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VIQ Solutions (VQS) AI Stock Analysis
VIQ Solutions
(TSXV:VQS)
Score driven by poor financial performance (declining revenue, losses, weak balance sheet) and unattractive valuation; neutral technicals provide minimal offset.
VIQ Solutions (VQS) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 9.84M
- Dividend Yield
- ―
- Average Volume (3M)
- 37.05K
- Price to Earnings (P/E)
- -0.8
- Beta (1Y)
- 1.19
- Revenue Growth
- 1.68%
- EPS Growth
- -8.17%
- Country
- Canada
- Employees
- 334
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
VIQ Solutions Business Overview & Revenue Model
Company Description
VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Australia, the United States, the United Kingdom, Canada, and internationally. It operates through two segmen...
How the Company Makes Money
VIQ Solutions makes money primarily by selling software and services that support end-to-end recording, transcription, and evidence/workflow management. Key revenue streams include: (1) Software/platform revenue: recurring fees (often structured as s...
VIQ Solutions Earnings Call Summary
The earnings call reflects a strong focus on operational efficiencies and strategic growth, particularly in SaaS adoption and gross margin expansion. However, there are concerns regarding revenue decline and increased net loss due to foreign exchange impacts. Overall, the company is making progress towards sustainable margin expansion and positive cash flow.
Q2-2025 Updates
Positive Updates
Negative Updates
Company Guidance
In the second quarter of 2025, VIQ Solutions reported a continuation of positive financial momentum with a fifth consecutive quarter of positive adjusted EBITDA, reaching approximately $1 million, which is a 24% increase year-over-year. The gross margin expanded to 48% from 45.5% in Q2 2024, and for the first half of the year, it was nearly 50%, up from 44.9% in the same period last year. Despite a 10% year-over-year decline in revenue to $10.4 million due to decreased volumes and negative foreign exchange impacts, the company achieved an 11% decline in SG&A expenses. A significant milestone in SaaS adoption was marked in June with the signing of its largest SaaS contract to date, deploying the NetScribe platform across nine judicial districts and 22 countries in the U.S. Midwest. The company secured $1.85 million in net new bookings in H1 2025, including $280,000 in SaaS and software sales. VIQ ended Q2 with $1.1 million in cash, generating $0.3 million in positive cash flow from operations. Despite a net loss of $0.9 million, which was $0.3 million higher than in 2024, VIQ remains focused on achieving sustainable operations and free cash flow through gross margin expansion.
VIQ Solutions Financial Statement Overview
Summary
Weak financials with declining revenue (-2.6% YoY), net losses (-17.8% margin), negative equity, high leverage, and only marginal positive free cash flow amid volatility signal high risk and poor sustainability.
Income Statement
32NegativeBalance Sheet
18Very NegativeCash Flow
40Negative| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.69M | 43.16M | 41.02M | 45.84M | 31.05M | 31.75M |
| Gross Profit | 19.56M | 19.23M | 18.11M | 21.93M | 14.92M | 16.15M |
| EBITDA | 1.82M | -750.54K | -7.05M | -943.62K | -11.80M | -678.63K |
| Net Income | -7.40M | -7.05M | -14.33M | -8.71M | -19.68M | -11.15M |
Balance Sheet | ||||||
| Total Assets | 24.64M | 24.82M | 29.68M | 35.54M | 47.69M | 42.72M |
| Cash, Cash Equivalents and Short-Term Investments | 1.12M | 1.57M | 1.62M | 1.66M | 10.58M | 16.84M |
| Total Debt | 17.47M | 16.19M | 13.97M | 9.86M | 14.30M | 13.98M |
| Total Liabilities | 26.82M | 24.54M | 23.50M | 19.90M | 25.60M | 22.93M |
| Stockholders Equity | -2.18M | 280.40K | 6.18M | 15.64M | 22.09M | 19.79M |
Cash Flow | ||||||
| Free Cash Flow | 1.24M | 1.12M | -2.84M | -5.37M | -10.68M | 1.58M |
| Operating Cash Flow | 1.27M | 1.14M | -2.81M | -2.34M | -8.24M | 3.42M |
| Investing Cash Flow | -1.36M | -1.42M | -2.22M | -4.10M | -14.44M | -6.64M |
| Financing Cash Flow | -892.30K | 322.62K | 4.99M | -2.37M | 16.52M | 18.16M |
VIQ Solutions Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VQS, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VQS.
VIQ Solutions Risk Analysis
VIQ Solutions disclosed 30 risk factors in its most recent earnings report. VIQ Solutions reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
2 New RisksVIQ Solutions Peers Comparison
Overall Rating
TSE:OTEX59Neutral
TSE:XTRA59Neutral
TSE:ENGH58Neutral
TSE:SKUR47Neutral
TSE:ROI43Neutral- TSE:VQS39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:OTEX | 59Neutral | CAD 9.00B | 5.88 | 28.29% | 4.11% | 0.54% | 54.92% |
| TSE:XTRA | 59Neutral | CAD 113.14M | -15.59 | -41.81% | ― | 108.03% | 47.36% |
| TSE:ENGH | 58Neutral | CAD 984.77M | 14.27 | 11.70% | 6.68% | -4.73% | -5.61% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:SKUR | 47Neutral | CAD 9.09M | -1.76 | -356.60% | ― | -21.96% | -37.24% |
| TSE:ROI | 43Neutral | CAD 5.16M | -32.35 | 39.71% | ― | -22.16% | 83.17% |
| TSE:VQS | 39Underperform | CAD 4.93M | -0.80 | -8232.51% | ― | 1.68% | -8.17% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:VQS | Viq Solutions | 0.07 | -0.11 | -61.11% | |
| TSE:OTEX | Open Text Corporation | 37.15 | -14.29 | -27.78% | |
| TSE:XTRA | Xtract One | 0.43 | -0.41 | -48.82% | |
| TSE:ROI | Route1 Inc | 0.11 | 0.03 | 37.50% | |
| TSE:ENGH | Enghouse Systems | 18.27 | -1.38 | -7.00% | |
| TSE:SKUR | Sekur Private Data Ltd. | 0.04 | 0.00 | 0.00% |
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: Dec 19, 2025