POSaBIT Systems Corp. (TSE:PBIT)
:PBIT
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POSaBIT Systems
(PBIT)
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Rating:51Neutral
Price Target:
C$0.09
▲(41.67% Upside)
Action:ReiteratedDate:05/02/26
The score is held back primarily by weak financial fundamentals—steep multi-year revenue contraction, ongoing GAAP losses, and a stressed balance sheet with negative equity and meaningful debt. Offsetting factors include a notable 2025 profitability/cash-flow improvement and constructive earnings-call guidance toward higher-margin SaaS-led growth, while technicals are supportive but look overbought and valuation support is limited due to negative earnings and no dividend.
Positive Factors
Gross Margin Expansion
A material jump in gross margin to ~72% (and management-cited adjusted gross profit >80%) reflects a structural improvement in unit economics driven by the shift toward higher-margin offerings and the agent/referral model. Higher gross margins provide durable profit buffer, improving leverage on incremental revenue and enabling reinvestment even if scale remains limited.
Negative Factors
Severe Revenue Contraction
A multi-year collapse in top line sharply reduces scale benefits and weakens competitive positioning. Smaller revenue makes fixed costs harder to absorb, limits R&D and sales investment, and raises the risk that margin gains cannot offset lost scale. Restoring durable top-line growth is essential for sustaining improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Expansion
A material jump in gross margin to ~72% (and management-cited adjusted gross profit >80%) reflects a structural improvement in unit economics driven by the shift toward higher-margin offerings and the agent/referral model. Higher gross margins provide durable profit buffer, improving leverage on incremental revenue and enabling reinvestment even if scale remains limited.
Read all positive factors
POSaBIT Systems (PBIT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$13.78M
Dividend YieldN/A
Average Volume (3M)39.87K
Price to Earnings (P/E)―
Beta (1Y)-0.31
Revenue Growth-33.03%
EPS Growth64.53%
CountryCA
Employees54
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding162,164,110
10 Day Avg. Volume72,168
30 Day Avg. Volume39,872
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)-5.47
Price to Sales (P/S)0.57
P/FCF Ratio7.36
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 by providing payments and commerce-related services to merchants using its platform, especially cannabis dispensaries. Key revenue streams include: (1) payment processing and transaction-based fees earned when a...
POSaBIT Systems Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call emphasized a strategic transition that caused a meaningful reported revenue decline but materially improved the quality of earnings: higher gross margins, positive adjusted EBITDA, reduced operating costs, stronger cash and balance sheet metrics, plus a new AI-driven product (POSaBIT Brands) and regulatory upside if cannabis rescheduling occurs. Remaining concerns include the headline revenue decline, a GAAP net loss (albeit much improved), payment pricing pressure, persistent credit facility borrowings and a low public-market valuation. On balance, management presented multiple operating and financial improvements and a clear strategic path forward.Positive Updates
Adjusted EBITDA Turnaround
Adjusted EBITDA turned positive to approximately $2.5M in 2025 from a loss of $0.761M in 2024, an improvement of about $3.26M and described by management as over a 400% improvement year-over-year.
Negative Updates
Significant Top-Line Revenue Decline
Total revenue declined to $10.0M in 2025 from $15.3M in 2024, a decrease of approximately 34.6% YoY. Management attributes the decline to a strategic accounting change (move to an agent/referral model for payment processing) that reduced reported topline but improved margins and cash.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Turnaround
Adjusted EBITDA turned positive to approximately $2.5M in 2025 from a loss of $0.761M in 2024, an improvement of about $3.26M and described by management as over a 400% improvement year-over-year.
Read all positive updates
Company Guidance
Management guided that 2026 should deliver double‑digit growth in gross profit dollars, driven by a shift to higher‑margin SaaS (management expects the mix to move from roughly 50/50 today toward ~60/40 SaaS-to-payments next year) and by the new POSaBIT Brands initiative that doubles their TAM; they pointed to 2025 results as the base — total revenue $10.0M (vs $15.3M in 2024), gross profit $7.2M with gross margin ~72% (up from 46%), adjusted EBITDA +$2.5M (up >400% YoY), cash up ~76% to >$1.8M (≈$800k increase), operating expenses down 24% to $9.3M, net loss narrowed to $2.0M (65% improvement), accounts payable/accrued liabilities down ≈$1.3M, AR down >$600k, current liabilities down nearly $2.0M, credit borrowings ≈$4.5M, and ~600 active locations (≈100 POS adds in 2025), with management saying the company is profitable on an adjusted basis and ready to process credit cards on day one if regulatory rescheduling permits.POSaBIT Systems Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.18M | 15.27M | 43.58M | 49.77M | 21.30M |
| Gross Profit | 7.35M | 7.00M | 9.22M | 22.57M | 5.76M |
| EBITDA | ― | -4.69M | -12.15M | 5.95M | -10.15M |
| Net Income | -2.03M | -5.72M | -13.76M | 8.06M | -10.74M |
Balance Sheet | |||||
| Total Assets | 5.18M | 8.60M | 13.16M | 18.00M | 7.90M |
| Cash, Cash Equivalents and Short-Term Investments | 1.76M | 999.08K | 1.52M | 3.08M | 4.42M |
| Total Debt | 4.59M | 4.53M | 4.58M | 313.41K | 134.51K |
| Total Liabilities | 6.24M | 8.14M | 7.85M | 9.77M | 16.61M |
| Stockholders Equity | -1.06M | 458.94K | 5.31M | 8.22M | -8.71M |
Cash Flow | |||||
| Free Cash Flow | 790.85K | -515.26K | -8.34M | -5.25M | -2.44M |
| Operating Cash Flow | 790.85K | -515.26K | -7.43M | -4.92M | -2.19M |
| Investing Cash Flow | 3.90K | 120.00K | -1.95M | -330.67K | -241.01K |
| Financing Cash Flow | -19.37K | -127.82K | 7.83M | 3.90M | 5.88M |
POSaBIT Systems Technical Analysis
Negative
0.06
Price Trends
0.05
Negative
0.05
Negative
0.06
Negative
Market Momentum
>-0.01
Positive
40.68
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBIT, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above 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 40.68 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:PBIT.
POSaBIT Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$43.89M | 11.20 | 7.10% | ― | -14.62% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$13.78M | -2.86 | -540.25% | ― | -33.03% | 64.53% | |
51 Neutral | C$104.58M | -0.19 | -0.43% | ― | -48.07% | -154.64% | |
43 Neutral | C$2.75M | -4.02 | ― | ― | 19.01% | 70.15% | |
39 Underperform | C$5.17M | -15.43 | -3428.85% | ― | -3.63% | 2.33% |
* Technology Sector Average
TSE:PBIT
POSaBIT Systems
0.09
0.02
30.77%
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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.