Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$2.97M
• Dividend Yield: N/A
• Average Volume (3M): 19.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -16.97%
• EPS Growth: -3.06%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 42,497,154
• 10 Day Avg. Volume: 33,006
• 30 Day Avg. Volume: 19,168
• PEG Ratio: 0.12
• Price to Book (P/B): -5.54
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.39
• 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: 46 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Route1 Inc's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and high leverage. Technical analysis provides some neutral signals, but the valuation remains unattractive due to negative earnings. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary determinants of the score.

Route1 Inc Business Overview & Revenue Model

Company Description

Route1 Inc (ROI) is a technology company focused on providing secure access solutions and data protection services primarily for government and enterprise clients. The company operates in the cybersecurity sector, offering products that include secure remote access, data encryption, and identity management solutions. Route1's core offerings aim to enhance the security of sensitive information and ensure compliance with regulatory standards.

How the Company Makes Money

Route1 generates revenue through the sale of its proprietary software solutions and services, which are designed to protect data and provide secure access to networks. The company often engages in long-term contracts with governmental agencies and large enterprises, which provide a steady stream of recurring revenue. Key revenue streams include software licensing fees, subscription services for ongoing support and updates, and consulting services for implementation and integration. Additionally, Route1 may benefit from partnerships with other technology providers that enhance its service offerings and expand its market reach, contributing to its overall earnings.

Route1 Inc Financial Statement Overview

Summary

Route1 Inc is facing significant financial challenges. The income statement indicates declining revenues and persistent losses, while the balance sheet reflects high leverage and negative equity, pointing to financial instability. Although there is some improvement in cash flow generation, the company needs to address its profitability and leverage issues to achieve financial sustainability.

Income Statement

Route1 Inc's income statement reveals a challenging financial position. The company has experienced declining revenue, with a TTM revenue of $15.15 million compared to $17.58 million in the previous year, indicating a negative growth rate. The gross profit margin stands at 31.67% for the TTM, which shows a decrease from the previous year. Net income remains negative, resulting in a negative net profit margin, and the EBIT and EBITDA margins are also weak, indicating ongoing operational challenges.

Balance Sheet

The balance sheet reflects financial instability with a negative stockholders' equity of -$383,819 in the TTM, down from positive equity in prior years, suggesting significant financial distress. The debt-to-equity ratio is unfavorable due to the negative equity, reflecting high leverage and potential solvency issues. The equity ratio is also negative, further highlighting the company's reliance on debt financing.

Cash Flow

The cash flow statement shows some positive aspects, with an increase in free cash flow to $872,539 in the TTM from $218,878 in the previous year, indicating improved cash generation. However, the operating cash flow to net income ratio is distorted due to the negative net income. Despite challenges, the company has managed to generate positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.56M	15.15M	17.58M	22.05M	27.27M	29.71M
Gross Profit	4.77M	5.25M	5.87M	7.58M	10.82M	11.07M
EBITDA	451.86K	354.35K	542.08K	1.02M	1.80M	-224.72K
Net Income	-859.83K	-1.06M	-1.28M	-1.72M	222.21K	-1.71M
Balance Sheet
Total Assets	8.50M	9.38M	9.54M	12.36M	15.10M	14.18M
Cash, Cash Equivalents and Short-Term Investments	64.15K	86.61K	38.35K	78.50K	62.57K	1.14M
Total Debt	3.92M	4.08M	4.62M	4.99M	4.72M	4.09M
Total Liabilities	9.11M	9.76M	8.96M	10.59M	12.37M	12.04M
Stockholders Equity	-609.46K	-383.82K	584.35K	1.77M	2.73M	2.14M
Cash Flow
Free Cash Flow	156.14K	887.52K	218.88K	580.32K	353.39K	-226.36K
Operating Cash Flow	156.13K	887.52K	686.82K	602.27K	1.05M	256.27K
Investing Cash Flow	-111.39K	-27.82K	-467.94K	530.00	-2.20M	-458.06K
Financing Cash Flow	-205.14K	-773.91K	-347.76K	-457.59K	5.50K	1.32M

Route1 Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROI, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ROI.

Route1 Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROI	46 Neutral	C$2.97M	―	―	―	-16.97%	-3.06%
MBO	46 Neutral	C$1.60M	-0.45	―	―	155678.40%	-1772.63%
ISFT	45 Neutral	C$4.48M	-17.39	―	―	11.20%	-76.92%
ISGI	41 Neutral	C$1.71M	―	-9636.07%	―	0.46%	61.63%

Route1 Inc Corporate Events

Route1 Inc. Launches Private Placement to Fund AI Development

Route1 Inc. has announced a non-brokered private placement to raise approximately C$500,000, which will be used to develop its Actionable Business Intelligence software application. This initiative is part of their broader strategy to enhance their AI operations co-pilot, which aims to optimize parking operations through advanced machine learning and secure data management, potentially strengthening their market position in the technology sector.

Route1 Inc. Prepares for Annual Meeting Amid Postal Delays

Route1 Inc. has announced the availability of materials for its upcoming annual general and special meeting, scheduled for December 4, 2025, in Toronto. Due to postal delays caused by labor action, shareholders are advised to vote electronically or by phone. The meeting will address several key issues, including the election of directors, reappointment of auditors, and a potential company name change. The company emphasizes online access to meeting materials to ensure timely participation.

Route1 Inc. Enhances ABI Software with New Revenue and Parking Capabilities

Route1 Inc. has announced the release of version 3.5 of its Actionable Business Intelligence (ABI) software, which now includes features such as Actionable Revenue Opportunity Indicators and a Parking Survey Capability. These updates are designed to help users uncover missed revenue opportunities, optimize pricing strategies, and reduce reliance on third-party providers by leveraging existing ALPR technology. Additionally, Route1 plans to introduce an AI Co-Pilot in early 2026 to further enhance parking operations through advanced machine learning, offering capabilities like event-aware staffing and predictive compliance sweeps.

Route1 Expands ALPR Software Reach with Major U.S. Parking Client

Route1 Inc. announced that a major U.S. parking management company has adopted its ABI software for five end users, boosting Route1’s annual recurring revenue from ALPR support plans and software applications to over $1.2 million. This move strengthens Route1’s position in the parking management sector by offering enhanced visibility and operational insights through its ALPR technology, which aids in optimizing enforcement and monetization strategies.

Route1 Inc. Unveils Advanced Business Intelligence Software for ALPR Data

Route1 Inc. announced the launch of its advanced business intelligence software, Actionable Business Intelligence 3.0, designed to enhance the operational efficiency of automated license plate recognition data for municipalities, universities, and enterprise parking operators. The new software versions, including the latest 3.0.1, provide enhanced capabilities such as integrating data from fixed ALPR cameras, enabling detailed visibility into parking metrics, and optimizing policy enforcement and monetization strategies. These updates are expected to significantly improve decision-making processes, amplify revenue recovery, and enhance urban safety.