Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$8.41M
• Dividend Yield: N/A
• Average Volume (3M): 144.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• 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: 49 Neutral
• Price Target: C$0.05 ▼(-10.00% Downside)

The score is held back primarily by weak technicals (below major moving averages with negative MACD) and the lack of consistent profitability (still slightly negative EBIT/net income and a recent revenue decline). Offsetting these risks, financial quality is improving with positive EBITDA, positive free cash flow in 2025, and low leverage.

Positive Factors

Positive EBITDA and free cash flow

Sustained positive EBITDA and FCF in 2025 indicate the business can generate operating cash after years of losses. This durable cash generation improves runway, lowers refinancing risk, and funds commercialization or licensing investments without relying solely on external equity.

Low and improving leverage

Marked reduction in leverage provides a stronger capital cushion and reduces interest burden, enhancing financial flexibility. For a small, cyclical cannabis-tech operator this durable balance-sheet improvement supports investment in scaling IP or processing capacity without excessive funding stress.

Proprietary IP and B2B model

An IP-centric model—patented extraction, distillation and purification—creates a structural competitive edge versus commodity suppliers. Licensing and ingredient sales can scale with limited capital intensity, offering recurring, higher-margin revenue streams if patents and partnerships hold.

Negative Factors

Profitability still negative

Despite margin improvement, lingering negative EBIT and net income show operations are not yet consistently profitable. This constrains retained earnings, limits reinvestment capacity, and keeps the company dependent on continued execution to convert operating improvements into sustained net profits.

Revenue decline and volatility

A recent revenue contraction after prior scale-up highlights demand or commercialization inconsistencies. Persistent top-line volatility undermines long-term planning, weakens bargaining leverage with customers, and raises execution risk for converting IP into steady licensing or supply contracts.

Uneven historical cash flows

Irregular operating and free cash flows across multiple years create financing uncertainty. Episodic large outflows increase the likelihood of dilutive raises or constrained capex during downturns, making long-term execution, IP enforcement, and scaling more vulnerable to funding swings.

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

Turnaround progress is evident with positive EBITDA (~5% margin) and positive free cash flow in 2025, alongside improved (low) leverage. However, revenue declined in 2025 (~-7% YoY) and profitability remains slightly negative (EBIT and net income), indicating the business is not yet consistently profitable.

Income Statement

Revenue scaled materially from 2020 to 2025 (annual), but growth turned negative in 2025 (down ~7% vs. 2024). Profitability is improving meaningfully versus the heavy losses of 2020–2022: gross margin rebounded to ~17% in 2025 (from negative in 2020–2021), EBITDA margin is now positive (~5%), and net loss has narrowed to roughly breakeven in 2025 (about -1% net margin). The key weakness is that earnings are still slightly negative (EBIT and net income), and margins remain well below the 2023 peak, highlighting some volatility in operating performance.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity is low in 2024–2025 (~0.09–0.17) versus much higher levels in 2021 (~0.95). Equity remains substantial relative to total assets, suggesting a decent capital cushion. The main concern is returns: return on equity remains negative in 2024–2025 (even though it improved sharply from 2021–2022), reflecting that the business has not consistently generated profits despite a healthier balance-sheet leverage profile.

Cash Flow

Cash generation improved notably in 2025, with positive operating cash flow (~$0.4M) and positive free cash flow (~$0.35M), a reversal from negative cash flows in 2024. Free cash flow is reasonably supported versus the small 2025 net loss, indicating better cash discipline. Offsetting this, the cash flow record is uneven across years (large outflows in 2020–2022 and again in 2024), and free cash flow growth is sharply negative in 2025 versus 2024 due to the swing from a more negative base, underscoring variability.

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

Nextleaf Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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$164.75M	14.01	13.39%	―	30.64%	101.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATLE	50 Neutral	C$54.59M	-2.62	-19.76%	―	26.91%	81.01%
OILS	49 Neutral	C$8.41M	-55.56	11.57%	―	-1.14%	―
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
OGI	44 Neutral	C$276.76M	-10.64	-7.93%	―	62.15%	60.50%

Nextleaf Solutions Corporate Events

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.

Nextleaf Solutions Unveils New Recreational Cannabis Brand ‘Yard’

Nextleaf Solutions has launched a new recreational cannabis brand, Yard, targeting adult-use consumers seeking high-potency extracts and flavor-forward formulations. This strategic move aims to enhance Nextleaf’s market presence in the competitive cannabis industry by offering innovative products like THC dominant vapes and infused prerolls, leveraging their proprietary technology for consistent quality and potency.