XTM (PAID) AI Stock Analysis

• Market Cap: C$8.38M
• Dividend Yield: N/A
• Average Volume (3M): 158.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• Revenue Growth: 22.81%
• EPS Growth: 11.13%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 279,227,750
• 10 Day Avg. Volume: 196,619
• 30 Day Avg. Volume: 158,139
• PEG Ratio: -0.02
• Price to Book (P/B): -0.55
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -1.57
• 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: 39 Underperform
• Price Target: C$0.03 ▲(40.00% Upside)

The score is driven primarily by very weak financial performance (losses, negative equity, and negative cash flows). Technical indicators add downside risk with a bearish longer-term trend and oversold signals. Valuation is constrained by a negative P/E and lack of dividend support.

Positive Factors

Revenue growth

Sustained top-line growth (~22.8%) indicates ongoing customer demand or market expansion, which supports long-term opportunity to scale operations and leverage fixed costs. If maintained, this trend provides a base to pursue margin recovery and strategic investments.

Industry exposure

Exposure to Information Technology Services aligns the company with secular tailwinds such as digital transformation and outsourcing. These structural demand drivers expand the addressable market over years, supporting potential revenue durability even if current profitability is weak.

Low market sensitivity

Very low beta implies limited correlation with broad market swings, which can reduce financing and operational disruption from market volatility. That steadiness aids longer-term planning and may lower short-term refinancing risk while management pursues turnaround execution.

Negative Factors

Balance sheet weakness

Negative shareholders' equity and high leverage create structural solvency risk, limiting the firm’s ability to fund growth organically. Over months this restricts strategic flexibility, raises refinancing risk, and can force dilutive capital raises or asset sales to restore balance.

Persistent cash flow deficits

Ongoing negative operating and free cash flow erode liquidity and reduce runway for investment or restructuring. Over the medium term this necessitates external financing, which may be costly given balance sheet weakness, constraining sustainable operations and recovery plans.

Structural unprofitability

Consistent negative gross and net margins plus declining EBIT/EBITDA suggest the business is not converting revenue into profit. Without durable margin improvement, revenue growth cannot finance operations, undermining long-term viability and ability to achieve positive cash generation.

XTM Business Overview & Revenue Model

Company Description

XTM Inc. is a technology company focused on providing innovative solutions for businesses in the financial services sector. The company specializes in digital payment solutions, including prepaid cards and mobile wallets, catering primarily to the gig economy, retail, and hospitality industries. XTM's core products enable businesses to streamline their payment processes, enhance employee payroll systems, and offer flexible spending options to customers.

How the Company Makes Money

XTM generates revenue through several key streams. Primarily, the company earns money by charging transaction fees for the use of its prepaid card services and mobile payment solutions. Additionally, XTM may earn revenue from partnerships with businesses that integrate its payment solutions into their operations, as well as from subscription fees for premium services. The company also benefits from interest on funds held in its prepaid accounts and may explore additional revenue opportunities through value-added services and targeted marketing solutions to its customer base.

XTM Financial Statement Overview

Summary

Financial statements indicate severe weakness: ongoing losses with negative/declining margins, negative stockholders’ equity with high leverage risk, and persistent negative operating and free cash flow that pressures liquidity.

Income Statement

The income statement reveals significant challenges, with consistently negative net profit margins and declining EBIT and EBITDA margins over the years. Despite some revenue growth, the company struggles with profitability, as evidenced by negative gross profit margins in recent periods. The TTM data shows a slight revenue increase, but the overall financial performance remains weak.

Balance Sheet

The balance sheet highlights a concerning financial structure, with negative stockholders' equity and high debt levels relative to equity. The debt-to-equity ratio is negative, indicating financial instability. Return on equity is also negative, reflecting poor profitability. The equity ratio is unfavorable, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis shows persistent negative free cash flow and operating cash flow, indicating liquidity challenges. The free cash flow to net income ratio is close to 1, suggesting cash flow issues are aligned with net losses. However, the operating cash flow to net income ratio is low, highlighting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.08M	9.09M	6.78M	4.73M	2.26M	853.17K
Gross Profit	-5.31M	-148.73K	219.29K	930.41K	755.16K	82.51K
EBITDA	-17.26M	-19.77M	-14.81M	-7.04M	-5.07M	-3.20M
Net Income	-20.65M	-22.94M	-16.08M	-7.27M	-5.45M	-3.60M
Balance Sheet
Total Assets	55.88M	77.18M	63.55M	56.79M	37.00M	8.35M
Cash, Cash Equivalents and Short-Term Investments	52.90M	64.13K	94.10K	2.69M	8.38M	285.85K
Total Debt	11.19M	16.67M	2.89M	146.87K	236.94K	646.59K
Total Liabilities	95.91M	106.26M	70.88M	54.60M	27.36M	7.50M
Stockholders Equity	-40.03M	-29.08M	-7.33M	2.19M	9.64M	843.24K
Cash Flow
Free Cash Flow	-4.82M	-10.27M	-10.09M	-5.94M	-4.45M	-2.66M
Operating Cash Flow	-4.82M	-9.57M	-1.47M	-5.86M	-4.38M	-2.48M
Investing Cash Flow	3.43M	-693.76K	-10.62M	-83.22K	-71.77K	-181.98K
Financing Cash Flow	-2.80M	10.32M	9.20M	271.63K	12.55M	2.94M

XTM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 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:PAID, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PAID.

XTM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PVT	64 Neutral	C$46.09M	13.21	7.17%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PBIT	45 Neutral	C$8.92M	-2.63	-540.25%	―	-33.97%	59.10%
KNR	44 Neutral	C$104.58M	-3,571.43	-0.42%	―	-59.23%	-100.34%
NERD	44 Neutral	C$6.87M	-9.38	―	―	13.01%	20.00%
VIS	42 Neutral	C$3.87M	-3.49	-3428.85%	―	-15.33%	47.13%
PAID	39 Underperform	C$8.38M	-0.28	―	―	22.81%	11.13%

XTM Corporate Events

XTM Inc. Reports Revenue Growth and Strategic Shift in Q3 2025

XTM Inc. reported a 19% increase in year-to-date revenue and a 25% reduction in net operating loss for Q3 2025. The company has transitioned to a capital-light, profit-sharing model through a Management Services Agreement with Everyday People Financial Corp., which will manage XTM’s Canadian card and digital wallet programs. This strategic shift is expected to reduce costs and enhance operational efficiency. Additionally, XTM is focusing on expanding its U.S. market presence by pursuing contracts for Earned Wage Access and Early Tip Disbursement services, driven by favorable tax legislation.

The most recent analyst rating on (TSE:PAID) stock is a Sell with a C$0.02 price target. To see the full list of analyst forecasts on XTM stock, see the TSE:PAID Stock Forecast page.

XTM Inc. Reports Q3 2025 Financial Results and Strategic Transition

XTM Inc. has reported a 19% increase in year-to-date revenue and a 25% reduction in net operating loss for Q3 2025. The company has completed the sale of its processor assets, retaining essential EWA technology and client contracts, and is transitioning to a capital-light, profit-sharing business model through a Management Services Agreement with Everyday People Financial Corp. This strategic shift is expected to significantly reduce operating costs and enhance XTM’s focus on the U.S. market, where it is pursuing multiple contracts for its EWA and Early Tip Disbursement services.

The most recent analyst rating on (TSE:PAID) stock is a Sell with a C$0.02 price target. To see the full list of analyst forecasts on XTM stock, see the TSE:PAID Stock Forecast page.

XTM Inc. Partners with AGORACOM for U.S. Subsidiary Tokenization

XTM Inc. has signed a binding Letter of Intent with Dubai-based AGORACOM RWA DBX to facilitate the tokenization of Preferred Shares of its U.S. subsidiary, XTM USA. This initiative aims to unlock non-dilutive capital by leveraging digital asset markets and real-world asset tokenization infrastructure. The tokenization will focus on Preferred Shares in a private subsidiary, not affecting XTM’s common equity or public listing. This move is part of XTM’s strategy to explore innovative funding solutions that align with its long-term growth objectives, potentially opening new capital channels while maintaining operational control. The agreement marks XTM as one of the first publicly listed small-cap companies in North America to pursue such a strategy, signaling a shift in traditional financing models for the small-cap market.