Victory Square Technologies Inc (VST) AI Stock Analysis

Victory Square Technologies Inc

(CNQX:VST)

Select Model

Rating:58Neutral

Price Target:CAD 0.47▲(4.00% Upside)

Action:reiterated

Date:10/31/26

The score is primarily driven by improving reported profitability and a healthier balance sheet, but it is meaningfully constrained by materially negative operating and free cash flow. Technicals also weigh on the score as the stock trades below major moving averages with weak momentum. Valuation is a partial positive due to the low P/E.

Positive Factors

Revenue and Profitability RecoveryTTM revenue growth of 40.6% alongside positive operating and net margins marks a substantial recovery from prior losses. If maintained, the improved scale and profitability can strengthen internal reinvestment capacity and provide a more durable earnings base over the next several quarters.

Negative Factors

Negative Cash GenerationTTM operating cash flow of about -$12.7M and free cash flow of about -$13.1M show that reported profitability is not yet translating into liquidity. Continued negative conversion could constrain portfolio investment, increase funding dependence, and weaken confidence in the durability of earnings.

Victory Square Technologies Inc (VST) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 46.92M
Dividend Yield: ―
Average Volume (3M): 93.79K
Price to Earnings (P/E): 7.6
Beta (1Y): 0.88
Revenue Growth: 320.75%
EPS Growth: 65.22%
Country: Canada
Employees: 2
Sector: Healthcare
Sector Strength: 51
Industry: Asset Management

Victory Square Technologies Inc Business Overview & Revenue Model

Company Description

Victory Square Technologies Inc. functions as a private equity and venture capital firm, primarily focused on nurturing, acquiring, and investing in nascent and early-stage companies. It empowers these ventures by supplying crucial senior leadership...

How the Company Makes Money

VST primarily makes money through a combination of (1) gains (or losses) on its equity stakes in portfolio companies and (2) fees and service revenue earned for providing venture-building and operational support to those companies. A key revenue stre...

Victory Square Technologies Inc Financial Statement Overview

Summary

Reported results show a meaningful turnaround with strong TTM revenue growth (+40.6%) and positive operating and net margins (~8.4% and ~7.7%), alongside improved leverage (TTM debt-to-equity ~0.20) and higher ROE (~16.9%). However, this is materially offset by weak cash conversion: TTM operating cash flow (~-12.7M) and free cash flow (~-13.1M) remain negative, raising concerns about earnings quality/working-capital needs and sustainability.

Income Statement

74Positive

Balance Sheet

78Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Jun 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	78.43M	35.39M	16.72M	12.06M	5.93M	1.49M
Gross Profit	14.13M	9.00M	6.37M	5.49M	3.26M	910.14K
EBITDA	7.22M	1.86M	2.06M	-13.89M	-24.59M	-16.59M
Net Income	6.01M	2.04M	1.23M	-14.15M	-28.59M	-19.43M
Balance Sheet
Total Assets	76.35M	42.60M	10.22M	11.78M	24.18M	37.33M
Cash, Cash Equivalents and Short-Term Investments	20.21M	16.27M	1.23M	2.20M	3.83M	4.38M
Total Debt	9.06M	8.84M	2.41M	6.84M	6.60M	4.28M
Total Liabilities	27.93M	14.93M	7.47M	12.07M	10.93M	6.17M
Stockholders Equity	45.40M	30.76M	6.13M	3.96M	13.97M	27.38M
Cash Flow
Free Cash Flow	-13.11M	-4.68M	-1.69M	-3.39M	-4.17M	-8.86M
Operating Cash Flow	-12.68M	-3.17M	-503.33K	-3.18M	-3.61M	-8.57M
Investing Cash Flow	-1.84M	-1.44M	-213.03K	1.48M	-808.30K	-3.51M
Financing Cash Flow	27.65M	19.59M	-181.11K	95.35K	3.87M	11.90M

Victory Square Technologies Inc Technical Analysis

Technical Analysis SentimentNegative

Last Price0.45

Price Trends

50DMA0.53Negative

100DMA0.60Negative

200DMA0.61Negative

Market Momentum

MACD-0.02Negative

RSI42.04Neutral

STOCH71.01Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VST, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.53, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VST.

Victory Square Technologies Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

TSE:VST against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:VST	58Neutral	CAD 46.92M	7.64	16.88%	―	320.75%	65.22%
TSE:BRAG	54Neutral	CAD 41.94M	-2.89	-12.39%	―	4.34%	-50.56%
TSE:DMGI	54Neutral	CAD 80.99M	-6.14	-13.93%	―	-13.15%	24.49%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TSE:AIC	45Neutral	CAD 4.72M	-6.77	-87.88%	―	―	-15.30%
TSE:VRTS	37Underperform	CAD 4.33M	-0.39	158.13%	―	35.39%	-184.44%

* Healthcare Sector Average

Performance Comparison

TSE:VST and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:VST	Victory Square Technologies	0.45	-0.38	-45.78%
TSE:BRAG	Bragg Gaming Group Inc	1.35	-1.79	-57.01%
TSE:DMGI	DMG Blockchain Solutions	0.39	-0.09	-18.75%
TSE:AIC	Alpha Esports Tech Inc.	0.40	0.13	48.15%
TSE:VRTS	Wondr Gaming Corp	0.01	-0.01	-50.00%

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

Victory Square Technologies Inc AI Stock Analysis