Versus Systems (VS) AI Stock Analysis

• Market Cap: $10.44M
• Dividend Yield: N/A
• Average Volume (3M): 221.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: 1873.85%
• EPS Growth: 91.70%
• Country: US
• Employees: 5
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 4,901,677
• 10 Day Avg. Volume: 29,309
• 30 Day Avg. Volume: 221,008
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.19
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 0.90
• Enterprise Value/Ebitda: -1.10
• 1Y Price Target: $2.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

Versus Systems faces significant financial challenges with negative profitability and cash flow difficulties. The lack of debt is a positive, but persistent losses and declining revenues are major concerns. Technical indicators suggest no clear trend and higher volatility. From a valuation perspective, the negative P/E ratio highlights overvaluation issues. Overall, the stock shows significant risk with limited positive indicators.

Positive Factors

Improved Operating Cash Flow

Enhanced operating cash flow indicates better cash management, which is crucial for funding operations and potential growth initiatives.

Partnerships and Revenue Model

Partnerships enhance market reach and platform adoption, driving sustainable revenue through licensing and revenue-sharing agreements.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces financial risk, allowing the company to focus on growth and operational improvements.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates reliance on external financing, which can strain financial resources and limit strategic options.

Declining Revenue

Declining revenue trends can erode market position and investor confidence, necessitating strategic changes to reverse the trend.

Negative Profitability

Persistent negative profitability undermines financial health and limits reinvestment capabilities, posing a risk to long-term viability.

Versus Systems Business Overview & Revenue Model

Company Description

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company operates eXtreme Engagement Online, a platform that allows live event producers, professional sports franchises, video game publishers and developers, live event producers, and professional sports franchises, as well as other interactive media content creators, to offer in-game prizing and rewards based on the completion of in-content challenges alongside other user engagement tools. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Versus Systems generates revenue through licensing its engagement and rewards platform to businesses and content creators. The company partners with brands, media companies, and content creators who integrate Versus' technology into their products and services to drive user engagement. Versus Systems earns money through a combination of setup fees, licensing fees, and revenue-sharing agreements based on user interactions and engagement metrics. Significant partnerships with media companies and brands contribute to its earnings by expanding its reach and the adoption of its platform across different sectors and events.

Versus Systems Financial Statement Overview

Summary

Versus Systems is facing significant financial challenges, with negative profitability and cash flow difficulties. Despite having no debt, the company suffers from persistent losses and declining revenues, posing substantial risks. Improvements in cash flow management and revenue growth are crucial for future stability.

Income Statement

Versus Systems has experienced inconsistent revenue growth, with a significant decline in 2024 compared to previous years. The gross profit margin for 2024 is 29.7%, but the company is struggling with negative net income, resulting in a net profit margin of -7057.4%. The EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.

Balance Sheet

The company has a strong equity position with no debt in 2024, giving it a debt-to-equity ratio of 0. The equity ratio is 323.4%, suggesting a robust capital structure. However, the return on equity is negative due to consistent net losses, indicating a lack of profitability.

Cash Flow

Free cash flow remains negative, although there is an improvement in operating cash flow in 2024 compared to 2023. The operating cash flow to net income ratio is negative, highlighting cash flow challenges despite financing activities providing some liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.18M	57.29K	271.17K	1.11M	768.65K	1.39M
Gross Profit	2.17M	17.01K	168.10K	491.79K	768.65K	1.44M
EBITDA	-1.78M	-4.54M	-8.04M	-10.72M	-15.35M	-5.15M
Net Income	-1.33M	-4.04M	-10.51M	-22.47M	-18.00M	-6.91M
Balance Sheet
Total Assets	3.84M	3.54M	4.88M	8.80M	18.54M	5.59M
Cash, Cash Equivalents and Short-Term Investments	1.68M	3.07M	4.69M	1.18M	1.68M	2.33M
Total Debt	0.00	0.00	0.00	2.73M	3.15M	5.27M
Total Liabilities	34.19K	26.29K	321.48K	3.32M	4.54M	6.75M
Stockholders Equity	11.65M	11.43M	11.94M	11.86M	22.62M	4.06M
Cash Flow
Free Cash Flow	-1.77M	-4.97M	-5.54M	-11.69M	-15.32M	-5.10M
Operating Cash Flow	-1.77M	-4.97M	-5.52M	-9.15M	-12.89M	-4.24M
Investing Cash Flow	0.00	0.00	-14.51K	-2.54M	-2.51M	-944.91K
Financing Cash Flow	3.28M	3.28M	9.05M	11.19M	14.80M	7.39M

Versus Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 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 VS, the sentiment is Negative. The current price of 2.04 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.21, and below the 200-day MA of 2.16, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VS.

Versus Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VS	39 Underperform	$10.44M	―	-15.68%	―	1873.85%	91.70%
TONX	39 Underperform	427.40M	-0.61	-63.75%	―	4095.10%	93.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Versus Systems Corporate Events

Versus Systems Appoints Aric Spitulnik to Board

Versus Systems, Inc. has appointed Aric Spitulnik to its board of directors, where he will play a key role by chairing the audit committee and serving on the compensation and corporate governance committees. This strategic move is significant for those keeping an eye on the company’s governance and financial oversight.