LeddarTech Holdings (LDTC) AI Stock Analysis

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LeddarTech Holdings

(NASDAQ:LDTC)

40Underperform

LeddarTech Holdings exhibits significant financial challenges, including declining revenues, high leverage, and negative cash flows, which are major concerns. Technical indicators suggest mild short-term stability but weak long-term trends. The earnings call highlighted strategic wins and a growing pipeline, offering some optimism despite persistent financial hurdles. Overall, the stock's score reflects the balance between severe financial issues and potential strategic opportunities.

Positive Factors

Commercial Success

LeddarTech has shown commercial traction, evidenced by a new commercial vehicle win and more firm partnerships with SoC vendors.

Partnership Growth

LeddarTech has grown its partnership ecosystem to key partners such as Texas Instruments, Arm, and Black Sesame, which are seen as critical for commercial traction long-term.

Revenue Potential

LeddarTech expects to start generating engineering services revenue this fiscal year.

Negative Factors

Financial Stability

Liquidity is a critical concern marked by bridge financing and an intended capital raise.

Legacy Business

The reported P&L continues to reflect the winding down of the legacy lidar business.

Liquidity Concerns

Liquidity concerns continue to linger, with further capital raises likely ahead to meet debt obligations.

LeddarTech Holdings (LDTC) vs. S&P 500 (SPY)

Market Cap

$32.97M

Dividend YieldN/A

Average Volume (3M)160.20K

Price to Earnings (P/E)―

Beta (1Y)-0.08

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees150

SectorFinancial

Sector Strength85

IndustrySoftware - Application

Share Statistics

EPS (TTM)-0.30

Shares Outstanding36,989,800

10 Day Avg. Volume162,664

30 Day Avg. Volume160,204

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)-0.19

Price to Sales (P/S)0.00

P/FCF Ratio-0.68

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1.00

Price Target Upside72.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

LeddarTech Holdings Business Overview & Revenue Model

Company DescriptionLeddarTech Holdings (LDTC) is a technology company specializing in advanced sensing solutions, particularly for automotive and mobility applications. The company focuses on developing and providing comprehensive sensor fusion and perception software that enables autonomous driving and advanced driver assistance systems (ADAS). LeddarTech's core products include LeddarVision, a robust perception platform that integrates raw data from various sensors to deliver accurate environmental models, and LeddarEngine, a technology suite that powers its solid-state LiDAR solutions.

How the Company Makes MoneyLeddarTech Holdings generates revenue primarily through the sale and licensing of its advanced sensing technologies and software solutions to automotive original equipment manufacturers (OEMs), tier-1 suppliers, and other technology companies. Key revenue streams include licensing fees for its perception software platforms, sales of its proprietary LiDAR technology, and engineering services. The company also engages in strategic partnerships and collaborations with industry leaders to enhance its product offerings and expand its market presence. These partnerships often involve joint development agreements and technology integration, contributing to its earnings by increasing product adoption and expanding its customer base.

LeddarTech Holdings Financial Statement Overview

Summary

LeddarTech Holdings faces severe financial strain with declining revenues, negative profitability, high leverage, and deteriorating cash flows. Immediate strategic adjustments are required to stabilize operations and improve financial health.

Income Statement

Very Negative

LeddarTech Holdings shows significant revenue decline and negative profitability metrics. Gross Profit Margin is effectively zero, indicating challenges in covering costs. There is a substantial negative trend in Net Profit Margin and EBIT Margin, reflecting ongoing operational struggles.

Balance Sheet

Very Negative

The balance sheet highlights high leverage and negative equity, with a Debt-to-Equity Ratio that is undefined due to negative equity. The ROE is also negative, indicating losses against equity. Financial stability is a major concern with liabilities exceeding assets.

Cash Flow

Negative

Cash flow remains negative, with a steeper decline in Free Cash Flow and Operating Cash Flow relative to Net Income. This reflects inefficiencies in cash generation from operations. The Free Cash Flow Growth Rate is negative, indicating declining cash reserves.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Breakdown
Income Statement		Total Revenue
2.85M	477.81K	7.45M	8.77M	8.23M
	Gross Profit
710.34K	477.81K	-74.67K	3.46M	2.97M
	EBIT
-32.53M	-164.33M	-52.50M	-1.00M	-1.43M
	EBITDA
-42.49M	-157.43M	-44.55M	-71.68M	-50.22M
	Net Income Common Stockholders
-46.84M	-165.89M	-47.99M	3.76M	-4.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.01K	5.27M	5.06M	18.40K	627.63K
	Total Assets
23.38M	18.93M	72.17M	329.80M	325.65M
	Total Debt
648.62K	91.42M	51.51M	157.00K	113.24M
	Net Debt
624.62K	86.15M	46.45M	138.60K	112.61M
	Total Liabilities
2.31M	107.56M	74.26M	945.11K	11.93M
	Stockholders Equity
21.08M	-88.63M	7.11M	328.86M	313.72M
Cash Flow		Free Cash Flow
-21.06M	-54.37M	-39.85M	-13.79M	-18.59M
	Operating Cash Flow
-17.90M	-40.89M	-36.65M	-766.23K	-875.79K
	Investing Cash Flow
-6.67M	-11.53M	-11.17M	-12.00M	-325.00M
	Financing Cash Flow
16.99M	52.47M	21.25M	157.00K	318.86M

LeddarTech Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price0.58

Price Trends

50DMA

0.48

Positive

100DMA

0.73

Negative

200DMA

0.59

Negative

Market Momentum

MACD

0.04

Negative

RSI

56.87

Neutral

STOCH

72.96

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDTC, the sentiment is Neutral. The current price of 0.58 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.48, and below the 200-day MA of 0.59, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 72.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LDTC.

LeddarTech Holdings Risk Analysis

LeddarTech Holdings disclosed 65 risk factors in its most recent earnings report. LeddarTech Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

LeddarTech Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.74B	9.83	7.63%	17000.35%	12.34%	-5.32%
CREX	57 Neutral	$19.95M	27.05	-0.11%	―	1.68%	98.96%
SMSI	47 Neutral	$18.05M	―	-55.77%	―	-45.77%	67.69%
IPM	47 Neutral	$16.63M	―	-17.07%	―	-13.06%	-151.73%
LDTC	40 Underperform	$32.97M	―	187.17%	―	―	―

* Financial Sector Average

Performance Comparison

LDTC

LeddarTech Holdings

0.49

-1.79

-78.51%

SMSI

Smith Micro Software

0.88

-1.80

-67.16%

CREX

Creative Realities

2.01

-1.69

-45.68%

IPM

Intelligent Protection Management

2.01

-1.25

-38.34%

LeddarTech Holdings Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q2-2025)

% Change Since: -22.67%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

LeddarTech's earnings call highlighted several strategic advancements, including a major OEM win, a growing sales pipeline, and the launch of LeddarSim. However, financial challenges persist with increased R&D expenses and significant debt, requiring immediate action to secure refinancing. The positive developments balance the financial concerns leading to a cautiously optimistic outlook.

Q2-2025 Updates

Positive Updates

Significant Design Win with Commercial Trucking OEM

LeddarTech secured a pivotal design win with a major commercial trucking OEM, marking a transition from validation to commercialization for their platform.

Substantial Sales Pipeline

The sales pipeline has grown to over $2 billion in potential lifetime revenue, showcasing strong market demand for LeddarTech's platform.

LeddarSim Launch

Introduction of LeddarSim, a multimodal simulation solution for real-world neural reconstruction, which reduces costs and time for ADAS/AD system validation by nearly 90%.

Revenue Growth

Revenue increased by 96% from $122,000 in the previous year to $239,000.

Partnership with Texas Instruments

Partnership includes $10 million in prepaid royalties, and integration with TI's TDA processor platform to create an open ADAS and AD solution.

Negative Updates

Increased R&D Expenses

R&D expenses increased as LeddarTech is no longer capitalizing a substantial portion, contributing to a higher adjusted EBITDA loss of $12 million compared to $8.7 million in the previous year.

Debt and Financing Challenges

The company ended the quarter with $9.2 million in cash and $105 million in debt, and is required to produce a refinancing plan by May 16, 2025.

Continued Net Loss

Net loss from continuing operations was $16 million, slightly improved from a $17 million loss in the prior year, but still a significant financial challenge.

Company Guidance

During the LeddarTech Second Quarter 2025 Financial Results Conference Call, the company provided several key metrics and guidance for the future. For the fiscal second quarter ended March 31, 2025, revenue from continuing operations was reported at $239,000, marking a 96% increase from the previous year's $122,000. The company's EBITDA loss was reduced to $8.4 million compared to a $14 million loss in the prior year, due mainly to lower stock-based compensation and financing expenses. However, adjusted EBITDA showed a higher loss of $12 million, primarily due to increased R&D expenses. The net loss from continuing operations was $16 million, slightly improved from $17 million in the same quarter of 2024. LeddarTech concluded the quarter with $9.2 million in cash and $105 million in debt. They are focusing on securing necessary capital, executing design-in activities for a significant OEM design win, and advancing their commercial pipeline to achieve additional design wins. The company has also launched LeddarSim, a new multimodal simulation solution, and highlighted a sales pipeline representing over $2 billion in potential lifetime revenue.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.