A weekly look at some small-cap stocks making news – or about to.
Canada’s S&P/TSX Small Cap Index TXTW-I is up 21 per cent over the past 52 weeks. The index reached a record high of 915.92 on June 18. The Russell 2000 in the U.S. is up about 8 per cent over the past 52 weeks.
Small-cap spotlight
Tecsys Inc. (TCS-T) shares are expected to be active today after the Montreal-based software company reported record revenue and higher profit and earnings for its fourth quarter ended April 30, yet the profit and EBITDA missed expectations. The company also lowered its 2026 adjusted EBITDA margin guidance.
After markets closed on Thursday, Tecsys reported total revenue of $46.6-million driven by a 29-per-cent increase in software-as-a-service (SaaS) revenue. The result compared to revenue of $44-million for the same quarter last year and beat expectations of revenue of $45.9-million, according to S&P Capital IQ estimates.
Net profit was $1.7-million or 11 cents per share, which missed expectations of 15 cents and compared to $300,000 or 2 cents per share a year ago.
Adjusted EBITDA was $4.3-million, which was below expectations of $4.5-million and compared to $2.8-million reported in the fourth quarter of last year.
“We had a strong $6.5-million SaaS bookings quarter, with record Q4 revenue and 55-per-cent Q4 adjusted EBITDA growth underscoring our solid execution,” chief financial officer Mark Bentler stated in a release.
He also stated that the company will increase its investment in research and development, as well as marketing, in fiscal 2026 to drive SaaS margin and growth.
As a result, the company revised its fiscal 2026 adjusted EBITDA margin guidance to 8 to 9 per cent, down from 10 to 11 per cent previously. It also forecast adjusted EBITDA growth in the range of 20 to 30 per cent and total revenue growth between 8 to 10 per cent.
The company’s cloud solutions are used in areas such as resource planning, supply chain and warehouse management across various industries including health care, retail and transportation.
National Bank Financial analyst John Shao, who has an ”outperform” (buy) and $50 target on the stock, called it a “decent” quarter with both revenue and adjusted EBITDA above his forecasts. He also said the two leading indicators – SaaS and professional services bookings – were both near their record highs, but described the fiscal 2026 guidance as “somewhat soft.”
Mr. Shao said he’ll be looking for more insight in the earnings call this morning “to determine whether this guidance reflects a certain level of conservatism or macro-related consideration.”
Ventum Capital Markets analyst Amr Ezzat, who has a “buy” rating and $52 target, described the earnings as “mixed” with a “modest top-line beat and strong gross margin performance, offset by softer EBITDA and lowered [fiscal] 2026 guidance.”
In a note, he said revenue came in slightly ahead of expectations, while EBITDA “missed modestly” due to heavier operational investments, “despite standout gross margin performance.” He said SaaS revenue grew in line with his forecast.
He said management’s project SaaS growth of 20 to 22 per cent falls short of his forecast of 27 per cent.
“SaaS, the company’s high-margin and high-growth engine, continues to outpace the rest of the business and reinforces the shift toward higher-quality revenue streams we have long emphasized,” he wrote, but added that any signs of deal delays or pipeline softness in the U.S. health care system could be an issue for the stock.
In the past 52 weeks, the stock has traded between a high of $47.51 and a low of $33.37.
Small-cap summary
Other small caps making news this week:
Canfor Corp. (CFP-T) announced after markets closed on Thursday that it will permanently close the Estill and Darlington sawmills in South Carolina, effective August, 2025.
“These closures follow an extended period of persistently weak market conditions and sustained financial losses, which have made continued operations at these facilities no longer viable,” the company stated.
It said about 290 employees will be affected by the closures and will reduce the company’s U.S. lumber production capacity by 350 million board feet annually.
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Corus Entertainment Inc. CJR-B-T shares fell this week after the radio and TV broadcaster reported a drop in third-quarter earnings and warned of more challenges ahead in its business.
Before markets opened on Thursday, Toronto-based Corus reported a loss of $7.3-million or 4 cents per share for its third quarter ended May 31, compared to a loss of $769-million or $3.86 last year when it took a $960-million non-cash charge. On an adjusted basis, the company reported a profit of $12.6-million or 6 cents compared to a loss of $19.9-million or 10 cents last year.
Revenue of $297.8-million was down 10 per cent from the year-ago quarter, which was slightly below expectations.
In its outlook, the company said it expects geopolitical and economic uncertainty and the ongoing oversupply of premium digital video inventory from foreign competitors will lead to continued lower advertising demand.
“As such, the year-over-year percentage decline in television advertising revenue in the fourth quarter of fiscal 2025 is expected to be in the 20-per-cent range,” it stated.
Corus also stated that it will continue with cost-reduction initiatives and anticipates a decline in general and administrative expenses of 10 to 15 per cent for the fourth quarter compared with the same period last year.
RBC analyst Drew McReynolds said results for the quarter were ahead of forecast mainly due to strong TV margins while the company’s fourth-quarter outlook for TV advertising was lower than analyst projections.
“We view the better results but more challenged outlook as largely neutral to a modest positive for the shares at current levels,” he said in a note.
In the past 52 weeks, the stock has traded between a high of 26 cents and a low of 7.5 cents.
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Evertz Technologies Ltd. (ET-T) reported fourth-quarter earnings that beat expectations.
After markets closed on Wednesday, the audio and video technology company reported revenue of $127.8-million for the quarter ended April 30, an increase of 4 per cent from the prior year and ahead of expectations of $126.7-million.
Net earnings of $13-million or 17 cents per share compared to $13.9-million or 18 cents a year earlier. The expectation was for earnings of 16 cents.
Canaccord Genuity analyst Robert Young increased his target to $14.25 from $13 and maintained his “buy” rating after the earnings report.
“We believe Evertz’s cloud and services momentum, along with strong backlog levels, justifies a premium multiple,” he wrote in a note.
In the past 52 weeks, the stock has traded between a high of $14 and a low of $9.45.
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Clairvest Group Inc. (CVG-T) reported net income of $20.7-million or $1.46 per share, down from $26.1-million or $1.78 per share a year ago.
The private equity investment firm said its book value was $1.25-billion or $88.30 per share as at March 31, compared with $1.23-billion or $86.78 per share as at Dec. 31, 2024 and $1.18-billion or $80.16 per share as at March 31, 2024.
In the past 52 weeks, the stock has traded between a high of $75.90 and a low of $66.
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Black Diamond Group Ltd. (BDI-T) announced a bought deal offering of nearly $39-million after the markets closed on Wednesday.
The company said it has an agreement with Raymond James Ltd., as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters, that will buy about 4.05 million common shares for $9.10 each.
The company said the net proceeds will be used to fund capital expenditures, potential acquisitions, organic growth initiatives, debt reduction, working capital, and for general corporate purposes.
In the past 52 weeks, the stock has traded between a high of $10.27 and a low of $7.60.
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Chorus Aviation Inc. (CHR-T) shares rose this week after the company announced it would start paying a dividend.
After the markets closed on Wednesday, the company announced that it would pay a quarterly dividend of 8 cents on Aug. 15 to shareholders of record as of July 31.
CEO Colin Copp said the dividend announcement is a “further concrete step we have taken to enhance shareholder value – in addition to debt reduction and share buybacks – since the sale of our Regional Aircraft Leasing business last year.”
He also stated that management is focused on growing the company’s earnings and cash flows over time and aims to distribute approximately 25 per cent of the company’s free cash flow after debt repayments as dividends to shareholders.
“This reflects our commitment to delivering value to our shareholders while investing in future growth,” Mr. Copp stated.
In the past 52 weeks, the stock has traded between a high of $24.08 and a low of $16.73.
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AGF Management Ltd. (AGF-B-T) reported higher profit and revenue for its second quarter ended May 31, but the results were below expectations.
Before markets opened on Wednesday, the company reported adjusted net income of $26-million or 39 cents per share compared to $23.6-million or 35 cents per share from the prior-year period. The result was below expectations of 41 cents.
Adjusted revenue of $99-million was up from $97-million a year earlier.
Adjusted EBITDA of $39.5-million was below expectations of $42-million and compared to $37-million a year ago.
In the past 52 weeks, the stock has traded between a high of $13.45 and a low of $7.37.
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Novagold Resources Inc. (NG-T) reported a loss of US$54.3-million or 15 cents US per share for the quarter ended May 31. That compared to a loss of US$13.7-million or 4 cents US a year ago.
Novagold and Paulson Advisers LLC recently bought Barrick Mining Corp.’s 50-per-cent interest in Donlin Gold LLC, increasing Novagold’s stake to 60 per cent from 50 per cent.
In the past 52 weeks, the stock has traded between a high of $6.99 and a low of $3.22.
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Blackberry Ltd. (BB-T, BB-N) shares rose this week after the company reported stronger-than-expected revenues and operating profits in its fiscal first quarter and its first net profit in more than three years.
The company reported Tuesday after the close of markets that it generated revenue of US$121.7-million in its fiscal first quarter ending May 31, down 1.4 per cent year over year but nearly US$10-million above consensus estimates. Both of its operating divisions, which make software for vehicles and for secure communications users such as government agencies, exceeded the company’s prior forecasts and analyst estimates.
Read the full story from the Globe’s Sean Silcoff here,
CIBC analyst Todd Coupland said in a note that he’s encouraged by “better visibility,” including a 55-per-cent increase in its QNX pipeline – the division that provides safety software systems in the auto industry – and stronger prospects for its cybersecurity solutions segment, driven by higher defence spending.
“Together they confirm our investment thesis and are positive for Blackberry shares,” Mr. Coupland wrote. He has an “outperformer” (buy) and US$6 target on the stock.
In the past 52 weeks, the stock has traded between a high of $8.86 and a low of $2.89 on the Toronto Stock Exchange.
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Equitable Bank chief executive officer Andrew Moor – who built Canada’s largest challenger to the Big Six banks – died unexpectedly over the weekend at age 65.
Mr. Moor, who led EQB Inc. (EQB-T) as CEO for 18 years, was known for growing the lender into a major national business and for recognizing and developing talent.
The bank confirmed his death in a statement Tuesday morning and named Marlene Lenarduzzi, the bank’s chief risk officer, as interim CEO effective immediately.
Read the full story from the Globe here
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TC Transcontinental (TCL-A-T) announced this week that it acquired Middleton Group, a provider of retail services and point-of-purchase display solutions.
“This strategic acquisition supports TC Transcontinental’s growth of its in-store marketing (ISM) activities, a market with attractive growth potential where the company already holds a leadership position in Canada,” it stated in a release after markets closed on Monday.
“MG won’t necessarily move the needle materially,” National Bank Financial analyst Adam Shine, who has an “outpeform” (buy) and $24 target on the stock, said in an note this week, “but it does bring a complementary customer base and TCL is likely going to improve its margins in due course.”
In the past 52 weeks, the stock has traded between a high of $22.33 and a low of $14.75.
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Sienna Senior Living Inc. (SIA-T) announced this week that it had acquired Credit River Retirement Residence, a 133-suite retirement residence that includes 84 independent living, 25 assisted living and 24 memory care units in Streetsville, Ont.
In the past 52 weeks, the stock has traded between a high of $18.85 and a low of $14.10.
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Vizsla Silver Corp. (VZLA-T) announced a US$100-million bought-deal offering this week
Before markets opened on Monday, the company announced that it had reached an agreement with Canaccord Genuity, as the sole bookrunner on behalf of itself and a syndicate of underwriters, to purchase approximately 33 million shares at US$3 each.
The company stated that it will use the net proceeds to advance the exploration, drilling, and development of its Panuco Project.
In a note, National Bank Financial analyst Don DeMarco said the improved liquidity “lends financing de-risking, provides more competitive footing for negotiating debt or other financing options.”
He maintained his “outperform” (buy) rating and increased his target to $6 from $5.75 after the announcement.
In the past 52 weeks, the stock has traded between a high of $5 and a low of $2.33
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Spin Master Corp. (TOY-T) announced this week that it has appointed Christina Miller, a long-serving board member, as CEO, effective July 7. It said current CEO Max Rangel is preparing to step down.
“TOY has a new CFO since May and will have a new CEO in July,” National Bank Financial analyst Adam Shine said in a note this week. “This may get communicated as a planned leadership transition, but the Street was only aware of the CFO transition which was initiated last year. Given where the stock sits, these moves are likely to be deemed as positive.”
In the past 52 weeks, the stock has traded between a high of $35.44 and a low of $20.97.
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Upcoming small-cap earnings:
July 11: Velan Inc. (VLN-T)
July 29: First National Financial Corp. FN-T, Morguard North American Residential REIT (MRG-UN-T)
July 30: First Capital REIT (FCR-UN-T), Morguard REIT (MRT-UN-T)
July 31: Aecon Group Inc. (ARE-T), Real Matters Inc. (REAL-T)
Aug 6: Killam Apartment REIT (KMP-UN-T)
Aug. 11: K92 Mining Inc. (KNT-T)
Aug. 12: Westport Fuel Systems Inc. (WPRT-T)
Aug. 13: H&R Real Estate Investment Trust (HR-UN-T)
– with files from The Canadian Press