POSaBIT Systems Corp. (TSE:PBIT)
:PBIT
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POSaBIT Systems
(PBIT)
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Rating:45Neutral
Price Target:
C$0.06
▲(5.00% Upside)
Action:ReiteratedDate:01/13/26
The score is held down primarily by weak financial fundamentals—negative equity, ongoing net losses, and contracting TTM revenue—despite improved cash flow. Technicals also remain soft with the price below key moving averages and a negative MACD. The earnings call was a relative positive (improving adjusted profitability and SaaS growth), but valuation remains constrained by negative earnings and no dividend support.
Positive Factors
Sustained High Gross Margins
An 87% adjusted gross profit margin indicates the business captures strong unit economics, especially on software/SaaS sales. High gross margins provide durable buffer against demand swings, support reinvestment in product and compliance, and underpin sustainable profitability as revenue mix shifts.
Negative Factors
Negative Equity / Weakened Capitalization
A stockholders’ deficit materially weakens capitalization and raises financial risk; leverage is effectively high even with moderate debt. This constraint limits financing options, raises refinancing risk, and reduces the firm’s ability to fund growth or withstand shocks over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained High Gross Margins
An 87% adjusted gross profit margin indicates the business captures strong unit economics, especially on software/SaaS sales. High gross margins provide durable buffer against demand swings, support reinvestment in product and compliance, and underpin sustainable profitability as revenue mix shifts.
Read all positive factors
POSaBIT Systems (PBIT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.73M
Dividend YieldN/A
Average Volume (3M)39.87K
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue Growth-33.97%
EPS Growth59.10%
CountryCA
Employees54
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding162,164,110
10 Day Avg. Volume72,168
30 Day Avg. Volume39,872
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)16.58
Price to Sales (P/S)0.50
P/FCF Ratio-14.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
POSaBIT Systems Business Overview & Revenue Model
Company Description
POSaBIT Systems Corporation, a financial technology company, provides block chain-enabled payment processing and point-of-sale systems for cash-only businesses with a focus on the cannabis industry in the United States. The company is headquartere...
How the Company Makes Money
POSaBIT generates revenue primarily through transaction fees charged on every payment processed through its point-of-sale systems. These fees are typically a percentage of the transaction amount, allowing the company to earn a consistent income as...
POSaBIT Systems Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in profitability, with record adjusted EBITDA and improved gross profit margins. Growth in SaaS revenue and successful financial management were notable positives. However, revenue decline and a small net loss were concerns. The decision to cut PR spending could impact public perception, but overall, the focus on profitability and market expansion paints a positive picture.Positive Updates
Record Adjusted EBITDA
POSaBIT achieved its first nearly $1 million adjusted EBITDA quarter, marking a significant milestone in the company's history.
Negative Updates
Revenue Decline
Q3 total revenue was $2.3 million, down from $3.8 million in the same period last year, due to changes in legacy payment processing revenues.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Adjusted EBITDA
POSaBIT achieved its first nearly $1 million adjusted EBITDA quarter, marking a significant milestone in the company's history.
Read all positive updates
Company Guidance
During the POSaBIT Systems Corporation Third Quarter 2025 earnings call, the company provided several key metrics highlighting their financial performance and strategic focus. POSaBIT achieved a milestone with nearly $1 million in adjusted EBITDA, reaching around $970,000, and demonstrated significant growth with a 22% increase in recurring SaaS revenues compared to the previous quarter. The company reported an adjusted gross profit margin of 87%, up from 77% in Q2, and a substantial gross profit increase of over $150,000. Cash on hand grew by nearly $0.5 million, finishing at over $1.2 million, while accounts payable were reduced by $400,000. Total revenue for Q3 was $2.3 million, a decline from $3.8 million the previous year, which was expected due to a shift away from legacy payment processing revenues. Despite a small net loss of $596,000, this marked a 70% improvement from the previous year, reinforcing the company's focus on profitability and cost management. With a stable debt balance of about $4.5 million and continued growth in their point-of-sale and e-commerce business, POSaBIT is positioned for future expansion and success, especially as they anticipate regulatory changes in the cannabis industry.POSaBIT Systems Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
18
Very Negative
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.01M | 15.27M | 43.58M | 49.77M | 21.30M | 7.82M |
| Gross Profit | 6.95M | 7.00M | 9.22M | 22.57M | 5.76M | 1.74M |
| EBITDA | -1.67M | -4.69M | -12.15M | 5.95M | -10.15M | -600.53K |
| Net Income | -2.32M | -5.72M | -13.76M | 8.06M | -10.74M | -1.43M |
Balance Sheet | ||||||
| Total Assets | 5.90M | 8.60M | 13.16M | 18.00M | 7.90M | 3.69M |
| Cash, Cash Equivalents and Short-Term Investments | 1.22M | 999.08K | 1.52M | 3.08M | 4.42M | 977.65K |
| Total Debt | 4.57M | 4.53M | 4.58M | 313.41K | 134.51K | 364.26K |
| Total Liabilities | 6.78M | 8.14M | 7.85M | 9.77M | 16.61M | 6.74M |
| Stockholders Equity | -878.40K | 458.94K | 5.31M | 8.22M | -8.71M | -3.06M |
Cash Flow | ||||||
| Free Cash Flow | 583.83K | -515.26K | -8.34M | -5.25M | -2.44M | -362.36K |
| Operating Cash Flow | 583.83K | -515.26K | -7.43M | -4.92M | -2.19M | -186.43K |
| Investing Cash Flow | 49.61K | 120.00K | -1.95M | -330.67K | -241.01K | -175.93K |
| Financing Cash Flow | -161.25K | -127.82K | 7.83M | 3.90M | 5.88M | 935.57K |
POSaBIT Systems Technical Analysis
Positive
0.06
Price Trends
0.06
Positive
0.06
Positive
0.06
Negative
Market Momentum
<0.01
Negative
63.38
Neutral
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBIT, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PBIT.
POSaBIT Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$46.09M | 10.70 | 7.10% | ― | -13.43% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$104.58M | 2.69 | -0.43% | ― | -59.23% | -100.34% | |
45 Neutral | C$9.73M | -3.42 | -540.25% | ― | -33.97% | 59.10% | |
44 Neutral | C$2.29M | -4.02 | ― | ― | 13.01% | 20.00% | |
39 Underperform | C$5.17M | -15.43 | -3428.85% | ― | -15.33% | 47.13% |
* Technology Sector Average
TSE:PBIT
POSaBIT Systems
0.06
-0.02
-25.00%
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2.50
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TSE:VIS
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TSE:PVT
Pivotree
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.