WonderFi Technologies Inc (WNDR) AI Stock Analysis

• Market Cap: C$234.43M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 51.2
• Beta (1Y): 1.48
• Revenue Growth: 25.27%
• EPS Growth: -108.07%
• Country: CA
• Employees: 110
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 664,103,700
• 10 Day Avg. Volume: 955,070
• 30 Day Avg. Volume: 1,184,439
• PEG Ratio: 2.07
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -86.95
• 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: 66 Neutral
• Price Target: C$0.50 ▲(42.86%Upside)

WonderFi Technologies Inc has a promising outlook due to its significant acquisition by Robinhood, which offers a potential for improved market positioning and shareholder value. However, financial performance struggles due to lack of profitability and cash flow challenges pose risks. Technical indicators show bullish momentum, but the stock's valuation is currently unattractive due to negative earnings.

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 Expansion

WonderFi is expanding its 'wonder' brand associations in offering its Wonder Wallet, built on ZKsync Layer-2, providing customers easy access to its exchange and DeFi services.

Negative Factors

Industry Challenges

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

Market 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 shows strong revenue growth and a robust gross profit margin but struggles with profitability and cash flow management. The balance sheet reflects a low leverage position, which is positive, yet the negative ROE indicates challenges in generating returns for shareholders.

Income Statement

WonderFi Technologies Inc has shown significant revenue growth over the years, with a notable increase from CAD 28.28M in 2023 to CAD 57.74M in 2024, indicating a strong growth trajectory. However, the company is struggling with profitability, as evidenced by negative net income and EBIT margins consistently over the years. Gross profit margin in 2024 improved significantly to 72.96%, but the company remains unprofitable with a net profit margin of -2.15%.

Balance Sheet

The balance sheet of WonderFi Technologies Inc shows a reasonable equity base with stockholders' equity at CAD 102.45M in 2024. The company has a low debt-to-equity ratio, suggesting low leverage, which is positive for financial stability. However, the equity ratio has decreased over the years, indicating a rising proportion of liabilities to assets. Return on Equity (ROE) remains negative due to net losses, affecting overall balance sheet strength.

Cash Flow

Cash flow analysis shows improving free cash flow, although it remains negative at CAD -2.67M in 2024. The company has managed to reduce its negative operating cash flow significantly, reflecting better operational cash management. However, free cash flow to net income ratio is not favorable, and financing activities have not been consistent in supporting growth, highlighting cash flow management challenges.

Breakdown	Dec 2024	Dec 2023	Sep 2022	Sep 2021	Jun 2020
Income Statement
Total Revenue	57.74M	28.28M	6.48M	0.00	0.00
Gross Profit	42.14M	18.53M	-2.55M	-134.76K	0.00
EBITDA	6.13M	-6.57M	-22.55M	-5.14M	-153.75K
Net Income	-1.24M	-16.69M	-35.58M	-5.06M	-153.75K
Balance Sheet
Total Assets	2.22B	1.14B	449.60M	25.37M	30.22K
Cash, Cash Equivalents and Short-Term Investments	34.35M	26.09M	8.29M	20.35M	13.86K
Total Debt	225.72K	627.84K	5.02M	65.37K	0.00
Total Liabilities	2.12B	1.03B	284.30M	535.38K	86.73K
Stockholders Equity	102.45M	104.58M	165.30M	24.84M	-56.52K
Cash Flow
Free Cash Flow	-2.67M	-14.42M	-21.15M	-5.66M	-88.54K
Operating Cash Flow	-2.30M	-13.60M	-21.08M	-5.65M	-88.54K
Investing Cash Flow	15.67M	23.71M	-43.60M	-5.81K	0.00
Financing Cash Flow	-5.11M	4.27M	52.69M	25.97M	0.00

WonderFi Technologies Inc Technical Analysis

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

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 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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
WNDR	66 Neutral	C$234.43M	51.22	-21.59%	―	25.27%	-108.07%
Sector *	63 Neutral	$34.60B	5.43	-11.67%	1.84%	5.30%	-18.55%
ABXX	49 Neutral	C$61.56M	―	-90.88%	―	349.56%	-928.83%
VQS	45 Neutral	C$12.94M	―	-417.39%	―	6.80%	62.78%
LQWD	38 Underperform	C$106.32M	―	-15.28%	―	―	-94.83%
REVO	―	C$5.18M	―		―	―	―
AXCP	39 Underperform	C$34.36M	―	-80.82%	―	―	42.32%

WonderFi Technologies Inc Corporate Events

WonderFi Securityholders Approve Acquisition by Robinhood Subsidiary

WonderFi Technologies Inc. has announced that its securityholders have approved the acquisition by Robinhood’s subsidiary, Wrangler Holdings Inc., through a statutory plan of arrangement. The approval was overwhelmingly supported by shareholders and brokers warrant holders, with the arrangement expected to close in the second half of 2025. Additionally, earnout rights holders have approved amendments to the earnout rights indenture, setting the stage for a significant financial restructuring within the company.

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 Shareholders Urged to Approve Robinhood Transaction

WonderFi Technologies Inc. has announced that Glass Lewis, a leading independent proxy advisory firm, has recommended shareholders vote in favor of a proposed transaction with Robinhood’s subsidiary, Wrangler Holdings Inc. This arrangement involves the acquisition of all WonderFi shares by Wrangler Holdings for C$0.36 per share. The board of WonderFi, supported by fairness opinions from financial advisors, also recommends shareholders approve the transaction, which is seen as a strategic move to strengthen WonderFi’s market position.

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 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.