POET Technologies (PTK) AI Stock Analysis

• Market Cap: $634.17M
• Dividend Yield: N/A
• Average Volume (3M): 259.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 314.86%
• EPS Growth: -41.21%
• Country: CA
• Employees: 53
• Sector: Technology
• Sector Strength: 97
• Industry: Semiconductors
• EPS (TTM): -0.08
• Shares Outstanding: 90,595,970
• 10 Day Avg. Volume: 167,860
• 30 Day Avg. Volume: 259,549
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 2.44K
• Enterprise Value/Gross Profit: 2.44K
• Enterprise Value/Ebitda: -11.51
• 1Y Price Target: $7.51
• Price Target Upside: 4.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: C$7.50 ▲(4.17% Upside)

POET Technologies' score reflects its financial struggles but is partially offset by positive corporate developments. The company's strategic initiatives and investments present potential for growth, though current financial and valuation metrics remain weak. Technical indicators suggest mixed momentum, with potential for recovery if operational improvements are realized.

POET Technologies Business Overview & Revenue Model

Company Description

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, and Singapore. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques and packaging methods. It also develops photonic integrated components. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, optical coherence tomography for medical devices, virtual reality systems markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was incorporated in 1972 and is headquartered in Toronto, Canada.

How the Company Makes Money

POET Technologies generates revenue through the sale of its photonic integrated circuits and related technologies to telecommunications and data center companies. The company operates on a model that combines direct sales of its products with partnerships and collaborations with other technology firms to develop customized solutions for specific industry needs. Key revenue streams include licensing fees from technology agreements, sales of prototype devices, and potential royalties from future commercialized products. Additionally, strategic partnerships with companies in the semiconductor industry further bolster its revenue potential by expanding its market reach and enhancing product development capabilities.

POET Technologies Financial Statement Overview

Summary

POET Technologies is facing significant financial challenges, with persistent losses and negative cash flows. Despite some stability in the balance sheet, the income statement and cash flow statement highlight the need for strategic restructuring to achieve profitability.

Income Statement

POET Technologies has shown a volatile revenue trajectory with a significant decline in recent years. The gross profit margin is positive, but the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin is also negative, reflecting ongoing losses.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. However, the negative return on equity indicates that the company is not generating profit from shareholders' equity. The equity ratio is moderate, which implies some financial stability but with room for improvement.

Cash Flow

The cash flow statement shows negative operating and free cash flows, highlighting challenges in generating cash from operations. Although there is a positive cash flow from financing, this may not be sustainable in the long term without operational improvements. The free cash flow to net income ratio is concerning due to consistent negative figures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.43K	465.78K	552.75K	209.10K	0.00
Gross Profit	41.43K	465.78K	552.75K	209.10K	0.00
EBITDA	-54.57M	-18.28M	-19.69M	-14.20M	-14.08M
Net Income	-56.70M	-20.27M	-21.09M	-17.55M	-19.15M
Balance Sheet
Total Assets	69.65M	8.78M	15.39M	27.15M	11.64M
Cash, Cash Equivalents and Short-Term Investments	53.82M	3.02M	9.23M	21.31M	6.87M
Total Debt	7.24M	542.28K	308.78K	391.01K	4.09M
Total Liabilities	48.96M	3.85M	3.95M	2.18M	5.82M
Stockholders Equity	20.69M	4.93M	11.45M	24.97M	5.81M
Cash Flow
Free Cash Flow	-30.27M	-16.65M	-15.40M	-12.16M	-11.01M
Operating Cash Flow	-23.29M	-15.41M	-12.33M	-11.23M	-9.44M
Investing Cash Flow	-23.66M	-1.25M	3.29M	-7.30M	13.93M
Financing Cash Flow	81.90M	10.20M	3.44M	26.55M	1.16M

POET Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PTK, the sentiment is Neutral. The current price of 7.2 is below the 20-day moving average (MA) of 8.05, below the 50-day MA of 7.32, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PTK.

POET Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTK	51 Neutral	$634.17M	―	-145.35%	―	314.86%	-41.21%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%
SPVNF	―	$1.14M	―	-9999.00%	―	―	―
VCM	68 Neutral	C$251.66M	68.05	1.61%	2.14%	9.13%	-77.24%
STC	60 Neutral	C$271.40M	―	-2.67%	―	-1.72%	76.81%
MRM	27 Underperform	C$45.46M	44.74		―	―	-310.53%
QNCCF	―	$173.51M	―	-89.82%	―	―	―

POET Technologies Corporate Events

POET Technologies Expands Production and Secures Funding Amid Financial Losses

In the second quarter of 2025, POET Technologies made significant strides in preparing for volume production of optical engines, with all equipment operational at Globetronics and expanded manufacturing capabilities in Malaysia. The company secured a $30 million private placement to support growth and added a new customer, Lessengers from Korea, for its 800G optical engines. Despite reporting a net loss of $17.3 million, due in part to non-cash losses related to derivative warrant liabilities, POET Technologies remains confident in its growth trajectory, bolstered by increased customer engagements and recognition in the AI industry.

The most recent analyst rating on (TSE:PTK) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on POET Technologies stock, see the TSE:PTK Stock Forecast page.

POET Technologies Announces Successful 2025 AGM Outcomes

POET Technologies Inc. announced the results of its 2025 Annual General and Special Meeting, where all proposals were approved by shareholders. Key decisions included the re-election of directors, appointment of auditors, and an amendment to the company’s Omnibus Equity Incentive Plan. The meeting also featured a presentation on the company’s operational transformation and future opportunities, highlighting its strategic focus and potential impact on stakeholders.

The most recent analyst rating on (TSE:PTK) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on POET Technologies stock, see the TSE:PTK Stock Forecast page.

POET Technologies Expands Manufacturing with NationGate in Malaysia

POET Technologies has signed a manufacturing agreement with NationGate Solutions in Malaysia to produce optical engine assemblies, enhancing its manufacturing capabilities and addressing growing customer demand. This partnership, alongside an existing agreement with Globetronics, positions POET to scale production and secure its supply chain, aiming for significant revenue growth. The company has already shipped its backlog of 800G optical engine samples and plans to ship 1.6T samples in Q3 2025, reinforcing its strategic focus on the AI and data center markets.

The most recent analyst rating on (TSE:PTK) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on POET Technologies stock, see the TSE:PTK Stock Forecast page.

POET Technologies Secures $30 Million in Strategic Investment

POET Technologies Inc. has successfully completed a US$30 million non-brokered private placement with a strategic investor, issuing 6,000,000 common shares and warrants. The proceeds from this offering will be used for working capital and general corporate purposes, with no commission or finder’s fee involved. This financial move is expected to bolster POET’s operational capabilities and enhance its market positioning in the data center, telecommunication, and AI markets.

The most recent analyst rating on (TSE:PTK) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on POET Technologies stock, see the TSE:PTK Stock Forecast page.