Renoworks Software (RW) AI Stock Analysis

• Market Cap: C$14.52M
• Dividend Yield: N/A
• Average Volume (3M): 102.74K
• Price to Earnings (P/E): 58.2
• Beta (1Y): 2.06
• Revenue Growth: 15.42%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 40,901,302
• 10 Day Avg. Volume: 173,643
• 30 Day Avg. Volume: 102,738
• PEG Ratio: -0.64
• Price to Book (P/B): -2.47K
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 12.22
• 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: 57 Neutral
• Price Target: C$0.49 ▲(13.02% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by improving financial performance—profitability returning and cash flow turning positive—tempered by still-thin operating margins and a balance sheet that is only modestly rebuilt. Technical indicators are neutral-to-weak, and the high P/E with no dividend support weighs on the overall risk/reward profile.

Positive Factors

High Gross Margins

Sustained gross margins near 74–76% indicate a scalable software business with low incremental costs for additional seats or deployments. High product margin supports reinvestment in R&D and content creation, and provides a durable buffer versus revenue volatility over months.

Positive Cash Generation

Operating and free cash flow turning positive in 2024 and TTM shows the business can fund operations and some growth from internal cash. FCF close to net income (~1x) suggests earnings are backed by real cash, improving financial flexibility over the medium term.

Low Financial Leverage

No reported debt across recent periods materially reduces refinancing and interest-rate risk, giving the company optionality for investments, partnerships, or M&A without immediate debt service pressure. This strengthens resilience over a multi-month horizon.

Negative Factors

Thin Operating Margins

Low single-digit operating and EBITDA margins mean profits are highly sensitive to sales growth and SG&A changes. Limited operating leverage reduces ability to self-fund expansion and increases execution risk if revenue growth decelerates, persisting over several quarters.

Recent Loss History / Small Equity Cushion

A recent history of losses and a small, recently restored equity base indicate the capital cushion is still thin. That raises the probability the company would need external capital under stress, which could dilute shareholders or constrain strategic investment over the medium term.

Cash Flow Volatility

Large swings between negative and positive cash flow reduce predictability of funding for onboarding, content creation and sales initiatives. Volatility forces conservative planning, increases the chance of reactive cost cuts, and can necessitate financing that alters long-term strategy.

Renoworks Software Business Overview & Revenue Model

Company Description

RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and internationally. The company provides Renoworks FastTrack, a platform that helps contractors to reduce and eliminate time-consuming home visits by automatically generating accurate measurement reports, true-to-life visualizations, and interactive 3D models; Renoworks Web visualizer, which enables customers to interact with building products and design their homes from anywhere; and Renoworks Product Configurator that allows customers to design building products, such as windows and doors with detail. It also offers Renoworks Auto-Recognition, which detects roofing, siding, windows, doors, and other products for designing homes; Renoworks Scene Builder, an interactive, engaging, and photo-realistic home visualizer solution to visualize design options and building products; product libraries, which showcases customer's product line; and mobile visualizer apps, as well as other home visualization software products. In addition, the company provides design, analytics, and integrations and application program interface services. It serves manufacturers, material suppliers, contractors and remodelers, marketing agencies, builders, and homeowners. The company is based in Calgary, Canada.

How the Company Makes Money

Renoworks Software generates revenue primarily through the sale of its design and visualization software solutions. The company offers its products on a subscription basis, allowing users to access its suite of tools for a recurring fee. In addition to subscription fees, Renoworks earns revenue from licensing agreements with manufacturers and retailers who integrate Renoworks' visualization technology into their sales and marketing processes. Partnerships with major industry players strengthen its market position and contribute significantly to its revenue. Furthermore, the company may offer customized solutions and consulting services, providing additional income streams.

Renoworks Software Financial Statement Overview

Summary

Financials show a clear recovery with a return to profitability (2024 and TTM), strong gross margins (~74–76%), and improved cash generation (positive OCF/FCF in 2024 and TTM). Offsetting this, operating profitability remains thin and the balance sheet is still rebuilding after recently negative equity, increasing execution risk if growth slows.

Income Statement

Results have improved meaningfully, highlighted by a return to profitability in 2024 and positive profitability in TTM (Trailing-Twelve-Months). Revenue growth accelerated sharply in TTM (Trailing-Twelve-Months) (reported growth rate 1.411) while gross margin remained strong (~74–76%). However, operating profitability is still thin (low single‑digit operating and EBITDA margins in the latest periods), and the company has a recent history of losses (2021–2023), which raises execution risk if growth slows.

Balance Sheet

Leverage is very low with no debt reported in 2023–TTM (Trailing-Twelve-Months), which reduces financial risk. That said, equity was negative in 2023 and 2024 before turning modestly positive in TTM (Trailing-Twelve-Months), signaling a still-rebuilding capital base. While assets have grown over time, the equity cushion remains small, so the balance sheet is improving but not yet robust.

Cash Flow

Cash generation has strengthened materially: operating cash flow and free cash flow are positive in 2024 and TTM (Trailing-Twelve-Months), following negative cash flow in 2022–2023. Free cash flow is close to net income in the latest periods (near 1x), suggesting earnings are reasonably supported by cash. The main weakness is volatility—large swings from negative to positive cash flow over the last few years—so consistency still needs to be proven.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.75M	6.94M	6.29M	5.94M	5.55M	5.13M
Gross Profit	5.86M	5.12M	4.43M	3.79M	3.49M	3.46M
EBITDA	219.84K	155.14K	-470.62K	-1.23M	-480.87K	268.24K
Net Income	248.46K	133.06K	-497.77K	-1.32M	-608.96K	123.58K
Balance Sheet
Total Assets	2.82M	2.64M	1.67M	1.79M	2.21M	1.53M
Cash, Cash Equivalents and Short-Term Investments	1.55M	1.54M	645.55K	704.08K	1.19M	523.55K
Total Debt	0.00	0.00	0.00	0.00	297.37K	466.54K
Total Liabilities	2.55M	2.65M	1.87M	1.56M	1.64M	1.33M
Stockholders Equity	269.22K	-4.36K	-195.19K	232.72K	571.78K	203.58K
Cash Flow
Free Cash Flow	723.73K	882.12K	-59.88K	-1.22M	48.50K	169.82K
Operating Cash Flow	736.08K	893.82K	-52.83K	-1.18M	93.93K	181.52K
Investing Cash Flow	-3.35K	-2.70K	-6.30K	-11.56K	-140.43K	-11.71K
Financing Cash Flow	68.00K	0.00	600.00	710.79K	712.29K	-147.01K

Renoworks Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.43
• 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:RW, the sentiment is Negative. The current price of 0.43 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.43, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.01 is Neutral, neither overbought nor oversold. The STOCH value of 37.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RW.

Renoworks Software 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%
RW	57 Neutral	C$14.52M	58.20	446.71%	―	15.42%	―
WISH	47 Neutral	C$7.42M	-3.38	-27.39%	―	-31.03%	-67.36%
VQS	45 Neutral	C$9.78M	-0.66	-9999.00%	―	-0.83%	-8.33%
MAPS	44 Neutral	C$19.38M	-8.51	―	―	3.08%	59.01%
RIWI	44 Neutral	C$7.18M	―	―	―	―	―
IAI	41 Neutral	C$4.88M	-4.93	―	―	0.22%	-1.49%

Renoworks Software Corporate Events

Renoworks Reports Sixth Consecutive Profitable Quarter with Strong Revenue Growth

Renoworks Software Inc. reported strong financial results for the third quarter of 2025, marking its sixth consecutive quarter of profitability. The company achieved a 15% increase in total revenue year-over-year, driven by a 36% rise in recurring licensing and hosting revenue. This shift towards recurring revenue has improved gross margins and revenue predictability, aligning with the company’s strategic focus on scalable, long-term customer relationships. Renoworks continues to invest in AI and data science, launching new enterprise visualizers and expanding its customer base, which is expected to sustain its organic growth and profitability.