VerticalScope Holdings (FORA) AI Stock Analysis

• Market Cap: C$83.16M
• Dividend Yield: N/A
• Average Volume (3M): 17.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 4.33%
• EPS Growth: -467.88%
• Country: CA
• Employees: 191
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.11
• Shares Outstanding: 18,529,820
• 10 Day Avg. Volume: 11,327
• 30 Day Avg. Volume: 17,389
• 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$5.90
• Price Target Upside: 59.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$3.50 ▼(-5.15% Downside)

VerticalScope Holdings' overall stock score is primarily influenced by its mixed financial performance and moderate technical indicators. The strong gross profit margin and positive cash flow growth are offset by declining revenue and negative net profitability. Technical analysis shows some positive momentum, but valuation challenges persist with a negative P/E ratio. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Gross Profit Margin

A high gross profit margin indicates effective cost management and pricing power, which can sustain profitability over the long term.

Cash Flow Growth

Growing free cash flow enhances liquidity and provides financial flexibility for investments and debt management, supporting long-term growth.

Digital Advertising Revenue

A diversified revenue model with digital advertising and subscriptions positions the company well in the growing digital content market.

Negative Factors

Negative Revenue Growth

Declining revenue growth can indicate challenges in market expansion or competitive pressures, potentially impacting long-term viability.

Negative Net Profit Margin

A negative net profit margin suggests ongoing profitability issues, which may hinder reinvestment and shareholder returns over time.

Negative Return on Equity

A negative ROE indicates inefficiency in generating returns from equity, potentially affecting investor confidence and capital raising.

VerticalScope Holdings Business Overview & Revenue Model

Company Description

VerticalScope Holdings Inc., a technology company, operates a cloud-based digital community platform in Canada. It provides digital advertising services, including direct advertising campaigns, custom content solutions, and programmatic advertising; and e-commerce solutions. The company also focus on hyper-specific subjects that engender strong affinity from online communities of enthusiasts, super fans, experts, pros, hobbyists, and armchair analysts. Its brands include communities for watch geeks, audio nerds, motorheads, fitness-obsessed, mountain bikers, DIYers, deal junkies, and enthusiasts. The company serves approximately 106 million monthly active users and 56 million registered community members in approximately one thousand and two hundred online communities. VerticalScope Holdings Inc. was founded in 1999 and is headquartered in Toronto, Canada.

How the Company Makes Money

VerticalScope generates revenue primarily through advertising, which includes display ads, sponsored content, and affiliate marketing partnerships. The company monetizes its extensive user base and high-traffic websites by offering targeted advertising solutions to brands looking to reach specific audiences. Additionally, VerticalScope may engage in strategic partnerships with businesses that align with its community interests, enhancing revenue streams through collaborative marketing efforts. The company also benefits from data analytics, allowing it to optimize ad placements and improve engagement, which in turn boosts revenue potential.

VerticalScope Holdings Financial Statement Overview

Summary

VerticalScope Holdings shows a mixed financial performance. The company has strong gross profit margins and positive cash flow generation, but faces challenges with declining revenue growth and negative net profitability. The balance sheet indicates moderate leverage, but the negative return on equity suggests issues in generating shareholder value.

Income Statement

VerticalScope Holdings shows a mixed performance in its income statement. The company has experienced a decline in revenue growth with a negative growth rate of -3.16% in the TTM period. Gross profit margin is relatively strong at 68.84%, indicating efficient cost management. However, the net profit margin is negative at -2.13%, reflecting ongoing profitability challenges. EBIT and EBITDA margins are modest at 5.30% and 31.45%, respectively, suggesting some operational efficiency but insufficient to drive net profitability.

Balance Sheet

The balance sheet of VerticalScope Holdings indicates moderate financial stability. The debt-to-equity ratio stands at 0.53, showing a manageable level of leverage. However, the return on equity is negative at -1.77%, pointing to challenges in generating returns for shareholders. The equity ratio is not directly provided, but the company maintains a reasonable balance between debt and equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 4.22% growth in free cash flow. The operating cash flow to net income ratio is strong at 2.99, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.65, suggesting that a significant portion of net income is converted into free cash flow, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.75M	69.05M	60.90M	80.49M	65.76M	56.92M
Gross Profit	51.41M	40.96M	34.22M	45.67M	38.95M	35.46M
EBITDA	17.72M	23.68M	18.55M	14.71M	440.34K	8.54M
Net Income	-3.66M	-15.86K	-4.95M	-24.77M	-12.26M	-1.51M
Balance Sheet
Total Assets	134.14M	132.41M	152.95M	177.56M	217.03M	87.68M
Cash, Cash Equivalents and Short-Term Investments	8.14M	5.19M	6.02M	8.77M	20.49M	4.60M
Total Debt	46.27M	40.82M	61.52M	61.64M	84.06M	104.70M
Total Liabilities	56.49M	49.72M	72.27M	96.06M	120.79M	110.23M
Stockholders Equity	77.64M	82.69M	80.69M	81.50M	96.24M	-22.54M
Cash Flow
Free Cash Flow	14.99M	22.61M	13.25M	10.92M	-4.09M	9.39M
Operating Cash Flow	22.28M	24.77M	15.51M	20.64M	19.60M	14.10M
Investing Cash Flow	-11.33M	-2.13M	-17.07M	-9.66M	-87.76M	-3.45M
Financing Cash Flow	-9.05M	-23.38M	-1.13M	-22.47M	84.40M	-11.19M

VerticalScope Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FORA, the sentiment is Neutral. The current price of 3.69 is above the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.38, and below the 200-day MA of 6.01, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FORA.

VerticalScope Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZOMD	79 Outperform	$261.59M	11.24	85.19%	―	91.28%	623.60%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FORA	52 Neutral	C$83.16M	-16.01	-4.84%	―	4.33%	-467.88%
OAM	47 Neutral	C$34.14M	-3.66	-18.02%	―	46.80%	-82.67%
EGLX	39 Underperform	$11.94M	―	-186.28%	―	-56.63%	-25.99%

VerticalScope Holdings Corporate Events

VerticalScope Partners with TollBit to Monetize Community Content through AI Licensing

VerticalScope Holdings has partnered with TollBit to monetize its extensive collection of community-generated content by licensing it to AI companies. This collaboration aims to establish a scalable framework for content licensing, ensuring fair compensation and creating new revenue streams while protecting the integrity of its forums. The partnership is expected to enhance VerticalScope’s positioning in the AI-driven content discovery landscape, providing AI systems with access to high-quality, domain-specific knowledge that is crucial for training and development.

The most recent analyst rating on (TSE:FORA) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.

VerticalScope Reports Q2 2025 Financial Results, Focuses on AI and Long-term Growth

VerticalScope Holdings Inc. reported its second quarter 2025 financial results, highlighting a revenue of $14.5 million and a net loss of $1.8 million, attributed to a decline in monthly active users and increased investments in AI and traffic diversification. Despite these challenges, the company is focusing on long-term growth by enhancing user experience and monetizing its audience through AI-powered innovations. The company maintains a strong balance sheet with $64.1 million in available liquidity, supporting its strategic investments aimed at driving long-term value creation for shareholders.

The most recent analyst rating on (TSE:FORA) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.

VerticalScope to Release Q2 2025 Financial Results

VerticalScope Holdings Inc. announced that it will release its second quarter 2025 financial results on August 12, 2025, after market close. The company will host a conference call and webcast to discuss these results on August 13, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:FORA) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on VerticalScope Holdings stock, see the TSE:FORA Stock Forecast page.