Red Light Holland (TRIP) AI Stock Analysis

• Market Cap: C$8.45M
• Dividend Yield: N/A
• Average Volume (3M): 212.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: 422,531,200
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.02 ▲(20.00% Upside)

The overall stock score of 40 reflects significant financial challenges, including declining revenues and substantial losses. Technical analysis indicates a bearish trend with weak momentum. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Conservative leverage

Very low debt levels give the company financial flexibility over the medium term, lowering interest burden and bankruptcy risk. This supports continued investment in cultivation, compliance, and education initiatives while reducing refinancing pressure in a still-evolving psychedelics market.

Diverse revenue channels

Multiple sales channels and partnerships reduce single-channel concentration risk and support scalable distribution as the psychedelics market matures. Diversified go-to-market routes help sustain revenue resilience and provide options to deepen retail or institutional relationships long term.

Brand and cultivation capability

A recognized brand combined with proprietary cultivation expertise can deliver consistent product quality and create barriers to entry. Long-term, this supports customer loyalty, premium positioning, and potential partnerships with research institutions or regulated providers as the sector professionalizes.

Negative Factors

Declining revenue trend

Sustained revenue declines indicate weakening demand or execution gaps, undermining economies of scale and margin recovery. Over months, falling sales reduce ability to invest in compliance, R&D, or marketing, making the path to sustainable profitability more difficult without a clear revenue turnaround.

Deep negative profitability

Very large negative margins show the business is not converting revenue into operating profits, implying structural cost or pricing issues. Persistent losses erode equity and ROE, limit reinvestment capacity, and increase dependence on external funding to sustain operations and strategic initiatives.

Weak cash generation

Negative operating cash flow and shrinking free cash flow point to poor internal funding capacity. Over a multi-month horizon this reduces liquidity for regulatory compliance, scaling cultivation, or marketing; it raises the likelihood of dilutive financing or constrained strategic options.

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. The low debt level is a positive, but the company's inability to achieve profitability and generate positive cash flow poses substantial risks.

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	4.07M	4.94M	4.75M	3.95M	110.96K	2.33M
Gross Profit	1.41M	1.91M	2.02M	1.71M	19.35K	617.68K
EBITDA	-3.90M	-3.35M	-6.58M	-4.32M	-4.61M	-8.55M
Net Income	-4.25M	-4.04M	-7.63M	-5.40M	-1.64M	-14.37M
Balance Sheet
Total Assets	19.02M	21.22M	24.08M	30.14M	36.30M	32.94M
Cash, Cash Equivalents and Short-Term Investments	10.73M	12.27M	14.17M	18.53M	32.78M	26.62M
Total Debt	1.51M	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	15.66M	17.35M	20.07M	26.06M	34.06M	28.48M
Cash Flow
Free Cash Flow	-1.32M	-2.01M	-3.92M	-6.45M	-3.63M	-5.28M
Operating Cash Flow	-1.11M	-1.48M	-3.23M	-4.39M	-3.36M	-4.88M
Investing Cash Flow	-879.42K	-525.40K	-650.43K	-3.17M	-201.55K	-582.74K
Financing Cash Flow	-705.52K	445.17K	-206.95K	-114.16K	32.78M	451.76K

Red Light Holland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.02
• 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 0.02 is below the 20-day moving average (MA) of 0.02, 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 52.64 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
CURA	58 Neutral	$2.92B	-7.51	-27.61%	―	-3.38%	-31.35%
MUSH	54 Neutral	C$8.27M	-15.46	-99.55%	―	-26.71%	-988.89%
CWEB	52 Neutral	C$79.71M	-2.77	-109.83%	―	-4.23%	37.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PLTH	49 Neutral	C$87.85M	-0.70	-83.55%	―	2.19%	-91.41%
TRIP	40 Underperform	C$8.45M	-2.40	-23.76%	―	-28.00%	38.46%
RVV	39 Underperform	C$6.28M	-0.58	-664.21%	―	―	-80.42%

Red Light Holland Corporate Events

Red Light Holland Advances Psilocybin Research with Larger Shipment to Irvine Labs

Red Light Holland has successfully completed a second, larger shipment of 5kg of naturally occurring psilocybin from its Netherlands facility to its research partner, Irvine Labs in California. This development marks significant progress in their collaborative efforts to develop standardized psilocybin products for potential medical applications, enhancing their market positioning in emerging therapeutic markets.

Red Light Holland Expands U.S. Retail Presence with Safeway Partnership

Red Light Holland’s subsidiary, Happy Caps, has expanded its partnership with Safeway, increasing its presence from 66 to 123 stores in Oregon and Washington, just in time for Thanksgiving. This expansion reflects strong consumer demand and enhances Happy Caps’ U.S. market momentum, aligning with the company’s strategy to broaden its premium mushroom offerings across North America. Additionally, the company has granted stock options and restricted stock units to employees and directors, and issued shares for debt settlement, aiming to retain key personnel and preserve cash.

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.