Prophecy DeFi Inc (PDFI) AI Stock Analysis

• Market Cap: C$3.75M
• Dividend Yield: N/A
• Average Volume (3M): 225.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: -37.82%
• EPS Growth: -51.90%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.19
• Shares Outstanding: 14,984,964
• 10 Day Avg. Volume: 654,297
• 30 Day Avg. Volume: 225,165
• PEG Ratio: -0.02
• Price to Book (P/B): -0.52
• Price to Sales (P/S): -1.91
• P/FCF Ratio: -2.08
• 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$0.04 ▲(330.00% Upside)

The score is driven primarily by very weak financial performance (loss-making operations, negative equity, and negative operating/free cash flows). Technicals add downside risk given a clear downtrend and bearish momentum signals. Valuation provides limited support because the company is unprofitable (negative P/E) and no dividend yield is available.

Positive Factors

Innovative Business Model

PDFI's focus on DeFi and blockchain provides a strong foundation for future growth, leveraging technology trends in financial services.

Revenue Generation through Fees

The fee-based revenue model ensures a steady income stream as transaction volumes increase, supporting long-term financial stability.

Strategic Partnerships

Partnerships expand user base and transaction volumes, strengthening market position and fostering sustainable growth.

Negative Factors

Negative Revenue Growth

Declining revenue growth indicates challenges in market expansion and product adoption, potentially impacting long-term viability.

Weak Cash Flow

Negative cash flows suggest difficulties in sustaining operations and funding growth initiatives, posing a risk to financial health.

High Solvency Risk

Negative equity and high leverage raise solvency concerns, limiting financial flexibility and increasing risk of financial distress.

Prophecy DeFi Inc Business Overview & Revenue Model

Company Description

Prophecy DeFi Inc (PDFI) is a leading decentralized finance (DeFi) company focused on providing innovative financial solutions utilizing blockchain technology. The company operates in the fintech sector, offering a range of products and services including yield farming, decentralized exchanges, and liquidity pools, aimed at empowering users with greater control over their financial assets while ensuring security and transparency.

How the Company Makes Money

Prophecy DeFi Inc generates revenue primarily through transaction fees associated with its decentralized exchange and liquidity pools. When users trade or swap tokens on its platform, a small fee is charged, which contributes to the company's earnings. Additionally, PDFI offers yield farming opportunities, where users can stake their cryptocurrencies to earn rewards, and the company takes a percentage of these rewards as a fee. Strategic partnerships with other blockchain projects and integrations with various wallets and DeFi platforms also enhance its revenue potential by expanding its user base and increasing transaction volumes.

Prophecy DeFi Inc Financial Statement Overview

Summary

Income statement shows steep deterioration with negative revenue growth and consistently negative gross, EBIT/EBITDA, and net margins. Balance sheet is highly concerning with negative stockholders’ equity (liabilities exceed assets), implying elevated solvency risk. Cash flow is also weak with negative operating and free cash flow and negative free-cash-flow growth.

Income Statement

Prophecy DeFi Inc. has experienced significant revenue declines, with negative revenue growth and consistently negative profit margins. The gross profit margin and net profit margin are negative, indicating the company is not generating profit from its operations. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in covering operating expenses.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative, suggesting high leverage and potential solvency issues. Return on equity is also negative, highlighting the company's inability to generate returns for shareholders.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow. However, the overall cash flow position remains weak, with negative growth in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-1.69M	-1.39M	-2.04M	-4.04M	1.34M	7.37K
Gross Profit	-2.03M	-2.14M	-2.89M	-4.89M	1.31M	-53.47K
EBITDA	-1.45M	-2.51M	-1.54M	-27.24M	-5.77M	-375.33K
Net Income	-1.65M	-2.71M	-1.75M	-27.45M	-5.96M	-375.33K
Balance Sheet
Total Assets	411.71K	1.51M	3.69M	5.31M	33.82M	356.52K
Cash, Cash Equivalents and Short-Term Investments	139.42K	11.50K	437.35K	4.41M	6.65M	18.42K
Total Debt	5.43M	5.67M	5.89M	5.67M	5.44M	0.00
Total Liabilities	6.54M	6.61M	6.31M	6.30M	5.86M	530.36K
Stockholders Equity	-6.13M	-5.10M	-2.62M	-988.50K	27.95M	-173.84K
Cash Flow
Free Cash Flow	-721.81K	-1.28M	-1.84M	-2.60M	-3.63M	-36.16K
Operating Cash Flow	-584.98K	-1.14M	-1.84M	-2.60M	-3.22M	-36.16K
Investing Cash Flow	680.63K	916.10K	1.47M	-2.92M	-1.47M	0.00
Financing Cash Flow	-190.26K	-203.55K	-169.14K	-158.34K	11.33M	0.00

Prophecy DeFi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DMGI	52 Neutral	$53.58M	-5.02	-10.10%	―	39.64%	-70.96%
BKMT	51 Neutral	C$2.17M	28.13	6.64%	―	―	―
BTC	50 Neutral	C$8.19M	-1.43	-277.20%	―	―	-15.07%
SPIR	40 Neutral	C$2.36M	―	―	―	―	―
PDFI	39 Underperform	C$3.75M	-0.42	22.16%	―	-37.82%	-51.90%

Prophecy DeFi Inc Corporate Events

Prophecy DeFi to Raise Up to $350,000 in Private Placement

Prophecy DeFi Inc. plans to raise up to $350,000 through a non-brokered private placement of up to 7 million units priced at $0.05 each, with each unit comprising one common share and one warrant exercisable at $0.10 for five years. The financing, which remains subject to corporate and regulatory approvals and carries a four-month hold period on the securities, is intended to bolster the company’s working capital and cover general and administrative expenses, supporting its broader investment activities in blockchain and decentralized finance ventures.

Prophecy DeFi Announces Share Consolidation to Streamline Structure

Prophecy DeFi Inc. has announced a consolidation of its common shares, reducing the number of outstanding shares from approximately 749 million to 15 million. This move, which was approved by shareholders, is intended to streamline the company’s share structure and is subject to approval by the Canadian Securities Exchange. The consolidation is expected to impact the company’s trading activities starting December 22, 2025, and will involve adjustments to stock options and share certificates for shareholders.