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Adcore
(TSX:ADCO)
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Rating:50Neutral
Price Target:
C$0.15
▲(11.54% Upside)
Action:Reiterated
Date:10/22/26
The score is primarily constrained by weak financial performance—continued losses and a TTM shift to negative operating/free cash flow—despite strong recent revenue acceleration and a low-leverage balance sheet. Technicals are moderately supportive with price above key short-term averages, while valuation remains pressured due to unprofitability. The latest earnings call adds a mixed signal: clear gross margin and product/AI progress, but materially lower cash and wider losses make near-term execution critical.
Positive Factors
Revenue Growth
Strong recent revenue acceleration indicates improving demand and expanding commercial activity across the business. If sustained, this growth can increase operating leverage, support continued product investment, and strengthen Adcore’s position in digital marketing and e-commerce technology.
Negative Factors
Persistent Losses
Adcore’s strong revenue growth has not yet translated into durable earnings, with operating and net losses continuing and widening versus 2025. Persistent unprofitability limits internally generated funding, weakens returns on equity, and leaves execution dependent on restoring operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong recent revenue acceleration indicates improving demand and expanding commercial activity across the business. If sustained, this growth can increase operating leverage, support continued product investment, and strengthen Adcore’s position in digital marketing and e-commerce technology.
Read all positive factors
Adcore (ADCO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.54M
Dividend YieldN/A
Average Volume (3M)32.56K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth8.60%
EPS Growth-800.00%
CountryCA
Employees58
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding61,003,490
10 Day Avg. Volume79,778
30 Day Avg. Volume32,558
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.83
Price to Sales (P/S)0.26
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Adcore Business Overview & Revenue Model
Company Description
Adcore Inc., an Israeli firm established in Tel Aviv in 2005, specializes in delivering a cutting-edge platform for the management and automation of e-commerce advertising. Its operations span across a broad international landscape, including the ...
How the Company Makes Money
Adcore primarily makes money by providing (1) managed digital marketing services and (2) technology/software offerings that support advertising and e-commerce operations.
1) Managed services / agency-style revenue: Adcore earns fees for managing ...
Adcore Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Neutral
The call presented meaningful operational and product progress — double-digit top-line growth, stronger gross profit and margin expansion, and faster-than-expected AI product execution (5 agents shipped, AI Studio monetizing). However, these positives are balanced by financial pressures: cash and working capital declined materially, adjusted EBITDA compressed, operating and net losses widened, and SG&A rose significantly (driven by payroll and FX). Management has a clear efficiency plan (15–20% OpEx reductions) and expects seasonal cash recovery into H2/Q4, but near-term profitability and cash runway remain areas of focus.Positive Updates
Top-line Revenue Growth (Q2 2026)
Q2 2026 revenue of CA$7.2M vs CA$6.5M in Q2 2025, a 10% year-over-year increase; H1 2026 revenue CA$15.7M, up ~16% year-over-year.
Negative Updates
Declining Cash and Working Capital
Cash and cash equivalents decreased to CA$4.0M as of June 30, 2026 from CA$10.3M on December 31, 2025; total working capital fell to CA$3.1M from CA$5.1M, reflecting H1 seasonal outflows and prior payments.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Revenue Growth (Q2 2026)
Q2 2026 revenue of CA$7.2M vs CA$6.5M in Q2 2025, a 10% year-over-year increase; H1 2026 revenue CA$15.7M, up ~16% year-over-year.
Read all positive updates
Company Guidance
Management's guidance emphasized sustaining margin expansion and profitability while funding AI investment: Q2 revenue was $7.2M (+10% YoY) with gross profit $3.7M (+19%) and a 51% gross margin (vs 47% a year ago); H1 revenue was $15.7M (+16%) with H1 gross profit $6.8M (+10%); Q2 adjusted EBITDA was $41k (vs $155k prior), operating loss $600k and net loss $800k (vs $400k prior); cash was $4.0M at 6/30/26 (down from $10.3M at 12/31/25) with working capital $3.1M (vs $5.1M); management expects cash and working capital to recover in H2 (peaking seasonally in Q4), plans to cut OpEx ~15–20% (primarily payroll/SG&A) with most actions in Q3 to enter Q4 leaner, intends to keep adjusted EBITDA positive while scaling AI (delivered 5 agents vs 3 planned and AI Studio is already producing early paying customers), and reiterated a long‑term target price of CAD 1.30/share versus the current CAD 0.15 (citing an ~900% EV-to-gross‑profit gap).Adcore Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
68
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.53M | 24.25M | 23.70M | 23.13M | 19.69M | 27.97M |
| Gross Profit | 9.78M | 8.31M | 9.88M | 9.44M | 8.49M | 8.45M |
| EBITDA | 117.22K | 430.85K | 654.00K | 360.00K | 394.00K | 846.00K |
| Net Income | -1.64M | -984.95K | -541.00K | -944.00K | -2.23M | -277.00K |
Balance Sheet | ||||||
| Total Assets | 11.39M | 15.71M | 16.27M | 14.43M | 14.54M | 17.28M |
| Cash, Cash Equivalents and Short-Term Investments | 2.83M | 7.48M | 7.50M | 6.11M | 6.53M | 11.06M |
| Total Debt | 433.29K | 497.09K | 604.00K | 0.00 | 188.00K | 434.00K |
| Total Liabilities | 5.04M | 8.23M | 7.91M | 5.55M | 4.81M | 5.09M |
| Stockholders Equity | 6.35M | 7.48M | 8.36M | 8.87M | 9.73M | 12.20M |
Cash Flow | ||||||
| Free Cash Flow | -2.05M | 1.59M | 1.45M | -146.00K | -3.78M | -2.41M |
| Operating Cash Flow | -1.68M | 1.62M | 2.43M | 849.00K | -2.55M | -1.44M |
| Investing Cash Flow | -1.82M | -1.50M | -983.00K | -995.00K | -1.21M | -931.00K |
| Financing Cash Flow | -135.56K | -104.46K | -61.00K | -282.00K | -853.00K | 4.67M |
Adcore Technical Analysis
Positive
0.13
Price Trends
0.12
Positive
0.14
Negative
0.16
Negative
Market Momentum
<0.01
Negative
60.30
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADCO, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.30 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:ADCO.
Adcore Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | C$8.54M | -3.72 | -23.09% | ― | 8.60% | -800.00% | |
47 Neutral | C$2.17M | -3.66 | 39.85% | ― | ― | ― | |
42 Neutral | C$13.02M | -3.14 | 74.69% | ― | 18.40% | 36.36% | |
41 Neutral | C$10.20M | -1.12 | 46.34% | ― | -86.57% | 45.63% | |
41 Neutral | C$5.50M | -0.91 | -71.93% | ― | -33.40% | -270.13% |
* Technology Sector Average
TSE:ADCO
Adcore
0.14
-0.10
-42.86%
TSE:MBO
Mobio Technologies
0.10
0.02
18.75%
TSE:NTAR
NexTech AR Solutions
0.06
-0.13
-69.44%
TSE:VSBY
Vsblty Groupe Technologies
0.09
<0.01
5.88%
TSE:WISH
Wishpond Technologies
0.10
-0.04
-31.03%
Adcore Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Adcore Restructures to Cut Costs and Target Operating Profit in Late 2026
Positive
Oct 21, 2026
Adcore has launched a company-wide restructuring to transform itself into a leaner, cash-generative operation, cutting its workforce by about 25%, sharply reducing senior management and director compensation, and renegotiating supplier contracts t...
Business Operations and Strategy
Adcore Named Finalist in 2026 Microsoft Advertising Search Performance Awards
Positive
Sep 16, 2026
Adcore has been named a finalist for the Search Performance Partner of the Year award for EMEA and LATAM in the 2026 Microsoft Advertising Partner Awards, recognizing its AI-driven search performance on the Microsoft Advertising platform. The nomi...
Financial Disclosures
Adcore schedules Q2 2026 results and investor call for August 13
Neutral
Aug 6, 2026
Adcore Inc., a Toronto-listed AI-driven marketing technology provider focused on automating e-commerce advertising and optimizing advertisers’ return on investment, operates from its Tel Aviv headquarters and multiple international offices. ...
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.