Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$3.40M
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• 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$0.07 ▲(8.33% 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 long-term contracts

Route1's revenue model emphasizes multi-year contracts with government and large-enterprise clients, which increases revenue visibility and reduces churn. That contract stickiness supports predictable recurring revenue and long-term planning for product roadmaps and compliance investments.

Improving cash generation

Positive and improving TTM operating and free cash flow indicates the business is generating real cash despite losses. This reduces immediate financing pressure, limits dilution risk, and provides a modest runway to fund operations and targeted product investment while management pursues margin improvement.

Stable gross margins

Consistent mid-30% gross margins point to durable unit economics for Route1's security software and services. Stable product-level margins create room for sustainable operating leverage if revenue stabilizes or grows, supporting long-term profitability potential without sacrificing service quality.

Negative Factors

Negative shareholders' equity

A negative equity position materially weakens financial flexibility and increases leverage risk. It makes the company more vulnerable to shocks, can raise borrowing costs or restrict access to credit, and complicates strategic options such as M&A or large product investments over the medium term.

Multi-year revenue decline

A prolonged revenue downtrend erodes economies of scale and undermines subscription visibility critical for security software. Continued top-line contraction limits reinvestment in R&D and sales, pressures margins, and may signal weakening product-market fit or intensifying competitive displacement.

Ongoing unprofitability

Despite improving EBITDA (~6.9%), the firm still posts negative net margin and EBIT. Persistent losses constrain the ability to self-fund growth and require sustained cash generation or external capital; failure to reach sustained profitability increases dilution and strategic risk over time.

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

Financials are mixed: revenue declined (-5.5% TTM) and the company remains unprofitable (negative net margin and EBIT). The balance sheet is a key risk with negative equity, despite debt coming down. Cash flow is a relative positive with TTM operating cash flow and free cash flow positive (~$0.33M) and improved versus 2024, but remains modest versus revenue.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.5%), extending a multi-year downtrend from 2021–2024. Profitability is improving versus 2024 (net loss narrowed and EBITDA margin is healthier at ~6.9%), but the company remains unprofitable with a negative net margin (~-2.5%) and negative EBIT. Gross margin is steady in the mid-30% range, suggesting some underlying product economics, but persistent revenue pressure and ongoing losses keep the income statement quality below average.

Balance Sheet

The balance sheet is strained by negative stockholders’ equity in TTM (and 2024), which materially weakens financial flexibility and makes leverage risk harder to absorb. Total debt has come down versus 2022–2023, but debt remains meaningful relative to the capital base given the equity deficit. Total assets have also trended lower from prior years, reinforcing a smaller cushion against volatility.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive (~$0.33M) and free cash flow improved sharply versus 2024. Free cash flow roughly matches net income magnitude (loss), indicating cash losses are limited. However, cash conversion is not consistently strong across years (e.g., 2023 free cash flow was much lower), and operating cash flow remains modest versus the revenue base, leaving limited room for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.81M	15.15M	17.58M	22.05M	27.27M	29.71M
Gross Profit	4.62M	5.25M	5.87M	7.58M	10.82M	11.07M
EBITDA	885.64K	354.35K	542.08K	1.02M	1.80M	-224.72K
Net Income	-323.91K	-1.06M	-1.28M	-1.72M	222.21K	-1.71M
Balance Sheet
Total Assets	8.22M	9.38M	9.54M	12.36M	15.10M	14.18M
Cash, Cash Equivalents and Short-Term Investments	79.45K	86.61K	38.35K	78.50K	62.57K	1.14M
Total Debt	3.76M	4.08M	4.62M	4.99M	4.72M	4.09M
Total Liabilities	8.59M	9.76M	8.96M	10.59M	12.37M	12.04M
Stockholders Equity	-367.18K	-383.82K	584.35K	1.77M	2.73M	2.14M
Cash Flow
Free Cash Flow	326.05K	887.52K	218.88K	580.32K	353.39K	-226.36K
Operating Cash Flow	326.05K	887.52K	686.82K	602.27K	1.05M	256.27K
Investing Cash Flow	-164.98K	-27.82K	-467.94K	530.00	-2.20M	-458.06K
Financing Cash Flow	-1.21K	-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: Negative
• MACD: Positive
• 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 0.06 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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	49 Neutral	C$3.40M	-8.55	―	―	-17.46%	69.11%
BWLK	47 Neutral	C$3.50M	-0.66	―	―	-21.48%	4.59%
MBO	46 Neutral	C$2.29M	-9.35	―	―	155678.40%	-1772.63%
RIWI	44 Neutral	C$5.89M	―	―	―	―	―
VSBY	41 Neutral	C$4.43M	-0.39	―	―	―	―
TBIX	41 Neutral	C$2.46M	-2.41	―	―	-20.73%	62.11%

Route1 Inc Corporate Events

Route1 Posts Q3 Profit, Grows ALPR Recurring Revenue and Moves to Strengthen Balance Sheet

Route1 Inc. reported third-quarter 2025 results marked by the launch of its Route1 ABI platform and continued growth in its automated license plate recognition (ALPR) support business, with ALPR support contract revenue surpassing USD $300,000 for the quarter, implying annualized recurring revenue of USD $1.2 million. While total revenue declined year over year to C$2.95 million, the company achieved a net profit of C$252,000 and positive adjusted EBITDA of C$220,000, supported by monetization of employee retention credits and tighter cost control. Route1 also showed meaningful balance sheet progress for a second consecutive quarter, improving its working capital deficiency by C$419,000 in Q3 and reducing aggregate bank indebtedness by C$202,000 over the last two quarters, and it plans to bolster liquidity further through a non-brokered private placement of up to C$500,000, signaling an ongoing effort to strengthen finances while pivoting toward higher-margin, recurring ABI and ALPR solutions.

The most recent analyst rating on (TSE:ROI) stock is a Hold with a C$0.07 price target. To see the full list of analyst forecasts on Route1 Inc stock, see the TSE:ROI Stock Forecast page.

Route1 Targets Recurring Revenue Growth and Applied Intelligence in 2026 Strategy

Route1 reported that 2025 was devoted to strengthening its parking technology and services platform, expanding deployments and lifecycle support for ALPR systems, and enhancing its ABI software to deliver more robust analytics and parking survey capabilities to municipal, university, and enterprise operators. The company shifted its business model toward higher-quality recurring revenue, prioritizing long-term operator support and direct engagement with end users, while positioning its vendor-agnostic ABI platform as an “operator-grade” intelligence layer that augments human decision-making and works across multiple ALPR vendors without requiring infrastructure replacement. Looking to 2026, Route1 plans to scale recurring revenue by increasing ABI adoption within its existing customer base, structuring new relationships around ongoing support and analytics, deepening engagement in markets where it already has strong operations, and rolling out application-specific intelligence features such as patrol optimization, reflecting a strategy that favors explainable, workflow-embedded analytics over generalized AI in order to drive durable value for parking operators and public safety stakeholders.

The most recent analyst rating on (TSE:ROI) stock is a Hold with a C$0.08 price target. To see the full list of analyst forecasts on Route1 Inc stock, see the TSE:ROI Stock Forecast page.

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.