Red Light Holland (TRIP) AI Stock Analysis

• Market Cap: C$10.31M
• Dividend Yield: N/A
• Average Volume (3M): 212.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -28.00%
• EPS Growth: 38.46%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 412,252,560
• 10 Day Avg. Volume: 258,444
• 30 Day Avg. Volume: 212,422
• PEG Ratio: -0.09
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 4.99
• P/FCF Ratio: -6.05
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.02 ▼(-20.00% Downside)

Red Light Holland's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative cash flows. Technical analysis further indicates bearish momentum, while valuation metrics highlight ongoing losses. The absence of earnings call and corporate events data leaves these areas unaddressed.

Positive Factors

Low Debt Levels

Low debt levels provide financial flexibility and reduce the risk of financial distress, allowing the company to focus on growth opportunities.

Innovative Cultivation Methods

Innovative cultivation methods can enhance product quality and efficiency, providing a competitive edge in the emerging psychedelics market.

Strategic Alliances

Strategic alliances can expand distribution channels and enhance marketing efforts, supporting long-term revenue growth and market penetration.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competition, which can hinder the company's ability to sustain growth and profitability.

Negative Cash Flows

Negative cash flows limit the company's ability to invest in growth initiatives and may necessitate external financing, impacting financial stability.

Negative Profitability Metrics

Negative profitability metrics reflect operational inefficiencies and challenges in achieving sustainable profit margins, affecting long-term viability.

Red Light Holland Business Overview & Revenue Model

Company Description

Red Light Holland Corp. (TRIP) is a Canadian company focused on the production and distribution of psilocybin truffles, marketed primarily for recreational and therapeutic use. Operating in the emerging psychedelics sector, Red Light Holland aims to provide high-quality, safe, and consistent products to consumers, leveraging a strong brand presence and innovative cultivation methods. The company is also engaged in education and advocacy efforts surrounding responsible use and the potential benefits of psychedelics.

How the Company Makes Money

Red Light Holland generates revenue primarily through the sale of its psilocybin truffles, which are sold in retail locations and online platforms. The company capitalizes on the growing interest in psychedelics for both recreational and therapeutic purposes. Key revenue streams include direct sales to consumers, partnerships with licensed retailers, and potential collaborations with research institutions focused on psychedelics. Additionally, Red Light Holland may benefit from strategic alliances that enhance its distribution channels, marketing efforts, and educational initiatives, all contributing to its overall earnings.

Red Light Holland Financial Statement Overview

Summary

Red Light Holland faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the company maintains a low debt level, its inability to achieve profitability and generate positive cash flow poses substantial risks. The financial health of the company is concerning, and strategic changes may be necessary to improve its financial performance.

Income Statement

Red Light Holland's income statement reveals significant challenges. The company has been experiencing declining revenue growth, with a negative growth rate of -5.21% in the TTM. Profitability metrics are concerning, with negative net profit, EBIT, and EBITDA margins, indicating ongoing operational losses. The gross profit margin remains moderate at 38.69%, but overall, the company is struggling to achieve profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.13, suggesting manageable leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly provided, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a declining free cash flow growth rate of -10.86% in the TTM. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite a positive free cash flow to net income ratio, the overall cash flow situation is weak, reflecting the company's struggle to generate positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	4.69M	4.94M	4.75M	3.95M	110.96K	2.33M
Gross Profit	1.74M	1.91M	2.02M	1.71M	19.35K	617.68K
EBITDA	-3.11M	-3.35M	-6.58M	-4.32M	-4.61M	-8.55M
Net Income	-3.65M	-4.04M	-7.63M	-5.40M	-1.64M	-14.37M
Balance Sheet
Total Assets	20.14M	21.22M	24.08M	30.14M	36.30M	32.94M
Cash, Cash Equivalents and Short-Term Investments	11.67M	12.27M	14.17M	18.53M	32.78M	26.62M
Total Debt	1.53M	2.18M	1.72M	1.77M	866.50K	1.50M
Total Liabilities	3.41M	3.87M	3.82M	3.80M	2.24M	3.78M
Stockholders Equity	16.75M	17.35M	20.07M	26.06M	34.06M	28.48M
Cash Flow
Free Cash Flow	-1.80M	-2.01M	-3.92M	-6.45M	-3.63M	-5.28M
Operating Cash Flow	-1.58M	-1.48M	-3.23M	-4.39M	-3.36M	-4.88M
Investing Cash Flow	-423.27K	-525.40K	-650.43K	-3.17M	-201.55K	-582.74K
Financing Cash Flow	-739.52K	445.17K	-206.95K	-114.16K	32.78M	451.76K

Red Light Holland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRIP, the sentiment is Neutral. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TRIP.

Red Light Holland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPH	54 Neutral	C$13.98M	-4.08	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNT	51 Neutral	$8.78M	―	-53.71%	―	26.36%	-8.21%
OILS	51 Neutral	$8.41M	13.16	11.57%	―	-1.14%	―
CLC	45 Neutral	C$8.68M	―	-4.55%	―	16.22%	-285.37%
TRIP	41 Neutral	C$10.31M	-2.40	-23.76%	―	-28.00%	38.46%
MVMD	35 Underperform	C$3.52M	―	-148.48%	―	-46.59%	9.48%

Red Light Holland Corporate Events

Red Light Holland Expands Psilocybin Research with New Import Permit

Red Light Holland has secured a second United States Controlled Substances import permit through its partner, Irvine Labs, allowing for a larger shipment of psilocybin truffles from its Netherlands facility. This development marks significant progress in their research and development efforts, enabling the advancement of proprietary processes for potential medical-grade manufacturing applications. The increased import quantity reflects growing confidence in the company’s ability to provide high-quality psilocybin materials and supports their aim to develop standardized products for emerging therapeutic markets.

Red Light Holland Advances in Psilocybin Product Development with Official COA

Red Light Holland has received an official Certificate of Analysis (COA) through its partner, Irvine Labs, confirming the psilocybin potency and process validation for potential medical-grade manufacturing applications. This development marks a significant step in their partnership, as they aim to create standardized psilocybin products for emerging therapeutic markets and clinical trials, with plans for larger psilocybin exports under Irvine Labs’ DEA quota.

Red Light Holland Expands Safeway Partnership for Happy Caps

Red Light Holland’s subsidiary, Happy Caps Mushroom Farm, has expanded its partnership with Safeway, increasing its presence to 123 stores across Oregon and Washington State. This expansion, which represents an 86% increase in store count, is set to roll out in late fall and the holiday season of 2025, highlighting the growing consumer demand for functional mushroom products in the health and wellness market.

Red Light Holland Reports Q1 2026 Results and Strategic Initiatives

Red Light Holland has reported its financial results for the first quarter of 2026, highlighting a decrease in revenue and gross profit compared to the previous year. Despite these challenges, the company has made strategic moves, including entering the U.S. retail market through Albertsons, launching new products like Health Canada-approved mushroom gummies, and investing in Bitcoin as a financial strategy. The company is also exploring M&A opportunities and remains optimistic about future growth in the psychedelic and functional mushroom sectors.

Red Light Holland Advances Bitcoin Strategy with ETF Purchases and Trading Integration

Red Light Holland Corp. has announced progress in its Bitcoin balance sheet strategy by purchasing 10,600 shares of the iShares Bitcoin ETF and setting up infrastructure with a major exchange to leverage Arch Public’s algorithmic trading strategies. This initiative reflects the company’s commitment to integrating blockchain and cryptocurrency into its operations, aligning with its vision of innovation and long-term value creation in the psychedelics and wellness markets.

Red Light Holland Optimistic About Psilocybin Rescheduling Review

Red Light Holland Corp. has expressed optimism following the U.S. DEA’s decision to forward a psilocybin rescheduling petition to the Department of Health and Human Services for review. This move could potentially reclassify psilocybin from Schedule I to Schedule II, acknowledging its medical applications. Such a change would expand access to treatments for conditions like anxiety, depression, and PTSD, and facilitate research and development in the psychedelic sector. Red Light Holland, in partnership with Irvine Labs Inc., is advancing psychedelic research and has validated the potency of its psilocybin truffles for potential medical-grade applications.

Red Light Holland Advances Medical Grade Psilocybin Development

Red Light Holland has received initial testing results from Irvine Labs, confirming the compatibility of its naturally derived psilocybin products with potential medical grade manufacturing processes. This development marks a significant step in their partnership, focusing on creating standardized psilocybin products for therapeutic markets, with Irvine Labs advancing proprietary dehydration and packaging processes to enhance product shelf life.

Red Light Holland CEO to Highlight Blockchain-Psychedelics Synergy at Futurist Conference

Red Light Holland’s CEO, Todd Shapiro, will participate in the Blockchain Futurist Conference in Miami, highlighting the intersection of blockchain technology and psychedelics. This participation underscores the company’s commitment to decentralized finance, enhancing operational stability and growth, and promoting personal sovereignty by reducing reliance on traditional financial systems.