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VIQ Solutions (TSE:VQS)
TSX:VQS
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VIQ Solutions
(TSX:VQS)
Rating:45Neutral
Price Target:―
VIQ Solutions (VQS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.83M
Dividend YieldN/A
Average Volume (3M)36.76K
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth2.20%
EPS Growth37.96%
CountryCA
Employees334
SectorTechnology
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.02
Shares Outstanding52,805,813
10 Day Avg. Volume30,529
30 Day Avg. Volume36,758
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
VIQ Solutions Business Overview & Revenue Model
Company DescriptionVIQ Solutions (VQS) is a technology and service company that specializes in providing digital media capture and transcription solutions. The company operates primarily in the legal, law enforcement, insurance, and media sectors, offering a suite of software and services that streamline the capture, management, and transformation of recorded content into accurate and accessible documentation.
How the Company Makes MoneyVIQ 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 Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: 0.00%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong focus on operational efficiencies and strategic growth, particularly in SaaS adoption and gross margin expansion. However, there are concerns regarding revenue decline and increased net loss due to foreign exchange impacts. Overall, the company is making progress towards sustainable margin expansion and positive cash flow.Q2-2025 Updates
Positive Updates
Consistent Positive Adjusted EBITDA
Q2 2025 marked the fifth consecutive quarter of positive adjusted EBITDA, approximately $1 million, up 24% year-over-year.
Gross Margin Expansion
Gross margin expanded to 48% in Q2 2025, compared to 45.5% in Q2 2024, and nearly 50% during the first half of 2025, up from 44.9% for the same period last year.
Largest SaaS Contract Signed
In June, VIQ signed its largest SaaS contract to date, deploying the NetScribe platform across 9 judicial districts and 22 countries in the U.S. Midwest.
Operational Efficiency in Australia
Australia achieved its highest level of workforce flexibility and efficiency, contributing significantly to margin improvement.
SG&A Decline
SG&A expenses declined 11%, reflecting organizational restructuring and disciplined expense management.
Positive Cash Flow from Operations
The company generated $0.3 million in positive cash flow from operations in Q2 2025 and $1 million during the first half of 2025.
Negative Updates
Revenue Decline
Revenue for Q2 2025 was $10.4 million, a 10% year-over-year decline, mainly due to decreased volumes and negative foreign exchange impact.
Net Loss Increase
Net loss for Q2 2025 was $0.9 million, $0.3 million higher than the same period in 2024, primarily due to foreign exchange impact.
Company Guidance
In the second quarter of 2025, VIQ Solutions reported a continuation of positive financial momentum with a fifth consecutive quarter of positive adjusted EBITDA, reaching approximately $1 million, which is a 24% increase year-over-year. The gross margin expanded to 48% from 45.5% in Q2 2024, and for the first half of the year, it was nearly 50%, up from 44.9% in the same period last year. Despite a 10% year-over-year decline in revenue to $10.4 million due to decreased volumes and negative foreign exchange impacts, the company achieved an 11% decline in SG&A expenses. A significant milestone in SaaS adoption was marked in June with the signing of its largest SaaS contract to date, deploying the NetScribe platform across nine judicial districts and 22 countries in the U.S. Midwest. The company secured $1.85 million in net new bookings in H1 2025, including $280,000 in SaaS and software sales. VIQ ended Q2 with $1.1 million in cash, generating $0.3 million in positive cash flow from operations. Despite a net loss of $0.9 million, which was $0.3 million higher than in 2024, VIQ remains focused on achieving sustainable operations and free cash flow through gross margin expansion.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.45
Neutral
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.40
Negative
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.35
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.16M | 41.02M | 45.84M | 31.05M | 31.75M |
| Gross Profit | 19.23M | 18.11M | 21.93M | 14.92M | 16.15M |
| EBITDA | -750.54K | -7.05M | -943.62K | -11.80M | -678.63K |
| Net Income | -7.05M | -14.33M | -8.71M | -19.68M | -11.15M |
Balance Sheet | |||||
| Total Assets | 24.82M | 29.68M | 35.54M | 47.69M | 42.72M |
| Cash, Cash Equivalents and Short-Term Investments | 1.57M | 1.62M | 1.66M | 10.58M | 16.84M |
| Total Debt | 16.19M | 13.97M | 9.86M | 14.30M | 13.98M |
| Total Liabilities | 24.54M | 23.50M | 19.90M | 25.60M | 22.93M |
| Stockholders Equity | 280.40K | 6.18M | 15.64M | 22.09M | 19.79M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -2.84M | -5.37M | -10.68M | 1.58M |
| Operating Cash Flow | 0.00 | -2.81M | -2.34M | -8.24M | 3.42M |
| Investing Cash Flow | 0.00 | -2.22M | -4.10M | -14.44M | -6.64M |
| Financing Cash Flow | 0.00 | 4.99M | -2.37M | 16.52M | 18.16M |
VIQ Solutions Technical Analysis
Negative
0.20
Price Trends
0.22
Negative
0.20
Negative
0.21
Negative
Market Momentum
>-0.01
Positive
46.83
Neutral
12.12
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 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VQS.
VIQ Solutions Risk Analysis
VIQ Solutions disclosed 30 risk factors in its most recent earnings report. VIQ Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our failure to meet the continuing listing requirements of Nasdaq could result in a delisting of our securities. Q4, 2022
2.
The covenants in our credit agreement with Beedie Investments Ltd. ("Beedie") impose restrictions that may limit our operating and financial flexibility. Q4, 2022
VIQ Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$186.88M | ― | -7.92% | 0.50% | -4.15% | -1335.79% | |
55 Neutral | C$682.46M | ― | -39.72% | 0.72% | 2.47% | 19.37% | |
52 Neutral | $3.09B | ― | -1.76% | ― | -8.84% | 70.97% | |
48 Neutral | C$3.40B | 1.48 | -6.09% | 8.93% | 6.55% | -18.71% | |
48 Neutral | C$537.81M | 1,048.15 | 0.99% | ― | 39.32% | ― | |
45 Neutral | C$10.83M | ― | -644.92% | ― | 2.20% | 37.96% |
* Technology Sector Average
Performance Comparison
TSE:VQS
VIQ Solutions
0.20
-0.03
-13.04%
TSE:BB
BlackBerry
5.19
2.01
63.21%
TSE:KSI
kneat.com
5.66
0.93
19.66%
TSE:SYZ
Sylogist
7.99
-3.39
-29.79%
TSE:DND
Dye & Durham
10.42
-3.80
-26.72%
VIQ Solutions Corporate Events
Business Operations and Strategy
VIQ Solutions Announces Strategic Update
Neutral
Mar 28, 2025
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.
Financial Disclosures
VIQ Solutions to Announce 2024 Financial Results
Neutral
Mar 26, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
VIQ Solutions Concludes Strategic Review, Continues Current Business Plan
Neutral
Mar 20, 2025
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.
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.