Wishpond Technologies keeps “Buy” rating at Beacon Securities

Beacon Securities analyst Gabriel Leung maintained a “Buy” rating and C$0.75 target on Wishpond Technologies (Wishpond Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:WISH) on May 23 after the company posted Q1 2025 results in line with expectations, despite a sharp year-over-year revenue decline driven by its shift toward AI-powered products.

Wishpond reported Q1 2025 revenue of $4.1-million and a loss of $177,000 in EBITDA, matching Beacon’s revenue forecast but falling short of its expected $143,000 loss. Revenue was down 32% year-over-year and 13% quarter-over-quarter, mainly due to the company phasing out lower-margin email delivery clients, cutting its sales team and shifting focus to AI-driven products like SalesCloser AI.

“While we look favourably on the company’s strategy of transitioning its product portfolio to incorporate more AI functionality, we also acknowledge potential risks around execution,” Leung said. “That said, if the company is successful with its transition, we believe it could result in a more profitable business with a large and stickier (i.e. less churn) customer base, all of which could drive a higher valuation multiple.”

Leung said the company expects revenue to return to growth in the second half of 2025, helped by rising SalesCloser sales, easier year-over-year comparisons and the rollout of its AI-based marketing and sales platform aimed at businesses of all sizes. Wishpond also reported that SalesCloser reached $1-million in annual recurring revenue, up from $800,000 in late April, with 150 customers and over 2,600 AI-powered agents in use. It’s the company’s fastest-growing product, with momentum expected to continue.

“The company continues to explore new sales outreach initiatives and strategic channel partnerships to accelerate the growth of SalesCloser (for example, its recent collaboration agreement with Venops, a leader in healthcare regulatory compliance and consulting services).”

Leung expects Wishpond Technologies to post an Adjusted EBITDA loss of $114,389 on $17.5-million in revenue for fiscal 2025. He forecasts those figures will improve to $540,497 in EBITDA on $20.4-million in revenue in 2026.

Vancouver-based Wishpond Technologies is a SaaS company that offers an all-in-one platform for marketing, lead generation, and sales conversion.

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