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Renoworks Software (RW) AI Stock Analysis

TSE:RW

Renoworks Software

(TSXV:RW)

Select Model
Rating:43.1Neutral
Price Target:CAD 0.22â–¼(-3.56% Downside)
Action:reiterated
Date:10/31/26

The score is primarily constrained by fragile financial performance, including inconsistent cash flow, recurring losses, and minimal shareholder equity. Mixed technical signals and an unattractive valuation further limit the rating.

Positive Factors
Strong gross marginsThe expanding gross margin indicates that Renoworks retains substantial economics after delivering its software and services. This provides a durable base for reinvestment, customer support, and product development, although operating profitability still depends on controlling costs.
Negative Factors
Recent revenue contractionThe latest trailing-twelve-month revenue decline signals weaker current demand or customer activity than in the preceding period. If sustained, contraction would reduce operating leverage, limit investment capacity, and make it harder for the company to convert strong gross margins into earnings.

Renoworks Software (RW) vs. iShares MSCI Canada ETF (EWC)

-80%-60%-40%-20%0%20%40%TSE:RW-63.11%EWC+21.27%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
CAD 9.21M
Dividend Yield
―
Average Volume (3M)
46.67K
Price to Earnings (P/E)
-29.2
Beta (1Y)
1.68
Revenue Growth
-3.65%
EPS Growth
-192.77%
Country
Canada
Employees
60
Sector
Technology
Sector Strength
61
Industry
Software - Application

Renoworks Software Business Overview & Revenue Model

Company Description

Headquartered in Calgary, Canada, RenoWorks Software Inc. is a global provider of cutting-edge digital visualization software for the home renovation and new construction sectors. The company's innovative suite of tools empowers professionals and con...

How the Company Makes Money

Renoworks Software makes money primarily by selling access to its visualization and sales-enablement software and associated services to businesses in the remodeling/building-products ecosystem. Key revenue streams include: (1) Software licensing and...

Renoworks Software Financial Statement Overview

Summary

Revenue has grown over time and the company has no financial debt, but inconsistent profitability, a very thin equity base, and generally weak cash generation create substantial financial risk.

Income Statement

52Neutral

Balance Sheet

36Negative

Cash Flow

33Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue7.36M7.74M6.94M6.29M5.94M5.55M
Gross Profit5.82M5.96M5.12M4.43M3.79M3.49M
EBITDA-469.93K37.65K155.14K-470.62K-1.23M-480.87K
Net Income-315.06K18.52K133.06K-497.77K-1.32M-608.96K
Balance Sheet
Total Assets2.35M2.80M2.64M1.67M1.79M2.21M
Cash, Cash Equivalents and Short-Term Investments1.27M1.44M1.54M645.55K704.08K1.19M
Total Debt00000297.37K
Total Liabilities2.32M2.59M2.65M1.87M1.56M1.64M
Stockholders Equity31.95K205.12K-4,362-195.19K232.72K571.78K
Cash Flow
Free Cash Flow-315.07K-176.44K882.12K-59.88K-1.22M48.50K
Operating Cash Flow-293.15K-158.55K893.82K-52.83K-1.18M93.93K
Investing Cash Flow-12.92K-8,890-2,701-6,299-11.56K-140.43K
Financing Cash Flow83.00K75.50K0600710.79K712.29K

Renoworks Software Technical Analysis

Technical Analysis SentimentNeutral
Last Price0.23

Price Trends

50DMA0.23Negative
100DMA0.27Negative
200DMA0.29Negative

Market Momentum

MACD0.00Negative
RSI51.39Neutral
STOCH74.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RW, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RW.

Renoworks Software Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

TSE:RW against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
TSE:RWTSE:RW43NeutralCAD 9.21M-29.22-181.34%―-3.65%-192.77%
TSE:RIWITSE:RIWI43NeutralCAD 3.88M-0.74-255.24%―-29.40%-61.65%
TSE:WISHTSE:WISH40UnderperformCAD 5.50M-0.91-71.93%―-33.40%-270.13%
TSE:VQSTSE:VQS39UnderperformCAD 4.93M-0.80-8232.51%―1.68%-8.17%
TSE:IAITSE:IAI37UnderperformCAD 4.19M-4.0065.20%―-2.54%-27.59%
TSE:MAPSTSE:MAPS37UnderperformCAD 22.61M-9.39202.94%―20.09%17.58%

* Technology Sector Average

Performance Comparison

-50%0%50%TSE:RWTSE:IAITSE:MAPSTSE:RIWITSE:VQSTSE:WISHDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
TSE:RW and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:RWRenoworks Software0.23-0.43-65.38%
TSE:IAIinfinitii ai inc.0.03-0.02-40.00%
TSE:MAPSProStar Holdings Inc0.140.0212.00%
TSE:RIWIRIWI Corp0.14-0.44-75.86%
TSE:VQSViq Solutions0.07-0.11-61.11%
TSE:WISHWishpond Technologies Ltd.0.10-0.04-25.93%

Renoworks Software Corporate Events

Business Operations and StrategyExecutive/Board Changes

Renoworks Taps SaaS Veteran Madan Murthy to Drive Enterprise Growth for renoworks.ai

Positive
Oct 27, 2026

Renoworks Software has strengthened its leadership team by appointing veteran SaaS executive Madan Murthy as Vice President of Sales, a move aimed at accelerating enterprise sales and market adoption of its renoworks.ai platform. The decision follows...

Business Operations and StrategyProduct-Related Announcements

Renoworks Adds Seven Enterprise Clients, Extends Lead in AI Home-Remodeling Tech

Positive
Oct 15, 2026

Renoworks Software has expanded its footprint in the North American building products and home remodeling market with the launch of seven new enterprise customer projects in recent months. The new deployments, which include firms such as Higgins Stee...

Business Operations and StrategyProduct-Related Announcements

Renoworks Unveils AI Platform to Link Home Design Visualization with Real-World Building Products

Positive
Sep 24, 2026

Renoworks Software has launched Renoworks.ai, a next-generation AI-native platform that blends photorealistic remodeling visualization with structured product intelligence, analytics and homeowner engagement tools for the building products sector. By...

Business Operations and StrategyFinancial Disclosures

Renoworks Boosts Recurring Software Revenue as It Invests in AI Platform, But Q2 Profitability Slips

Negative
Aug 27, 2026

Renoworks reported weaker overall financial results for the second quarter and first half of 2026 as it deliberately reduces low-margin design services in favor of higher-margin recurring software revenue. Total revenue for the six months fell 9.5% t...

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: Oct 31, 2026