WonderFi Technologies Inc (WNDR) AI Stock Analysis

• Market Cap: C$232.32M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 51.2
• Beta (1Y): 1.59
• Revenue Growth: 25.27%
• EPS Growth: -108.07%
• Country: CA
• Employees: 110
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 663,785,500
• 10 Day Avg. Volume: 1,610,128
• 30 Day Avg. Volume: 1,717,376
• PEG Ratio: 0.27
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.84K
• 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: C$0.60
• Price Target Upside: 71.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: C$0.50 ▲(42.86%Upside)

WonderFi Technologies Inc's score is primarily driven by the positive impact of the Robinhood acquisition, which offers a premium and strategic benefits. Despite strong revenue growth, the company's financial performance is hindered by profitability and cash flow issues. The technical analysis shows stable short-term momentum, while the current valuation reflects challenges due to unprofitability. The acquisition provides a promising outlook, offsetting some of the financial concerns.

Positive Factors

Financial Performance

WonderFi reported its 4Q24 revenue of C$20.0M, up almost three-times from 3Q24's C$7.2M, establishing itself as the largest standing Canadian-based crypto trading platform.

Market Position

WonderFi continues to expand its Canadian market share and enhance its position within the digital asset and fintech ecosystem.

Strategic Initiatives

WonderFi signed a letter of intent with EightCap to provide platform users access to derivatives across various financial markets, indicating potential future expansion.

Negative Factors

Market Uncertainty

Target and estimates were trimmed due to soft March industry volume data and a lowered terminal EV/EBITDA multiple, reflecting increased macro uncertainty.

Regulatory Risks

Associated risks include crypto risk, potential regulation, bad actors’ illicit behavior on the Internet, and potential dilution.

WonderFi Technologies Inc Business Overview & Revenue Model

Company Description

WonderFi Technologies Inc. operates as a technology company. The company engages in the development of a technology platform to facilitate investments in the decentralized finance industry. It provides access to digital assets, including crypto, DeFi, gaming, and NFTs. The company is based in Vancouver, Canada.

How the Company Makes Money

WonderFi Technologies Inc generates revenue primarily through transaction fees, platform usage fees, and service charges associated with its digital asset management and DeFi platforms. The company earns money when users trade or invest in cryptocurrencies via its platform, as it charges a percentage fee on these transactions. Additionally, WonderFi may offer premium services or subscriptions that provide advanced features or tools for more active traders, contributing to its revenue streams. Strategic partnerships with other fintech and blockchain companies may also enhance its offerings and expand its user base, further driving revenue growth.

WonderFi Technologies Inc Financial Statement Overview

Summary

WonderFi Technologies Inc is experiencing significant revenue growth but continues to face profitability and cash flow challenges. The company benefits from low leverage, providing stability, but the declining equity ratio and operational inefficiencies are concerns.

Income Statement

WonderFi Technologies Inc has shown significant revenue growth in recent periods, notably from $28.3M in 2023 to $50.6M in TTM. Gross profit margin is robust at 75.4% for TTM, but the company struggles with negative EBIT, highlighting operational inefficiencies. The net profit margin has improved to 5.3% TTM, indicating a recovery from previous losses.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio at 0.0025, indicating low leverage. However, the equity ratio has declined to 7.3% TTM, down from 14.6% in 2022, suggesting increased liabilities. Return on equity is modest at 2.6%, reflecting limited profitability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow of -$33,575 in TTM, though there's improvement compared to previous periods. The operating cash flow to net income ratio is 0.38, indicating some cash generation strength despite past struggles.

Breakdown	TTM	Dec 2023	Sep 2022	Sep 2021	Jun 2020	Jun 2019
Income Statement
Total Revenue	50.64M	28.28M	6.48M	0.00	0.00	0.00
Gross Profit	38.17M	18.53M	-2.55M	-134.76K	0.00	0.00
EBITDA	6.35M	-6.57M	-22.55M	-5.14M	-153.75K	-392.98K
Net Income	2.68M	-16.69M	-35.58M	-5.06M	-153.75K	-392.98K
Balance Sheet
Total Assets	1.14B	1.14B	449.60M	25.37M	30.22K	116.91K
Cash, Cash Equivalents and Short-Term Investments	26.09M	26.09M	8.29M	20.35M	13.86K	102.40K
Total Debt	627.84K	627.84K	5.02M	65.37K	0.00	0.00
Total Liabilities	1.03B	1.03B	284.30M	535.38K	86.73K	19.68K
Stockholders Equity	104.58M	104.58M	165.30M	24.84M	-56.52K	97.23K
Cash Flow
Free Cash Flow	-33.58K	-14.42M	-21.15M	-5.66M	-88.54K	-217.13K
Operating Cash Flow	1.03M	-13.60M	-21.08M	-5.65M	-88.54K	-217.13K
Investing Cash Flow	13.61M	23.71M	-43.60M	-5.81K	0.00	0.00
Financing Cash Flow	-3.59M	4.27M	52.69M	25.97M	0.00	318.11K

WonderFi Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WNDR, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.30, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WNDR.

WonderFi Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
WNDR	60 Neutral	C$232.32M	51.22	-21.59%	―	25.27%	-108.07%
ABXX	49 Neutral	C$61.56M	―	-90.88%	―	349.56%	-928.83%
VQS	45 Neutral	C$10.47M	―	-417.39%	―	6.80%	62.78%
AXCP	39 Underperform	C$40.33M	―	-80.82%	―	―	42.32%
LQWD	38 Underperform	C$131.58M	―	-15.28%	―	―	-94.83%
REVO		C$5.18M	―		―	―	―

WonderFi Technologies Inc Corporate Events

WonderFi Shareholders Urged to Support Robinhood Transaction

WonderFi Technologies Inc. has received a recommendation from Institutional Shareholder Services Inc. (ISS) for its shareholders to vote in favor of a proposed transaction with Robinhood’s subsidiary, Wrangler Holdings Inc. This arrangement involves the acquisition of all issued and outstanding shares of WonderFi by the Purchaser for C$0.36 per share, offering a significant premium over previous stock prices. The WonderFi board and a special committee have unanimously endorsed the transaction, citing its strategic and financial benefits. The arrangement is expected to enhance WonderFi’s market positioning and provide substantial value to its shareholders.

The most recent analyst rating on (TSE:WNDR) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on WonderFi Technologies Inc stock, see the TSE:WNDR Stock Forecast page.

WonderFi Reports Strong Q1 2025 Results and Announces Acquisition by Robinhood

WonderFi Technologies Inc. reported $17.5 million in revenue and interest income for Q1 2025, marking its third highest revenue quarter. The company’s trading platforms, Bitbuy and Coinsquare, saw over $1.128 billion in trading volumes. Key operational highlights included the launch of a self-custodial Wonder Wallet and a Layer-2 blockchain, the acquisition of Blade Labs, and the launch of Bitcoin.ca for Bitcoin investor education. Additionally, WonderFi entered into an agreement with Robinhood Markets, Inc. for the acquisition of all its common shares, expected to complete in the second half of 2025, subject to approvals.

The most recent analyst rating on (TSE:WNDR) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on WonderFi Technologies Inc stock, see the TSE:WNDR Stock Forecast page.

WonderFi to be Acquired by Robinhood in a C$250 Million Deal

WonderFi Technologies Inc. has entered into a definitive agreement to be acquired by Robinhood Markets, Inc. for C$0.36 per common share, representing a significant premium to its recent trading levels. The acquisition is expected to enhance Robinhood’s mission to democratize finance in Canada, with WonderFi continuing to operate its products and its leadership team joining Robinhood Crypto to deliver innovative crypto products to Canadian customers.

The most recent analyst rating on (TSE:WNDR) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on WonderFi Technologies Inc stock, see the TSE:WNDR Stock Forecast page.

WonderFi Expands Web3 Offerings and Sells Stake in Tetra Trust

WonderFi Technologies Inc. announced updates on its WonderFi Labs initiatives, including the Wonder Chain’s sponsorship of the Blockchain Futurist Conference and the launch of a hackathon to develop applications on its mainnet. The company is also expanding its Wonder Wallet to support Bitcoin and Solana, enhancing its Web3 offerings. Additionally, WonderFi has sold a majority stake in Tetra Trust Company for $8.75 million CAD, a strategic move to bolster its centralized crypto brands while advancing its Web3 product development.

WonderFi Reports Record Financial Results and Strategic Expansions in 2024

WonderFi Technologies Inc. announced record financial results for the fiscal year 2024, with a significant increase in revenue and trading volumes, reinforcing its position as Canada’s leading crypto platform. The company achieved a 108% rise in yearly revenue to $62.1 million and processed $3.57 billion in crypto trading volumes, marking a 28% increase from the previous year. Key strategic moves included acquisitions in Australia and Canada, the launch of WonderFi Labs, and new product offerings like the Wonder Wallet and Bitcoin.ca. These developments position WonderFi for continued growth and innovation in the crypto ecosystem.