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NowVertical Group Inc (TSE:NOW)
:NOW

NowVertical Group Inc (NOW) AI Stock Analysis

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NowVertical Group Inc

(NOW)

Rating:63Neutral
Price Target:
C$0.50
▼(-10.71%Downside)
NowVertical Group Inc. receives a score of 63, driven by promising corporate events and a favorable valuation. The stock shows potential for long-term growth despite current financial performance challenges and neutral technical indicators.

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

NowVertical Group Inc Business Overview & Revenue Model

Company DescriptionNowVertical Group Inc. operates as a big data technology company. Its vertical intelligence software and services solutions address industry-specific needs in the areas of data transformation, data visualization and analysis, and artificial intelligence and automation. The company's proprietary technologies include NOW Fusion, a database fusion technology that brings together structured and unstructured data from both inside and outside an organization to drive enhanced business analysis; NOW Privacy and NOW Reveal software solutions, which adds governance and compliance layer to an organization's data; NOW DataBench, a unified analytics operating framework that brings business intelligence tools into a single interface to make informed decisions using their data; and Affinio, a data mobilization solution. It also provides solutions to government, financial services, energy and renewables, automotive manufacturers, brands and advertisers, and enterprises. The company is headquartered in West Palm Beach, Florida.
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: -16.42%|
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 promising revenue growth and recent improvements in cash flow generation. However, challenges remain with historical profitability issues and high leverage, indicating a company in transition towards better financial health.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
46.87M51.70M27.01M4.11M617.07K
Gross Profit
23.06M26.64M11.58M2.90M545.96K
EBIT
4.94M-65.28K-9.06M-7.69M
EBITDA
8.47M2.91M-5.43M-13.17M-468.10K
Net Income Common Stockholders
1.59M-5.93M-9.55M-7.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.60M3.14M4.29M11.61M1.60M
Total Assets
43.86M44.85M34.17M26.88M6.80M
Total Debt
13.79M19.67M16.53M1.81M4.96M
Net Debt
11.22M16.89M12.72M-9.80M3.36M
Total Liabilities
42.01M47.50M32.35M13.16M6.02M
Stockholders Equity
1.86M-2.65M1.82M13.72M775.64K
Cash FlowFree Cash Flow
2.76M-5.17M-5.08M-710.90K
Operating Cash Flow
2.84M-5.10M-4.87M-710.90K
Investing Cash Flow
2.37M1.15M-10.81M5.72M
Financing Cash Flow
-5.53M2.19M10.72M18.64M400.00

NowVertical Group Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.56
Price Trends
50DMA
0.56
Negative
100DMA
0.49
Positive
200DMA
0.36
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
47.49
Neutral
STOCH
29.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOW, the sentiment is Positive. The current price of 0.56 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.56, and above the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NOW.

NowVertical Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNOW
63
Neutral
C$52.73M13.66679.89%-10.35%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
$33.24M-27.51%
$6.56M
44
Neutral
C$23.11M
271.43%15.04%
43
Neutral
C$21.20M-1525.80%-7.43%30.13%
37
Underperform
C$17.83M139.48%-19.77%-101.63%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NOW
NowVertical Group Inc
0.56
0.37
194.74%
MOGO
Mogo Finance Technology
1.35
-0.25
-15.63%
FOBIF
Fobi AI
0.02
-0.03
-60.00%
TSE:PLUR
Plurilock Security Inc
0.27
-0.08
-22.86%
TSE:CTRL
Edge Total Intelligence Inc
0.34
-0.11
-24.44%
TSE:CLIP
Clip Money Inc.
0.22
0.02
10.00%

NowVertical Group Inc Corporate Events

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.

Product-Related AnnouncementsBusiness Operations and Strategy
NowVertical Launches DataCatalyst on Azure Marketplace to Boost Enterprise AI
Positive
Apr 17, 2025

NowVertical Group Inc. has launched its DataCatalyst solution on the Microsoft Azure Marketplace, enhancing its strategic positioning in enterprise AI and data infrastructure modernization. The Azure-native solution aims to unify, enrich, and operationalize enterprise data, reducing time-to-value and integration costs, and paving the way for generative AI and real-time analytics. This launch is part of NowVertical’s broader initiative to establish a Microsoft Center of Excellence, leveraging over 50 certified Azure professionals to deliver large-scale projects and optimize client operations.

Business Operations and Strategy
NowVertical to Showcase at Planet MicroCap VEGAS 2025
Positive
Apr 14, 2025

NowVertical Group Inc. announced its participation in the Planet MicroCap Showcase: VEGAS 2025, where CEO Sandeep Mendiratta will present and engage with investors. This event marks an opportunity for NowVertical to showcase its capabilities in data and AI solutions, potentially enhancing its industry positioning and attracting investor interest.

Business Operations and Strategy
NowVertical Group Wins Prestigious Google Cloud Partner Award
Positive
Apr 8, 2025

NowVertical Group Inc. has been awarded the 2025 Google Cloud Data & Analytics Partner of the Year for Latin America, recognizing its exceptional capabilities on the Google Cloud Platform. This accolade underscores NowVertical’s position as a trusted partner in AI, analytics, and cloud computing, enhancing its market presence and opening new client opportunities in high-growth markets.

Business Operations and StrategyFinancial Disclosures
NowVertical Group Reports Record Q4 2024 Financial Results
Positive
Apr 1, 2025

NowVertical Group Inc. reported record financial results for Q4 2024, with significant growth in revenue and net income, showcasing the effectiveness of its strategic focus and operational efficiency. The company’s strong performance, highlighted by a 225% increase in Adjusted EBITDA and substantial cash flow improvements, underscores its successful integration strategy and cost-saving measures, positioning it favorably in the AI-driven data solutions industry.

Business Operations and StrategyFinancial Disclosures
NowVertical Group to Announce 2024 Financial Results and Host Investor Webinar
Neutral
Mar 27, 2025

NowVertical Group Inc. announced it will release its fourth quarter and full year 2024 financial results on April 2, 2025, followed by a webinar to discuss the results and provide a business outlook. This event will feature key company executives and include a live Q&A session, offering stakeholders insights into the company’s financial performance and strategic direction.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Group Inc. Enters New Growth Phase with Strategic Integration
Positive
Mar 10, 2025

NowVertical Group Inc. has announced the next phase of its strategic growth plan, emphasizing the benefits of its integration efforts and entering into debt settlement agreements with certain employees. The company is leveraging its unified ‘One Brand, One Business’ strategy to drive organic revenue growth and position itself for opportunistic acquisitions. With a focus on strategic account, partnership, and capability integration, NowVertical aims to achieve a $50M revenue run rate and $10M run rate EBITDA, enhancing shareholder value and expanding its market presence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.