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Boardwalktech Software Corp. (TSE:BWLK)
:BWLK

Boardwalktech Software (BWLK) AI Stock Analysis

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Boardwalktech Software

(OTC:BWLK)

45Neutral
Boardwalktech Software faces significant financial difficulties, with declining revenues and high leverage presenting key risks. Technical analysis indicates a neutral trend without strong momentum. While valuation metrics are weak, recent corporate events show promising strategic initiatives that could enhance future performance.

Boardwalktech Software (BWLK) vs. S&P 500 (SPY)

Boardwalktech Software Business Overview & Revenue Model

Company DescriptionBoardwalktech Software Corp. designs and licenses enterprise software solutions worldwide. Its products include Boardwalk Enterprise Digital Ledger Platform, an enterprise platform, which enables customers to automate manual business processes and turn them into enterprise digital applications using its patented digital ledger data management technology; and Boardwalk Digital Ledger Platform for building and maintaining applications with multiple internal or external users working in Excel, a web form, or mobile environment as the user interface. The company also offers Velocity, a low-code platform to mitigate Excel risk in the enterprise; Unity Central for document and knowledge management; Radius that offers predictive analytics for structured and unstructured enterprise information; Boardwalk Cloud For Excel that allows working in excel files on the desktop while the data is managed in the cloud enabling to collaborate, share, and see the history; and excel-based planning applications. The company was founded in 2004 and is headquartered in Cupertino, California.
How the Company Makes MoneyBoardwalktech Software primarily generates revenue through the licensing and subscription of its Digital Ledger Technology (DLT) platform. The company offers its platform as a software-as-a-service (SaaS) model, allowing businesses to subscribe to access and utilize its data management solutions. Additional revenue streams include consulting services to customize and integrate the platform into existing business processes, as well as ongoing support and maintenance fees. Strategic partnerships with major corporations and technology firms also contribute to its earnings, as these collaborations help expand its market reach and enhance its product offerings.

Boardwalktech Software Financial Statement Overview

Summary
Boardwalktech Software's financials reveal significant challenges with declining revenue, negative EBIT and EBITDA margins, and negative stockholders' equity. Despite strong gross profit margins, high operating inefficiencies and substantial leverage indicate liquidity and solvency risks.
Income Statement
35
Negative
Boardwalktech Software's income statement reveals consistent revenue contraction, with a notable decline from $6.47M in 2023 to $5.24M in TTM (Trailing-Twelve-Months). Despite maintaining a high gross profit margin of 88.5% in TTM, the company struggles with negative EBIT and EBITDA margins, indicating operating inefficiencies. Net income remains negative, further emphasizing profitability challenges. The revenue growth rate has been negative, showing a worrying trend for future growth.
Balance Sheet
20
Very Negative
The balance sheet presents a precarious situation with negative stockholders' equity of -$3.15M in TTM, indicating more liabilities than assets and a potential insolvency risk. The debt-to-equity ratio is not meaningful given the negative equity, but total debt is significantly high at $3.39M, suggesting financial leverage and risk. The equity ratio is negative, reflecting the company's weak financial position and questionable sustainability.
Cash Flow
45
Neutral
Cash flow analysis shows persistent negative free cash flow and operating cash flow, with TTM free cash flow at -$3.18M. The operating cash flow to net income ratio is positive due to net income being less negative than operating cash flow, indicating some degree of cash flow efficiency despite losses. However, free cash flow remains a concern, reflecting cash management issues.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.24M5.97M6.47M4.37M4.34M4.64M
Gross Profit
4.64M5.35M5.87M3.79M3.75M4.00M
EBIT
-6.49M-2.93M-3.52M-3.53M-2.38M-4.01M
EBITDA
-2.14M-2.71M-3.18M-3.19M-2.02M-3.75M
Net Income Common Stockholders
-2.80M-3.13M-3.58M-3.56M-3.61M-5.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.23M2.19M868.96K3.10M794.71K
Total Assets
3.77M3.78M3.99M4.48M1.44M
Total Debt
0.003.18M127.07K501.89K646.32K4.41M
Net Debt
949.34K-2.06M-367.07K-2.45M3.62M
Total Liabilities
88.60K5.36M4.75M3.56M2.00M7.51M
Stockholders Equity
-1.59M-961.67K426.75K2.48M-6.07M
Cash FlowFree Cash Flow
-3.18M-3.36M1.11M-2.32M-2.96M-1.20M
Operating Cash Flow
-3.18M-3.36M1.12M-2.30M-2.96M-1.20M
Investing Cash Flow
117.00-5.67K-15.37K-21.84K-6.86K-6.10K
Financing Cash Flow
2.48M3.41M215.07K88.00K5.27M1.80M

Boardwalktech Software Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.12
Positive
100DMA
0.12
Positive
200DMA
0.12
Positive
Market Momentum
MACD
<0.01
Negative
RSI
57.69
Neutral
STOCH
84.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BWLK, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.12, and below the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BWLK.

Boardwalktech Software Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCSU
71
Outperform
C$98.42B98.2730.90%0.12%21.56%31.90%
TSKXS
68
Neutral
C$4.90B157.81-0.10%14.85%-105.25%
59
Neutral
$9.97B10.09-6.54%3.08%7.41%-11.60%
45
Neutral
$6.67M197.04%-14.23%25.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BWLK
Boardwalktech Software
0.13
-0.08
-39.02%
OTEX
Open Text
25.89
-8.59
-24.91%
DSGX
The Descartes Systems Group
105.70
11.20
11.85%
TSE:CSU
Constellation Software
4,769.97
1,119.72
30.68%
TSE:KXS
Kinaxis Inc
177.00
27.44
18.35%
EGHSF
Enghouse Systems
17.90
-3.28
-15.49%

Boardwalktech Software Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -14.29% | Next Earnings Date: Jun 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view. While there were significant achievements in terms of partnership expansions and recurring revenue growth, these were offset by notable declines in overall revenue and software services. The company has shown resilience in improving cash flow and reducing costs, but challenges remain in regaining revenue momentum.
Highlights
Growth in Recurring Revenue
Recurring revenue grew at a 44% compound annual growth rate (CAGR) over the past 3 years, driven by the land-and-expand strategy and partner teaming model.
Partnership Expansion
New partnerships with large IT services firms like Tata Consulting Services and HCLTech were established to drive sales and expand reach, notably in the financial services sector.
Increased Cash Flow from Operations
Cash flows from operations saw a positive net inflow of $219,000 in the second quarter, a 24% improvement over the previous year's net inflow.
Velocity Product Deployment Success
The Velocity product gained strong momentum with a top 5 U.S. bank, with over 1,000 users actively leveraging the solution and significant ROI and compliance benefits being reported.
Lowlights
Revenue Decline
Total revenue for the second quarter was $1.3 million, a 16% decrease from $1.5 million in the second quarter of fiscal 2024, due to declines in software and subscription services and professional services revenue.
Software and Subscription Services Decline
A 16% decrease in software and subscription services revenue contributed to the overall revenue decline, as two customers did not renew licenses due to reorganizations.
Professional Services Revenue Drop
Professional services revenue declined by 21% as two customers declined to renew licenses.
Adjusted EBITDA Loss
Adjusted EBITDA for the second quarter was a loss of $366,000, showing a slight 2% change from the previous year's loss, though a 10% improvement from the previous quarter.
Company Guidance
During the Q2 2025 earnings call for Boardwalktech Software Corporation, several key metrics were discussed. The company's recurring revenue has grown at a 44% compound annual growth rate over the past three years, driven by their land-and-expand strategy. However, total revenue for the quarter was $1.3 million, marking a 16% decrease from the previous year's $1.5 million, but a slight 2% increase from the previous quarter. The annualized recurring revenue (ARR) at the end of the quarter was $4.6 million, reflecting the impact of two customers not renewing licenses. Despite these challenges, the company maintained a gross margin of 88.6%. Adjusted EBITDA showed a loss of $366,000, a 10% improvement from the previous quarter's $407,000 loss. Cash flows from operations demonstrated a positive net inflow of $219,000, a 24% improvement over the same quarter last year. The net IFRS loss for the quarter was $0.7 million, translating to a loss of $0.01 per share. The company ended the quarter with $800,000 in cash and collected trade receivables, alongside $2.2 million in net debt.

Boardwalktech Software Corporate Events

Business Operations and Strategy
Boardwalktech Software to Present at Planet MicroCap Showcase 2025
Positive
Apr 17, 2025

Boardwalktech Software Corp. announced that its CEO, Andrew Duncan, will present at the Planet MicroCap Showcase in Las Vegas on April 23, 2025. The company is experiencing growth by leveraging its advanced data management technology, which is already in use by major U.S. banks and Fortune 500 companies. With a strengthened financial position, Boardwalktech aims to expand its market presence and deepen relationships with existing and new partners, enhancing its industry positioning.

Spark’s Take on TSE:BWLK Stock

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

Boardwalktech Software faces significant financial and operational challenges, with declining revenues and high debt levels. Technical analysis shows a neutral trend, while valuation metrics are weak due to negative earnings. However, recent strategic partnerships and financing activities provide some optimism for future improvement.

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

Private Placements and Financing
Boardwalktech Extends Private Placement Offering Deadline
Neutral
Apr 11, 2025

Boardwalktech Software Corp. has announced an extension for the closing date of its previously announced private placement offering, now set for May 14, 2025. This extension allows the company more time to finalize documentation and obtain necessary approvals, potentially impacting its financial strategy and stakeholder interests.

Spark’s Take on TSE:BWLK Stock

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

Boardwalktech Software faces significant financial and operational challenges, with declining revenues and high debt levels. Technical analysis shows a neutral trend, while valuation metrics are weak due to negative earnings. However, recent strategic partnerships and financing activities provide some optimism for future improvement.

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

Product-Related AnnouncementsBusiness Operations and Strategy
Boardwalktech and Trillium Partner to Revolutionize Supply Chain Solutions
Positive
Mar 28, 2025

Boardwalktech Software Corp. has announced a partnership with Trillium Digital Services to enhance supply chain solutions, leveraging digital thread innovations. This collaboration aims to bridge the gap between legacy systems and modern technologies, improving employee experiences and business outcomes. The partnership is expected to accelerate Boardwalktech’s market penetration and refine their Unity Central platform, addressing specific industry challenges while maintaining core capabilities. The announcement was made at the ISG Xperience Summit, where both companies showcased their advancements in AI-powered experience transformation strategies.

Private Placements and FinancingBusiness Operations and Strategy
Boardwalktech Completes Initial Tranche of Private Placement Raising Over C$1.1 Million
Positive
Mar 17, 2025

Boardwalktech Software Corp. has successfully closed the initial tranche of its non-brokered private placement, raising approximately C$1,147,454 through the issuance of 8,826,573 units. The proceeds from this offering are intended to support sales and marketing efforts, working capital, and balance sheet enhancement. This strategic move is expected to bolster Boardwalktech’s business operations and market positioning, with potential implications for stakeholders as the company evaluates further investment opportunities.

Private Placements and FinancingBusiness Operations and Strategy
Boardwalktech Completes Initial Tranche of Private Placement to Fuel Growth
Positive
Mar 17, 2025

Boardwalktech Software Corp. has successfully closed the initial tranche of a non-brokered private placement, raising approximately C$1,147,454 through the issuance of 8,826,573 units. This funding, subject to TSX Venture Exchange approval, will be directed towards sales and marketing, working capital, and enhancing the company’s balance sheet to support new business growth. The offering included participation from insiders and was conducted under the Listed Issuer Financing Exemption, with securities issued in Canada and the U.S. under specific regulatory conditions.

Private Placements and Financing
Boardwalktech Software Corp. Announces C$1.5 Million Private Placement
Neutral
Feb 28, 2025

Boardwalktech Software Corp., a company listed on the TSX Venture Exchange, has announced its intention to complete a non-brokered private placement to raise up to C$1,500,000. The offering will consist of units priced at C$0.13 each, with each unit comprising one common share and one warrant. The proceeds from this offering are intended to be used for sales and marketing expenditures, working capital requirements, and enhancing the company’s balance sheet to drive new business. The offering is subject to regulatory approvals and is expected to close on or about March 6, 2025.

Business Operations and StrategyFinancial Disclosures
Boardwalktech Reports Improved EBITDA and Expands Key Partnerships in Q3 FY25
Positive
Feb 25, 2025

Boardwalktech Software Corp. reported its financial results for the third quarter of fiscal 2025, showing a slight revenue increase from the previous quarter but a decrease compared to the same period last year. Despite a decrease in revenue due to non-renewals, the company improved its adjusted EBITDA by 26% year-over-year and 21% quarter-over-quarter, indicating operational efficiency. The company also expanded its partnerships with a top U.S. bank and LTIMindtree, which is expected to generate significant incremental revenue.

Financial Disclosures
Boardwalktech to Release Q3 Fiscal 2025 Financial Results
Neutral
Feb 24, 2025

Boardwalktech Software Corp. announced it will release its Q3 Fiscal 2025 financial results on February 25, 2025, after market close. The company will hold a conference call to discuss the results, which could provide insights into its financial health and strategic direction, impacting stakeholders and industry positioning.

Product-Related AnnouncementsBusiness Operations and Strategy
Boardwalktech Expands with Top US Bank, Enhances Industry Position
Positive
Feb 6, 2025

Boardwalktech Software Corp. announced a significant expansion with a top 5 US bank through its Velocity product, resulting in increased annual recurring revenue and expanded professional services agreements. This expansion highlights the company’s capability to help banks address regulatory pressures by transforming Excel-based EUCs into IT-managed applications, thereby improving business processes and risk management. The success with their bank client is expected to open opportunities with other banks, solidifying Boardwalktech’s market position.

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.