Renoworks Software (RW) AI Stock Analysis

• Market Cap: C$17.55M
• Dividend Yield: N/A
• Average Volume (3M): 102.74K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 2.23
• 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: 40,817,966
• 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$0.44 ▲(1.16% Upside)

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

Revenue Growth

Consistent revenue growth indicates robust demand for Renoworks' products, supporting long-term business expansion and market penetration.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, enabling Renoworks to invest in growth initiatives and manage operations sustainably.

Product Expansion

Expanding product offerings strengthens Renoworks' competitive position and attracts a broader client base, driving future revenue growth.

Negative Factors

Negative Equity

Negative equity suggests potential solvency issues, limiting Renoworks' ability to secure financing and posing risks to financial health.

Profit Margin Challenges

Historically low profit margins indicate challenges in cost management, potentially affecting long-term profitability and operational efficiency.

Financial Instability

Despite revenue and cash flow improvements, financial instability due to negative equity could hinder strategic investments and growth.

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

Renoworks Software shows strong revenue growth and improving cash flow, yet faces balance sheet challenges due to negative equity. The recent return to profitability is promising, but financial instability remains a concern.

Income Statement

Renoworks Software has shown consistent revenue growth over the years, with a notable increase of 10.33% from 2023 to 2024. The gross profit margin has remained robust at around 73.75% in 2024, indicating strong core business profitability. However, net profit margins have been negative for several years, only turning positive in 2024 at 1.92%, reflecting past challenges in controlling costs. EBIT and EBITDA margins are improving but still show room for operational efficiency gains.

Balance Sheet

The balance sheet indicates financial instability, with a negative stockholders' equity of -4,362 in 2024, suggesting liabilities exceed assets. The equity ratio is negative, indicating potential solvency issues. The absence of debt in recent years is a positive, but the company has historically struggled with maintaining positive equity, which may pose risks to financial health.

Cash Flow

Renoworks Software has significantly improved its cash flow position, with free cash flow turning positive in 2024 at 882,122, a marked improvement from the negative figures in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation relative to earnings. This cash flow resilience supports operational sustainability and potential reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 0.43
• 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:RW, the sentiment is Neutral. The current price of 0.43 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.48, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$17.55M	70.49	446.71%	―	15.42%	―
WISH	48 Neutral	C$7.14M	-3.25	-27.39%	―	-31.03%	-67.36%
MAPS	46 Neutral	C$25.03M	-10.99	―	―	3.08%	59.01%
IAI	45 Neutral	C$4.88M	-5.15	―	―	0.22%	-1.49%
VQS	45 Neutral	C$13.87M	-0.94	-9999.00%	―	-0.83%	-8.33%
RIWI	44 Neutral	C$6.17M	―	―	―	―	―

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.

Renoworks Expands with New Visualizer Launches and Enterprise Customers

Renoworks Software Inc. has announced the launch of eight new enterprise visualizers and the signing of 15 additional enterprise customers, expected to launch by the end of Q1 2026. This expansion strengthens Renoworks’ position as a leading visualization platform in the building products industry, enhancing its role in digital transformation and strategic growth. The new visualizers span various segments, including roofing and kitchen cabinets, demonstrating the platform’s broad applicability in residential construction and remodeling markets.

Renoworks Expands Partner Ecosystem with Owens Corning Collaboration

Renoworks Software has partnered with Owens Corning Roofing to launch the Design EyeQ® Roofing Visualizer, powered by Renoworks’ AI technology platform. This partnership marks a significant expansion of Renoworks’ enterprise manufacturer partner ecosystem, showcasing its momentum in AI-driven solutions. The visualizer provides homeowners with an interactive design experience, enhancing engagement and lead generation for contractors. This collaboration reflects a broader industry shift towards AI-enabled customer engagement tools, positioning Renoworks as a leader in transforming digital experiences in the building products sector.