Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$10.09M
• Dividend Yield: N/A
• Average Volume (3M): 144.15K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.18
• Revenue Growth: -1.14%
• EPS Growth: N/A
• Country: CA
• Employees: 26
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 168,228,910
• 10 Day Avg. Volume: 211,934
• 30 Day Avg. Volume: 144,145
• PEG Ratio: 0.81
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 33.06
• 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: 61 Neutral
• Price Target: C$0.07 ▲(38.00% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven mainly by improving fundamentals (rapid revenue growth, low leverage, and positive recent cash flow), but capped by still-unstable profitability and thin/declining margins. Technicals are supportive with price above moving averages, yet overbought readings (RSI/Stoch) temper the outlook. Valuation helps with a low P/E, though no dividend yield is available.

Positive Factors

Improving cash generation

The company recorded positive EBITDA and free cash flow in 2025, reversing prior cash losses. Durable positive operating cash flow supports reinvestment in processing capacity and IP monetization, reducing reliance on external financing over the next several quarters.

Low and improving leverage

Leverage has fallen materially from earlier peaks, leaving a stronger capital cushion and greater balance-sheet flexibility. Low debt levels reduce interest burden and permit strategic investments or licensing support without immediate refinancing risk over the medium term.

Proprietary IP and scalable business model

The firm’s proprietary extraction and purification technologies plus an IP-licensing strategy create structural advantages: scalable revenue via ingredient sales and royalties, higher margins on proprietary processes, and barriers to entry that support durable differentiation.

Negative Factors

Revenue contraction

Top-line shrinkage undermines operating leverage and compresses margin recovery because fixed processing and IP development costs remain. Sustained revenue declines would challenge return to consistent profitability and slow the pace of strategic reinvestment.

Profitability not fully restored

Although EBITDA is positive, EBIT and net income remain below breakeven, indicating persistent non-operating costs or insufficient scale. Without durable improvement to net profitability, equity returns remain weak and ability to self-fund growth is constrained.

Uneven historical cash flows

Volatile operating and free cash flows across recent years indicate exposure to demand cycles, capex swings, or working capital volatility. That variability raises financing uncertainty for multi-quarter projects and makes planning for consistent dividends or buybacks harder.

Nextleaf Solutions Business Overview & Revenue Model

Company Description

Nextleaf Solutions Ltd., a cannabis extraction technology company, develops and licenses technology for the extraction, distillation, and formulation of cannabinoids in Canada. The company extracts, distills, purifies, delivers, and wholesales CBD oils and THC cannabinoid ingredients; researches and develops cannabis infused products, vapes, ingestible concentrates, and specialty extracts; and provides extraction services. It also focuses on the development and commercialization of psychoactive compounds. The company was formerly known as Legion Metals Corp. and changed its name to Nextleaf Solutions Ltd. Nextleaf Solutions Ltd. was founded in 2015 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Nextleaf Solutions generates revenue through multiple streams, including the sale of its proprietary extraction technology, which allows cannabis producers to efficiently extract cannabinoids from raw plant material. Additionally, the company capitalizes on its intellectual property by licensing its extraction processes and equipment to other businesses within the industry. Another significant revenue stream comes from the production and sale of distilled cannabis oils and other cannabinoid products, which are marketed to both recreational and medicinal cannabis markets. Strategic partnerships with licensed producers and manufacturers further enhance its earnings potential by facilitating access to broader distribution channels and increasing product visibility in the market.

Nextleaf Solutions Financial Statement Overview

Summary

Strong TTM revenue growth (+118.8%) and a de-risked balance sheet (low debt-to-equity ~0.09) support the score, and TTM operating/free cash flow are positive. Offsetting this, profitability is still weak with low gross margin (~13%), negative EBIT, and a net loss (net margin ~-3.8%), indicating earnings durability is not yet established.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+118.8%), but profitability remains weak: gross margin is low (~13%) and the company is still posting a net loss (net margin ~-3.8%) with negative EBIT. Results have improved materially from the deep losses in 2021–2022 and near break-even in 2025 annual, but the step-down in gross margin versus 2023–2024 and the return to losses in TTM indicate profitability is not yet stable.

Balance Sheet

Leverage is conservative, with low debt relative to equity (TTM debt-to-equity ~0.09), which reduces financial risk and supports resilience. Equity is positive and sizable versus the debt load, and leverage has improved versus 2021–2022 levels. The main weakness is returns: equity is not currently generating profits (TTM return on equity is negative), reflecting that earnings power has not caught up with the capital base.

Cash Flow

Cash generation is a notable strength in the most recent periods: TTM (Trailing-Twelve-Months) operating cash flow (~$0.81M) and free cash flow (~$0.69M) are positive, with very strong TTM free cash flow growth. That said, cash flow has been volatile historically (negative in 2024 and 2022–2021), and while cash flow is positive, it is still modest relative to the company’s revenue scale, suggesting continued sensitivity to execution and working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.26M	12.48M	8.18M	4.41M	3.38M
Gross Profit	1.94M	3.74M	2.31M	661.24K	-855.03K
EBITDA	611.70K	-624.44K	1.14M	-1.94M	-3.79M
Net Income	-162.94K	-1.44M	223.33K	-3.49M	-5.39M
Balance Sheet
Total Assets	7.82M	8.57M	8.54M	7.15M	9.19M
Cash, Cash Equivalents and Short-Term Investments	446.56K	438.54K	898.90K	377.72K	915.38K
Total Debt	793.82K	384.69K	489.75K	1.36M	3.25M
Total Liabilities	3.25M	4.06M	4.40M	4.14M	5.77M
Stockholders Equity	4.57M	4.50M	4.13M	3.02M	3.43M
Cash Flow
Free Cash Flow	353.16K	-682.48K	851.89K	-911.02K	-2.94M
Operating Cash Flow	414.88K	-614.09K	875.46K	-802.19K	-2.87M
Investing Cash Flow	-267.79K	-68.39K	-23.56K	-108.83K	-21.48K
Financing Cash Flow	-139.06K	222.12K	-330.71K	373.35K	2.82M

Nextleaf Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 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:OILS, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:OILS.

Nextleaf Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOVE	67 Neutral	C$178.80M	36.96	11.63%	―	30.64%	101.12%
OILS	61 Neutral	C$10.09M	8.94	11.57%	―	-1.14%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATLE	50 Neutral	C$56.36M	-2.79	-19.76%	―	26.91%	81.01%
OGI	47 Neutral	$265.86M	3.90	4.86%	―	62.15%	60.50%
LABS	45 Neutral	C$27.35M	-3.68	-19.10%	―	18.06%	34.58%

Nextleaf Solutions Corporate Events

Nextleaf Solutions Posts Profitable Q1 FY26 with Strong Cash Flow and Brand Expansion

Nextleaf Solutions reported Q1 FY26 gross revenue of about CAD $4 million, net revenue of CAD $3.0 million, and gross profit of CAD $1.29 million, delivering a 43% gross margin and net income of CAD $259,171. The company posted its fifth consecutive quarter of positive adjusted EBITDA and generated positive operating cash flow of CAD $348,609, strengthening its cash position while continuing to operate without secured debt.

Management highlighted that performance in the quarter was driven by higher-margin consumer packaged goods such as vapes, oils, and softgels, alongside continued momentum from its branded extract portfolio. The launch of Yard Cannabis broadened its brand house beyond flagship Glacial Gold, and Nextleaf enters Q2 focused on expanding exports, scaling national distribution, optimizing operations via ERP integration, and maintaining disciplined capital allocation to support sustainable, profitable growth.

The most recent analyst rating on (TSE:OILS) stock is a Hold with a C$0.06 price target. To see the full list of analyst forecasts on Nextleaf Solutions stock, see the TSE:OILS Stock Forecast page.

Nextleaf Taps Kindred and New Distributors to Scale Cannabis CPG Platform

Nextleaf Solutions has overhauled its commercial platform to support scalable, margin-focused growth in its Canadian cannabis consumer-packaged goods business. The company appointed Kindred Canada as its national sales agency partner, shifting from a regional to a centralized sales model to better leverage prior margin gains and supply chain improvements.

Kindred will drive national sales execution for Nextleaf’s brand portfolio, reinforcing Glacial Gold’s position in cannabis wellness, deepening key account penetration, and supporting the national rollout of Yard Cannabis. Executives from both companies expect stronger retail partnerships, improved distribution, and enhanced store-level execution, particularly in underserved markets.

Nextleaf also expanded its distribution reach in Manitoba and Saskatchewan through new and enhanced relationships with Open Fields Distribution, Open Fields Manitoba, and existing partner Lynx Distribution. These moves aim to increase retail penetration, boost listing velocity, and create more consistent in-store representation of its brands across Canada, while an employee share issuance aligns staff incentives with long-term shareholder value.

The most recent analyst rating on (TSE:OILS) stock is a Hold with a C$0.05 price target. To see the full list of analyst forecasts on Nextleaf Solutions stock, see the TSE:OILS Stock Forecast page.

Nextleaf Ships Cannabis Softgels to Australia as It Expands Global Partners Program

Nextleaf Solutions has completed its first commercial shipment of 756,000 cannabis softgels to a white-label client in Australia, marking a significant step in its international expansion. The move highlights the company’s export-ready infrastructure, validated quality systems, and ability to act as a capital-efficient partner in the global medical cannabis supply chain.

Building on global demand for pharmaceutical-grade derivative cannabis products, Nextleaf is expanding its Commercial Partners Program to support domestic and international growth. As part of this push, the company will engage potential resellers and distributors at the Australian Medicinal Cannabis Association conference, aiming to strengthen its presence in the fast-growing Australian medical cannabis market.

The most recent analyst rating on (TSE:OILS) stock is a Hold with a C$0.04 price target. To see the full list of analyst forecasts on Nextleaf Solutions stock, see the TSE:OILS Stock Forecast page.

Nextleaf Narrows Loss, Turns EBITDA Positive as Premium Cannabis Extract Strategy Pays Off

Nextleaf Solutions reported a transformative fiscal 2025, highlighted by an 88.6% reduction in annual net loss to $162,944, improved gross margins to 25%, and a swing to positive EBITDA of $522,258 alongside positive operating cash flow, despite slightly lower gross revenue year over year. The improved results were driven by a strategic pivot toward higher-margin consumer packaged goods, portfolio and SKU rationalization, and supply chain efficiencies, while the company expanded its commercial footprint with a new premium extract brand, Yard, entered Québec via Glacial Gold-branded products and white-label extracts, and reinforced its leadership in high-potency ingestible and balanced CBD vape products; looking ahead to 2026, Nextleaf plans to pursue international export opportunities, invest in BC-grown biomass for bulk distillate, and scale its distribution and sales presence in underrepresented Canadian regions, positioning the company for further growth and enhanced market penetration.