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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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TSE:NOW

NowVertical Group Inc

(NOW)

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Underperform 40 (OpenAI - 5.2)
Rating:40Underperform
Price Target:
C$0.10
▼(-66.07% Downside)
Action:Downgraded
Date:07/15/26
The score is held down primarily by high balance-sheet leverage and ongoing net losses despite steadier gross margins and recently positive operating/free cash flow. Technicals add further pressure as the stock trades below key moving averages with negative MACD and weak RSI/Stochastic. Valuation is also a modest negative due to a negative P/E (loss-making) and no dividend yield data.
Positive Factors
Recurring software + services mix
A blended business model of recurring software/subscription revenue plus professional services creates diversified, durable revenue streams. Recurring licenses/support drive retention and predictability while services enable customer stickiness and cross-sell, supporting sustainable revenue capacity over months.
Negative Factors
Very high leverage
An ~8x debt-to-equity ratio and previously negative equity create meaningful refinancing and covenants risk. Heavy leverage raises interest burden and limits strategic flexibility, increasing vulnerability to revenue shocks and making sustained investment or M&A more costly over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring software + services mix
A blended business model of recurring software/subscription revenue plus professional services creates diversified, durable revenue streams. Recurring licenses/support drive retention and predictability while services enable customer stickiness and cross-sell, supporting sustainable revenue capacity over months.
Read all positive factors

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

NowVertical Group Inc Business Overview & Revenue Model

Company Description
NowVertical Group Inc., together with its subsidiaries, operates as a big data, analytics, and vertical intelligence company in the United States, Argentina, Brazil, Chile, the United Kingdom, and internationally. The company offers acquisition an...
How the Company Makes Money
NowVertical generally makes money by selling (1) software and technology-enabled data/analytics solutions and (2) professional services to implement, customize, and support those solutions for customers. Key revenue streams typically include: (a) ...

NowVertical Group Inc Earnings Call Summary

Earnings Call Date:Nov 14, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Aug 20, 2026
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.
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.
Negative Updates
Complex Integration Processes
The integration of Latin American operations is ongoing, with completion still 20-25% away.
Read all updates
Q3-2024 Updates
Negative
EBITDA Milestone
NowVertical achieved an EBITDA of USD 2 million for Q3 2024, marking a 19% EBITDA margin, best in class in the industry.
Read all positive updates
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
Operating performance is improving but still weak overall. Revenue is slightly down on a trailing basis and the company remains net loss-making (TTM net margin ~-11%) despite steady gross margin (~50%) and positive EBITDA (~13%). Cash flow has turned positive in TTM (OCF ~$1.5M; FCF ~$1.2M), but the balance sheet is a major risk with very high leverage (debt-to-equity ~8x) and a thin/previously negative equity base.
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
46
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue37.34M46.87M51.70M27.01M4.11M
Gross Profit18.80M23.06M26.64M11.58M2.90M
EBITDA4.84M8.47M440.03K-5.43M-13.17M
Net Income-4.01M1.59M-5.93M-9.55M
Balance Sheet
Total Assets43.35M43.86M44.85M34.17M26.88M
Cash, Cash Equivalents and Short-Term Investments4.10M4.60M3.14M4.29M11.61M
Total Debt16.87M13.79M19.67M16.53M1.81M
Total Liabilities41.35M42.01M47.50M32.35M13.16M
Stockholders Equity2.00M1.86M-2.65M1.82M13.72M
Cash Flow
Free Cash Flow-2.52M2.76M-5.17M-5.08M-5.69M
Operating Cash Flow-1.85M2.84M-5.10M-4.87M-5.68M
Investing Cash Flow966.39K2.37M1.15M-10.81M-3.05M
Financing Cash Flow1.88M-5.53M2.19M10.72M18.64M

NowVertical Group Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.15
Negative
100DMA
0.19
Negative
200DMA
0.24
Negative
Market Momentum
MACD
-0.01
Negative
RSI
33.37
Neutral
STOCH
18.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOW, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.15, and above the 200-day MA of 0.24, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NOW.

NowVertical Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
47
Neutral
C$10.53M-12.59-21.69%-27.64%-2400.00%
45
Neutral
C$8.76M-1.37286.87%-21.18%70.32%
43
Neutral
C$59.79M-8.89297.87%-43.68%-329.28%
42
Neutral
C$30.60M-2.06487.50%1.96%-60.29%
40
Underperform
C$9.54M-2.02-46.29%-17.61%-212.68%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NOW
NowVertical Group Inc
0.10
-0.52
-84.43%
TSE:NBVA
Nubeva Technologies Ltd
0.15
0.07
107.14%
TSE:FOBI
Fobi AI
0.04
0.00
0.00%
TSE:PLUR
Plurilock Security Inc
0.12
-0.12
-52.08%
TSE:CTRL
Edge Total Intelligence Inc
0.47
-0.04
-7.84%
TSE:ICS
Integrated Cyber Solutions, Inc.
0.77
0.50
185.19%
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 15, 2026