Wishpond’s turnaround will happen in 2026, this analyst says

Paradigm Capital’s Daniel Rosenberg reiterated a “Buy” rating and $0.50 target on Wishpond Technologies (Wishpond Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:WISH) in a Nov. 30 research note, saying the company is sustaining profitability through restructuring while positioning its new AI-driven sales product for a larger market opportunity.

Wishpond, a Vancouver-based provider of marketing software for small businesses, reported third-quarter revenue of $3.4-million, down 33% year over year and in line with expectations. Gross margin held at 71%, and Adjusted EBITDA was breakeven, modestly ahead of consensus, supported by cost reductions implemented earlier in 2025.

Rosenberg said the company remains focused on shoring up its balance sheet. Wishpond ended Q3 with $2-million in net debt and disclosed a breach of a financial covenant on its credit facility. Management extended the cure period to December 2026 and is working toward a resolution. Operating cash flow was a modest ($0.1-million) outflow.

Rosenberg said the most material development is the planned spin-out of SalesCloser AI, Wishpond’s real-time conversational sales assistant, launched in April. Under a signed non-binding LOI with G2M Cap, Wishpond expects to receive 22.7 million shares at $0.75 apiece in the new entity, equivalent to ~68% ownership. SalesCloser has also begun a bridge financing round at $0.60 per share. Rosenberg said the move recapitalizes the AI business for growth while freeing resources for Wishpond’s core operations.

Wishpond also signed a non-binding LOI to divest the assets of Viral Loops, its referral-marketing platform acquired in 2022. Proceeds will be directed toward debt reduction and reinvestment.

Rosenberg said management’s priorities for the next year include improving margins, growing recurring revenue, reducing churn, and accelerating adoption of both SalesCloser AI and Wishpond’s core platform.

Wishpond trades at 0.5× EV/2026 sales, well below the 2.5× median for CRM and marketing-software peers. Rosenberg values the company at 1.8× EV/2026 sales, maintaining his Buy rating and $0.50 target.

“While the turnaround has taken longer than anticipated, we believe these moves will allow for a stable footing in 2026,” he said.

Rosenberg said Wishpond should generate $(0.4)-million in Adjusted EBITDA on $14.4-million of revenue in fiscal 2025, improving to $0.9-million (previously $0.1-million) on $17.0-million of revenue in fiscal 2026, with longer-term potential of $1.7-million in EBITDA on $20.8-million in revenue.

-30-