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POSaBIT Systems
(PBIT)
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Rating:56Neutral
Price Target:
C$0.07
▲(20.00% Upside)
Action:Reiterated
Date:08/22/26
The score is driven primarily by a mixed financial profile: strong recent cash flow improvement is offset by negative equity, meaningful debt, and still-negative profitability with shrinking TTM revenue. Technicals are moderately supportive with price above key moving averages and RSI in a healthy range, but MACD remains slightly negative. Valuation is constrained by the negative P/E (loss-making) and no stated dividend yield. The latest earnings call was a net positive, citing strong POS growth, major margin expansion, improved adjusted EBITDA, and rising cash balances, while acknowledging regulatory and balance-sheet risks.
Positive Factors
POS Revenue Growth
Rapid POS growth indicates increasing merchant adoption of the core software platform. A larger installed base can support recurring SaaS revenue, deeper customer relationships, and scalable payment and workflow opportunities.
Negative Factors
Weak Balance Sheet
Negative equity provides little loss-absorption capacity, while debt remains substantial relative to the asset base. This limits financial flexibility and increases refinancing or dilution risk if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
POS Revenue Growth
Rapid POS growth indicates increasing merchant adoption of the core software platform. A larger installed base can support recurring SaaS revenue, deeper customer relationships, and scalable payment and workflow opportunities.
Read all positive factors
POSaBIT Systems (PBIT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.54M
Dividend YieldN/A
Average Volume (3M)39.87K
Price to Earnings (P/E)―
Beta (1Y)-0.30
Revenue Growth-30.67%
EPS Growth46.76%
CountryCA
Employees54
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding162,168,500
10 Day Avg. Volume72,168
30 Day Avg. Volume39,872
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)-5.47
Price to Sales (P/S)0.57
P/FCF Ratio7.36
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
POSaBIT Systems Business Overview & Revenue Model
Company Description
POSaBIT Systems Corporation operates as a financial technology (FinTech) firm, specializing in blockchain-powered payment processing and retail point-of-sale solutions. These services are primarily designed for businesses that transact solely in c...
How the Company Makes Money
POSaBIT primarily generates revenue by charging cannabis merchants for using its payment-processing and point-of-sale platform. Key revenue streams include: (1) payment-related fees tied to transactions processed through its network (typically ear...
POSaBIT Systems Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q2-2026)
| Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and cash-flow improvement story: strong POS revenue growth (+64% YoY), higher gross profit (+10.5%), materially expanded gross margins (~+21 percentage points), a sharp increase in adjusted EBITDA (+177%), and substantially higher cash on hand (+34% QoQ, ~90% YTD) with positive operating cash flow. Most negative items are accounting, timing or one-off comparatives (a 15% decline in reported revenue due to a processing model shift, prior-year FX and litigation gains that do not recur) and external risks (regulatory/payment limitations, geographic concentration, and low share liquidity). On balance the operational improvements and cash generation outweigh the lowlights, though regulatory and liquidity risks remain important caveats.Positive Updates
Strong POS Revenue Growth
Point of Sale (POS) revenue increased 64% year-over-year from ~$598,000 in Q2 2025 to approximately $1.0M in Q2 2026, reflecting meaningful expansion of the core POS business and increased merchant adoption.
Negative Updates
Decline in Reported Total Revenue
Total reported revenue declined 15% YoY to ~$2.3M from $2.7M in Q2 2025, primarily due to last year's shift to an agent-only payment model that moved a large portion of processing revenue off the company's books.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong POS Revenue Growth
Point of Sale (POS) revenue increased 64% year-over-year from ~$598,000 in Q2 2025 to approximately $1.0M in Q2 2026, reflecting meaningful expansion of the core POS business and increased merchant adoption.
Read all positive updates
Company Guidance
Management’s forward guidance reiterated a focus on expanding the POS footprint, increasing recurring SaaS revenue per merchant, growing margins and building a consistently profitable, cash-generating business, with an MCP server to be released within the next month and additional AI-enabled product features rolling out over the next several months; they also said legislative rescheduling/legalization would materially expand card processing and revenues and could accelerate a U.S. exchange listing if valuation rises. Key metrics cited alongside that guidance: Q2 POS revenue rose 64% YoY to roughly $1.0M; total IFRS revenue was ~$2.3M (‑15% YoY due to an agent-only payment shift) while gross profit grew 10.5% to $2.0M and gross margin expanded to ~91% (vs ~70% a year ago); adjusted revenue was $3.4M with adjusted gross profit $3.2M (93.8% margin); adjusted EBITDA was ~ $1.0M (up 177% from $390K); cash on hand ended Q2 at ~$3.34M (up ~$850K in the quarter, +34% QoQ and ~+90% YTD), operating cash flow was ~$850K in the quarter and $1.58M YTD, current liabilities ~ $1.7M and the credit facility ~ $4.6M.POSaBIT Systems Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.83M | 10.18M | 15.27M | 43.58M | 46.80M | 21.30M |
| Gross Profit | 7.89M | 7.35M | 7.00M | 9.22M | 19.59M | 5.76M |
| EBITDA | -834.35K | ― | -4.69M | -12.15M | 5.95M | -10.15M |
| Net Income | -2.11M | -2.03M | -5.72M | -13.76M | 5.43M | -10.57M |
Balance Sheet | ||||||
| Total Assets | 4.80M | 5.18M | 8.60M | 13.16M | 18.00M | 7.90M |
| Cash, Cash Equivalents and Short-Term Investments | 3.33M | 1.76M | 999.08K | 1.52M | 3.08M | 4.42M |
| Total Debt | 4.63M | 4.59M | 4.53M | 4.58M | 313.41K | 134.51K |
| Total Liabilities | 6.32M | 6.24M | 8.14M | 7.85M | 9.77M | 16.61M |
| Stockholders Equity | -1.51M | -1.06M | 458.94K | 5.31M | 8.22M | -8.71M |
Cash Flow | ||||||
| Free Cash Flow | 2.61M | 790.85K | -515.26K | -8.34M | -5.25M | -2.44M |
| Operating Cash Flow | 2.61M | 790.85K | -515.26K | -7.43M | -4.92M | -2.19M |
| Investing Cash Flow | 77.13K | 3.90K | 120.00K | -1.95M | -330.67K | -241.01K |
| Financing Cash Flow | -9.37K | -19.37K | -127.82K | 7.83M | 3.90M | 5.88M |
POSaBIT Systems Technical Analysis
Positive
0.06
Price Trends
0.06
Positive
0.06
Positive
0.06
Positive
Market Momentum
<0.01
Negative
57.71
Neutral
30.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBIT, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PBIT.
POSaBIT Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$28.15M | 17.94 | 8.98% | ― | -22.72% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | C$10.54M | -3.82 | 117.55% | ― | -30.67% | 46.76% | |
48 Neutral | C$104.58M | -0.57 | -50.00% | ― | -3.81% | -275.71% | |
47 Neutral | C$5.17M | -5.71 | 399.49% | ― | 5.11% | 11.36% | |
37 Underperform | C$3.21M | -17.50 | 8.99% | ― | 19.01% | 70.15% |
* Technology Sector Average
TSE:PBIT
POSaBIT Systems
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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.