Kidoz Inc

Kidoz Inc has a market capitalization of $30.2 million and a price-to-book ratio of 4.62, indicating that the market is valuing the company at a premium to its book value. The company's liquidity position is characterized by a current ratio of 2.2, suggesting it has sufficient short-term assets to cover its liabilities. However, the company reported negative operating and free cash flows of $599,100 and $608,760, respectively, indicating a cash outflow from operations.

Profitability metrics show a return on equity of -11% and a return on assets of -8.19%, both significantly below the industry median for software companies. The company's net loss of $719,580 and operating loss of $695,490 highlight the challenges it faces in achieving profitability. Gross profit of $956,400 represents 53.3% of revenue, which is a relatively healthy margin but insufficient to offset the company's operating expenses.

Kidoz's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's exposure to a single revenue stream increases its vulnerability to market fluctuations and customer concentration risks. There is no information available on the geographic distribution of its revenue, which limits the ability to assess regional exposure and diversification.

The company's growth trajectory is uncertain, with no specific revenue growth targets or projections provided in the latest financial data. The absence of capital expenditures and the lack of long-term debt suggest a conservative approach to growth and expansion. The company's operating cash flow and free cash flow are both negative, indicating that it is not generating sufficient cash to fund operations or reinvest in the business.

Risk factors for Kidoz include its negative cash flows and low profitability, which could impact its ability to sustain operations and meet financial obligations. The company has a low dilution risk, with no immediate filing-based liquidity or dilution flags detected. However, the absence of long-term debt and the low debt-to-equity ratio of 0.0 suggest that the company is not leveraging debt to finance growth, which could limit its expansion potential.

Recent events and filings do not indicate any significant changes in the company's financial or operational status. The company's stock is currently trading at $0.23, well below the mean and median price targets of $0.74 set by analysts. The mean recommendation of 2.00 suggests a neutral stance, with one "buy" rating and no "strong buy" or "hold" ratings.

Revenue is projected to grow 31.6% year-over-year to $18.4 million in fiscal 2026, demonstrating strong top-line expansion momentum.

The company maintains a zero long-term debt balance, eliminating interest expenses and reducing financial risk compared to leveraged peers.

Analysts assign a mean price target of $0.74, implying a substantial 228.9% upside from the current market price of $0.225.

Free cash flow is forecast to reach $614,820 in fiscal 2026, indicating a return to positive cash generation capabilities.

Risk flags for dilution, liquidity, and credit are all rated low, suggesting a stable operational environment without immediate structural threats.

Return on equity is negative 11%, falling into the bottom quartile of the software cohort and signaling poor capital efficiency for shareholders.

Operating income is projected to decline 29.0% year-over-year in fiscal 2026, suggesting deteriorating core operational performance despite revenue growth.

Cash conversion ratio is 0.83, below the software cohort median of 0.92, indicating weaker ability to turn earnings into actual cash.

Revenue $18.4M, +31,6% YoY; Operating income −29,0% YoY.

• ▍Revenue $18.4M, +31,6% YoY
• ▍Operating income −29,0% YoY
• ▍Net income +29,4% YoY
• ▍Free cash flow +3,5% YoY
• ▍Net margin 2.5%

Revenue $14.0M, +5,1% YoY; Operating income +129,4% YoY.

• ▍Revenue $14.0M, +5,1% YoY
• ▍Operating income +129,4% YoY
• ▍Net income +117,5% YoY
• ▍Free cash flow +141,5% YoY
• ▍Net margin 2.5%

Revenue $13.3M, −11,7% YoY; Operating income −48,0% YoY.

• ▍Revenue $13.3M, −11,7% YoY
• ▍Operating income −48,0% YoY
• ▍Net income −49,4% YoY
• ▍Free cash flow −82,8% YoY
• ▍Net margin -15.1%

Revenue $15.1M, +21,0% YoY; Operating income −3 956,3% YoY.

• ▍Revenue $15.1M, +21,0% YoY
• ▍Operating income −3 956,3% YoY
• ▍Net income −607,8% YoY
• ▍Free cash flow −292,1% YoY
• ▍Net margin -8.9%

Revenue $12.5M; Operating income $35.7k.

• ▍Revenue $12.5M
• ▍Operating income $35.7k
• ▍Net margin -1.5%