Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 63 per cent over the past 52 weeks, as of Wednesday’s close. It hit a record of 1,413.69 on Jan. 29. The Russell 2000 in the U.S. is up about 15 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
Canada Goose Holdings Inc. (GOOS-T) shares sank in early Thursday trading after the winter coat maker reported higher revenue but lower profit for its holiday season quarter.
Before markets opened on Thursday, the company reported that its revenue was up 14.2 per cent to $694.5-million year over year for the quarter ended Dec. 28. The result was ahead of expectations of $659.1-million, according to S&P Capital IQ.
Net income of $134.8-million or $1.36 per share was down from net income of $139.7-million, or $1.42 per share in the prior-year period.
Adjusted net income was $142.3-million or $1.43 per share, compared with adjusted net income of $148.3-million or $1.51 per share a year earlier. The result was below the $1.65-per-share expectation.
Gross margin for the quarter was 74 per cent compared to 74.4 per cent in the third quarter of fiscal 2025, primarily due to product mix, the company stated.
Selling, general and administrative (SG&A) expenses rose to $313.6-million, compared to $247.7-million in the prior-year period. “The increase in SG&A was primarily driven by a one-time bad-debt provision related to a U.S. wholesale partner, run-rate costs associated with the expansion and operation of the global retail network, higher marketing investments, and a foreign exchange gain in fiscal 2025 that did not recur in fiscal 2026,” the company stated.
Inventory of $408.7-million was flat year-over-year, “reflecting higher demand and our continued proactive approach to managing inventory over the past year,” the company stated.
“Our third‑quarter results underscore the strength of our global brand and top‑line engine, with broad‑based revenue growth and continued momentum across key regions and channels,” said chairman and CEO Dani Reiss in a release. “Our peak selling period reflected sharper execution — higher quality traffic driven by integrated global campaigns, strong consumer response to our expanded year‑round assortment, and robust performance across both retail and e-commerce.”
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Lightspeed Commerce Inc. (LSPD-T) shares slipped in early Thursday trading after the company reported a wider net loss in its latest quarter and fourth-quarter and fiscal adjusted EBITDA outlook that was slightly below expectations.
Before markets opened on Thursday, Lightspeed reported revenue of US$312.3-million for its third quarter ended Dec. 31, an increase of 11 per cent from the same quarter a year earlier and slightly ahead of expectations of US$311.4-million.
Its net loss of US$33.6-million or 24 cents US per share was wider than its net loss of US$26.6-million or 17 cents US per share a year earlier.
After adjusting for certain items, such as share-based compensation, the company said its adjusted income was US$20.2-million or 15 cents US per share, which was in line with expectations and compared with adjusted income of US$18.5-million or 12 cents US per share a year earlier.
Adjusted EBITDA of US$20.2-million was up from adjusted EBITDA of US$16.6-million a year earlier and ahead of expectations of US$19.4-million.
“Lightspeed’s transformation continued to deliver results this quarter with both Customer Locations and GTV growing at an accelerated pace,” stated founder and CEO Dax Dasilva in a release. “Our consistent delivery of new, highly innovative features such as Lightspeed AI, Marketplace within NuORDER by Lightspeed and Lightspeed Tempo, along with disciplined go-to-market execution, is driving momentum across our growth engines.”
Citing outperformance in the nine months ended Dec. 31, Lightspeed said it’s raising its full-year revenue, gross profit and adjusted EBITDA outlook.
“The company’s outlook for fiscal 2026 remains consistent with the company’s three-year target gross profit CAGR [compound annual growth rate] of approximately 15-18 per cent and three-year target adjusted EBITDA CAGR of approximately 35 per cent presented at our Capital Markets Day in March 2025,” the company stated.
Lightspeed also said it expects to generate positive free cash flow in fiscal 2026.
It expects fourth-quarter revenue of about US$280-million to US$284-million. The expectation is for US$283.9-million, according to S&P Capital IQ.
Adjusted EBITDA is expected to be approximately US$15-million. The expectation is for US$16.8-million
For fiscal 2026, the company expects revenue of about US$1.216-billion to US$1.220-billion. The expectation is for US$1.218-billion.
Adjusted EBITDA is expected to be approximately US$72-million for fiscal 2026. The expectation is for US$73.4-million.
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Rogers Sugar Inc. (RSI-T) shares rose in early Thursday trading after the company reported higher-than-expected earnings and adjusted EBITDA for its first quarter ended Dec. 27.
Before markets opened on Thursday, Rogers Sugar reported revenue of $298.2-million, down from $331.3-million a year earlier. The expectation was for revenue of $317.1-million, according to S&P Capital IQ.
Adjusted net earnings amounted to $24.8-million or 19 cents per share compared to $19.5-million or 15 cents for the same period last year. The result was ahead of expectations of 14 cents.
Adjusted EBITDA came in at $46.9-million, compared to $39.6-million for the same period last year. The expectation was for $39.7-million.
“The favourable variance was mainly driven by stronger results from our Sugar segment,” the company stated.
The company said its LEAP expansion project is progressing as planned. “During the first quarter of fiscal 2026, we advanced the construction phase of the project, including the installation of sugar refining equipment and logistics infrastructure. We continue to expect the total cost of the project to range between $280-million and $300-million, with an anticipated in-service date in the first half of calendar 2027,” it stated.
“The first quarter represents another great performance by our team, delivering strong financial results powered by our unwavering focus on operations and on serving our customers,” said Mike Walton, President and Chief Executive Officer of Rogers and its operating subsidiary, Lantic Inc., “Our LEAP Project is progressing as expected, and we remain well positioned to serve our customers in the future and build value for our shareholders.”
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ATS Corp. (ATS-T) reported earnings that beat expectations for its third quarter ended Dec. 28.
Before markets opened on Wednesday, the company said revenues increased 16.7 per cent year over year to $760.7-million for the quarter. The result was ahead of expectations of $722.4-million.
Net income was $30-million or 31 cents per share compared to $6.5-million or 7 cents a year earlier. Adjusted earnings were 48 cents per share, ahead of expectations of 44 cents and compared to 32 cents a year earlier.
Adjusted EBITDA was $105.2-million compared to $87.5-million a year ago and was ahead of expectations of $102.3-million.
“Doug Wright, the company’s newly appointed CEO, has been in his seat only a few weeks but priorities around realizing full potential when it comes to margins, further diversifying and solidifying revenue streams and converting the improving balance sheet stance into M&A were well received,” National Bank Financial analyst Maxim Sytchev said in a note.
“One minor caveat for F2027E is the fact that the Street is modeling a +80 bps margin expansion, implying expectations that signal an acceleration in margin performance, something that has been lacking for a number of reasons (mix, EV rollover, tariffs, etc.). That said, the Life Sciences vertical in our view remains healthy, Nuclear opportunity is getting stronger while Consumer and Food have been more robust than expected. 19x F2027E P/E is an attractive and undemanding multiple for what is arguably a still-rebounding EPS trajectory, especially for a thematically positioned name.”
He has an “outperform” (buy-equivalent) and $57 target on the stock. “ATS remains our top idea in our coverage,” the analyst added.
Stifel analyst Justin Keywood, who has a “buy” rating and a $52 target, said in a note that he believes the company will resume acquisitions to add “needed scale for the end-to-end automation provider with operating leverage implications, indicative of improved valuation.”
He said ATS trades at a discount, saying “most headwinds [have been] largely resolved. We see a large catch-up trade with automation peers trading upwards of 25x EBITDA and progressive quarters, paired with M&A, should re-rate shares.”
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Aurora Cannabis Inc. (ACB-T) announced plans to pull out of some lower-market consumer markets in Canada to focus on its higher-margin medical cannabis business. The news came alongside its third-quarter results, which beat expectations.
Before markets opened on Wednesday, the company reported revenue of $94.2-million for the quarter ended Dec. 31, compared with $88.2-million a year earlier. The result was ahead of expectations of $92.4-million, according to S&P Capital IQ.
Adjusted net income was $7.2-million versus $7.4-million a year earlier. Adjusted EBITDA was $18.5-million, down from $19.4-million for the prior year period and ahead of expectations of $17.8-million.
The company also said that it will start exiting “certain markets in the lower-margin consumer segment in Canada” in the fourth quarter and will “further prioritize the allocation of product and resources to the higher-margin global medical cannabis business.”
The company added that: “Due to the higher sales and marketing costs associated with the consumer segment, this decision is expected to result in lower adjusted SG&A [selling, general and administration] and improved consolidated adjusted gross margins in the coming quarters, with some one-time costs impacting cash flow in Q4 FY26.”
The company also said its annual global medical cannabis net revenue is expected to increase year over year to between $269-million and $281-million, “driven primarily by 10 per cent to 15 per cent annual growth in the global medical cannabis segment.”
Adjusted EBITDA is anticipated to increase by 5 per cent to 10 per cent, with an expected range of $52-million to $57-million for the full fiscal year. “This expected growth is driven primarily by net revenue increase and industry-leading margins in the global medical cannabis business,” it stated.
Canaccord Genuity analyst Kenric Tyghe lowered his price target to $9 from $10 but kept his “buy” rating after the earnings report.
“While the Q3/F26 results were a modest beat, the bigger story on the quarter was the strategic reset on the divestiture of the plant propagation business and exit of key select Canadian (consumer) markets to essentially become a pure play medical operator,” he wrote. “We believe that while the burning of (non-medical) boats will necessarily support higher margins, given that the divested and exited operations were its lower margin businesses, the company’s execution and share gains in the international medical market will need to prove out to be a high confidence play to support the re-rating that this strategic shift appears designed to support.”
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Well Health Technologies Corp. (WELL-T) announced an acquisition and expansion of its credit facility earlier this week.
Before markets opened on Wednesday, the Vancouver-based company said it had acquired E-Consult Canada LP, which includes a technology-enabled e-consult health care services business and eight primary care clinics.
“This highly accretive acquisition is expected to contribute proforma annual revenue of approximately $45-million cumulatively across both the e-consult and clinic businesses, reflecting gross margins of approximately 48 per cent and operating adjusted EBITDA margins of better than 20 per cent,” the company stated.
The company also said it has a new, expanded, and extended senior secured credit facility with a syndicate of lenders led by Royal Bank of Canada, JPMorgan Chase Bank, N.A. and Toronto-Dominion Bank, with a committed capacity of up to $400-million. It said the agreement includes an additional $100-million uncommitted accordion facility.
“This enhanced lending package effectively doubles the size of the company’s prior credit facility and lengthens the term through January 2030,” the company stated.
Canaccord Genuity analyst Doug Taylor reiterated his “buy” recommendation and $7 target after the news.
“With the latest transaction highlighting progress on WELL’s Canadian clinical roll-up strategy, we view the ever-expanding pipeline of sizeable targets ($245M in potential revenue add) as a leading indicator of further growth in the coming periods,” he wrote. “The now-bolstered credit capacity, existing cash, and the upcoming monetizations of U.S. clinical assets should further fuel this capital (re)allocation program.”
Stifel analyst Justin Keywood said in a note that Well’s acquisition expands its Alberta footprint, “which we have previously highlighted as an attractive market with provincial moves to expand private-pay healthcare delivery (i.e. Bill-11) offering the potential for materially better clinic economics, implying margin expansion.”
Added Mr. Keywood: “WELL’s pipeline remains healthy with $245mm combined clinic revenue opportunities in advanced/LOI-stage. We believe as the 2026 playbook is executed, the concurrent 2x credit facility expansion provides growth capital to continue scaling the Canadian network, and should catalyze a re-rating in shares.”
He has a “buy” and $9 target on the stock.
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Sylogist Ltd. (SYZ-T) announced earlier this week that it received a shareholder meeting requisition notice from OneMove Capital LLC.
“The company is reviewing the requisition with the assistance of its professional advisors and will respond appropriately in due course,” it stated. “In the meantime, there is no need for shareholders to take any action.”
OneMove holds about 9.2 per cent of the company’s outstanding shares and is seeking to have four of its nominees elected in place of three current directors, which would give it a majority on the seven-member board, according to a note from Acumen Capital’s Jim Byrne.
“OneMove highlighted that they believe there is current misalignment between the board and SYZ shareholders, due to low share ownership, poor governance practices seen through the previously announced shareholders’ rights plan, and its challenge in finding a permanent CEO,” the analyst wrote.
“Overall, we view the proposal as neutral for the shares as the company looks to replace its CEO and improve the execution of its business strategy,” Mr. Byner added. “The shares have been under significant pressure since Bill Wood’s departure and with the ongoing uncertainty we believe there will be considerable volatility until there is a resolution to some/all of these issues.”
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5N Plus Inc. (VNP-T), a semiconductor and performance materials company, made two separate capacity-increase announcements in recent days.
On Jan. 30, the company said it was awarded a US$18.1-million grant by the U.S. government to expand capabilities and increase capacity to recycle and refine germanium at its St. George, Utah, facility.
On Feb. 2, it said its subsidiary Azur Space Solar Power GmbH will expand solar cell production capacity by an additional 25 per cent in 2026.
“The new capacity, expected to gradually come online starting in the second half of the year, will add to capacity increases of 30 per cent in 2025 and 35 per cent in 2024,” the company stated.
Canaccord Genuity analyst Yuri Lynk raised his target to $31 from $26 and maintained his “buy” rating following the capacity-increase announcements and a non-deal roadshow.
“5N Plus is a key global supplier of ultra-high purity (99.999% or five-nines purity) advanced materials and specialty semiconductors used in renewable energy, space solar, and defence applications,” the analyst wrote in a Feb. 3 note.
“The company enjoys a wide competitive moat as one of only a handful of companies in the Western world able to source and process cadmium, tellurium, and germanium, among other minor metals, outside China. With a strong balance sheet, management is looking to expand and complement 5N Plus’ product portfolio via acquisition. Any associated accretion would be additive to our forecasts.”
National Bank Financial analyst Baltej Sidhu maintained his $30 target and “outperform” (buy) rating after the latest announcement.
“VNP continues to execute capital expansion efficiently, supported by a robust backlog. Capacity additions are being implemented in disciplined, incremental phases insulating balance-sheet risk, underpinning strong volume visibility, operating leverage, and free cash flow generation,” he wrote in a note.
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Meridian Mining plc (MNO-T) announced a $40-million bought-deal offering.
Before markets opened on Wednesday, the company said it had an agreement with Stifel Canada and BMO Capital Markets, as joint bookrunners and on behalf of a syndicate of underwriters, to buy 25.3 million common shares at $1.58 each.
The company said it intends to use the net proceeds towards its various projects.
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Eldorado Gold Corp. (ELD-T) announced on Monday that it’s buying Foran Mining Corp. (FOM-T) for $3.8-billion.
Under the deal terms, Foran shareholders will receive 0.1128 common shares of Eldorado and one cent in cash for each Foran share.
Read the full Globe story here
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Upcoming small-cap earnings:
Feb. 9: Silvercorp Inc. (SVM-T)
Feb. 10: Morguard North American Residential REIT (MRG-UN-T), Stingray Group Inc. (RAY-A-B), Andrew Peller Ltd. (ADW-A-T)
Feb 11: Killam Apartment REIT (KMP-UN-T), Primaris REIT (PMN-UN-T), First Capital REIT (FCR-UN-T), Cineplex Inc. (CGX-T), Slate Grocery REIT (SGR-UN-T), Russel Metals Inc. (RUS-T), Corby Spirit and Wine Ltd. (CSW-A-T)
Feb. 12: Interfor Corp. (IFP-T), Mullen Group Ltd. (MTL-T), Vecima Networks Inc. (VCM-T)
Feb. 13: Chorus Aviation Inc. (CHR-T), Interfor Corp. (IFP-T), Boston Pizza Royalties Income Fund (BPF-UN-T), Canaccord Genuity Group Inc. (CF-T)
Feb. 17: CT REIT (CRT-UN-T), Dream Industrial REIT (DIR-UN-T)
Feb. 18: Gibson Energy Inc. (GEI-T), KP Tissue Inc. (KPT-T), Bausch Health Companies Inc. (BHC-T)
Feb. 19: Sienna Senior Living Inc. (SIA-T), Dream Office REIT (D-UN-T)
Feb. 23: Winpak Ltd. (WPK-T)
Feb. 24: Cargojet Inc. (CJT-T), BTB REIT (BTB-UN-T)
Feb. 25: Chemtrade Logistics Income Fund (CHE-UN-T), Kneat.com Inc. (KSI-T)
Feb. 26: Pason Systems Inc. (PSI-T), Enerflex Ltd. (EFX-T), Curaleaf Holdings Inc.(CURA-T), Plaza Retail REIT (PLZ-UN-T), EQB Inc. (EQB-T),
Feb. 27: Boralex Inc. (BLX-T), Laurentian Bank (LB-T)
March 3: Pet Valu Holdings Ltd. (PET-T)
March 4: Minto Apartment REIT (MI-UN-T), Spin Master Corp. (TOY-T), Canada Packers Inc. (CPKR-T)
March 5: Aecon Group Inc. (ARE-T), Thinkific Labs Inc. (THNC-T), Maple Leaf Foods Inc. (MFI-T), Automotive Properties REIT (APR-UN-T)
March 6: Nexus Industrial REIT (NXR-UN-T), Canfor Corp. (CFP-T), Canfor Pulp Products Inc. (CFX-T)
March 11: NFI Group Inc. (NFI-T), BSR REIT (HOM-U-T), Total Energy Services Inc. (TOT-T)