Victory Square Technologies Inc (VST) AI Stock Analysis

• Market Cap: C$83.41M
• Dividend Yield: N/A
• Average Volume (3M): 154.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 52.23%
• EPS Growth: -300.60%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 70
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.01
• Shares Outstanding: 104,264,970
• 10 Day Avg. Volume: 203,341
• 30 Day Avg. Volume: 154,185
• PEG Ratio: -0.25
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 1.94
• P/FCF Ratio: -19.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.77 ▲(3.51% Upside)

Victory Square Technologies Inc. faces significant challenges in profitability and cash flow management, which are major concerns for its financial health. The technical analysis shows mixed signals, with short-term bearish trends but potential long-term bullishness. The valuation is unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Strong Revenue Growth

Sustained top-line growth indicates the company can scale its incubation and commercialization activities, expanding the portfolio and revenue base. Over 2-6 months this strengthens strategic optionality for exits, partnerships and reinvestment to support longer-term value creation.

Equity‑based Incubator Business Model

A model that takes equity in startups and provides capital, strategy and operations creates asymmetric upside and aligns incentives with portfolio success. This structural approach supports recurring deal flow, long-dated value creation and the potential for scaled capital gains from successful exits.

Positive Free Cash Flow Growth

Improving free cash flow growth enhances the firm’s ability to fund operations, investments and support portfolio companies without constant dilution. Over the medium term this can increase financial flexibility and reduce reliance on external financing if the trend continues.

Negative Factors

Negative Profitability Metrics

Negative ROE and persistent net losses signal the company is not converting capital into shareholder returns, pressuring long-term viability. Unless margins and operating leverage improve, the firm may face recurring capital raises or constrained reinvestment, diluting long-term value.

Negative Operating Cash Flow

Consistently negative operating cash flow undermines core liquidity and forces reliance on financing or asset monetization. This structural weakness increases refinancing risk, limits capacity to support portfolio companies, and can impede sustainable growth absent clear cash conversion improvements.

Eroding Gross Margins

Declining gross margins reduce the buffer to cover SG&A and R&D, making profitability more sensitive to revenue swings. Over months, margin erosion can permanently compress returns, forcing strategic shifts, cost cutting or higher pricing power requirements to restore sustainable profitability.

Victory Square Technologies Inc Business Overview & Revenue Model

Company Description

Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.

How the Company Makes Money

Victory Square Technologies generates revenue primarily through its investments in portfolio companies and the commercialization of its proprietary technologies. Key revenue streams include equity stakes in the startups it incubates, which can result in capital gains upon successful exits or public offerings. Additionally, VST may earn revenue through licensing agreements for its developed technologies and services provided to its partner companies. The company also benefits from significant partnerships with other technology firms and venture capital entities, which can enhance its investment returns and market reach, further contributing to its earnings.

Victory Square Technologies Inc Financial Statement Overview

Summary

Victory Square Technologies Inc. shows promising revenue growth, crucial for the Electronic Gaming & Multimedia industry, yet struggles with profitability and cash flow stability. The high leverage and consistent negative free cash flow represent risks that need addressing for long-term financial health. Despite these challenges, the shift to positive net income and increasing equity are positive indicators for potential future improvement.

Income Statement

Victory Square Technologies Inc. experienced substantial revenue growth, with a 38.7% increase from the previous year, indicating solid performance in revenue generation. However, the company's profitability remains a concern, as evidenced by a negative EBIT margin and volatile net profit margins over the years. The recent TTM (Trailing-Twelve-Months) shows a shift to positive net income, suggesting potential profitability improvements.

Balance Sheet

The company maintains a high debt-to-equity ratio, which poses a financial risk due to leverage. Despite this, stockholders' equity has been increasing, indicating shareholders' interest is growing. The equity ratio is moderate, suggesting a balanced asset structure, but the high liabilities relative to equity remain a concern.

Cash Flow

Cash flow management is a challenge, with consistent negative free cash flow highlighting operational cash strain. Although there's slight improvement in operating cash flow relative to net income, the company must focus on enhancing cash generation and reducing capital expenditures to stabilize its cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.43M	16.72M	12.06M	5.93M	1.49M	1.49M
Gross Profit	6.24M	6.37M	5.49M	3.26M	910.14K	527.79K
EBITDA	1.78M	2.06M	-13.89M	-24.59M	-16.59M	16.25M
Net Income	-6.76M	1.23M	-14.15M	-28.59M	-19.43M	19.92M
Balance Sheet
Total Assets	31.79M	10.22M	11.78M	24.18M	37.33M	42.65M
Cash, Cash Equivalents and Short-Term Investments	19.17M	1.23M	2.20M	3.83M	4.38M	4.57M
Total Debt	8.16M	2.41M	6.84M	6.60M	4.28M	2.23M
Total Liabilities	13.67M	7.47M	12.07M	10.93M	6.17M	3.95M
Stockholders Equity	21.18M	6.13M	3.96M	13.97M	27.38M	32.94M
Cash Flow
Free Cash Flow	-2.14M	-1.69M	-3.39M	-4.17M	-8.86M	-3.26M
Operating Cash Flow	-1.08M	-503.33K	-3.18M	-3.61M	-8.57M	-3.26M
Investing Cash Flow	-827.52K	-213.03K	1.48M	-808.30K	-3.51M	-70.33K
Financing Cash Flow	19.51M	-181.11K	95.35K	3.87M	11.90M	7.75M

Victory Square Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VST, the sentiment is Positive. The current price of 0.74 is above the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.79, and above the 200-day MA of 0.50, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VST.

Victory Square Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BRAG	58 Neutral	C$89.07M	-7.82	-10.97%	―	12.57%	-40.95%
AIC	50 Neutral	C$4.19M	-5.47	―	―	-100.00%	90.84%
VST	44 Neutral	C$83.41M	-11.06	-40.46%	―	52.23%	-300.60%
DMGI	44 Neutral	C$60.75M	-6.37	-10.10%	―	39.64%	-70.96%
VRTS	43 Neutral	C$23.89M	-2.38	―	―	-3.78%	88.40%

Victory Square Technologies Inc Corporate Events

Victory Square Technologies Reports Strong Q3 2025 Results and Strategic Growth

Victory Square Technologies Inc. reported its Q3 2025 financial results, highlighting significant growth and strategic developments across its portfolio. The company’s flagship digital health subsidiary, Hydreight, has been a key driver of success, achieving national recognition for its growth and innovation. Hydreight’s expansion into high-growth health segments and its robust compliance infrastructure position it well for continued success. Victory Square’s involvement in digital health initiatives and its economic participation through Hydreight’s platform underscore its strategic focus on scalable growth in the healthcare sector.

The most recent analyst rating on (TSE:VST) stock is a Hold with a C$0.72 price target. To see the full list of analyst forecasts on Victory Square Technologies Inc stock, see the TSE:VST Stock Forecast page.