A look at some small-cap stocks making news - or about to.
This file will be updated throughout the day on Thursday
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 67 per cent over the past 52 weeks as of Wednesday’s close. It hit a record 1,472.68 on May 13. The Russell 2000 in the U.S. is up about 40 per cent over the past 52 weeks. It hit a record of 2,932.74 on Wednesday.
Small-cap summary:
EQB Inc. (EQB-T) shares were higher in early Thursday trading after the company beat expectations for revenue and adjusted earnings per share for its second quarter. The company also reported higher-than-expected provisions for credit losses.
After markets closed on Wednesday, the company behind Equitable Bank reported revenue of $302-4-million for the quarter ended April 30, down from $316-million for the same quarter last year. The expectation was for revenue of $300.5-million, according to S&P Capital IQ.
Provision for credit losses (PCLs) rose to $45.4-million, up from $30.2-million last year.
Adjusted net income of $78.2-million or $2.03 per share compared to $94.2-million or $2.31 last year.
“The second quarter reflected solid performance during a persistently uncertain economic environment and our team performed well against this backdrop, continuing to demonstrate operating discipline, renewed focus, and financial resilience,” said CEO Chadwick Westlake. “As we look ahead to the second half of the year, our business will meaningfully shift with the anticipated July 1 close of our PC Financial transaction – positioning us to serve millions of Canadians as a challenger at scale.”
National Bank Financial analyst Gabriel Dechaine said the adjusted earnings of $2.03 per share beat his forecast of $1.99 and consensus of $1.98.
“The beat reflected higher revenues (+3c) and lower expenses (+16c), offset by higher PCLs (-16c),” he wrote in a note.
He also said PCLs of $45-million were 23 per cent above his forecast, “almost evenly split between performing and impaired provisions.”
“Above expectation performing provisions were booked mainly against CRE [commercial real estate] loans, whereas impaired provisions accelerated in the uninsured residential mortgage portfolio (they were flat Q/Q in CRE),” he wrote. “Both portfolios are challenged by longer resolution times, weaker market conditions and lower realized (and forecasted) valuations.”
Added Mr. Dechaine: “We expect management to adopt more caution than optimism in its H2 outlook.”
TD bank analyst Mario Mendonca lowered his target on the stock after the report to $123 from $132 and kept his “buy” rating.
“EPS beat cons. by $0.05 (lower by $0.05 vs. our est.) on much better op[earting] lev[erage] However, the credit picture deteriorated,” he wrote. “PCLs were up 16% q/q. We think investors will focus on impaired PCLs and sizeable adjustments to operating expenses. We like EQB on strong buying activity (buybacks/Loblaw) & PC deal, but acknowledge that credit and loan growth are an issue.”
The analyst said he revised his 2027 EPS lower “to reflect higher PCLs, lower loan growth, and lower buybacks.”
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Coveo Solutions Inc. (CVO-T) shares fell sharply on Thursday after the company reported fourth-quarter results in line with expectations but a growth outlook that one analyst said was below expectations.
After markets closed on Wednesday, the Montreal-based software-as-a-service (Saas) AI platform provider reported revenue of US$37.4-million, up from US$34.4-million a year ago. SaaS subscription revenue rose 10 per cent to US$35.9-million.
Adjusted EBITDA was US$800,000 compared to US$700,00O in the prior period.
Its net loss of US$2.3-million improved from a loss of US$6.3-million last year.
“Fiscal 2026 marked another year of meaningful progress for Coveo as organizations increasingly turned to our platform to power AI-driven digital experiences,” said CEO and co-founder Laurent Simoneau. “We closed the year with the strongest fourth quarter new business performance in our history, including another landmark enterprise win representing the largest new customer deal in our history for the second consecutive quarter.”
In its outlook, Coveo is forecasting SaaS revenue of between US$37.1-million to US$37.6-million for the first quarter and US$154-million to US$158-million for fiscal 2027.
Total revenue for the first quarter is expected to be in the range of US$38.2-million to US$38.7 million, versus expectations of US39.2-million, according to S&P Capital IQ. For fiscal 2027, Coveo said revenue is expected to be between US$160-million to US $164-million. The expectation is for US$186.3-million, according to S&P Capital IQ.
National Bank Financial analyst Doug Taylor said the results “were essentially in line but overshadowed by a meaningful FY27 guidance growth shortfall vs. expectations.”
He noted that the company is targeting about 9.5 per cent year-over-year SaaS revenue growth, against expectations that were closer to about 15 per cent.
He kept his “sector perform” (hold) recommendation and $5.50 price target.
“We’ve taken down our prior growth expectations for FY27,” he wrote in a note. “We believe that Coveo’s combination of ~10% growth with modest profitability limits the audience in the current software market environment, informing our neutral rating.”
TD analyst David Kwan kept his “buy” rating but lowered his price target to to $6.50 from $9.50 after the earnings.
In a note titled “Cautious guidance disappoints; Wait for reaccelerating growth continues,” the analyst wrote that “the road back to 20%+ organic growth remains a rocky one, as sales execution/efficiency issues continue to hinder CVO’s growth profile and valuation.”
He added: “We expect the stock to be weak NT [near term] on the disappointing growth guidance and think CVO will be (more) active with its buyback (possibly w/ another SIB). We view CVO as an attractive takeout target, and note that Cdn. small cap tech M&A remains active.”
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Kraken Robotics Inc. (PNG-X) shares fell on Thursday after the company reported first-quarter results that missed expectations.
Before markets opened on Thursday, the St. John’s-based company that makes 3D imaging sensors, power solutions, and robotic systems, reported revenue of $21.7-million, up 35 per cent from $16.1-million in the year-ago quarter. The expectation was for revenue of $25.6-million according to S&P Capital IQ.
“Revenue growth was primarily driven by increased demand in Kraken’s SeaPower subsea batteries and SAS products, in addition to growth in the subsea services division. Q1 2026 results, and service revenue, also included the contribution from the acquisition of 3D at Depth, Inc., which was completed in April 2025,” the company stated.
Adjusted EBITDA of $3-million was up 7 per cent from $2.8-million last year and below expectations of $4-million.
The company reported a net loss of $3.3-million or a penny per share compared to net income of $215,000 or nil per share last year. Excluding restructuring and acquisition costs, the company reported adjusted net income of $311,000 or nil per share, compared to $650,000 or nil last year.
“Our first quarter results were in line with our expectations, with financial performance expected to improve throughout 2026, consistent with prior years due to the seasonal nature of our business,” said CEO Greg Reid.
“We continue to execute on securing new products orders, including growing traction with new defence customers, and recently expanded our battery manufacturing capacity to support anticipated growth. Industry fundamentals across our business remain strong, driven by the growing demand for autonomous underwater vehicles in the defence and offshore energy sectors. This increasing demand presents a significant opportunity for Kraken to drive future growth.”
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Champion Iron Ltd. (CIA-T) shares dropped on Thursday after the company reported lower profit and revenue for its fourth quarter ended March 31. The company also adjusted its dividend policy.
After markets closed on Wednesday, the iron ore producer with operations in Canada and Norway reported revenue of $414.5-million, down from $425.3-million a year earlier.
“Lower revenues were attributable to a stronger Canadian dollar during the three-month period ended March 31, 2026, compared to the same period last year, partially offset by a higher average net realized selling price in U.S. dollars,” the company stated.
Net income of $23.2-million or 4 cents per share, compared to net income of $39.1-million or 8 cents a year earlier.
“These decreases were mainly attributable to a lower gross profit and an unrealized foreign exchange loss resulting from the revaluation of net monetary liabilities denominated in U.S. dollars, partially offset by the change in fair value of derivative assets and lower income and mining taxes,” the company said.
The company also said it has revised its shareholder return framework for future dividends “to adapt to market conditions.”
The company said it plans to provide semi-annual dividends equivalent of 30 to 40 per cent of its six-month free cash flows, with the potential for special dividends at the board’s discretion.
“The dividend policy provides flexibility for potentially higher dividend distributions in periods of strong financial results and low capital investments, while preserving the Company’s balance sheet in periods of softer profitability and increased capital requirements,” the company stated, adding that it will apply to the semi-annual results of the 2027 financial year.
TD analyst Craig Hutchison said the change effectively reduced the declared dividend to 2 cents per share from 10 cents historically.
“While we believe the revised dividend policy makes strategic sense given the current headwinds on freight rates and diesel, the reduction in payout could weigh on the share price,” he wrote.
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SNDL Inc. (SNDL-CN) said a plan to buy more than two dozen 1CM Inc. Ontario retail locations isn’t expected to go ahead.
After markets closed on Wednesday, the Edmonton-based cannabis company cited a “prolonged regulatory review process that extended beyond commercially reasonable timelines contemplated by the parties.”
SNDL struck a deal last year to buy 32 cannabis retail stores operating under the Cost Cannabis and T Cannabis banners in Ontario, Alberta and Saskatchewan for about $32-million. SNDL said the transaction was structured in two stages, with final approvals expected by the end of this month.
The company said the final closing of 27 of those 32 stores for about $27-million isn’t expected to proceed.
SNDL said it plans to reallocate the capital previously reserved for the Ontario acquisition toward share repurchases.
“While we were unable to complete the Ontario portion of the transaction, we remain confident in the strength of our retail platform and our ability to deploy capital in ways that generate long-term shareholder value. The continued repurchase of shares reflects a disciplined approach to capital allocation given SNDL’s current valuation,” said CEO Zach George.
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Taseko Mines Ltd. (TKO-T) announced this week that it’s planning to change its name to Trekor Metals Limited, pending shareholder approval.
“Management believes that it is the right time for a new name that reflects the company today and where it is headed,” the company stated.
CEO Stuart McDonald said the name Trekor “embodies our values and reflects our ambition to continue to grow North America’s copper sector.”
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Dye & Durham Ltd. (DND-T) announced changes to its board earlier this week.
On Monday, the legal software company said Mary Filippelli has been appointed chair of its board of directors until its next annual meeting, replacing Eddie Smith, who has resigned.
Ms. Filippelli is a former vice-chair and managing partner at Deloitte Canada and has held senior leadership roles with Lloyds Banking Group in the United Kingdom and KPMG Canada.
The company also says Tyler Proud, co-founder of Dye & Durham and chief executive of OneMove Capital Ltd., has joined the board as OneMove’s nominee.
Related:
Dye & Durham starts sale process, but credit agreement changes complicate possible bid by ex-CEO
Another board overhaul caps off year of chaos for beleaguered Dye & Durham
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Upcoming small-cap earnings:
May 29: Laurentian Bank (LB-T)
June 3: Transcontinental Inc. (TCL-A-T), VersaBank (VBNK-T)
June 4: Canaccord Genuity Group Inc. (CF-T)
June 9: Stingray Group Inc. (RAY-A-B), D2L Inc. (DTOL-T)
June 10: Haivision Systems Inc. (HAI-T), Major Drilling Group International Inc. (MDI-T)
June 11: Aurora Cannabis Inc. (ACB-T)
June 16: Reitmans (Canada) Ltd. (RET-X)
- with files from The Canadian Press