Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

• Market Cap: C$40.09M
• Dividend Yield: N/A
• Average Volume (3M): 5.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.62
• Revenue Growth: 46.49%
• EPS Growth: 42.37%
• Country: CA
• Employees: 60
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 67,942,270
• 10 Day Avg. Volume: 4,327
• 30 Day Avg. Volume: 5,144
• PEG Ratio: -0.05
• Price to Book (P/B): -11.70
• Price to Sales (P/S): 11.77
• P/FCF Ratio: -1.50
• 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: 40 Underperform
• Price Target: C$0.50 ▼(-17.38% Downside)

Next Hydrogen Solutions Inc. faces significant challenges in financial performance, with negative profitability and high leverage being major concerns. Technical indicators suggest potential bearish momentum, and the valuation is unattractive due to unprofitability. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

TTM revenue growth of ~258% demonstrates rapid top-line expansion and increasing customer uptake of NXH's electrolyzer technology. Sustained revenue traction can enable scale, improve bargaining power with suppliers, and support longer-term product investment if converted into durable margins and cash flow.

Secular Market Tailwinds

NXH operates in the green hydrogen market with electrolyzers aimed at transportation, energy and industrial users. Global decarbonization policies and rising hydrogen demand constitute structural tailwinds that expand the addressable market and support multi-year revenue opportunities for proven technology suppliers.

Cash Conversion Efficiency

A positive free-cash-flow to net-income ratio indicates NXH can, in some periods, convert accounting results into real cash, reflecting disciplined capex or timing benefits. Durable cash conversion ability reduces reliance on external funding and supports reinvestment if sustained alongside margin improvement.

Negative Factors

Balance Sheet Weakness

Negative shareholder equity and a -1.15 debt-to-equity ratio signal a structural capital deficit that limits financial flexibility. This raises solvency and refinancing risk, making future growth initiatives more likely to require dilutive financings or expensive debt, constraining long-term strategic options.

Unprofitable Operations

Persistently negative net and EBIT margins show NXH has not yet reached profitable unit economics. Structural unprofitability undermines the company's ability to self-fund R&D, commercialization and scaling. Without durable margin improvement, growth will depend on external capital and may be slowed by funding cycles.

Negative Operating Cash Flow

Continued negative operating cash flow indicates core operations consume cash, creating an ongoing funding need. Over months this elevates liquidity risk, limits the ability to expand manufacturing or service capacity, and increases dependency on external financing which can restrict strategic flexibility.

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company Description

Next Hydrogen Solutions Inc. designs, manufactures, and sells water and electricity electrolyzers to generate clean hydrogen for use as an energy source. It offers commercial solutions to decarbonize transportation and industrial sectors. The company was founded in 2007 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Next Hydrogen Solutions Inc generates revenue through the sale and licensing of its hydrogen production technologies, specifically its electrolyzers. The company earns money by directly selling these systems to industrial clients and energy companies looking to adopt green hydrogen solutions. Additionally, NXH may enter into long-term contracts and partnerships with strategic industry players, providing maintenance, support, and consulting services related to its technologies. These partnerships often enhance its market reach and revenue potential. The increasing global demand for hydrogen as a clean energy source, coupled with supportive government policies and incentives for renewable energy, further contributes to NXH's financial growth.

Next Hydrogen Solutions Inc Financial Statement Overview

Summary

Next Hydrogen Solutions Inc. is experiencing rapid revenue growth, but profitability and financial stability are areas of concern. The company faces challenges with negative margins and high leverage, which could impact its long-term sustainability. Strategic improvements in cost management and financial restructuring are essential to enhance overall financial health.

Income Statement

Next Hydrogen Solutions Inc. has shown significant revenue growth with a TTM revenue growth rate of 257.93%, indicating strong top-line expansion. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The company needs to focus on improving its cost structure to enhance profitability.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -1.15 in the TTM period. This indicates financial instability and potential solvency issues. The company must address its leverage and improve equity to stabilize its financial position.

Cash Flow

Cash flow analysis shows a positive free cash flow to net income ratio, suggesting some efficiency in cash management. However, the operating cash flow remains negative, indicating cash flow challenges. The company should focus on improving operational cash flows to support its growth trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.01M	1.36M	951.91K	721.59K	177.59K	1.77K
Gross Profit	2.40M	-334.35K	-288.79K	-712.06K	95.35K	1.77K
EBITDA	-6.63M	-13.46M	-10.91M	-13.32M	-25.98M	428.10K
Net Income	-8.41M	-14.60M	-12.01M	-14.28M	-25.01M	423.31K
Balance Sheet
Total Assets	13.99M	15.46M	25.44M	33.73M	48.06M	2.52M
Cash, Cash Equivalents and Short-Term Investments	874.92K	3.59M	10.91M	22.08M	39.20M	1.82M
Total Debt	9.90M	4.68M	1.83M	2.04M	2.24M	5.26M
Total Liabilities	20.94M	16.83M	12.84M	9.82M	10.26M	32.09K
Stockholders Equity	-6.95M	-1.37M	12.61M	23.91M	37.79M	2.49M
Cash Flow
Free Cash Flow	-10.69M	-10.69M	-10.75M	-16.67M	-13.67M	-84.75K
Operating Cash Flow	-9.06M	-10.00M	-8.22M	-12.64M	-12.55M	-83.70K
Investing Cash Flow	-1.61M	-678.04K	-2.53M	-4.04M	-1.55M	-344.25K
Financing Cash Flow	8.34M	3.35M	-425.68K	-440.47K	52.21M	4.78M

Next Hydrogen Solutions Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXH, the sentiment is Positive. The current price of 0.61 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.59, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NXH.

Next Hydrogen Solutions Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATS	66 Neutral	C$3.79B	-718.00	-0.27%	―	-5.59%	-104.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BLDP	47 Neutral	C$959.36M	-5.71	-18.07%	―	1.18%	62.71%
VLN	47 Neutral	C$325.08M	-7.54	-27.70%	3.06%	-18.71%	-845.27%
PYR	46 Neutral	C$49.60M	-5.00	―	―	-6.83%	46.97%
TLA	42 Neutral	C$15.14M	-15.30	-2.57%	―	-1.50%	-180.73%
NXH	40 Underperform	C$40.09M	-1.61	―	―	46.49%	42.37%

Next Hydrogen Solutions Inc Corporate Events

Next Hydrogen Solutions Inc. Changes Auditor to MNP LLP

Next Hydrogen Solutions Inc. has announced a change in its auditing firm, switching from KPMG LLP to MNP LLP, effective December 1, 2025. The transition did not involve any modified opinions or reportable events, and aligns with the company’s compliance with continuous disclosure obligations. This change is part of the company’s ongoing efforts to maintain transparency and integrity in its financial reporting, which is crucial as it scales its technology for commercial applications in the renewable energy sector.

The most recent analyst rating on (TSE:NXH) stock is a Sell with a C$0.48 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.

Next Hydrogen Reports Profitable Q3 2025 and Announces Major Financing Initiative

Next Hydrogen Solutions Inc. reported a profitable third quarter in 2025, with revenues of $2.3 million and a net income of $0.1 million, marking a significant improvement from the previous year. The company announced a transformative financing initiative, expected to raise $20-30 million, which will support the commercialization of its NH-150 electrolyzer and the development of a larger NH-500 model. This move is set to accelerate Next Hydrogen’s growth strategy and push the company towards cash-flow positivity, enhancing its position in the clean hydrogen industry.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.

Next Hydrogen Secures Major Investment to Boost Commercial Operations

Next Hydrogen Solutions Inc. has announced a private placement of common shares, aiming to raise between CAD$20 million and CAD$30 million, led by Smoothwater Capital Corporation. This financing is intended to transition Next Hydrogen from a development-stage enterprise to a commercially focused business, enhancing its market position by accelerating sales and manufacturing of its NH150 electrolyzer and completing the development of the NH500 model. The involvement of Smoothwater, which will become the largest shareholder, signifies a strategic shift towards global sales and partnerships, with an emphasis on leveraging existing relationships to achieve a capital-light business model.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.