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 58 per cent over the past 52 weeks. It hit a record 1,472.51 on March 2. The Russell 2000 in the U.S. is up about 20 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
K-Bro Linen Inc. (KBL-T) rose in early Friday trading after the company reported fourth-quarter results that beat expectations.
After markets closed on Thursday, the laundry and linen processing company reported revenue of $146.8-million, up from $95.4-million a year earlier. The result surpassed expectations of $138.1-million, according to S&P Capital IQ.
Adjusted EBITDA of $26.4-million was up from $17.4-million a year earlier and ahead of expectations of $24.3-million.
Adjusted net earnings of $7.2-million or 55 cents compared to $3.6-million or 34 cents a year earlier.
“Q4 marks our seventh consecutive quarter of record results and includes early contributions from Stellar Mayan,” a recent acquisition, stated CEO Linda McCurdy. “Integration has been progressing as expected, and we anticipate run-rate cost synergies will be realized over the twelve to twenty-four months guided.”
Acumen Capital analyst Jim Byrne said in a note that he views the results as “positive for the shares.”
He added: “The company continues to execute its growth strategy and deliver solid financial results.”
Mr. Byrne said the year-over-year increase in revenue was due to stronger health care revenue (up about 68 per cent) and growth in hospitality of about 37 per cent, “which was driven by the Stellar Mayan acquisition that was completed on June 11.”
TD analyst Derek Lessard described the results as a “clean Q4 beat with better-than-expected Stellar Mayan synergies, margin outperformance, and a strong balance sheet that supports incremental growth.”
He also wrote in a note that, “Despite these solid defensive attributes and a long track record of steady execution, the stock trades at just 7.4x forward consensus EBITDA. This is well below its 9.6x 10-year average, creating an especially attractive entry point.”
**
Information Services Corp. (ISC-T) reported mixed results for its fourth quarter ended Dec. 31.
After markets closed on Thursday, the company reported revenue of $65.5-million, an increase of 5 per cent compared to $62.2-million a year earlier. The result missed expectations of $67.1-million, according to S&P Capital IQ.
Net income of $4.9-million or 26 cents per share was down from $5.3-million or 29 cents per share a year earlier. Adjusted net income was $14.3-million or 76 cents per share compared to $9.3-million or 51 cents a year earlier. The result was ahead of expectations of 64 cents for adjusted EPS.
Adjusted EBITDA of $27.1-million was up from $21-million a year earlier and ahead of expectations of $23.8-million.
Acumen Capital analyst Trevor Reynolds said in a note that revenue was up by about 5 per cent, “driven primarily by Saskatchewan Registry Operations with management highlighting Land Registry, which benefitted from increased average real estate values, higher transaction volumes, and record high-value property registrations.”
He said EPS of 26 cents was below his estimate of 54 cents and consensus 61 cents.
**
Premium Brands Holdings Corp. (PBH-T) shares fell on Thursday after the company reported fourth-quarter results and its 2026 outlook. One analyst suggested the price drop was due to “confusion around guidance and erroneous media reporting.”
Before markets opened on Thursday, the Vancouver-based producer, marketer and distributor of branded specialty food products reported record fourth-quarter revenue of $1.897-billion, up about 16 per cent from $1.639-billion a year earlier.
The result was below expectations of $1.911-billion, according to S&P Capital IQ.
It said adjusted EBITDA was also a record $179.5-million, slightly below expectations of $179.7-million and up 20.7 per cent from $148.7-million a year earlier.
Earnings of $11.7-million or 26 cents per share were down from $37.3-million or 84 cents a year earlier. Adjusted earnings of $57.6-million or $1.29 per share were also a record, the comapny said, and compared to $46.3-million or $1.05 per share a year earlier. The expectation was for adjusted EPS of $1.28.
The company also announced that it had signed an agreement to sell a 74-per-cent interest in Shaw Bakers earlier this year.
It also provided 2026 sales guidance, after adjusting for the recent sale of Shaw Bakers, of $9.25-billion to $9.55-billion. The estimate was for $9.49-billion, according to S&P Capital IQ.
Adjusted EBITDA guidance was set at $870-million to $910-million, versus estimates of $904.9-million.
In a note, TD analyst Derek Lassard wrote that the share drop on Thursday could be tied to some “confusion around guidance and erroneous media reporting.”
“Overall, we believe that management struck a relatively positive tone,” he added, noting that 2026 guidance “is in line with consensus, not below.”
He also said beef inflation is a headwind, but ”manageable,” and that beef prices are elevated, “but the situation isn’t as dire as one of today’s news reports suggested.”
Added Mr. Lessard: “Management said that it is comfortable with its pricing strategy assuming no ‘black swan events’ such as the 2025 U.S.-Brazil tariff situation.
Mr. Lessard also said there is a sale of other non-core assets coming, adding that in a conference call on Thursday, management said it’s in “advanced discussions to exit non-core investments/businesses, and expects to close on some of these in 2026.”
National Bank Financial analyst Vishal Shreedhar described the results as “mixed relative to our expectations” and lowered his target to $108 from $115.
“Over the medium term, we believe PBH’s outlook will be supported by organic growth and EBITDA margin expansion,” wrote the analyst who maintained his “sector perform” (hold) rating.
Read more on the analyst reaction here
**
Calfrac Well Services Ltd. (CFW-T) stock surged on Thursday after the company reported stronger fourth-quarter adjusted EBITDA that beat expectations and a strong outlook.
Before markets opened on Thursday, the oilfield services company operating in Canada, the U.S. and Argentina reported revenue of $292.2-million, down 23 per cent from the same quarter in 2024. It said the drop was primarily due to lower activity in Argentina, offset partially by higher activity in North America. The result was below expectations of $304.1-million, according to S&P Capital IQ.
Adjusted EBITDA of $43.9-million compared to $34.5-million a year earlier, “primarily due to improved operating results in North America,” it stated. The result was ahead of expectations of $34.3-million.
Net income of $14.5-million or 16 cents per share compared to a net loss of $6.4-million or 7 cents a year earlier.
“The company’s outlook in North America remains constructive over the next few years despite the near-term macroeconomic headwinds as longer-term demand for energy continues to strengthen and structural improvement in the Canadian LNG market is anticipated to take hold,” it stated in a release.
**
Sylogist Ltd. (SYZ-T) shares sank on Thursday after the company reported fourth-quarter earnings that missed expectations.
Before markets opened on Thursday, the Calgary-based public sector SaaS company reported revenues of $14.4-million for the quarter, down from $15.3-million a year earlier. The result was below expectations of $15.2-million, according to S&P Capital IQ.
Adjusted EBITDA of $1-million was down from $3.2-million last year and missed expectations of $2.4-million.
The net loss of $900,000 or 4 cents per share was wider than the year-earlier loss of $700,000 or 3 cents per share.
“We view the Q4 results as negative for the shares given miss relative to our estimates, partially offset by the growth in SaaS subscription revenue,” stated Acumen Capital analyst Jim Byrne in a note. “The company is actively engaged in a strategic review as they look to deliver enhanced revenue growth and improved profitability in the coming quarters.
Ventum Capital Markets downgraded the company to “neutral” from “buy” and lowered its price target to $4.75 from $7.
“While we continue to see meaningful value in the shares, we are moving to a NEUTRAL rating, reflecting limited near-term visibility on growth and margins, continued execution risk around the partner model, and a lack of clear evidence that bookings and NRR have stabilized at levels consistent with a sustained SaaS inflection,” analysts said in a note. " We remain constructive on the long-term direction of the business, but this quarter reinforces that SYZ is still in the messy middle of its transition rather than at the start of a clean inflection."
**
Neo Performance Materials Inc. (NEO-T) reported lower revenue but swung to a profit for its fourth quarter.
Before markets opened on Thursday, the rare-earth metals company reported revenue of US$120.3-million for the quarter ended Dec. 31, down from US$134.9-million a year earlier. The result was ahead of expectations of US$114.6-million, according to S&P Capital IQ.
Adjusted EBITDA of US$20.4-million compared to US$20.7-million a year earlier and beat expectations of US$15-million.
Adjusted net income of US$600,000 1 cent US compared to an adjusted net loss of US$4.9-million or 12 cents US a year earlier.
Stifel analyst Ian Gillies increased his target price to $25.50 from $23.00 and reiterated his “buy” rating.
“NEO delivered strong 4Q25 results with EBITDA of $20-million beating consensus by 35% while the company delivered 2026E EBITDA guidance of $77.5 mm, which we view as conservative,” he said in a note. “We continue to believe the current pricing environment positions NEO well to deliver surprise to the upside.”
**
VitalHub Corp. (VHI-T) reported higher revenue and profit for its fourth quarter.
After markets closed on Wednesday, the Toronto-based digital health company reported revenue of $31.4-million for the quarter ended Dec. 31, compared to $20.6-million a year earlier. The result was ahead of expectations of US$30.1-million, according to S&P Capital IQ.
Net income of $4.1-million was up from $787,244 in the same period a year earlier. Adjusted earnings of 12 cents were ahead of expectations of 5 cents, according to S&P Capital IQ.
Adjusted EBITDA of $7.4 million or 24 per cent of revenue compared to $5-million or 25 per cent of revenue a year earlier. The result beat expectations of $7-million.
National Bank Financial analyst Richard Tse lowered his target to $14 from $16 after the earnings.
“We continue to believe VitalHub is well-positioned to continue executing on its health care software M&A strategy with an organic growth kicker from the company’s cross-sell focus under a broad structural appetite for health care software,” he wrote. “That runway has us maintaining our outperform rating; that said, we are revising our price target ... given the broad market re-rating of valuations across software.”
Stifel analyst Justin Keywood cut his target to $11 from $13.50 and kept his “buy” recommendation.
“Given broader market conditions, we are increasing our cost of capital on VHI in our long-term DCF,” he wrote. “The share price reflects a healthy level of market skepticism but VHI has a balance sheet, ~$120mm net cash and track record of integration, including ‘mid-teens ROIC.’ This suggests opportunity and achievement of 2026 goals and/or M&A to re-rate shares, although our target price refines with the current sector backdrop.”
**
Well Health Technologies Corp. (WELL-T) reported mixed results for its fourth quarter.
Before markets opened on Thursday, the Vancouver-based digital health care company reported revenue of $384.8-million, up from $234.8-million a year earlier. The result was slightly below expectations of $385.2-million, according to S&P Capital IQ.
Its net income was $32-million versus a loss of $1.8-million a year ago. Adjusted EPS of 20 cents per share compared to 3 cents a year earlier. The result was above expectations of 5 cents.
Adjusted EBITDA of $66.5-million improved from an EBITDA loss of $3.7-million a year earlier. The result was below expectations of $61.6-million.
In its outlook, Well said it’s expecting strong operational performance to continue into the current fiscal year. Annual revenue for 2026 is expected to be in the range of $1.55-billion to $1.65-billion. The expectation is for revenue of $1.59-billion.
Annual adjusted EBITDA is expected to be in the range of $175-million to $185-million. The expectation is for $205.5-billion, according to S&P Capital IQ.
“We remain resolutely committed to completing the sale of our US care delivery assets,” the company stated. “Active processes are underway for all three of Wisp, Circle Medical, and CRH, and our objective is to announce transactions that unlock value for shareholders.”
Earlier in the week, Well Health announced two medical billing platform acquisitions.
Stifel analyst Justin Keywood lowered his target to $8 from $9 after the report, “reflecting estimate revisions and a higher cost of capital but still showing substantial upside,” he wrote in a note.
He maintained his “buy” recommendation and described the results as “constructive,” and its 2026 guidance as “favourable.”
“Although the adj. EBITDA guidance is below our prior forecast and consensus, 2025 included variability from deferred financials and normalized, growth is to remain healthy, 15-22% top-line and +10% EBITDA/FCF,” he wrote. “WELL’s M&A pipeline remains robust as well and not contemplated in suidance, including 10 advanced-stage Canadian acquisition opportunities, representing $272mm in combined revenue.”
He also described Well as “a growth stock at a discount, 1.1x (peers, 1.6x) and constructive quarters ahead, paired with M&A/Divestments to serve as catalysts and a higher share price.”
TD analyst David Kwan described the results as “neutral” in a client note and said the stock remains a top pick.
“The Circle/CRH-driven distortion in WELL’s financial results over the last two years has overshadowed the solid fundamentals in its core Canadian business,” he wrote. “We think the strong execution in Canada and the attractive market dynamics (e.g., robust reimbursement rate trends, low clinic valuations) support its plan to divest its U.S. assets and redeploy the capital in Canada.”
**
MDA Space Ltd. (MDA-T) announced on Wednesday that it won a $32-million contract with the Canadian Department of National Defence.
It said the contract for ground-based optical observatories as part of the Surveillance of Space 2 space domain awareness program.
As part of the contract, MDA Space said it will also operate and provide in-service support to ensure long-term sustainment of the ground stations.
“Through this contract, by 2028, MDA Space will establish three remotely operated GBO observatories in Alberta, Manitoba and New Brunswick,” it stated. “These observatories will provide persistent, reliable space surveillance from the ground, and are an important component of Canada’s broader space‑surveillance architecture."
Desjardins analyst Benoit Poirier raised his price target to C$53 from C$51 after updating his model for the U.S. public offering and increased clarity on Canadian government awards. He is maintaining a “buy” rating.
“We have updated our model for the US offering while raising our 2027 estimates and introducing 2028 forecasts based on stronger conviction in the forward revenue trajectory following recent government developments,” Mr. Poirier said in a note to clients.
**
AutoCanada Inc. (ACQ-T) shares sank in Thursday trading and the company was hit with some analyst downgrades after it reported fourth-quarter results that missed expectations.
After markets closed on Wednesday, the Edmonton-based auto dealership company reported revenue of $ 1.116-billion, compared to $ 1.27-billion in the prior year. The result was below expectations of $1.12-billion, according to S&P Capital IQ.
Its net loss from continuing operations came in $2.3-million or 6 cents per share compared to a profit of $9.8-million or 45 cents a year earlier.
Adjusted EBITDA from continuing operations was $32.7-million as compared to $54.4-million in the prior year.
“Fourth quarter performance was shaped by a more challenging market backdrop,” stated CEO Samuel Cochrane in a release.
Acumen Capital analyst Trevor Reynolds lowered his target to $25 from $39.25 after the earnings, but maintained a “speculative buy” rating.
“Following a tough quarter, the focus moving forward is on management’s ability to restore operational performance while maintaining its new lean cost structure,” he wrote.
“Management highlights that Q1/26 is expected to be similar to Q4/25 before GPUs [gross profit per unit] begin to normalize through the back half of 2026, while the true run rate of the business is expected to materialize in 2027.”
National Bank analyst Maxim Sytchev downgraded his rating to “sector perform” from “outperform” while cutting his price target to C$24 from C$29. Canaccord Genuity analyst Luke Hannan downgraded his rating to a “hold” from a “buy” and slashed his target all the way to C$22 from C$42.
Read more on the analyst reaction here
**
Goodfood Market Corp. (FOOD-T) announced that its chief financial officer Roslane Aouameur is leaving effective April 22, 2026, following the release of its upcoming quarterly earnings.
It said Vanessa Hadida, vice-president of finance, will “assume responsibility for the company’s finance organization, including oversight of financial reporting and related finance functions.”
On Tuesday, the company announced the appointment of Najib Maalouf as president and chief operating officer, effective immediately.
**
Telesat Corp. (TSAT-T) shares surged this week after the company reported fourth-quarter earnings that beat expectations.
Before markets opened on Tuesday, the Ottawa-based satellite company reported revenue of $94-million, down from $128-million a year earlier. “The decrease was primarily due to rate and capacity reductions by certain of our North American DTH customers and lower revenue from enterprise customers serving rural broadband customers,” the company stated.
The result was slightly ahead of expectations of $93.9-million, according to S&P Capital IQ.
Adjusted EBITDA of $39.8-million was above expectations of $19.3-million.
Its net loss for the quarter was $433-million or $8.48 per share compared to a loss of $447-million or $8.97 a year earlier.
In its outlook, Telesat expects full-year revenue to be between $300-million and $320-million, in line with expectations of $318-million.
Also on Tuesday, the company announced that it’s adding 500 MHz of military Ka-band (Mil-Ka) spectrum to the initial 156 satellites in the Telesat Lightspeed constellation. It said the addition is being done “to meet the fast-growing global requirements of allied defence users.”
**
AGT Food and Ingredients Inc. (AGTF-T) reported lower revenue and swung to a loss in its latest quarter.
On Monday, the recently relisted company reported revenue of $824.3-million for its fourth quarter ended Dec. 31, down from $1.04-billion a year earlier.
Its net loss of $12.8-million or 60 cents per share compared to a profit of $13.8-million or 33 cents a year earlier.
Adjusted EBITDA came in at $56.2-million down from $58.1-million a year earlier.
**
Upcoming small-cap earnings:
March 23: GO Residential REIT (GO-U-T), Quarterhill Inc. (QTRH-T)
March 24: Aimia Inc. (AIM-T), Ag Growth International Inc. (AFN-T)
March 25: Goeasy Ltd. (GSY-T), Pizza Pizza Royalty Corp. (PZA-T)
March 26: Westport Fuel Systems Inc. (WPRT-T)
March 27: Terago Inc. (TGO-T)
March 31: Grown Rogue International Inc. (GRIN-CN)
April 1: D2L Inc. (DTOL-T)
April 9: Reitmans (Canada) Ltd. (RET-X)
April 10: Corus Entertainment Inc. (CJR-B-T)
April 14: AGF Management Ltd. (AGF-B-T)
- with files from Darcy Keith