XTM (PAID) AI Stock Analysis

• Market Cap: C$7.08M
• Dividend Yield: N/A
• Average Volume (3M): 158.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.13
• 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: 235,861,040
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: C$0.02 ▼(-36.67% Downside)

The most significant factor affecting the score is the company's financial performance, marked by strong revenue growth but significant challenges in profitability and financial stability. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to negative earnings and lack of dividends, contributing to the low overall score.

Positive Factors

Revenue Growth

XTM's consistent revenue growth indicates a strong market demand for its digital payment solutions, supporting long-term business expansion.

Market Position

Focusing on the gig economy positions XTM to capitalize on a growing market segment, enhancing its competitive edge and future growth potential.

Revenue Streams

Diverse revenue streams through transaction fees and partnerships provide a stable income base, reducing reliance on a single revenue source.

Negative Factors

Profitability Challenges

Ongoing losses and negative margins highlight difficulties in achieving profitability, which could hinder long-term financial sustainability.

Financial Stability

A high debt load and negative equity suggest financial instability, posing risks to future operations and creditor relationships.

Cash Flow Challenges

Inability to generate positive cash flow from operations increases dependency on external funding, which may not be sustainable long-term.

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

The company shows strong revenue growth but faces significant challenges with profitability and financial stability. Persistent operating losses and high debt levels indicate financial distress and potential risk for creditors.

Income Statement

The company has shown significant revenue growth over the years, with an annual increase from 2019 to 2024. However, it continues to operate at a loss, with negative EBIT and net income margins. These negative margins indicate challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, exacerbated by negative stockholders' equity, indicating potential financial instability. The equity ratio is negative due to liabilities exceeding assets, suggesting financial distress and potential risk for creditors.

Cash Flow

The company has a negative free cash flow and operating cash flow, indicating challenges in generating cash from operations. The financing cash flow is positive, suggesting reliance on external financing to sustain operations. This reliance on external funding poses risks if capital becomes scarce.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.07M	9.09M	6.78M	4.73M	2.26M	853.17K
Gross Profit	-3.05M	-148.73K	219.29K	930.41K	755.16K	82.51K
EBITDA	-16.60M	-19.77M	-14.81M	-7.04M	-5.07M	-3.20M
Net Income	-19.79M	-22.94M	-16.08M	-7.27M	-5.45M	-3.60M
Balance Sheet
Total Assets	64.14M	77.18M	63.55M	56.79M	37.00M	8.35M
Cash, Cash Equivalents and Short-Term Investments	57.14K	64.13K	94.10K	2.69M	8.38M	285.85K
Total Debt	10.71M	16.67M	2.89M	146.87K	236.94K	646.59K
Total Liabilities	99.38M	106.26M	70.88M	54.60M	27.36M	7.50M
Stockholders Equity	-35.24M	-29.08M	-7.33M	2.19M	9.64M	843.24K
Cash Flow
Free Cash Flow	2.54M	-10.27M	-10.09M	-5.94M	-4.45M	-2.66M
Operating Cash Flow	2.55M	-9.57M	-1.47M	-5.86M	-4.38M	-2.48M
Investing Cash Flow	680.30K	-693.76K	-10.62M	-83.22K	-71.77K	-181.98K
Financing Cash Flow	-3.41M	10.32M	9.20M	271.63K	12.55M	2.94M

XTM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.03 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.67 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 Negative sentiment for TSE:PAID.

XTM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PBIT	46 Neutral	$8.11M	―	-540.25%	―	-33.97%	59.10%
VIS	41 Neutral	C$3.87M	-3.26	-3428.85%	―	-15.33%	47.13%
NERD	41 Neutral	$2.24M	―	―	―	13.01%	20.00%
FARM	40 Underperform	C$8.31M	-0.12	―	―	-18.97%	-55.19%
PAID	39 Underperform	C$7.08M	-0.34	―	―	22.81%	11.13%
DCSI	37 Underperform	$4.97M	-3.03	―	―	33.92%	-402.25%

XTM Corporate Events

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.

Everyday People Financial and XTM Inc. Forge Strategic Partnership to Enhance Canadian Payments Operations

Everyday People Financial Corp. and XTM Inc. have entered into a strategic Management Services Agreement to integrate their Canadian payments operations. This collaboration allows EPF to manage XTM’s network branded card and digital wallet programs, leveraging EPF’s regulatory and operational framework. The partnership is expected to enhance compliance, scalability, and profitability for both companies, with XTM benefiting from cost efficiencies and a focus on cross-border expansion. The agreement is structured to be capital-light and profit-sharing, promising significant revenue growth and improved financial performance.

XTM Inc. Strengthens Financial Position with Strategic Asset Sale

XTM Inc. has successfully closed a strategic asset sale to Pateno Payments Inc., a move that strengthens its balance sheet and accelerates its growth path. The transaction, valued at USD $3,000,000, allows XTM to reduce monthly operating costs and achieve cash neutrality by continuing to leverage the QRails processing platform. This divestiture marks a significant step towards profitability and sustainable growth, with benefits including reduced cash burn, margin expansion, and enhanced operational efficiency. XTM retains full ownership of its AnyDay™ platform and key customer relationships, while the core QRails engineering team transitions to Pateno, supporting ongoing innovation for both companies.

XTM Inc. Faces Audit Challenges Following CPAB Enforcement Report

XTM Inc. has announced that the Canadian Public Accountability Board (CPAB) issued an enforcement report against its auditor, Abu-Farah Professional Corporation, identifying significant inspection findings related to the audit of XTM’s financial statements for the fiscal year ended December 31, 2023. The report highlighted multiple deficiencies in audit procedures, including non-compliance with professional standards and insufficient documentation. As a result, the auditor is prohibited from accepting new reporting issuer clients, and a remediation plan is underway, with updates expected by Q4 2025.

XTM Inc. Reports Q2 2025 Financial Results and Strategic Realignment

XTM Inc. reported its Q2 2025 financial results, highlighting a slight revenue increase to $2.21 million and a significant reduction in net loss by 40% compared to the previous year. The company’s strategic realignment, including a pending transaction with Pateno Payments Inc., aims to enhance profitability and diversify revenue sources, notably through Software as a Service (SaaS) revenue. The company is also preparing to refile its 2024 and Q1 2025 financial statements to address disclosure deficiencies.