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Vext Science (TSE:VEXT)
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Vext Science (VEXT) AI Stock Analysis

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TSE:VEXT

Vext Science

(OTC:VEXT)

Rating:65Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
Vext Science's overall score reflects the robust operational performance and expansion efforts, particularly in Ohio, which are driving revenue growth and improving cash flow. However, the company's declining profitability, negative P/E ratio, and valuation concerns significantly weigh down the score. The positive technical indicators and strategic corporate events slightly bolster the overall perception of the stock.

Vext Science (VEXT) vs. iShares MSCI Canada ETF (EWC)

Vext Science Business Overview & Revenue Model

Company DescriptionVext Science is a cannabis operator based in the United States, primarily engaged in the cultivation, production, and retailing of cannabis products. The company operates in the healthcare and retail sectors, offering a diverse range of cannabis-related products, including dried flower, edibles, and concentrates. Vext Science focuses on delivering high-quality cannabis products through its owned facilities and retail locations, catering to both medical and recreational cannabis markets.
How the Company Makes MoneyVext Science generates revenue through the cultivation and sale of cannabis products in states where cannabis is legal. The company's key revenue streams include wholesale distribution to dispensaries and direct sales through its own retail outlets. Vext Science benefits from vertical integration, owning and operating cultivation facilities, production sites, and retail dispensaries, which allows them to capture value at multiple points in the supply chain. Additionally, the company may engage in strategic partnerships or licensing deals to expand its product offerings and market reach, contributing to its overall earnings.

Vext Science Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: 63.64%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive momentum for Vext, driven by significant revenue growth, robust cash flow generation, and successful expansion in Ohio. Despite challenges in pricing pressure and market conditions in Ohio and Arizona respectively, Vext’s operational efficiency and strategic investments position the company well for continued growth. The highlights significantly outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Vext's revenue increased to $11.6 million in Q1 2025, a 38% year-over-year increase, driven by strong growth in adult use sales in Ohio.
Robust Cash Flow Generation
Operating cash flow reached $3.1 million in Q1 2025, with a cash flow margin exceeding 26%, placing Vext among the top cash flow producers among U.S. Public multistate cannabis operators.
Expansion in Ohio
Successful acquisition of two dispensaries in Ohio, with retail locations in Athens and Jeffersonville growing 18% sequentially in Q1. Construction underway for a fifth store in Portsmouth, expected to open in Q2.
Operational Efficiency and Cost Control
Operating expenses remained flat compared to last year, with a decline from 54% of revenue in Q1 2024 to 38% in Q1 2025, reflecting cost discipline.
Strong Market Position in Arizona
Despite a 13% decline in the Arizona market, Vext's sales only declined 8.5%, leading to market share gains.
Negative Updates
Pricing Pressure in Ohio
The Ohio adult use market is experiencing pricing compression, similar to trends in mature markets, with consumers becoming increasingly price sensitive.
Continued Challenges in Arizona
The Arizona market remains pressured, with total sales down 13% year-over-year in Q1 2025.
Volatility in Gross Margins
Gross margins have been volatile across quarters, with margin improvements expected as more Ohio stores come online.
Company Guidance
During the first quarter of 2025, Vext Science demonstrated strong financial performance, with revenue increasing by 38% year-over-year to $11.6 million, driven largely by the growth in Ohio's adult-use sales. The company reported an operating cash flow of $3.1 million, which significantly improved their cash flow margin to over 26%. Adjusted EBITDA reached $3.4 million, marking the strongest quarter in over two years, with a margin of 29%, one of the highest among U.S. public multi-state cannabis operators. Vext's retail sales in Ohio grew by 7% sequentially, while wholesale in the state surged by 92% compared to the previous quarter. The company aims to continue expanding its Ohio retail footprint, expecting to have seven stores operational by the end of the year, while maintaining a disciplined focus on generating free cash flow and optimizing operations in Arizona.

Vext Science Financial Statement Overview

Summary
Vext Science is experiencing revenue growth but struggles with declining profitability and negative net profit margins. The balance sheet shows moderate leverage, and while cash flow has improved, its sustainability remains a concern due to historical volatility.
Income Statement
55
Neutral
Vext Science shows fluctuating financial performance with recent revenue growth of 8.8% in the TTM period. The gross profit margin decreased from the previous year, and the company is currently experiencing negative net profit and EBIT margins, indicating profitability challenges. Despite some revenue growth, the declining profitability metrics present significant concerns.
Balance Sheet
60
Neutral
The balance sheet reveals moderate financial leverage with a debt-to-equity ratio of 0.52 in the TTM period, indicating manageable debt levels. However, the equity ratio has declined over time, reflecting increased liabilities. Return on equity is negative due to net losses, highlighting challenges in generating returns for shareholders.
Cash Flow
65
Positive
Vext Science has shown improvement in operating cash flow, with a positive free cash flow in the TTM period. The operating cash flow to net income ratio indicates strong cash generation relative to reported losses, suggesting efficient cash management. However, the historical volatility in free cash flow growth poses a risk to sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.00M34.81M35.41M37.24M25.19M
Gross Profit8.98M12.04M23.10M18.69M11.20M
EBITDA-2.02M16.77M15.03M12.80M5.52M
Net Income-22.44M4.40M10.92M4.99M2.13M
Balance Sheet
Total Assets136.97M149.56M120.52M83.70M55.45M
Cash, Cash Equivalents and Short-Term Investments4.62M8.72M5.93M6.47M1.75M
Total Debt39.52M38.60M38.15M14.10M11.49M
Total Liabilities61.23M54.58M48.60M24.31M19.14M
Stockholders Equity75.74M94.98M71.92M59.39M36.31M
Cash Flow
Free Cash Flow1.82M1.69M-2.94M-7.10M-964.90K
Operating Cash Flow3.29M4.42M5.92M11.68M3.10M
Investing Cash Flow-5.44M-4.82M-30.31M-27.10M-12.90M
Financing Cash Flow-1.95M3.19M23.86M20.14M4.26M

Vext Science Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.14
Positive
100DMA
0.14
Positive
200DMA
0.16
Positive
Market Momentum
MACD
<0.01
Positive
RSI
67.66
Neutral
STOCH
86.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VEXT, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VEXT.

Vext Science Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$54.79M4.0420.78%-15.44%
65
Neutral
C$45.80M-24.12%18.82%-9328.57%
56
Neutral
C$28.55M-2.68%29.78%68.83%
56
Neutral
C$33.00M-12.58%9.90%-24.19%
54
Neutral
C$29.06M-16.22%16.24%46.47%
46
Neutral
C$201.68M-3.28-23.14%1.87%20.75%-0.36%
44
Neutral
C$32.99M-18.73%44.21%21.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VEXT
Vext Science
0.19
-0.05
-22.92%
TSE:LABS
MediPharm Labs
0.07
0.00
0.00%
TSE:DB
Decibel Cannabis Company
0.10
0.04
72.73%
TSE:ROMJ
Rubicon Organics
0.43
-0.02
-3.41%
TSE:CXXI
C21 Investments
0.26
-0.11
-29.73%
TSE:GWAY
Greenway Greenhouse Cannabis Corp.
0.25
0.03
13.64%

Vext Science Corporate Events

Business Operations and Strategy
Vext Science Expands Ohio Footprint with New Fairfield Dispensary
Positive
Jun 24, 2025

Vext Science, Inc. has secured a provisional license for its sixth cannabis dispensary in Fairfield, Ohio, with operations expected to commence in the fourth quarter of 2025, subject to regulatory approvals. This strategic expansion highlights Vext’s disciplined approach to growth, leveraging high-traffic locations and limited competition to drive cash flow and shareholder value. The new Fairfield location, adjacent to Jungle Jim’s International Market, is expected to enhance visibility and consumer traffic, further solidifying Vext’s market position in Ohio as it approaches the state’s dispensary license cap of eight.

The most recent analyst rating on (TSE:VEXT) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Vext Science stock, see the TSE:VEXT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Vext Science Expands Ohio Presence with Fifth Dispensary Opening
Positive
Jun 16, 2025

Vext Science, Inc. has opened its fifth cannabis dispensary in Portsmouth, Ohio, enhancing its retail footprint in the state. The new location, which includes a drive-thru, is part of Vext’s strategy to scale its operations and increase market presence in Ohio, a key growth area for the company. The Portsmouth dispensary is expected to be fully consolidated by late 2025, subject to regulatory approval. Vext’s vertically integrated model in Ohio positions it to drive margin expansion and free cash flow, supporting its long-term growth and shareholder value.

The most recent analyst rating on (TSE:VEXT) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Vext Science stock, see the TSE:VEXT Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Vext Science, Inc. Transitions to New Auditor Amid Growth
Neutral
Jun 5, 2025

Vext Science, Inc. has announced a change of auditor from Reliant CPA to MNP LLP, effective June 4, 2025. The change was initiated by the former auditor due to the company’s growth exceeding its audit practice’s scope. The new auditor, MNP LLP, is expected to better meet Vext’s financial reporting needs due to its greater public company experience. The transition is not associated with any reservations or reportable events, and has been approved by the board.

The most recent analyst rating on (TSE:VEXT) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Vext Science stock, see the TSE:VEXT Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Vext Science Achieves Record Q1 Revenue and Expands Ohio Footprint
Positive
May 21, 2025

Vext Science reported a record Q1 performance with $11.6 million in revenue, a 38% increase from Q1 2024, driven by growth in Ohio. The company’s operating cash flow reached $3.1 million, matching its entire 2024 cash generation, highlighting the success of its retail strategy. Vext doubled its Ohio retail footprint by acquiring two dispensaries, enhancing its market presence. The company is focused on expanding in Ohio, reducing debt, and delivering sustainable returns for shareholders.

The most recent analyst rating on (TSE:VEXT) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Vext Science stock, see the TSE:VEXT Stock Forecast page.

Financial Disclosures
Vext Science to Release Q1 2025 Financial Results on May 21
Neutral
May 13, 2025

Vext Science, Inc. announced it will release its Q1 2025 financial results on May 21, 2025, before the market opens. The company will also host a conference call and webcast to discuss these results, reflecting its continued focus on growth and stakeholder engagement in its core markets of Arizona and Ohio.

The most recent analyst rating on (TSE:VEXT) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Vext Science stock, see the TSE:VEXT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025