Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$3.19M
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -17.46%
• EPS Growth: 69.11%
• 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: 6,500
• 30 Day Avg. Volume: 14,768
• 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: 49 Neutral
• Price Target: C$0.08 ▲(25.00% Upside)

The score is held back primarily by weak financial performance—declining revenue, ongoing losses, and especially a strained balance sheet with negative equity—partly offset by improving and positive recent free cash flow. Technicals are mildly constructive with neutral-to-positive momentum, while valuation support is limited due to negative earnings and no dividend data.

Positive Factors

Recurring Revenue Model

The company's focus on long-term contracts ensures a stable revenue base, reducing volatility and providing financial predictability over time.

Cash Flow Improvement

Improved cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt more effectively.

Cybersecurity Focus

Operating in the growing cybersecurity sector positions the company to benefit from increasing demand for data protection and compliance solutions.

Negative Factors

Declining Revenue

Continued revenue decline suggests challenges in market competitiveness or product demand, impacting long-term growth potential.

High Leverage

High leverage and negative equity indicate financial instability, limiting the company's ability to invest in growth and manage economic downturns.

Persistent Losses

Ongoing losses highlight operational inefficiencies and the need for strategic adjustments to achieve profitability and sustainable growth.

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: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, 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	49 Neutral	C$3.19M	-9.21	―	―	-17.46%	69.11%
MBO	46 Neutral	C$3.39M	-0.96	―	―	155678.40%	-1772.63%
RIWI	44 Neutral	C$6.63M	―	―	―	―	―
BWLK	44 Neutral	C$2.81M	-0.62	―	―	-21.48%	4.59%
VSBY	41 Neutral	C$4.43M	-0.39	―	―	―	―
TBIX	41 Neutral	C$3.08M	-2.46	―	―	-20.73%	62.11%

Route1 Inc Corporate Events

Route1 Files Provisional AI Patent to Power Next-Gen Parking Operations Co-Pilot

Route1 Inc. has filed a provisional U.S. patent application for a hierarchical, distributed signal-processing architecture designed to enable low‑latency machine learning and scalable, coordinated artificial intelligence, reinforcing its intellectual property strategy around real-time ALPR processing, model orchestration and adaptive learning. The patent underpins the company’s forthcoming Route1 ABI 4.0 AI co‑pilot, slated for early 2026, which will run on dedicated on‑premises NVIDIA Blackwell GPU clusters and is intended to act as an operations co‑pilot for parking managers by continuously learning from live ALPR data and socioeconomic inputs to optimize curb and facility usage, unlock revenue opportunities, and support predictive tasks such as event‑aware staffing and proactive compliance sweeps, potentially strengthening Route1’s competitive position in smart parking and public safety analytics.

The most recent analyst rating on (TSE:ROI) stock is a Hold with a C$0.06 price target. To see the full list of analyst forecasts on Route1 Inc stock, see the TSE:ROI Stock Forecast page.

Route1 Inc. Completes Private Placement to Fund AI-Driven Parking Solutions

Route1 Inc. has completed the second and final tranche of its non-brokered private placement, raising a total of approximately C$328,250. The proceeds will fund the development of Route1’s Actionable Business Intelligence software, including an AI operations co-pilot aimed at optimizing parking operations. This strategic move is expected to enhance Route1’s market position by offering advanced machine learning capabilities to its clients, potentially increasing operational efficiency and unlocking new revenue opportunities.

The most recent analyst rating on (TSE:ROI) stock is a Hold with a C$0.06 price target. To see the full list of analyst forecasts on Route1 Inc stock, see the TSE:ROI Stock Forecast page.

Route1 Inc. Secures Shareholder Approval for Key Proposals at Annual Meeting

Route1 Inc. announced the approval of all shareholder proposals at its annual general and special meeting, including the re-election of directors, the appointment of auditors, re-approval of its long-term incentive plan, and a forthcoming name change. These decisions are expected to impact the company’s strategic direction and market positioning, potentially affecting stakeholders by reinforcing leadership continuity and corporate governance.

Route1 Inc. Seeks Extension for Private Placement and Announces New Interim CFO

Route1 Inc. has applied for a 30-day extension for price protection related to its non-brokered private placement of units, aiming to complete further subscriptions for the final tranche of the offering. The proceeds from this offering will be used to develop Route1’s Actionable Business Intelligence software application. Additionally, the company has appointed Jerry Iwanski as Interim CFO, replacing Tony Busseri, who remains President and CEO. Route1 is also set to release an AI operations co-pilot in early 2026, designed to optimize parking operations through advanced machine learning, enhancing capabilities like event-aware staffing and predictive compliance sweeps.

Route1 Inc. Completes First Tranche of Private Placement to Fund AI Development

Route1 Inc. has successfully closed the first tranche of its non-brokered private placement, raising approximately C$234,250. The proceeds will be used to develop Route1’s Actionable Business Intelligence software application, including an AI operations co-pilot designed to optimize parking operations. This development aims to enhance the company’s market position by providing advanced capabilities in parking management, potentially benefiting stakeholders through improved operational efficiency and data-driven decision-making.

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.