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Emerge Commerce Ltd (TSE:ECOM)
:ECOM
Canadian Market
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Emerge Commerce Ltd (ECOM) AI Stock Analysis

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TSE:ECOM

Emerge Commerce Ltd

(ECOM)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Emerge Commerce Ltd's overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and balance sheet stability. Technical analysis provides some support with short-term bullish indicators, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the stock's attractiveness.

Emerge Commerce Ltd (ECOM) vs. iShares MSCI Canada ETF (EWC)

Emerge Commerce Ltd Business Overview & Revenue Model

Company DescriptionEmerge Commerce Ltd. owns and operates online e-commerce marketplaces in Canada and the United States. Its principal operating e-commerce brands include truLOCAL.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com, BeRightBack.ca, BattlBox.com, CarnivoreClub.co, and WholesalePet.com. The company was founded in 2016 and is headquartered in Toronto, Canada.
How the Company Makes MoneyEmerge Commerce Ltd makes money through its portfolio of owned and operated niche e-commerce brands. The company's primary revenue streams include direct-to-consumer sales from its various online platforms, subscription services, and membership fees. Additionally, ECOM generates income via strategic partnerships and collaborations with other businesses, enhancing product offerings and expanding market reach. By focusing on niche markets, the company capitalizes on specialized consumer interests, allowing for higher margins and customer loyalty. The company's growth is further supported by acquiring and integrating complementary e-commerce brands, boosting its product range and customer base.

Emerge Commerce Ltd Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant positive trends in GMS growth, revenue increase, and improved profitability metrics, complemented by a strong debt reduction strategy. However, the continued negative adjusted EBITDA and net loss from operations indicate areas needing further improvement. Overall, the positive aspects and strategic shifts outweigh the negatives.
Q3-2024 Updates
Positive Updates
Gross Merchandise Sales (GMS) Growth
GMS accelerated to 10% organic growth year-over-year, reaching $7.4 million in Q3 2024 compared to $6.8 million in Q3 2023.
Revenue Increase
Revenue increased to $4.6 million in Q3 2024 from $4.4 million in Q3 2023, marking a 5% increase. Excluding Carnivore Club, revenue grew approximately 8%.
Improvement in Gross Margin
Gross margin improved to 39.3% in Q3 2024 from 38.9% in Q3 2023, driven by initiatives like price increases and renegotiated vendor costs.
Reduction in Adjusted EBITDA Losses
Adjusted EBITDA losses reduced to $280,000 in Q3 2024 from $560,000 in Q3 2023, attributed to revenue growth, improved gross margin, and reduced expenses.
Debt Reduction and Improved Financial Standing
Senior debt facility reduced to $5.85 million from $15.85 million, with a net debt position approaching $5.5 million, down from $27.8 million.
Negative Updates
Adjusted EBITDA Still Negative
Despite improvements, adjusted EBITDA remains negative at $280,000 for Q3 2024.
Net Loss from Continuing Operations
Net loss from continuing operations was $0.7 million in Q3 2024, slightly decreased from $0.8 million in the prior year.
Company Guidance
During the Q3 2024 earnings call for EMERGE Commerce, CEO Ghassan Halazon and CFO Kyle Burt-Gerrans provided a comprehensive overview of the company's financial performance and strategic direction. Key highlights included a 10% increase in gross merchandise sales (GMS) year-over-year, reaching $7.4 million, and a 5% rise in revenue to $4.6 million. Excluding the Carnivore Club, revenue grew by 8%. The company reported a gross profit increase of over 6% to $1.8 million, with gross margins improving to 39.3%. Adjusted EBITDA losses were reduced by approximately half compared to the previous year, coming in at negative $280,000. Additionally, EMERGE achieved significant debt reduction, bringing net debt down to $5.5 million after a $10 million debt paydown. The company also implemented cost reductions expected to yield $500,000 in annual savings, which will be fully realized in 2025. These efforts underscore EMERGE's focus on organic growth, operational efficiency, and enhanced profitability as they transition into the new year.

Emerge Commerce Ltd Financial Statement Overview

Summary
Emerge Commerce Ltd is facing significant financial challenges. The company has a declining revenue trend, negative profitability, and high leverage. The balance sheet is weak with negative equity, raising solvency concerns. Negative cash flows highlight operational cash strains and a heavy reliance on external financing.
Income Statement
45
Neutral
Emerge Commerce Ltd has shown a declining revenue trend over recent years, with a notable drop from $58.2M in 2022 to $20.4M in TTM (Trailing-Twelve-Months). Gross profit margin for TTM is approximately 39.1%, but net profit margin remains negative at -3.4%, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.
Balance Sheet
30
Negative
The company exhibits a weak balance sheet with a negative stockholders' equity of -$8.4M as of TTM, indicating liabilities are exceeding assets. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of $7M suggests significant leverage. The equity ratio is negative, reflecting insolvency concerns.
Cash Flow
50
Neutral
Operating cash flow is negative at -$425K in TTM, showing cash outflows from operations. Free cash flow is also negative. The free cash flow to net income ratio is positive due to negative net income, but this is not a positive indicator of cash flow health. Cash flows are unstable, with significant reliance on financing activities historically.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.73M20.42M23.83M58.17M34.83M9.20M
Gross Profit8.96M8.25M11.88M23.79M15.11M7.17M
EBITDA1.72M908.43K-15.66M-4.41M-1.16M-1.03M
Net Income160.85K-1.03M-21.26M-17.38M-6.56M-4.43M
Balance Sheet
Total Assets10.63M7.80M22.99M59.75M80.28M43.46M
Cash, Cash Equivalents and Short-Term Investments3.48M3.16M2.54M5.88M7.77M12.39M
Total Debt7.41M6.96M18.25M25.98M24.50M7.68M
Total Liabilities18.53M16.63M32.86M49.63M53.27M25.38M
Stockholders Equity-7.90M-8.83M-9.87M10.11M27.00M18.07M
Cash Flow
Free Cash Flow1.95M127.02K2.02M1.02M-3.47M-254.43K
Operating Cash Flow1.95M129.33K2.03M1.06M-3.43M-186.11K
Investing Cash Flow241.14K11.73M7.10M-44.60K-27.34M-5.61M
Financing Cash Flow-1.22M-11.42M-9.55M-3.09M26.18M9.54M

Emerge Commerce Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.10
Price Trends
50DMA
0.09
Positive
100DMA
0.07
Positive
200DMA
0.06
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.34
Neutral
STOCH
111.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECOM, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 111.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ECOM.

Emerge Commerce Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
514.18M134.006.38%35.02%1471.05%
52
Neutral
38.98M-6.7386.12%-57.13%85.06%
49
Neutral
C$13.45M204.61%8.53%98.44%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ECOM
Emerge Commerce Ltd
0.09
0.05
125.00%
TSE:FTI
FTI Foodtech International
0.18
0.16
800.00%
NEXCF
NexTech AR Solutions
0.13
0.07
116.67%
TSE:KITS
Kits Eyecare
16.00
6.67
71.49%

Emerge Commerce Ltd Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A Transactions
EMERGE Commerce Ltd. Reports Robust Q2 2025 Financial Results
Positive
Aug 27, 2025

EMERGE Commerce Ltd. reported a strong financial performance for Q2 2025, with a 70% increase in revenue year-over-year, reaching $8.5 million. The company’s adjusted EBITDA improved significantly, and its cash position grew despite the acquisition of Tee 2 Green (T2G). The acquisition has already shown positive results, contributing to organic revenue growth and profitability. EMERGE’s strategic focus on its grocery and golf verticals, along with effective digital advertising and cross-brand synergies, has bolstered its market position. The company anticipates continued growth and profitability in the upcoming quarter.

Financial Disclosures
EMERGE Commerce Ltd. to Announce Q2 2025 Financial Results
Neutral
Aug 13, 2025

EMERGE Commerce Ltd. announced the release of its second quarter 2025 financial results scheduled for August 27, 2025, before market open. The announcement includes a conference call hosted by the CEO and CFO to discuss the results, which could impact the company’s operations and industry positioning.

Business Operations and StrategyPrivate Placements and Financing
EMERGE Commerce Ltd. Strengthens Financial Position with Warrant Expiry and CEO Option Exercise
Positive
Jul 22, 2025

EMERGE Commerce Ltd. announced the expiry of 12.3 million warrants, which were not exercised, thereby minimizing potential dilution. The company raised $270,000 from the exercise of 2.7 million warrants at $0.10, reflecting investor confidence and strengthening its cash position to $3.5 million as of June 30, 2025. CEO Ghassan Halazon also exercised 91,000 options at $0.11, aligning with shareholders and supporting the company’s strategic growth plans.

Business Operations and StrategyFinancial Disclosures
EMERGE Commerce Ltd Reports Strong Q2 Growth and Financial Health
Positive
Jul 16, 2025

EMERGE Commerce Ltd reported significant growth in its preliminary unaudited Q2 2025 results, with revenue increasing by 79% year-over-year to $8.3 million. The company also improved its adjusted EBITDA, expecting a positive range between $900,000 and $1 million, compared to a loss in the previous year. The cash position grew to $3.5 million, indicating strong financial health. These results reflect EMERGE’s successful operational progress and strategic acquisitions, enhancing its market positioning in the e-commerce sector. The company plans to release its full second-quarter results in late August 2025.

Business Operations and Strategy
EMERGE Commerce Ltd. to Host Investor Webcast on Strategic Developments
Neutral
Jul 10, 2025

EMERGE Commerce Ltd. announced a virtual corporate presentation scheduled for July 16, 2025, where the company’s Founder and CEO, Ghassan Halazon, along with EMERGE Golf COO, Maurice Finn, will discuss the performance of their latest acquisition, operational progress, and future plans. This webcast is an opportunity for investors to gain insights into the company’s strategic direction and engage with management, potentially impacting stakeholder confidence and market positioning.

Financial DisclosuresM&A Transactions
EMERGE Commerce Reports Strong Post-Acquisition Growth for Tee 2 Green
Positive
Jul 9, 2025

EMERGE Commerce Ltd announced strong financial results for Tee 2 Green (T2G) in its first quarter post-acquisition, with a 34% increase in revenue and a 41% rise in net income year-over-year. This performance, driven by targeted digital advertising and cross-brand synergies, exceeded expectations and allowed EMERGE to recoup its upfront cash payment for the acquisition in less than 90 days, highlighting the potential for continued growth and optimization within its portfolio.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
EMERGE Commerce Reports Strong Q2 Growth for Tee 2 Green Post-Acquisition
Positive
Jul 9, 2025

EMERGE Commerce Ltd. announced a significant revenue growth of 34% for Tee 2 Green (T2G) in its first quarter post-acquisition, surpassing management’s expectations. The acquisition, completed just before T2G’s seasonal peak, allowed EMERGE to leverage digital advertising and cross-brand synergies, resulting in cash flow that exceeded the upfront purchase price. This strong performance underscores EMERGE’s strategic positioning in the golf apparel and equipment market and highlights potential for continued growth and optimization.

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
EMERGE Commerce Ltd. Announces AGM Results and New Compensation Strategy
Positive
Jun 30, 2025

EMERGE Commerce Ltd. announced the results of its annual general meeting, where all proposed matters were approved, including the election of directors and the appointment of auditors. The company also issued restricted share units to directors, officers, and employees as part of its compensation strategy, aligning with long-term shareholder value creation. This move reflects the board’s confidence in the company’s future prospects.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 11, 2025