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POSaBIT Systems Corp (TSE:PBIT)
:PBIT
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POSaBIT Systems
(OTC:PBIT)
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Rating:51Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
POSaBIT Systems' overall stock score reflects significant financial challenges, including high leverage and negative cash flows, which are major concerns. However, the company has shown positive momentum in technical indicators and has made notable progress in profitability and SaaS revenue growth as highlighted in the earnings call. The valuation remains a concern due to ongoing losses. The focus on profitability and market expansion is promising, but financial stability needs to be addressed.
POSaBIT Systems (PBIT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$12.97M
Dividend YieldN/A
Average Volume (3M)35.19K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth-50.75%
EPS Growth66.00%
CountryCA
Employees54
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding162,164,110
10 Day Avg. Volume21,900
30 Day Avg. Volume35,193
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 DescriptionPOSaBIT Systems (PBIT) is a technology company specializing in providing point-of-sale (POS) solutions tailored for the cannabis industry. The company operates primarily in the financial technology sector, offering a comprehensive suite of services that includes payment processing, cash management, and compliance solutions for cannabis retailers. POSaBIT's core products enable dispensaries to accept various forms of payment, ensuring compliance with state regulations while enhancing customer experience.
How the Company Makes MoneyPOSaBIT generates revenue primarily through transaction fees collected from its payment processing services. Each time a cannabis retailer processes a transaction using POSaBIT’s system, a percentage of the transaction amount is retained as a fee. Additionally, the company may earn revenue through subscription fees for its software solutions, which provide retailers with inventory management, sales reporting, and compliance features. Strategic partnerships with cannabis dispensaries and industry stakeholders also play a crucial role in expanding their market presence and driving sales, as these partnerships often lead to higher transaction volumes and recurring revenue streams.
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.Q3-2025 Updates
Positive Updates
Record Adjusted EBITDA
POSaBIT achieved its first nearly $1 million adjusted EBITDA quarter, marking a significant milestone in the company's history.
Improved Gross Profit Margin
The company reported an 87% adjusted gross profit margin, up from 77% in Q2, demonstrating improved profitability.
Growth in SaaS Revenue
Recurring SaaS revenues increased 22% in Q3 compared to Q2, highlighting the successful focus on growing the point-of-sale and e-commerce menu business.
Cash Growth and Debt Reduction
Cash on hand increased by nearly $0.5 million over the quarter, with a significant reduction in accounts payable by 41% or $400,000, strengthening the financial position.
Continued Market Expansion
POSaBIT expanded its presence with steady growth in Oregon, New Mexico, and new markets on the East Coast.
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.
Small Net Loss
The company reported a net loss of $596,000, although this represents a 70% improvement over the previous year.
Concerns About Public Relations
The company reduced spending on PR and IR as the return on investment was not meeting expectations, potentially affecting public perception.
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
POSaBIT Systems is facing significant financial challenges across multiple areas. The income statement highlights issues with profitability and revenue stability. The balance sheet is strained by high leverage and low equity, posing financial risks. Consistently negative cash flows indicate difficulties in maintaining liquidity and financing operations through internal cash generation. The company needs to address operational inefficiencies and explore ways to stabilize its financial performance.Income Statement
The company has faced significant challenges in maintaining profitability, with persistent negative net income and EBIT margins over recent years. The gross profit margin has fluctuated, reflecting some operational inefficiencies. Revenue has been volatile, with a significant decline in the most recent year, indicating potential market or operational challenges.35
Negative
Balance Sheet
The balance sheet shows a concerning high level of leverage with total liabilities significantly exceeding equity, resulting in a negative equity in some years. The debt-to-equity ratio is extremely high, indicating potential financial risk. However, the company has managed to maintain a modest level of cash and cash equivalents.40
Negative
Cash Flow
The cash flow statements indicate ongoing struggles with negative operating and free cash flows, suggesting difficulties in generating cash from operations. The free cash flow to net income ratio is consistently negative, reflecting challenges in covering investments and financing activities with internally generated funds.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.73M | 15.27M | 43.58M | 49.77M | 21.30M | 7.82M |
| Gross Profit | 6.69M | 7.00M | 9.22M | 22.57M | 5.76M | 1.74M |
| EBITDA | -3.09M | -4.69M | -12.15M | 5.95M | -10.15M | -600.53K |
| Net Income | -3.81M | -5.72M | -13.76M | 8.06M | -10.74M | -1.43M |
Balance Sheet | ||||||
| Total Assets | 6.61M | 8.60M | 13.16M | 18.00M | 7.90M | 3.69M |
| Cash, Cash Equivalents and Short-Term Investments | 805.92K | 999.08K | 1.52M | 3.08M | 4.42M | 977.65K |
| Total Debt | 4.55M | 4.53M | 4.58M | 313.41K | 134.51K | 364.26K |
| Total Liabilities | 7.32M | 8.14M | 7.85M | 9.77M | 16.61M | 6.74M |
| Stockholders Equity | -717.50K | 458.94K | 5.31M | 8.22M | -8.71M | -3.06M |
Cash Flow | ||||||
| Free Cash Flow | -122.30K | -515.26K | -8.34M | -5.25M | -2.44M | -362.36K |
| Operating Cash Flow | -122.30K | -515.26K | -7.43M | -4.92M | -2.19M | -186.43K |
| Investing Cash Flow | 48.84K | 120.00K | -1.95M | -330.67K | -241.01K | -175.93K |
| Financing Cash Flow | -192.82K | -127.82K | 7.83M | 3.90M | 5.88M | 935.57K |
POSaBIT Systems Technical Analysis
Positive
0.06
Price Trends
0.07
Positive
0.07
Positive
0.07
Positive
Market Momentum
<0.01
Negative
58.38
Neutral
76.67
Neutral
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 below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$39.87M | ― | -4.98% | ― | -11.75% | 74.20% | |
51 Neutral | C$12.97M | ― | -295.25% | ― | -50.75% | 66.00% | |
50 Neutral | C$56.53M | ― | ― | ― | 36.90% | -71.81% | |
45 Neutral | C$104.58M | ― | -10.74% | ― | -63.58% | -112.17% | |
38 Underperform | C$7.08M | -0.34 | ― | ― | 30.97% | 18.42% | |
37 Underperform | $4.97M | -3.03 | ― | ― | -0.10% | 70.92% |
* Technology Sector Average
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POSaBIT Systems
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POSaBIT Systems Corporate Events
POSaBIT Systems Corp Reports Improved Financial Performance
Nov 13, 2025
POSaBIT Systems Corp, a company specializing in point-of-sale solutions primarily for the cannabis industry, provides innovative payment processing and point-of-sale systems. The company is listed on the Canadian Securities Exchange under the symbol ‘PBIT’.
POSaBIT Systems Corp Reports Mixed Financial Results
Aug 22, 2025
POSaBIT Systems Corporation is a company that specializes in providing point-of-sale solutions, primarily serving the cannabis industry with a focus on facilitating consumer purchases through innovative payment systems. The company operates within the technology sector and is known for its unique approach to integrating financial services with retail operations.
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.