Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

• Market Cap: C$38.05M
• Dividend Yield: N/A
• Average Volume (3M): 5.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.48
• 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

TTM Revenue Growth

A TTM revenue growth rate of 257.93% shows strong top-line traction for its electrolyzer products. Sustained high revenue growth can fund R&D, scale manufacturing, and improve partner/customer leverage, supporting durable expansion over multiple quarters.

Structural Industry Tailwinds

Next Hydrogen's focus on green electrolyzers aligns with durable market tailwinds: rising hydrogen demand and policy support. These structural forces improve long-term addressable market visibility and increase likelihood of multi-quarter commercial opportunities and strategic partnerships.

Cash Conversion Efficiency Signal

A positive free cash flow to net income ratio indicates some cash-generation efficiency despite other pressures. This suggests management can extract cash value or benefit from capex/timing effects, aiding near-term runway and funding of growth initiatives while operations improve.

Negative Factors

Balance Sheet Weakness

Negative shareholders' equity and a debt-to-equity of -1.15 point to material capitalization and solvency concerns. Elevated leverage limits financial flexibility, raises refinancing risk, and can constrain investment in manufacturing scale or product development across the medium term.

Persistent Unprofitability

Negative net and EBIT margins reflect ongoing operational inefficiencies and a lack of sustainable profitability. Without meaningful margin improvement or cost controls, the company will struggle to self-fund growth and must rely on external capital, pressuring long-term sustainability.

Negative Operating Cash Flow

Negative operating cash flow means core business activities are consuming cash, which risks depleting liquidity or forcing dilutive financing. Improving operational cash conversion is essential to support scaling electrolyzer production and avoid repeated external funding rounds.

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company Description

Next Hydrogen Solutions Inc (NXH) is a leading company in the clean energy sector, specializing in the development and commercialization of innovative hydrogen production technologies. The company focuses on providing efficient and sustainable solutions for hydrogen generation, targeting key industries such as transportation, energy, and industrial applications. NXH's core product offerings include advanced electrolyzers that utilize renewable energy sources to produce green hydrogen, contributing to the global transition towards a low-carbon economy.

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 facing significant financial challenges across all verticals. The income statement reflects declining revenues and persistent losses. The balance sheet is weakened by negative equity and high leverage, while cash flow statements indicate ongoing cash flow difficulties. The company needs to address these issues to improve financial health and stability.

Income Statement

Next Hydrogen Solutions Inc has experienced significant revenue decline in the TTM period, with a negative revenue growth rate of -24.75%. The company is facing substantial losses, as indicated by a negative net profit margin of -11.98% and negative EBIT and EBITDA margins. The gross profit margin has improved to 45.21% in the TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.23. The return on equity is also negative, indicating that the company is not generating returns on its equity base. The equity ratio is not directly available but is implied to be negative due to negative equity, highlighting financial instability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a free cash flow growth rate of -13.15% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXH, the sentiment is Negative. The current price of 0.61 is above the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.62, and above the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$3.93B	-766.98	-0.27%	―	-5.59%	-104.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VLN	56 Neutral	C$412.28M	-3.04	-27.70%	3.06%	-18.71%	-845.27%
BLDP	47 Neutral	C$1.16B	-6.98	-18.07%	―	1.18%	62.71%
TLA	47 Neutral	C$15.95M	-38.06	-2.57%	―	-1.50%	-180.73%
PYR	46 Neutral	C$58.62M	-5.82	―	―	-6.83%	46.97%
NXH	40 Underperform	C$38.05M	-1.42	―	―	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.