, which strengthens its financial position for sustained organic growth. Recent accolades, such as being named Qlik Latin America Channel Growth Partner of the Year 2024 and receiving the Google Cloud Data & Analytics Partner of the Year award for Latin America, highlight NOW’s ability to scale customer impact and reinforce its strategic positioning in the industry.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
NowVertical Group to Release Q1 2025 Financial Results and Host Webinar
Neutral
May 16, 2025

NowVertical Group Inc. is set to announce its first quarter 2025 financial results on May 21, 2025, followed by a webinar on May 22, 2025, to discuss the results and provide a business outlook. The webinar will feature key executives and include a live Q&A session, aiming to engage shareholders, analysts, and other stakeholders, reflecting the company’s commitment to transparency and strategic communication.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and Strategy
NowVertical Group Inc. Wins Qlik Latin America Channel Growth Partner of the Year 2024
Positive
May 13, 2025

NowVertical Group Inc. has been named the Qlik Latin America Channel Growth Partner of the Year for 2024, following its recent recognition as the 2025 Google Cloud Data Analytics Partner of the Year for Latin America. This accolade underscores NowVertical’s leadership in delivering impactful data and analytics solutions tailored to customer needs, strengthening its position in the industry. The award highlights the company’s ability to provide integrated, scalable solutions through strong global partnerships, enabling enterprise clients to unlock data and accelerate transformation.

The most recent analyst rating on (TSE:NOW) stock is a Buy with a C$0.75 price target. To see the full list of analyst forecasts on NowVertical Group Inc stock, see the TSE:NOW Stock Forecast page.

Business Operations and Strategy
NowVertical Achieves Google Cloud Premier Partner Status in the UK
Positive
May 8, 2025

NowVertical Group Inc. has been named a Google Cloud Premier Partner in the UK, marking a significant milestone in its global integration strategy. This achievement underscores the company’s rapid expansion and enhanced capabilities in delivering data and AI solutions, positioning it as a key player in the growing demand for enterprise data transformation and cloud-native analytics platforms.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Group Completes Debt-to-Equity Conversion to Enhance Financial Flexibility
Neutral
Apr 22, 2025

NowVertical Group Inc. has completed a debt-to-equity conversion by issuing 93,917 Class A Subordinate voting shares to settle CAD$35,220.62 in bonus entitlements owed to certain employees. This move is part of the company’s ongoing efforts to align its financial structure and enhance its operational flexibility, potentially impacting its market positioning and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025