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Wondr Gaming Corp (TSE:VRTS)
TSX:VRTS

Wondr Gaming Corp (VRTS) AI Stock Analysis

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Wondr Gaming Corp

(TSX:VRTS)

36Underperform
Wondr Gaming Corp's stock score reflects severe financial instability, with high leverage and negative profitability being primary concerns. Although recent corporate events and strategic partnerships show promise, the company's financial distress and challenging valuation metrics significantly impact its overall score. Technical indicators suggest some recovery potential, but substantial risks remain due to ongoing financial difficulties.

Wondr Gaming Corp (VRTS) vs. S&P 500 (SPY)

Wondr Gaming Corp Business Overview & Revenue Model

Company DescriptionWondr Gaming Corp (VRTS) is a prominent player in the digital entertainment and esports sectors. The company is focused on developing a diverse ecosystem that connects brands with a global audience of gamers and esports enthusiasts through its innovative platforms. Wondr Gaming Corp operates within the realms of content creation, digital media, and technology, offering a range of products and services that enhance the gaming experience and foster community engagement.
How the Company Makes MoneyWondr Gaming Corp generates revenue through a multifaceted business model centered around digital content and engagement platforms. The company's primary revenue streams include brand partnerships, advertising, and sponsorship deals, which leverage its extensive reach and influence within the gaming community. Additionally, Wondr Gaming monetizes its digital media content through ad placements and collaborates with influencers and content creators to produce sponsored content. Strategic partnerships with gaming and technology companies further bolster its revenue, enabling Wondr Gaming to offer premium content and exclusive experiences to its audience.

Wondr Gaming Corp Financial Statement Overview

Summary
Wondr Gaming Corp is experiencing revenue growth but is severely challenged by negative profitability and high leverage. The company's negative equity and cash flow problems pose significant risks. These financial difficulties highlight the need for strategic restructuring or capital infusion to stabilize and improve operational efficiency and financial health.
Income Statement
35
Negative
Wondr Gaming Corp shows moderate revenue growth with a significant increase in total revenue from $356,421 in 2022 to $4,877,527 in 2024 TTM, indicating potential market capture. However, the company is struggling with profitability, as evidenced by substantial negative net income and EBIT margins. The net profit margin remains negative, showing a lack of cost control or high operating expenses. These factors indicate revenue growth but poor profit conversion.
Balance Sheet
20
Very Negative
The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets, a sign of financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but the substantial total debt of $5,360,633 suggests high leverage. Poor return on equity due to negative net income further highlights financial distress and risk exposure.
Cash Flow
25
Negative
Cash flow analysis shows negative operating and free cash flow, indicating the company is not generating enough cash to sustain operations or fund capital expenditures internally. The operating cash flow to net income ratio is not favorable due to consistent net losses. This cash flow strain suggests liquidity issues and a dependence on external financing.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
4.88M4.85M3.56M186.92K0.000.00
Gross Profit
3.12M-972.26K2.34M107.27K-22.29K0.00
EBIT
-2.37M-6.58M-10.08M-9.20M-358.40K-7.25K
EBITDA
-44.03M-50.40M-9.34M-9.30M-1.91M-7.25K
Net Income Common Stockholders
-42.17M-49.02M-10.71M-9.58M135.85K-27.25K
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.001.16M556.80K3.75M53.59K0.00
Total Assets
0.007.41M49.56M7.85M57.48K0.00
Total Debt
455.39K5.78M3.99M21.00K63.80K455.39K
Net Debt
455.39K4.62M3.43M-3.73M10.21K455.39K
Total Liabilities
597.20K9.48M17.21M1.70M30.75K597.20K
Stockholders Equity
-597.20K-2.07M32.35M6.15M26.73K-597.20K
Cash FlowFree Cash Flow
-591.24K-3.63M-5.74M-4.67M-275.11K0.00
Operating Cash Flow
-591.25K-3.63M-5.48M-4.66M-91.41K0.00
Investing Cash Flow
-1.10M-6.64M-12.60M-48.23K-208.20K0.00
Financing Cash Flow
863.21K10.86M14.91M8.20M145.00K0.00

Wondr Gaming Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Positive
Market Momentum
MACD
<0.01
Negative
RSI
51.87
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VRTS, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VRTS.

Wondr Gaming Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSSCR
77
Outperform
C$5.60B9.2710.83%2.91%796.07%-35.52%
67
Neutral
C$155.67M-7.16%10.79%-30.99%
60
Neutral
$13.44B7.15-2.73%3.79%2.11%-39.64%
48
Neutral
$30.17M9.66-1.73%-4.44%-638.10%
TSTGO
44
Neutral
C$23.84M-119.27%0.50%0.06%
41
Neutral
C$213.77M-955.11%-29.40%-58.95%
36
Underperform
C$12.94M-251.82%0.32%95.60%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VRTS
Wondr Gaming Corp
0.02
>-0.01
-33.33%
TSE:BRAG
Bragg Gaming Group Inc
5.97
-2.56
-30.01%
TSE:SCR
Strathcona Resources
26.13
-3.59
-12.08%
TSE:TGO
TeraGo Inc.
1.15
-0.47
-29.01%
TSE:TILT
TILT Holdings Inc
0.58
0.00
0.00%
TSE:EAGR
Leaf Mobile Inc
0.37
-0.40
-51.95%

Wondr Gaming Corp Corporate Events

Executive/Board ChangesPrivate Placements and Financing
Vertiqal Studios Closes $1.55M Private Placement and Appoints New Board Member
Positive
May 1, 2025

Vertiqal Studios has successfully closed a non-brokered private placement of convertible debentures, co-led by Globacor Capital Inc. and Carriage House Wealth, raising $1,550,000. The proceeds will be used for general working capital purposes, and the debentures are set to mature on May 1, 2027, with a 15% annual interest rate. This move is expected to strengthen the company’s financial position and support its growth initiatives. Additionally, PJ Bujouves has been appointed to the Board of Directors, bringing valuable business analysis skills and industry insight, which are anticipated to drive operational excellence as the company enters its next growth phase.

Spark’s Take on TSE:VRTS Stock

According to Spark, TipRanks’ AI Analyst, TSE:VRTS is a Underperform.

Wondr Gaming’s low overall score is driven by severe financial instability and poor valuation metrics, despite positive corporate developments. The technical outlook suggests potential recovery, but significant risks remain due to financial distress.

To see Spark’s full report on TSE:VRTS stock, click here.

Business Operations and Strategy
Vertiqal Studios Joins Dawn to Boost Digital Media Reach
Positive
Apr 16, 2025

Vertiqal Studios has joined Dawn, a collective of independent agencies, to enhance its digital media and youth engagement capabilities. This strategic move positions Vertiqal as a key player in Dawn’s portfolio, offering brands the ability to reach younger audiences through culturally resonant, social-first storytelling. The partnership comes amid a significant shift in media strategies, with global gaming ad spend and social media advertising both on the rise, reflecting changing consumer habits among Gen Z and Millennials.

Spark’s Take on TSE:VRTS Stock

According to Spark, TipRanks’ AI Analyst, TSE:VRTS is a Neutral.

Wondr Gaming Corp’s overall stock score reflects significant financial distress, with negative profitability and high leverage being primary concerns. Although revenue growth is evident, it is overshadowed by severe financial instability. Technical analysis shows mixed signals, and valuation metrics further highlight the company’s challenges. The stock may appeal to high-risk investors looking for speculative opportunities, but substantial risks need to be considered.

To see Spark’s full report on TSE:VRTS stock, click here.

Business Operations and StrategyFinancial Disclosures
Vertiqal Studios Achieves Major Financial Turnaround in 2024
Positive
Apr 1, 2025

Vertiqal Studios has reported a significant financial improvement for the year 2024, achieving a 95% reduction in net loss due to strategic cost-cutting and operational efficiencies. The company saw a slight revenue increase and a notable 48% rise in direct media revenue, reflecting its strategic focus and market strength. The substantial reduction in expenses and net loss, alongside a 47% improvement in EBITDA, underscores the company’s commitment to sustainable growth and long-term value creation. Looking forward, Vertiqal Studios anticipates continued growth through strategic partnerships, expansion into the U.S. market, and exploring acquisitive opportunities to diversify income streams.

Business Operations and Strategy
Vertiqal Studios and Crossmedia Partner for 2025 Brand Growth
Positive
Mar 26, 2025

Vertiqal Studios has announced a strategic partnership with Crossmedia to enhance brand growth and market expansion in 2025. This collaboration merges Crossmedia’s data-driven media buying expertise with Vertiqal Studios’ digital content creation capabilities, aiming to reshape brand engagement with modern consumers. The partnership signifies a pivotal moment for Vertiqal Studios, reinforcing its position as a key digital content and media partner, and is expected to drive significant opportunities and market influence.

Product-Related AnnouncementsBusiness Operations and Strategy
Vertiqal Studios Launches Vertiqal Labs to Empower Digital Creators
Positive
Feb 20, 2025

Vertiqal Studios has launched Vertiqal Labs, a new creator network aimed at supporting emerging digital talent by providing them with tools, reach, and expertise to scale their platforms and grow their audiences. This initiative not only aids creators in establishing sustainable careers but also offers advertisers access to diverse, authentic content, enhancing engagement with Gen Z and Millennial consumers.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.