Versus Systems Inc. (VS) AI Stock Analysis
VS AI stock analysis summary
AI ResearchVersus Systems Inc. (VS) is a business-to-business engagement software provider with a market capitalization of $6.3M. While annual revenue rebounded to $2.2M in FY2025 from $57,249 in FY2024, the business continues to face losses with a net income of -$1.8M. For the trailing twelve months ended June 30, 2026, revenue stood at $1.5M alongside an operating margin of 39.8%.
- Market cap
- $6.3M
- Revenue (TTM)
- $1.5M
- P/E
- —
- 1Y return
- -51.4% S&P 500 16.8%
- Avg. target
- $1.98 95.7% vs last close
Bull case
- Revenue expanded 3713.9% in FY2025 to $2.2M, supported by a 99.2% gross margin.
- The balance sheet showed a current ratio of 4.00 with $1.4M in cash and short-term investments as of June 30, 2026.
- The mean price target of $1.98 indicates potential upside of 95.7% over the $1.01 closing price.
Bear case
- The stock has dropped 51.4% over the past year and 99.9% over five years, significantly trailing the S&P 500.
- Quarterly revenue fell 24.7% year-over-year in the period ended June 30, 2026, alongside an annual net income of -$1.8M in FY2025.
- Free cash flow remained negative at -$2.7M in FY2025 while the 5-year share count increased by 387.6%.
What Versus Systems does
Versus Systems Inc. develops and operates a business-to-business software platform primarily serving markets across the United States and Canada. Its core offering, eXtreme Engagement Online, enables live event producers, professional sports franchises, video game publishers, and interactive media creators to embed in-game prizing and rewards into their content. These rewards are distributed based on completed in-content challenges to elevate user engagement. Beyond video games, the platform supports gamification strategies for interactive media creators to deepen audience relationships. Versus Systems markets its platform through a direct sales organization from its headquarters in Vancouver, Canada.
Growth and profitability
Versus Systems has experienced significant revenue volatility across recent fiscal years. After declining from $1.1M in FY2022 to $270,625 in FY2023 and $57,249 in FY2024, annual revenue climbed 3713.9% to reach $2.2M in FY2025. Gross margin expanded to 99.2% in FY2025, while operating margin improved to -99.0% from -7923.6% in FY2024. Net income was -$1.8M in FY2025, compared with -$4.0M in FY2024 and -$22.5M in FY2022. For the trailing twelve months, revenue was $1.5M with a profit margin of -113.2%. In the latest quarter ended June 30, 2026, quarterly revenue fell 24.7% year-over-year, and quarterly earnings declined 30.4%.
Balance sheet and cash flow
As of June 30, 2026, Versus Systems held $1.4M in cash and short-term investments, with total assets of $4.3M and shareholders' equity of $11.8M. The company maintained a current ratio of 4.00. Free cash flow was -$2.7M in FY2025, reflecting operating cash flow of -$2.1M and capital expenditures of $609,000. Additionally, the company's share count expanded by 387.6% over a 5-year span.
Valuation and performance
Versus Systems trades at a price-to-sales multiple of 4.1x and an enterprise value to revenue multiple of 3.6x, compared to a median price-to-sales multiple of 2.8x for its US-listed Technology peers. The stock trades at a price-to-book multiple of 0.6x. Over the past year, the stock declined 51.4%, while the S&P 500 gained 16.8%. Over a 5-year period, the shares fell 99.9%, compared to an 83.0% gain for the S&P 500.
What analysts expect
Versus Systems has a mean price target of $1.98, representing an upside of 95.7% from its last close of $1.01 on October 16, 2026. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is scheduled for November 13, 2026.
Key risks and what to watch
- Cash reserves stood at $1.4M as of June 30, 2026, relative to an annual operating cash outflow of -$2.1M in FY2025.
- The 5-year share count change of 387.6% indicates past equity dilution to support operations.
- The company recorded a trailing twelve-month profit margin of -113.2% and EPS of -$0.35.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this VS AI stock analysis
This page is an AI-written research summary of Versus Systems Inc. (VS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: VS income statement, VS balance sheet, VS key metrics, VS chart. See the VS stock overview for the latest quote and news.
VS AI stock analysis FAQ
What is Versus Systems' core product?
Versus Systems develops eXtreme Engagement Online, a business-to-business platform that enables video game publishers, live event producers, and interactive media creators to offer gamified in-content rewards and prizing.
How did Versus Systems perform financially in FY2025?
In FY2025, revenue rose to $2.2M, up from $57,249 in FY2024. The net income for the year was -$1.8M, representing a net margin of -82.1%.
What is the valuation of Versus Systems compared to its peer group?
Versus Systems carries a price-to-sales multiple of 4.1x, higher than the median of 2.8x for its US-listed Technology peers. Its enterprise value stands at $5.5M.
Does Versus Systems pay a dividend?
No, Versus Systems does not pay a dividend.
When is the next earnings release for Versus Systems?
The company's next earnings date is November 13, 2026.