Route1 Inc (TSE:ROI)
:ROI
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Route1 Inc
(ROI)
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Rating:50Neutral
Price Target:
C$0.11
▲(75.00% Upside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by weak financial quality—ongoing net losses and negative equity despite improving EBITDA and positive free cash flow. Technicals are the main offset, with the stock trading above key moving averages and showing moderately positive momentum. Valuation remains constrained by the negative P/E and lack of a stated dividend yield.
Positive Factors
Positive free cash flow
Route1's TTM operating cash flow (~$0.43M) and free cash flow (~$0.38M) show the business can convert operations into real cash. Durable positive cash generation increases resilience, funds routine product and service delivery, and reduces near-term external funding reliance over the coming months.
Negative Factors
Ongoing net losses
Despite improving EBITDA and cash flow, Route1 remains net loss-making (TTM net margin ~-3.0%). Continued losses constrain retained earnings, limit reinvestment capacity, and prolong dependence on external capital unless profitability becomes consistently positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive free cash flow
Route1's TTM operating cash flow (~$0.43M) and free cash flow (~$0.38M) show the business can convert operations into real cash. Durable positive cash generation increases resilience, funds routine product and service delivery, and reduces near-term external funding reliance over the coming months.
Read all positive factors
Route1 Inc (ROI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.92M
Dividend YieldN/A
Average Volume (3M)14.77K
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth-11.28%
EPS Growth81.51%
CountryCA
Employees30
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding46,873,820
10 Day Avg. Volume6,500
30 Day Avg. Volume14,768
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)-8.77
Price to Sales (P/S)0.31
P/FCF Ratio8.68
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
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 se...
How the Company Makes Money
Route1 makes money primarily by selling software and technology services centered on secure remote access and digital evidence management. Revenue is generally generated through (1) software licensing and/or subscription fees for access to its pla...
Route1 Inc Earnings Call Summary
Earnings Call Date:Apr 24, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Neutral
Route1 has made significant progress in stabilizing its business model and growing its non-MobiKEY revenue streams. The company is optimistic about future EBITDA growth and financial stability. However, challenges remain, particularly with the decline in MobiKEY revenue and the impact of decreased VAR business. The sentiment is cautiously optimistic as Route1 continues to navigate its pivot to services.Positive Updates
Pivot to Services and Stabilization
Route1 has successfully pivoted from a pure play software cybersecurity company to an outcome-based services company, focusing on video capture-based technologies. The company reports stabilization in the fourth quarter of 2023, with a promising outlook for 2024.
Negative Updates
Decline in MobiKEY Revenue
There was a loss of approximately $225,000 in quarterly subscriber revenue from MobiKEY, attributed to competition from Microsoft integrating similar services in their suite.
Read all updates
Q4-2023 Updates
Positive
Negative
Pivot to Services and Stabilization
Route1 has successfully pivoted from a pure play software cybersecurity company to an outcome-based services company, focusing on video capture-based technologies. The company reports stabilization in the fourth quarter of 2023, with a promising outlook for 2024.
Read all positive updates
Company Guidance
During the Q4 2023 earnings call for Route1, CEO Tony Busseri discussed the company's strategic pivot from a pure play software cybersecurity firm to a comprehensive services provider, emphasizing their focus on delivering video capture-based technologies. He highlighted several key metrics, noting a decrease in revenue by approximately $4.5 million due to a reduction in value-added reseller business and MobiKEY subscriptions, which affected gross margins by around $700,000. Despite this, the company saw stability and growth in other areas, achieving non-MobiKEY gross profit above $150,000 per quarter in two of the last four quarters. Additionally, Route1's recurring license plate recognition technology support agreements exceeded $1 million on an annualized basis by Q1 2024. Busseri also underscored the importance of fixed cost control to enhance EBITDA and expressed optimism about achieving over $1 million in trailing four-quarter EBITDA by the end of the first half of 2024, while maintaining a stable debt position and improving working capital.Route1 Inc Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
56
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.52M | 15.15M | 17.58M | 22.05M | 27.27M |
| Gross Profit | 3.71M | 5.25M | 5.87M | 7.58M | 10.82M |
| EBITDA | 317.39K | 354.35K | 542.08K | 1.02M | 1.80M |
| Net Income | -350.76K | -1.06M | -1.28M | -1.72M | 222.21K |
Balance Sheet | |||||
| Total Assets | 8.13M | 9.38M | 9.54M | 12.36M | 15.10M |
| Cash, Cash Equivalents and Short-Term Investments | 32.56K | 86.61K | 38.35K | 78.50K | 62.57K |
| Total Debt | 3.36M | 4.08M | 4.62M | 4.99M | 4.72M |
| Total Liabilities | 8.53M | 9.76M | 8.96M | 10.59M | 12.37M |
| Stockholders Equity | -401.04K | -383.82K | 584.35K | 1.77M | 2.73M |
Cash Flow | |||||
| Free Cash Flow | 405.14K | 887.52K | 218.88K | 580.32K | 353.39K |
| Operating Cash Flow | 455.03K | 887.52K | 686.82K | 602.27K | 1.05M |
| Investing Cash Flow | -215.94K | -27.82K | -467.94K | 530.00 | -2.20M |
| Financing Cash Flow | -322.79K | -773.91K | -347.76K | -457.59K | 5.50K |
Route1 Inc Technical Analysis
Positive
0.06
Price Trends
0.08
Positive
0.08
Positive
0.08
Positive
Market Momentum
<0.01
Positive
57.51
Neutral
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROI, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROI.
Route1 Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | C$4.92M | -5.75 | ― | ― | -11.28% | 81.51% | |
47 Neutral | C$2.89M | -3.22 | ― | ― | ― | ― | |
46 Neutral | C$3.52M | -1.02 | ― | ― | -25.72% | 3.62% | |
39 Underperform | C$5.43M | -0.91 | ― | ― | ― | ― | |
| ― | C$11.06M | -0.70 | 1281.62% | ― | 35.62% | 16.77% | |
43 Neutral | C$1.32M | 10.87 | ― | ― | -41.05% | -16.67% |
* Technology Sector Average
TSE:ROI
Route1 Inc
0.11
0.02
16.67%
TSE:MBO
Mobio Technologies
0.15
0.08
141.67%
TSE:RIWI
RIWI Corp
0.30
-0.21
-41.00%
TSE:BWLK
Boardwalktech Software
0.05
-0.06
-54.55%
TSE:VSBY
Vsblty Groupe Technologies
0.13
0.02
25.00%
TSE:TBIX
TrustBix
0.01
-0.03
-75.00%
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.