VIQ Solutions (VQS) AI Stock Analysis

• Market Cap: C$9.94M
• Dividend Yield: N/A
• Average Volume (3M): 29.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 6.80%
• EPS Growth: 62.78%
• Country: CA
• Employees: 334
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 52,334,020
• 10 Day Avg. Volume: 31,695
• 30 Day Avg. Volume: 29,577
• PEG Ratio: N/A
• Price to Book (P/B): 25.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -56.83
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: -0.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ―

VIQ Solutions faces significant financial challenges with persistent net losses and high leverage. Although there are positive signs, such as revenue growth and operational improvements highlighted in the earnings call, the technical indicators remain bearish, and the valuation is unattractive. The overall score reflects these mixed factors, emphasizing financial instability and bearish technicals.

VIQ Solutions Business Overview & Revenue Model

Company Description

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Australia, the United States, the United Kingdom, Canada, and internationally. It operates through two segments, Technology and Related Revenue, and Technology Services. The Technology segment develops, distributes, and licenses computer-based digital solutions based on its technology. The Technology Services segment provides recording and transcription services. The company offers CapturePro that securely speeds the capture, creation, and management of large volumes of information, as well as preserves and secures the spoken word and video image, and delivers data; MobileMic Pro for capturing and managing incident reports, recorded statements, case notes, and other vital information; NetScribe, a speech-to-text engine to consolidate, accelerate, and optimize transcription workflows; aiAssist, a multi-tenant workflow and analysis platform to manage, convert, and analyze large volumes of audio and visual content; and FirstDraft that converts audio files to text to provide access to interviews, testimonies, recorded calls, and dictations. It also provides legal, criminal justice, insurance, government, medical, corporate finance, media, and transcription services. The company was incorporated in 2004 and is based in Mississauga, Canada.

How the Company Makes Money

VIQ Solutions makes money primarily through the sale of its digital media capture and transcription software and services. The company's revenue model includes subscription-based services, licensing fees for its software solutions, and fees for professional transcription services. Key revenue streams include its SaaS (Software as a Service) offerings, where clients pay ongoing fees to use VIQ's cloud-based solutions, and on-premises software licenses for organizations that prefer hosting solutions within their own infrastructure. Additionally, VIQ leverages partnerships with industry players to expand its market reach and enhance its service offerings, thereby contributing to its earnings.

VIQ Solutions Financial Statement Overview

Summary

VIQ Solutions shows some revenue growth and improving gross profits, but persistent net losses and high leverage pose significant financial risks. The balance sheet's low equity and poor cash flow performance highlight the company's precarious financial position.

Income Statement

The company has shown improvement in EBIT and Gross Profit Margin over the years, but it still operates at a net loss with a negative Net Profit Margin. Revenue growth was positive this year but inconsistent in previous years.

Balance Sheet

The company's balance sheet shows high leverage with a Debt-to-Equity Ratio exceeding 57.8. The Equity Ratio is extremely low due to minimal stockholders' equity, indicating financial instability.

Cash Flow

Cash flow from operations has been negative in recent years, with no significant Free Cash Flow growth. The company's inability to generate positive operating cash flow is concerning.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.95M	43.16M	41.02M	45.84M	31.05M	31.75M
	Gross Profit
18.70M	19.23M	18.11M	21.93M	14.92M	16.15M
	EBIT
-4.25M	1.23M	-5.06M	-11.65M	-18.17M	-4.74M
	EBITDA
-3.07M	-750.54K	-7.05M	-943.62K	-11.80M	-678.63K
	Net Income Common Stockholders
-9.73M	-7.05M	-14.33M	-8.71M	-19.68M	-11.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66M	1.57M	1.62M	1.66M	10.58M	16.84M
	Total Assets
35.54M	24.82M	29.68M	35.54M	47.69M	42.72M
	Total Debt
9.86M	16.19M	13.97M	9.86M	14.30M	13.98M
	Net Debt
8.20M	14.62M	12.35M	8.20M	3.71M	-2.86M
	Total Liabilities
19.90M	24.54M	23.50M	19.90M	25.60M	22.93M
	Stockholders Equity
15.64M	280.40K	6.18M	15.64M	22.09M	19.79M
Cash Flow		Free Cash Flow
-2.02M	0.00	-2.84M	-5.37M	-10.68M	1.58M
	Operating Cash Flow
-1.51M	0.00	-2.81M	-2.34M	-8.24M	3.42M
	Investing Cash Flow
-1.76M	0.00	-2.22M	-4.10M	-14.44M	-6.64M
	Financing Cash Flow
3.57M	0.00	4.99M	-2.37M	16.52M	18.16M

VIQ Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VQS, the sentiment is Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VQS.

VIQ Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQ	68 Neutral	C$10.51M	28.80	4.63%	―	-2.75%	-89.95%
RW	62 Neutral	C$14.65M	45.00	136.37%	―	10.33%	―
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
WISH	57 Neutral	C$8.24M	―	-11.64%	―	-16.39%	36.90%
RIWI	48 Neutral	C$9.90M	―	-52.95%	―	3.65%	-25.74%
VQS	45 Neutral	C$9.94M	―	-417.39%	―	6.80%	62.78%
MYIDF		$7.76M	30.95		―	―	―

VIQ Solutions Corporate Events

VIQ Solutions Announces Strategic Update

VIQ Solutions has announced a significant update that is expected to influence its operational strategies and market positioning. The release highlights a strategic move that could have implications for stakeholders, potentially impacting industry dynamics and the company’s future growth trajectory.

VIQ Solutions to Announce 2024 Financial Results

VIQ Solutions announced it will release its financial results for the fourth quarter and full year of 2024 on March 28, 2025. The company will host a conference call on April 1, 2025, to discuss these results, providing stakeholders with insights into its financial performance and strategic direction.

VIQ Solutions Concludes Strategic Review, Continues Current Business Plan

VIQ Solutions has concluded its strategic review process, deciding to continue with its current business plan as a public company, following a thorough evaluation of various transaction proposals and strategic alternatives. The company aims to focus on operational efficiencies, margin expansion through automation, and disciplined cost management, while scaling its global technology platform for sustainable growth. The conclusion of the review also marks the resignation of David Sharma from the board, who played a significant role in the process.