A look at some small-cap stocks making news - or about to.
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 50 per cent over the past 52 weeks. It hit a record 1,496.55 on June. 2. The Russell 2000 in the U.S. is up about 33 per cent over the past 52 weeks. It hit a record of 3,046.59 on July 1.
Small-cap summary:
MTY Food Group Inc. (MTY-T) shares could be active in Friday trading after the Montreal-based restaurant operator reported second-quarter results that missed expectations. It also said it plans to close 68 underperforming corporate-owned locations.
Before markets opened on Friday, the company behind brands such as Thaï Express, Cold Stone Creamery, Taco Time and Jugo Juice, reported revenue of $279.9-million for its second quarter ended May 31, down from $304.9-million in the same quarter last year. Same-store sales fell 2.1 per cent year over year. The result missed expectations of $290.4-million, according to S&P Capital IQ.
Net income of $15.4-million or 67 cents per share for the quarter ended May 31 compared to net income of $57.3-million or $2.49 per share in the same quarter last year.
On an adjusted basis, MTY says it earned 97 cents per share in its latest quarter compared with an adjusted profit of $1.17 per share a year earlier. The expectation was for adjusted EPS of $1.12.
“Our second quarter results reflected continued pressure on consumer spending and a challenging operating environment,” said CEO Eric Lefebvre.
Mr. Lefebvre also said the company plans to close 68 underperforming corporate-owned locations over the next nine months to improve quality and profitability.
“This is a decisive step to address underperforming assets and improve the overall quality of our corporate store portfolio,” the CEO stated. “While this action will reduce our store count in the near term, we believe it will strengthen the business over the long term by reducing losses and allowing us to focus resources on our strongest opportunities. We remain committed to disciplined execution, strong cash generation and creating long-term value for shareholders.”
At the end of the second quarter, MTY’s network had 7,040 locations in operation, of which 6,808 were franchised or under operator agreements and 232 were corporate-owned. The geographical split among MTY’s locations was 57 per cent in the United States, 35 per cent in Canada and 8 per cent international.
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Cineplex Inc. (CGX-T) reported that its second quarter box-office revenue rose 11 per cent year-over-year, driven by popular films such as Toy Story 5, Obsession and Backrooms.
After markets closed on Thursday, the movie theatre company said box office revenue came in at $176.2-million for the quarter ended June 30, up from $158.5-million for the same quarter last year.
Cineplex said industry-wide momentum accelerated throughout the second quarter, with the domestic box office tracking at its highest year-to-date level since 2019. Last month also saw the highest June box office performance since 2019, before the pandemic.
“We are encouraged by the sustained demand we continue to see from moviegoers for premium, out-of-home entertainment experiences,” said CEO Ellis Jacob.. “The momentum in the first half of 2026 reflects the power of diverse and compelling content, but also the value audiences place on experiencing it in a premium theatrical environment.”
Looking ahead, Mr. Ellis said the company is seeing strong demand for movies such as The Odyssey and Spider-Man: Brand New Day. He’s also optimistic about upcoming releases such as Moana, The Hunger Games: Sunrise on the Reaping, Focker-in-Law, Avengers: Doomsday and Dune: Part Three.
TD analyst Derek Lessard said in a note he expects Cineplex to continue building momentum in the second half of the year “on the back of strong content and sustained consumer demand.”
He wrote: “Original horror titles Obsession and Backrooms substantially exceeded expectations and posted impressive holds after opening week. These performances support our view that the improving film slate will continue to drive attendance and box office results. Guests are treating themselves at the theatre. In addition to strong BO, CGX recorded its highest Q2 theatre food service revenue ever and saw guests increasingly choosing premium screen formats.“
Added Mr. Lessard: In our view, this reflects both CGX’s broad premium movie and concession offerings and consumers’ willingness to spend, especially as moviegoing remains a relatively affordable entertainment option."
He has a “buy” and $16 price target on the stock.
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Velan Inc. (VLN-T), the Montreal-based maker of industrial valves, reported lower revenue and swung to a loss in its first quarter ended May 31.
After markets closed on Thursday, the company reported sales of $57.8-million for the quarter, down from $72.2-million for the same quarter last year.
Its net loss of $9.4-million or 44 cents per share compared to net income of $17.8-million or 83 cents per share in the same period last year. Velan said last year’s first quarter included a $23.1-million non-recurring tax recovery related to the disposal of the French subsidiaries. Its adjusted net loss was $7-million or 32 cents versus a profit of $90,000 or nil per share last year.
Adjusted EBITDA of negative $2.1-million, compared to positive $3.8-million last year.
Velan said its backlog of $275.1-million is down from $283.3-million at the end of the previous quarter.
“Velan’s first quarter results were affected by the geopolitical and regional conflicts, which impacted new order bookings, delivery schedules, and profitability,” said CEO Rishi Sharma. “We estimate that most of the shipments that were deferred to future periods should be recaptured by fiscal year-end.”
He also said uncertainty “significantly constrained bookings and reduced maintenance, repair and overhaul (MRO) requirements in North America as lower refinery utilization due to the Middle East situation limited the available resources required to carry out such activities.”
Still, the company said it’s “well positioned to capitalize on pent-up demand as market uncertainty subsides and we are looking forward to actively participate in efforts to restart idled projects or rebuild damaged infrastructure.”
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Richelieu Hardware Ltd. (RCH-T) shares closed down 9 per cent on Thursday after the company reported second-quarter results that missed expectations.
During market hours on Thursday, the Montreal-based retailer reported sales of $532.1-million for the quarter ended May 31, up from $512.2-million for the second quarter of 2025. It said the 4-per-cent increase was driven roughly equally by acquisitions and internal growth. The result was below expectations of $543.3-million, according to S&P Capital IQ estimates.
Net earnings attributable to shareholders came in at $23.2-million, up 3.2 per cent from last year. Earnings per share came in at 42 cents per share, below expectations of 47 cents and up from 41 cents a year earlier.
“The current economic environment is also creating attractive acquisition opportunities in our target markets,” stated CEO Richard Lord. “We continue to evaluate several opportunities and remain well positioned to pursue those that meet our strategic criteria and contribute to our long-term growth.”
The company noted that it completed four acquisitions so far in fiscal 2026.
In a first-look note titled "Two steps forward, two steps back," National Bank Financial analyst Zachary Evershed said EBITDA came in at $56.1-million on 10.6 per cent margins, down 20 basis points year over year and below his call for 11.1 per cent.
“While the company is passing tariffs onto customers, it is doing so on a dollar-for-dollar basis, seeing sales dollars rise to the same magnitude as COGS [cost of goods sold], thus causing gross margins to compress,” he wrote. “Q2 is the second quarter in a row to show margin compression, and we note that EBITDA dollars rose only a nominal 1.7% y/y, undermining hopes for a continuation of the margin recovery exhibited in H2/25.”
He has a “sector perform” (hold) on the stock “as the company trades at a fulsome valuation.”
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Kits Eyecare Ltd. (KITS-T) stock closed up nearly 5 per cent on Thursday after the Vancouver-based glasses and contact lens company reported preliminary second-quarter results that were ahead of analysts’ expectations.
Before markets opened on Thursday, Kits said revenue for the quarter ended June 30 was up 17.3 per cent year ove ryear to around $58.2-million. The expectation was for revenue to come in at $57.5-million, according to S&P Capital IQ.
Kits said its glasses revenue grew by about 50 per cent year-over-year to $10.8-million.
Adjusted EBITDA exceeded $2.6-million, or 4.5 per cent of revenue, the company stated.
“Strong cash generation in the quarter drove the company’s cash balance to exceed $27.3-million at the end of the quarter, and no debt,” the company stated, adding that it expected to report official results for the quarter in early August.
Canaccord Genuity analyst Luke Hannan reiterated his “buy” rating and $22 target after the news.
“While there are no perfect public comparable companies to KITS, we believe the broader eyewear retail peer set is an appropriate barometer, with the group trading at an average of 3.1x FY+1 sales,” he wrote. “In our view, KITS should trade at a premium to the group given its earlier stage in the growth cycle, higher expected revenue growth, healthy balance sheet, and strong management team.”
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Neo Performance Materials Inc. (NEO-T) stock closed up 6 per cent on Thursday after the company raised its full-year guidance for fiscal 2026.
Before markets opened on Thursday, the Toronto-based industrial materials company said its adjusted EBITDA guidance is now expected to be in the range of $140-million to $150-million, up from its prior guidance range of $100-million to $110-million. It noted that’s an increase of 38 per cent at the midpoint and approximately 90 per cent above full-year 2025 adjusted EBITDA of $76-million.
It said the increase reflects strong operating performance through the first part of the year and “sustained higher-than-expected pricing” across its critical materials portfolio.
“This increase in our full-year adjusted EBITDA guidance reflects healthy demand, favourable pricing, and disciplined execution across all three business segments,” said CEO Rahim Suleman. “Our rare metals business, which focuses on critical materials, continues to benefit from a strong pricing environment. Having secured hafnium, gallium and tantalum inventory, alongside increased contracted volumes, we have greater visibility and added confidence as we look to the second half of 2026.”
The company said it expects to report its second-quarter financial results on Aug. 11.
“We believe the 38% increase in midpoint EBITDA to $145 mm is a positive update in terms of the magnitude of the increase and the timing of the increase,” Stifel analyst Ian Gillies said in a July 9 note. “The management team has done an impressive job managing the operations and financial performance, and they have delivered nine consecutive beats. We believe they are well positioned to meet and likely exceed the new guidance.”
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Data Communications Management Corp. (DCM-T) shares closed up 6 per cent on Thursday after the company announced a deal to buy Octacom Ltd. for $54-million on a cash-free and debt-free basis.
The company also said it has entered into a fifth amended and restated credit agreement with a Canadian chartered bank, which provides for up to $160-million in credit facilities, a portion of which has been used to fund the transaction.
“We believe this acquisition will accelerate the company’s strategic shift toward a higher-growth, higher-margin, and higher recurring-revenue business,” stated CEO Richard Kellam. “At a time when enterprise clients are increasing their investment in automation, digitization and AI-enabled workflow, this transaction enhances our capabilities in intelligent document automation and meaningfully expands DCM’s potential addressable market.
Octacom is a Canadian provider of intelligent document processing and digital solutions.
Acumen Capital analyst Nick Corcoran views the acquisition of Octacom positively.
“Octacom provides DCM with an industry-leading IDP solution that can be sold through its existing customer base,” he wrote in a note.
He maintained his “buy” rating and raised his target to $3.20 from $2.40 following revised estimates and valuation.
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Firan Technology Group Corp. (FTG-T) reported second-quarter results that beat expectations.
After markets closed on Wednesday, the Toronto-based company reported revenue of $52.7-million, an 8.2-per-cent increase from $48.7-million for the same quarter last year. The result was ahead of expectations of $52.4-million.
Adjusted EBITDA of $10.5-million was up 20 per cent from $8.7-million last year.
Adjusted net earnings came in at $5.1-million or 20 cents per share, ahead of expectations of 13 cents and up from $3.5-million or 14 cents a year ago.
The quarter also included record bookings and backlog that are expected to support strong organic growth, Acumen Capital analyst Nick Corcoran said in a note.
“We continue to view FTG as a Top Pick for 2026,” he wrote. “A record backlog is expected to support strong organic growth (estimated 12.2% in 2026 and 2027). Catalysts include an acquisition in Europe.
He maintained his “buy” rating and increased his target to $29 from $25.
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North American Construction Group Ltd. (NOA-T) announced that its wholly owned subsidiary ML Northern Services Ltd. has been awarded a five-year heavy equipment services contract with a major Canadian oil sands customer valued at $135-million.
“The contract will service the customer’s fleet of ultra-class and other large mining equipment by supplying the customer with mobile fuel services across their various mine sites,” it stated, adding that it’s the largest award in ML Northern’s history.
The company also said it’s the largest heavy equipment services contract focused on fuel services in the company’s history.
“This award marks an important milestone for ML Northern and further strengthens our recurring revenue profile with a blue-chip oil sands customer,” said CEO Barry Palmer.
National Bank Financial analyst Maxim Sytchev said the contract win “should provide a degree of reassurance for investors fearing the decline of the company’s legacy oil sands business amid clients in-housing mining services work.”
He has an “outperform” (buy) and $30 target on the stock.
“We view NOA’s thesis as a very inexpensive way to participate in sentiment thawing around commodity development; over the medium- to long-term, increasing takeaway capacity via pipelines should also be a net positive for the company,” he wrote.
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Real estate fund Axia Real Assets LP has launched a $560-million hostile bid for mall owner Plaza Retail Real Estate Investment Trust (PLZ-UN-T), the latest in a series of takeovers aimed at taking publicly traded REITs private.
On Tuesday, Toronto-based Axia announced a non-binding offer of $5.28 per unit for Plaza, which owns 190 strip malls and retail centres in eight provinces. Axia said it decided to go public with its bid after spending two years unsuccessfully attempting to strike a friendly takeover with the Fredericton-based REIT’s board of trustees.
Axia said Plaza’s largest unit holder, real estate company Morguard Corp., is “strongly supportive” of the offer and prepared to vote its 15.3-per-cent stake in the REIT in favour of the takeover.
Read the full story from the Globe’s Andrew Willis here
In a July 7 note, Cannaccord Genuity analyst Mark Rothschild raised his target price to $5.75 from $5, “reflecting both the increase to NAV [net asset value] and our expectation that a higher bid is likely. Our price target implies a total return of 29.1%, as a result we maintain our ‘buy’ rating.”
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Well Health Technologies Corp. (WELL-T) announced plans to list its health care software and AI company Wellstar Technologies Corp. on the TSX Venture Exchange in mid-September.
On Tuesday, Vancouver-based Well Health also announced a concurrent brokered private placement of subscription receipts to raise about $50-million for $10 each.
“This transaction is a significant milestone in WELL’s strategy to unlock the value of our healthcare technology assets while retaining a meaningful ownership position in one of Canada’s leading digital health platforms,” stated Well Health chairman and CEO Hamed Shahbazi.
Canaccord Genuity analyst Tania Armstrong-Whitworth increased her target to $7.75 from $6.50 after the news.
“We are simply updating our forecast to incorporate management’s 2026 WELLSTAR revenue and EBITDA guidance,” the analyst wrote. “The most important takeaway for us is valuation. The announced financing provides the first external market reference point for valuing Wellstar as a standalone public company.”
Added Ms. Armstrong-Whitworth: “On a pre-money basis, the transaction implies an enterprise value of [about] $387.9M (or $434.9M post-money), equivalent to [about] 19x our 2026 adjusted EBITDA estimate. This compares with the $184.8M standalone EV (9x 2026E adjusted EBITDA) embedded in our initiation SOTP, implying that the market is valuing WELLSTAR at more than double the multiple we previously ascribed to the business. In our view, this premium reflects WELLSTAR’s positioning as a pure-play health care software and AI platform with recurring revenue, strong organic growth, dedicated capital for acquisitions, and an independent public listing.”
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Ag Growth International Inc. (AFN-T) appointed Haaris Uddin as chief financial officer, effective Aug. 4. Interim CFO Nicolle Parker will continue to lead the finance function until the effective date to support a seamless transition, the company stated in a release after markets closed on Monday.
“Haaris brings strong public-company finance leadership, international operating experience, and a disciplined approach to financial management,” said CEO Paul Brisebois. “His background in listed-company reporting, governance, and cross-border operations will be valuable as AGI continues to execute its strategy and strengthen our business for the long-term.”
Since 2022, Mr. Uddin has served as CFO of Medicure Inc., a TSX- and NASDAQ-listed company operating in Canada and the United States. Prior to that, he was CFO of Waverley Pharma Inc., a TSX Venture Exchange-listed company with operations in Canada, the United Kingdom, and the European Union. He began his career at E&Y as an auditor and is a chartered professional accountant.
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Magna Mining Inc. (NICU-X) shares rose earlier this week after the Sudbury-based company announced a $140-million strategic investment by Peru-based miner Alpayana S.A.C.
Before markets opened on Monday, Magna Mining announced that Alpayana would buy 62,222,222 common shares of the company at a price of $2.25 per share, giving it a 19.9-per-cent stake.
Alpayana is a Peruvian mining company with six operating underground mines in Latin America.
“Their operating experience in Peru and Mexico dovetails well with our growing production, advanced-stage projects, extensive property portfolio and deep knowledge of the Sudbury Basin in northeastern Ontario,” stated Jason Jessup, CEO of Magna Mining. “Most importantly, the values of our two companies are very closely aligned. This financing will allow us to simultaneously pursue multiple growth opportunities and accelerate the advancement of our past-producing Levack and Crean Hill projects. We look forward to working with the team from Alpayana in order to learn from each other and explore additional opportunities for growth in Sudbury.”
Completion of the offering will be subject to regulatory approvals, the company noted. It also said that the shares issued under the offering will be subject to a statutory hold period in Canada expiring four months and one day from the closing date.
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Upcoming small-cap earnings:
July 15: Cogeco Communications Inc. (CCA-T), Blue Ant Media Corp. (BAMI-T)
July 23: A&W Food Services of Canada Inc. (AW-T)
July 27: Gibson Energy Inc. (GEI-T)
July 28: Precision Drilling Corp. (PD-T), Allied Properties REIT (AP-UN-T)
July 29: Secure Waste Infrastructure Corp. (SES-T), Primaris REIT (PMN-UN-T)
July 30: Canfor Corp. (CFP-T), Real Matters Inc. (REAL-T), Champion Iron Ltd. (CIA-T), Lightspeed Commerce Inc. (LSPD-T)
July 31: Ballard Power Systems (BLDP-T), Parex Resources Inc. (PXT-T)
Aug. 4: Green Thumb Industries Inc. (GTII-CN)
Aug. 5: Chorus Aviation Inc. (CHR-T), Flagship Communities REIT (MHC-UN-T)
Aug. 6: NFI Group Inc. (NFI-T), Enerflex Ltd. (EFX-T), Interfor Corp. (IFP-T), Cascades Inc. (CAS-T)
Aug. 7: Superior Plus Corp. (SPB-T), Docebo Inc. (DCBO-T), Trulieve Cannabis Corp. (TRUL-CN)
Aug. 11: Neo Performance Materials Inc. (NEO-T), Pason Systems Inc. (PSI-T), Minto Apartment REIT (MI-UN-T)
Aug. 12: Maple Leaf Foods Inc. (MFI-T), Western Forest Products Inc. (WEF-T), BSR REIT (HOM-U-T)
Aug. 13: Total Energy Services Inc. (TOT-T), Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T)