Is IC Group Holdings undervaled?

Beacon Securities analyst Gabriel Leung is keeping his eye on IC Group Holdings saying the company offers exposure to consumer engagement, mobile messaging and risk management software.

Winnipeg-based IC Group is a marketing technology company serving customers across mobile messaging, digital promotions and live event experiences.

The company operates through three divisions: IC Engage, IC Mobile and IC Insurance and serves more than 150 customers, including several Fortune 500 companies and more than 100 live event operators across sports leagues. More than 75% of revenue comes from customers outside Canada.

In a recent watchlist report, Leung argued that IC Group has built a scalable platform with a high proportion of recurring revenue. About 68% of trailing-12-month revenue of $30.4-million is recurring.

Revenue rose 50% in calendar 2025 and more than 25% in the first half of 2026. Consolidated gross margins are about 42%, with management seeing potential upside from scale and margin improvements in IC Mobile.

IC Engage delivers digital promotions and consumer engagement programs across digital channels, customer ecosystems and live events. The division generated Q2 2026 revenue of $3.3-million, up 12% year-over-year, with gross margin of 75%.

IC Mobile is one of three Tier 1 mobile aggregators in Canada, with direct connections to major Canadian wireless carriers. The business supports SMS, MMS, RCS, WhatsApp, Apple Business Messaging and other channels.

Leung believes IC Mobile could benefit from rising rich communication services adoption and growing demand for Canadian-owned data infrastructure. The division reported Q2 revenue of $3.9-million, up 25% year-over-year, though gross margin fell to 9.6% because of mix, carrier costs and gateway investments.

IC Insurance provides specialty insurance products tied mainly to sports, entertainment, promotions and live events. The business operates as a Coverholder for Lloyd’s of London and Aviva Canada, but does not take underwriting risk.

The analysts noted that the company remains EBITDA positive, while trailing-12-month free cash flow was negative $479,000, including $1.2-million of capitalized R&D.

The stock currently trades at about 0.9 times trailing-12-month revenue.

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