Red Light Holland (TRIP) AI Stock Analysis

• Market Cap: C$14.03M
• Dividend Yield: N/A
• Average Volume (3M): 369.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 13.57%
• EPS Growth: -14.29%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 78
• Industry: Pharmaceuticals
• EPS (TTM): -0.02
• Shares Outstanding: 400,935,880
• 10 Day Avg. Volume: 411,732
• 30 Day Avg. Volume: 369,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.54
• Price to Cash Flow (P/CF): 5.80
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Red Light Holland's stock score reflects its financial struggles, particularly in profitability and cash flow management. The technical analysis indicates a bearish trend and market weakness. Despite these challenges, the company is making strategic moves with positive corporate events that could enhance its market position in the emerging psilocybin industry.

Red Light Holland Business Overview & Revenue Model

Company Description

Red Light Holland (TRIP) is a company that specializes in the production, distribution, and sale of premium magic truffles in the Netherlands. Operating within the legal framework of the Dutch market, the company is focused on providing safe, responsible, and accessible psychedelic experiences. Red Light Holland aims to educate the public about the benefits and safe usage of psilocybin, the active compound in magic truffles, while also exploring opportunities in the expanding psychedelic sector.

How the Company Makes Money

Red Light Holland primarily generates revenue through the sale of its magic truffle products in the Netherlands. The company operates in a legal environment that allows the sale of these products, thus capitalizing on the growing interest in psychedelics for both recreational and potential therapeutic use. They have established retail partnerships and developed a direct-to-consumer sales strategy through online and physical stores. Additionally, Red Light Holland engages in educational and community-building activities to promote responsible use, which helps to grow their customer base and brand loyalty. The company may also explore potential international expansion and partnerships to diversify and increase their revenue streams.

Red Light Holland Financial Statement Overview

Summary

Red Light Holland shows revenue growth but struggles with profitability and cash flow. The strong equity position provides stability, yet persistent net losses and negative cash flows indicate a need for strategic improvements in operational efficiency and profitability.

Income Statement

Red Light Holland shows a positive revenue growth trajectory, increasing from 2020 to 2024. However, the company struggles with negative net profit margins and EBIT, indicating profitability challenges. The TTM data highlights a gross profit margin of 31.22%, but the net income remains negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 83.15% in the TTM period, reflecting financial stability. However, the debt-to-equity ratio is low at 0.10, showing limited leverage but a need for more efficient capital utilization. Return on equity is negative due to consistent net losses, indicating underperformance in generating returns on shareholder investments.

Cash Flow

Free cash flow remains negative, though showing some improvement over the years. The operating cash flow to net income ratio is negative, highlighting challenges in converting income into cash. Despite the pharmaceutical industry’s capital demands, the cash flow situation signals a need for better cash management and operational efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.52M	4.75M	3.95M	2.33M	110.96K	0.00
	Gross Profit
811.13K	2.02M	1.71M	617.68K	19.35K	0.00
	EBIT
-7.43M	-6.19M	-4.95M	-9.51M	-4.65M	-325.17K
	EBITDA
-6.63M	-5.26M	-4.32M	-8.55M	-4.61M	0.00
	Net Income Common Stockholders
-12.41M	-7.63M	-5.40M	-14.37M	-1.64M	-325.17K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.37M	14.17M	18.53M	26.62M	32.78M	1.96M
	Total Assets
24.08M	24.08M	30.14M	32.94M	36.30M	3.97M
	Total Debt
811.05K	1.72M	1.77M	1.50M	866.50K	86.77K
	Net Debt
-13.56M	-12.46M	-16.72M	-24.59M	-30.32M	-1.88M
	Total Liabilities
3.82M	3.82M	3.80M	3.78M	2.24M	5.11M
	Stockholders Equity
20.07M	20.07M	26.06M	28.48M	34.06M	-1.14M
Cash Flow		Free Cash Flow
-7.73M	-3.92M	-6.45M	-5.28M	-3.63M	-238.35K
	Operating Cash Flow
-4.79M	-3.23M	-4.39M	-4.88M	-3.36M	-238.35K
	Investing Cash Flow
-2.57M	-650.43K	-3.17M	-582.74K	-201.55K	-1.80M
	Financing Cash Flow
341.15K	-206.95K	-114.16K	451.76K	32.78M	4.01M

Red Light Holland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRIP, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.59 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:TRIP.

Red Light Holland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
TRIP	45 Neutral	C$14.03M	―	-30.44%	―	13.57%	-14.29%
CYBN	42 Neutral	C$1.97M	―	-58.79%	―	―	51.37%
RVV	35 Underperform	C$2.09M	―	-66.49%	―	―	-4.84%

Red Light Holland Corporate Events

Red Light Holland Reports Q3 2025 Results, Highlights Strategic Growth

Red Light Holland reported its financial results for the third quarter of 2025, highlighting a cash balance of $13.3 million and a revenue of $1.2 million for the quarter. Despite a slight decline in quarterly revenue due to lower wholesale mushroom sales and a returned purchase order from Costco Canada, the company achieved a year-over-year revenue increase of 5.1%. The company also reduced its EBITDA loss, reflecting its commitment to sustainable growth and strategic partnerships. Red Light Holland’s diversified portfolio and upcoming partnerships, including a re-order with Costco Canada and a new purchase order with a major U.S. retailer, position it for continued success in the emerging legal psilocybin market.

Red Light Holland’s Happy Caps Secures Health Canada Nod for New Mushroom Gummies

Red Light Holland’s subsidiary, Happy Caps, has gained Health Canada’s approval for their Functional Daily mushroom gummies, featuring Shiitake and Lion’s Mane mushrooms. This approval highlights the product’s compliance with safety, effectiveness, and quality standards, potentially enhancing the company’s market position in the health and wellness industry.

Red Light Holland Partners with Irvine Labs to Boost Psilocybin Product Shelf Life for Global Market Expansion

Red Light Holland has announced a new research and development plan in collaboration with Irvine Labs Inc., a DEA-registered and FDA-compliant facility. This partnership aims to enhance the shelf life of psilocybin products, which will facilitate commercialization in emerging legal markets. By leveraging proprietary dehydration and packaging techniques, the company intends to meet the growing demand for innovative mental health solutions. The move is expected to position Red Light Holland strategically within the global market for naturally derived therapeutic products.

Red Light Holland Appoints New CFO, Eyes Expansion in Psilocybin Market

Red Light Holland has appointed Keith Li as the new Chief Financial Officer, bringing over 15 years of experience in corporate accounting and financial strategy to the company. This leadership change is part of the company’s focus on advancing psilocybin access in emerging markets, supported by strong financial leadership. The company is also enthusiastic about its partnership with Irvine Labs, which could enable significant R&D and commercialization opportunities for psilocybin. The appointment of Li is expected to enhance financial efficiencies, support revenue expansion, and strengthen Red Light Holland’s position in the transformative natural plant and fungi medicines industry.