EQ Inc (EQ) AI Stock Analysis

• Market Cap: C$68.20M
• Dividend Yield: N/A
• Average Volume (3M): 15.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 3.62%
• EPS Growth: 89.91%
• Country: CA
• Employees: 35
• Sector: General
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 69,593,956
• 10 Day Avg. Volume: 12,229
• 30 Day Avg. Volume: 15,218
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.00
• Price Target Upside: 2.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: C$1.00 ▲(2.04% Upside)

EQ Inc's overall stock score is primarily driven by its weak financial performance, characterized by negative margins and a strained balance sheet. Technical analysis provides a slightly better outlook, but the lack of momentum and potential overbought conditions limit upside potential. Valuation metrics are poor, with a negative P/E ratio and no dividend yield, further weighing down the score.

EQ Inc Business Overview & Revenue Model

Company Description

EQ Inc. provides real-time technology and advance analytics in Canada, the United States, and internationally. Its products include Atom, a proprietary programmatic media buying platform, which enables companies to purchase targeted media for its clients to influence consumer behavior; and LOCUS, a proprietary automated data processing technology that enables companies to manage data at scale and enrich that data with proprietary first party and third-party data sets. The company also provides integrated digital marketing solutions. It serves advertising and marketing, automotive, insurance, media and telco, retail, real estate, and other industries. The company was formerly known as Cyberplex Inc. and changed its name to EQ Inc. in June 2013. EQ Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.

How the Company Makes Money

EQ Inc generates revenue through multiple streams primarily based on subscription fees for its software services, consulting fees for custom implementations, and transaction-based fees for specific services. The company’s subscription model allows clients to access its platforms for a recurring fee, which provides a steady income stream. Additionally, EQ partners with various financial institutions and technology providers, enhancing its service offerings and expanding its market reach. These partnerships often lead to joint ventures or co-branded solutions, contributing to EQ's overall revenue by increasing its visibility and client base.

EQ Inc Financial Statement Overview

Summary

EQ Inc faces severe financial challenges across all verticals. Declining revenues and negative profitability mark the income statement, while the balance sheet reflects high leverage and negative equity. Although cash flow shows slight operational improvement, free cash flow remains negative. The company must address these financial deficiencies to stabilize and achieve sustainable growth.

Income Statement

EQ Inc has experienced declining revenue from $12.09M in 2021 to $9.73M in TTM (Trailing-Twelve-Months), indicating a negative growth trajectory. The gross profit margin for TTM stands at 41.13%, which is moderately healthy, but the company has consistently reported negative EBIT and net income, with a TTM net profit margin of -8.79%. These factors highlight significant profitability challenges.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative equity of -$1.86M in TTM, reflecting high leverage and potential financial instability. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is negative, indicating complete reliance on liabilities.

Cash Flow

EQ Inc's cash flow position shows some improvement, with TTM operating cash flow at $615K, but free cash flow remains negative at -$61K. The operating cash flow to net income ratio is favorable, but the negative free cash flow to net income ratio underscores ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.21M	9.85M	9.96M	10.98M	12.09M	10.42M
Gross Profit	4.26M	4.06M	4.51M	4.05M	4.98M	4.72M
EBITDA	289.00K	41.00K	-4.92M	-5.65M	-5.22M	-2.55M
Net Income	-531.00K	-897.00K	-5.90M	-6.43M	-6.11M	-3.96M
Balance Sheet
Total Assets	4.42M	6.12M	5.61M	10.15M	19.05M	9.98M
Cash, Cash Equivalents and Short-Term Investments	622.00K	634.00K	381.00K	1.25M	8.76M	3.21M
Total Debt	1.48M	2.08M	1.57M	79.00K	93.00K	2.22M
Total Liabilities	6.43M	7.14M	6.19M	4.91M	7.61M	5.43M
Stockholders Equity	-2.01M	-1.02M	-585.00K	5.24M	11.44M	4.55M
Cash Flow
Free Cash Flow	227.00K	-213.00K	-2.29M	-6.24M	-3.86M	-3.39M
Operating Cash Flow	902.00K	463.00K	-1.68M	-5.62M	-3.09M	-2.75M
Investing Cash Flow	-665.00K	-668.00K	-637.00K	-1.88M	-1.36M	-1.58M
Financing Cash Flow	180.00K	452.00K	1.45M	-45.00K	10.00M	3.83M

EQ Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQ, the sentiment is Positive. The current price of 0.98 is above the 20-day moving average (MA) of 0.97, above the 50-day MA of 0.97, and below the 200-day MA of 1.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EQ.

EQ Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRM	72 Outperform	31.95M	9.99	28.65%	―	24.01%	-11.48%
KDOZ	63 Neutral	28.23M	53.75	0.00%	―	17.05%	0.00%
SPN	47 Neutral	15.74M	-9.17	-15.95%	―	-2.43%	40.00%
EQ	43 Neutral	C$68.20M	―	-451.55%	―	3.62%	89.91%
ILLM	42 Neutral	77.42M	-16.78	-6.42%	―	22.89%	-15.21%
ADX	39 Underperform	1.33M	―	0.00%	―	29.14%	23.53%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

EQ Inc Corporate Events

EQ Inc. Achieves Record Revenue Growth and Profitability in Q2 2025

EQ Inc. reported strong financial results for the second quarter of 2025, with a revenue increase of over 112% compared to the previous quarter and a 19% increase year over year, reaching $3.1 million. The company achieved a gross margin of 44% and improved its adjusted EBITDA by 109% quarter over quarter. EQ’s success is attributed to its focus on high-margin products and the expansion of its card-linked offers platform, Integrated Rewards (Paymi). The company’s strategic positioning in the AI-driven business landscape is expected to drive further growth, supported by its compliant, user opt-in, real-time data capabilities.

The most recent analyst rating on (TSE:EQ) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on EQ Inc stock, see the TSE:EQ Stock Forecast page.