VIQ Solutions (VQS) AI Stock Analysis

• Market Cap: C$11.09M
• Dividend Yield: N/A
• Average Volume (3M): 15.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: 2.20%
• EPS Growth: 37.96%
• Country: CA
• Employees: 334
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.02
• Shares Outstanding: 55,446,102
• 10 Day Avg. Volume: 10,095
• 30 Day Avg. Volume: 15,487
• PEG Ratio: 0.01
• Price to Book (P/B): 22.33
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 5.57
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

VIQ Solutions' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high financial risk. While the earnings call showed some positive operational improvements, the technical analysis and valuation metrics suggest caution. The company's focus on SaaS growth and operational efficiencies provides some optimism, but significant financial risks remain.

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 generates revenue through a combination of subscription services, licensing fees, and transaction-based models. The company offers its transcription and voice technology solutions as a Software as a Service (SaaS), allowing clients to subscribe to their services on a recurring basis. Key revenue streams include fees from enterprise clients in the legal and healthcare fields who utilize their services for case management and patient records. Additionally, VIQ forms strategic partnerships with technology firms and industry leaders to enhance their offerings, which can lead to increased sales and co-marketing opportunities. The company's focus on innovation and integration of AI technology also positions it to capture market share and drive growth through the demand for efficient and accurate documentation solutions.

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
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	1.12M	-2.84M	-5.37M	-10.68M	1.58M
Operating Cash Flow	-1.51M	1.14M	-2.81M	-2.34M	-8.24M	3.42M
Investing Cash Flow	-1.76M	-1.42M	-2.22M	-4.10M	-14.44M	-6.64M
Financing Cash Flow	3.57M	322.62K	4.99M	-2.37M	16.52M	18.16M

VIQ Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 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:VQS, the sentiment is Neutral. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$13.68M	123.68	1.39%	―	-1.87%	-82.16%
RW	62 Neutral	C$24.43M	72.29	136.37%	―	16.92%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WISH	52 Neutral	C$8.24M	―	-19.79%	―	-26.00%	-54.40%
MYID	51 Neutral	$10.14M	40.00	218.27%	―	39.45%	-56.52%
VQS	48 Neutral	C$11.09M	―	-644.92%	―	2.20%	37.96%
RIWI	48 Neutral	C$9.00M	―	-69.95%	―	―	―

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.