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Viq Solutions (TSE:VQS)
: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$11.78M
Dividend YieldN/A
Average Volume (3M)23.20K
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth6.80%
EPS Growth62.78%
CountryCA
Employees334
SectorTechnology
Sector Strength87
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.05
Shares Outstanding52,334,020
10 Day Avg. Volume26,980
30 Day Avg. Volume23,205
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)7.40
Price to Sales (P/S)0.00
P/FCF Ratio-7.01
Enterprise Value/Market Cap2.25
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit1.42
Enterprise Value/Ebitda-1.20
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:May 13, 2025
(Q1-2025)
| % Change Since: 10.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in FirstDraft adoption, improved EBITDA and gross margin, and strategic efficiency gains in Australia. However, challenges such as revenue decline due to foreign exchange, backlog issues, and an unchanged net loss tempered the outlook.Q1-2025 Updates
Positive Updates
Significant Growth in FirstDraft Adoption
FirstDraft output in Australia grew over 232% year-over-year, and overall FirstDraft adoption increased by 39% year-over-year, contributing to productivity and financial margin gains.
Improved EBITDA and Gross Margin
The company delivered an adjusted EBITDA of almost $900,000, a significant improvement from a loss of $83,000 a year ago. Gross margin in Q1 hit 51.9%, up 7.6% from 44.3% in Q1 of last year.
Cost Control and Efficiency Gains
Achieved greater workforce flexibility and lower unit production costs, with automation and AI improving cost per unit profitability.
Strategic Inflection Point in Australia
Australia's FirstDraft volume increased by 232% year-over-year, and editing efficiency improved by 13.25%, reflecting workforce optimization.
Multilingual Capabilities and Margin Expansion
Multilingual capabilities contributed to a 17% uplift in overall margin, with a 26% year-over-year increase in foreign language margin contribution.
Negative Updates
Revenue Decline Due to Foreign Exchange
Revenue for Q1 was $9.6 million, a 3.5% year-over-year decline, driven primarily by unfavorable foreign exchange.
Persistent Backlog and Low-Quality Audio Issues
Despite productivity gains, there was a persistent backlog for low-quality audio from certain police clients.
Net Loss Remains Unchanged
Net loss was $1.8 million, the same as the comparable period in 2024.
Company Guidance
During the VIQ Solutions 2025 First Quarter Earnings Conference Call, the company provided several key metrics indicating a positive trajectory. FirstDraft's output in Australia saw a significant year-over-year increase of 232%, showcasing the impact of their platform strategy. The U.K. also experienced an 80% rise in FirstDraft's usage for human editing, contributing to an overall 39% increase in FirstDraft adoption, which has driven productivity and financial margin gains. The company's gross margin improved to 51.9%, up from 44.3% the previous year, reflecting cost efficiencies and increased automation. VIQ Solutions reported an adjusted EBITDA of $872,000, a substantial improvement from a loss of $83,000 in the same quarter last year. Despite a 3.5% decline in revenue due to foreign exchange headwinds, the company maintained stable volume and price increases on a constant currency basis. These advancements underscore VIQ's shift to margin-led execution, with strategic priorities on sustaining gross margin, driving operational efficiency, and expanding SaaS growth.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 | 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 |
| EBITDA | -3.07M | -750.54K | -7.05M | -943.62K | -11.80M | -678.63K |
| Net Income | -9.73M | -7.05M | -14.33M | -8.71M | -19.68M | -11.15M |
Balance Sheet | ||||||
| Total Assets | 28.36M | 24.82M | 29.68M | 35.54M | 47.69M | 42.72M |
| Cash, Cash Equivalents and Short-Term Investments | 2.10M | 1.57M | 1.62M | 1.66M | 10.58M | 16.84M |
| Total Debt | 14.40M | 16.19M | 13.97M | 9.86M | 14.30M | 13.98M |
| Total Liabilities | 23.83M | 24.54M | 23.50M | 19.90M | 25.60M | 22.93M |
| Stockholders Equity | 4.53M | 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
Positive
0.22
Price Trends
0.20
Positive
0.20
Positive
0.21
Positive
Market Momentum
<0.01
Negative
54.59
Neutral
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VQS, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$198.58M | ― | -3.13% | 0.47% | -13.99% | -421.95% | |
60 Neutral | C$545.61M | ― | -4.56% | ― | 42.93% | 85.95% | |
60 Neutral | C$545.61M | ― | -4.56% | ― | 42.93% | 85.95% | |
56 Neutral | $3.45B | ― | -1.76% | ― | -8.84% | 70.97% | |
50 Neutral | C$667.97M | ― | -39.72% | 0.75% | 2.47% | 19.37% | |
50 Neutral | C$667.97M | ― | -39.72% | 0.75% | 2.47% | 19.37% | |
49 Neutral | C$2.97B | 2.15 | -83.78% | 2.54% | 12.97% | -24.70% | |
45 Neutral | C$11.78M | ― | -417.39% | ― | 6.80% | 62.78% |
* Technology Sector Average
Performance Comparison
TSE:VQS
VIQ Solutions
0.22
-0.02
-8.33%
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34.42%
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kneat.com
5.78
1.48
34.42%
TSE:SYZ
Sylogist
8.49
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TSE:DND
Dye & Durham
9.94
-2.52
-20.22%
TSE:DND
Dye & Durham
9.94
-2.52
-20.22%
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.