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 62 per cent over the past 52 weeks as of Wednesday’s close. It hit a record 1,472.51 on March 2. The Russell 2000 in the U.S. is up about 23 per cent over the past 52 weeks, as of Wednesday’s close. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
D2L Inc. (DTOL-T) reported higher revenue but swung to a loss in its fourth quarter ended Jan. 31 and provided a fiscal 2027 outlook that one analyst described as “softer-than-expected.”
After markets closed on Wednesday, the company reported revenue of US$55.8-million for the quarter, up from US$46.8-million a year ago. The result was in line with expectations of US$55.9-million, according to S&P Capital IQ.
Adjusted EBITDA of US$8.1-million was down from US$9.4-million a year ago and slightly ahead of expectations of US$7.8-million.
Its loss for the period was US$1.4-million compared to a profit of US$19.9-million a year earlier.
In its outlook for fiscal 2027, the company said it plans to make “measured investments” to drive growth while scaling its operations to boost profits.
It guided for revenue in the range of US$231-million to US$234-million or growth of 6 to 8 per cent over fiscal 2026. The expectation was for US$234-million.
Adjusted EBITDA is expected to be in the range of US$33-million to US$35-million, implying an adjusted EBITDA margin of 15 per cent at the midpoint. The expectation was for US$36.4-million.
Stifel analyst Suthan Sukumar described the quarter as “neutral” in a note.
“While D2L delivered a solid in-line fiscal Q4 print, the primary takeaway is a softer-than-expected fiscal year 2027 guide,” he wrote. “Persistent churn within the U.S. K-12 segment is translating to a more conservative outlook for both subscription/support revenue growth and margin expansion, overshadowing underlying strength in the company’s core U.S. Higher-Ed and International segments, ultimately implying a larger bridge to hit unchanged medium-term (fiscal 2028) targets.”
Added Mr. Sukumar: “We remain cautious around ARR [annual recurring revenue] acceleration near-term given K-12 headwinds, a still muted U.S. Higher-Ed buying environment, and early-days AI monetization, as reflected in our ‘hold’ rating.”
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Transcontinental Inc. (TCL-A-T) announced the acquisition of Quebec-based Phipps Dickson Integria Group Inc. (PDI Group). The price wasn’t disclosed.
PDI Group provides production services for large-format signage and displays, commercial printing, and specialized distribution, the company stated in a release after markets closed.
“The PDI acquisition reflects our targeted growth strategy aimed at making TC Transcontinental a partner of choice for In-Store Marketing in Canada,” said Sam Bendavid, TC Transcontinental’s CEO designate.
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Goeasy Ltd. (GSY-T) shares sank in Wednesday trading after the company hiked its allowance for credit losses and swung to a loss in its fourth quarter. It also took a $160-million goodwill writedown for its LendCare segment, which analysts said was a new development.
After markets closed on Tuesday, Goeasy reported a net loss of $336.9-million or $20.49 per share, down from net income of $54.2-million or $3.12 reported in the fourth quarter of 2024.
Its adjusted net loss was $146.9-million or $8.93 per share, down from adjusted net income of $57.7-million or $3.32 per share in the fourth quarter of 2024. The expectation was for an adjusted loss of $8.33 per share, according to S&P Capital IQ
During the quarter, the company said it generated $951.5-million in loan originations, up 17 per cent compared to $813.7-million a year earlier.
At quarter end, the company said its consumer loan portfolio was $5.51-billion, up 20 per cent from $4.6-billion in the fourth quarter of 2024.
The company said it recognized $177.9-million in incremental loan charge-offs in the fourth quarter relating to the LendCare portfolio, which came after an assessment that “all available efforts to drive substantive recoveries on certain late-stage delinquent loan receivables had been exhausted.”
It also had a higher allowance for credit losses on gross consumer loans receivable. Goeasy said the net change in allowance for credit losses was $71.9-million in the quarter, compared to $41.4-million in the same period of 2024.
The company also recorded a $159.6-million goodwill impairment charge related to its LendCare business.
Last month, Goeasy surprised investors with an announcement that its loan losses were surging. It also suspended its dividend, causing the stock to plummet and leading to a handful of analyst downgrades and price-target cuts.
Goeasy also said late Tuesday that it restated certain financial statements to address previously announced errors in the accounting treatment of customer payments in transit at period‑end dates in 2024 and 2025.
In its 2026 outlook, the company said its gross consumer loans receivable are expected to decline before resuming growth in the second half of the year, while total yield on consumer loans is expected to improve over the course of the year as charge-offs decline. It also said net charge-offs as a percentage of average gross consumer loans receivable are expected to decrease from 23.8 per cent in the fourth quarter of 2025 to the mid-teens for full-year 2026, with improvements as the year progresses.
In a note, TD analyst Graham Ryding said the goodwill writedown for Lendcare was a new development and that the financial restatements for 2024 and 2025 were “fairly material,” while guidance was “underwhelming.”
He added: “Management notes 2026 is a transitional period with emphasis on resetting the operating model, managing liquidity, strengthening credit performance, and aligning capital.
Shares opened down about 7 per cent and were back to retesting multiyear lows.
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Algoma Steel Group Inc. (ASTL-T) shares closed relatively flat on Wednesday, after the company issued first-quarter guidance.
After markets closed on Tuesday, the company said total steel shipments for the quarter are expected to be approximately 220,000 tons and adjusted EBITDA is expected to be in the range of negative $25-million to negative $35-million.
“The guidance for expected adjusted EBITDA includes the benefit of a capacity utilization adjustment that is expected to be in the range of $90-million to $95-million,” the company stated, including excess fixed costs incurred in the quarter despite lower production volumes as the Electric Arc Furnace (EAF) ramps up.
“While near-term demand softness continues to weigh on shipment volumes, the structural cost improvements inherent to EAF steelmaking are expected to drive meaningful sequential improvement in adjusted EBITDA,” stated CEO Rajat Marwah.
Stifel analyst Ian Gillies said the guidance was below expectations and the second-quarter EBITDA consensus “also appears a bit too optimistic.”
Added Mr. Gillies: “With that said, we believe it will not materially alter the company’s liquidity position or our investment thesis. The direction of the stock through the rest of the year is likely to be driven by the status of CUSMA trade negotiations and developments for the beam mill.”
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High Liner Foods Inc. (HLF-T) shares were lower on Wednesday after the company said it laid off 9 per cent of its North American office workforce as part of ongoing cost-cutting initiatives. The company also warned that its first-quarter results could be “modestly below” last year’s.
After markets closed on Tuesday, the company said it let go of 35 workers as part of a broader set of initiatives already in progress, including cost reductions and supply chain efficiencies, “intended to mitigate the impact of sustained pressure from rising inflation, tariffs, and higher input costs.”
High Liner said it believes the moves will help it return to year-over-year adjusted EBITDA growth for fiscal 2026.
However, the company said that current estimates show its first-quarter results will be “modestly below the prior year.”
High Liner said it saw strong demand during the first quarter, but that “underlying promotional activity combined with rising input costs and tighter supply put pressure on margins and plant performance, delaying the realization of profitability improvements that the company expects to deliver in 2026.”
Canaccord Genuity analyst Luke Hannan reiterated his “buy” rating and $17 target price following the restructuring announcement.
“We expect investors to take the news negatively,” he wrote in a note. “Recall, HLF had to previously withdraw its expectation for YoY adjusted EBITDA growth for 2025 alongside its Q3/25 earnings results, calling out inflation in input costs that ran ahead of expected price increases. The withdrawal of another shorter-term target due to the same factors isn’t likely to instill confidence that the company can in fact deliver YoY adjusted EBITDA growth for 2026.”
The analyst reduced his estimates to reflect the updated guidance for Q1/26, but left his model and target price unchanged.
“In our view, High Liner’s leading position as a North American seafood processor, strong free cash flow profile, and clean balance sheet supportive of M&A opportunities imply compelling upside for the shares, though recognize patience is required for HLF to demonstrate its long-term growth algorithm remains intact despite an uncertain geopolitical backdrop,” he wrote.
BMO analyst Nevan Yochim lowered his target price to $16.50 from $18.50 after the news and maintained his “outperformer” (buy) rating.
“Management reiterated the estimated 2026 outlook for y/y EBITDA growth; however, weaker near-term margins now imply a Q1/26 EBITDA decline,” he wrote. “We lower our estimates and target to reflect the timing of margin recovery. While shares are likely to come under pressure, we maintain our ‘outperform’ rating, as we believe High Liner’s diversified business model positions the company to drive share gains and rebuild margins in a challenging macro environment.”
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Tilray Brands Inc. (TLRY-T) reported record revenue and swung to a profit on an adjusted earnings basis for its third quarter ended Feb. 28.
Before markets opened on Wednesday, the cannabis company reported revenue increased 11 per cent to a record US$206.7-million in the third quarter compared to US$185.8-million a year earlier. The result was ahead of expectations of $201.3-million, according to S&P Capital IQ.
Adjusted EBITDA increased 19 per cent to US$10.7-million compared to $9-million a year earlier.
Its net loss improved to US$25.2 million or 24 cents US per share versus a loss of US$793.50 million or US$8.69 a year earlier.
Adjusted net income of US$2.4-million or 2 cents US per share compared to an adjusted net loss of US$2.9-million or 3 cents US a year earlier. The result was below expectations for a profit of 7 cents US.
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Aya Silver and Gold (AYA-T) shares were up for a second consecutive day on Wednesday after the company reported strong fourth-quarter results that were largely ahead of expectations and a positive outlook.
Before markets opened on Tuesday, the company reported fourth-quarter revenue rose to US$75.3-million from US$9.3-million a year earlier and slightly ahead of expectations of US$75-million.
Net income of US$18.3-million or 12 cents US per share compared to a loss of US$30-million or 20 cents US a year earlier. Adjusted earnings of US$23.4-million or 16 cents per share were up from a loss of US$1.6-million or 1 cents US per share a year earlier. The expectation was for adjusted earnings to come in at 17 cents.
In its outlook, the company said 2026 is expected to be a year of “strong execution, focused on operations and advancing exploration and development initiatives.”
It added: “Looking ahead, management believes that the current industry landscape, together with expectations for a supportive silver price environment, is expected to support strong margins and operating cash flow, providing confidence in Aya’s strategy to pursue opportunities across its portfolio.”
National Bank analyst Don DeMarco maintain his “outperform” (buy) and C$35 target.
“[Our] thesis supported by (i) NAV expansion from production growth at the Zgounder mine, (ii) high-grade resource accretion at Zgounder with an expanded exploration program and regional potential; (iii) promising pipeline prospect in Boumadine with ongoing exploration, with potential first pour in 2028; and (iv) the only pure-play silver producer in our coverage,” the analyst wrote.
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NFI Group Inc. (NFI-T) announced on Tuesday that its Alexander Dennis subsidiary is looking at a new manufacturing approach “aimed at securing Scottish production operations and safeguarding jobs.”
The company said Alexander Dennis plans to convert its Larbert manufacturing facility into a chassis manufacturing site to support its low-emission and zero-emission bus products, and to close its legacy Falkirk facility, “aligning with its long-standing plans to exit that site.”
The company said the proposal would safeguard about 200 skilled manufacturing and support jobs and retain approximately 350 roles in Scotland. It said 115 roles could be considered redundant.
“This represents the best possible outcome for our business, employees, customers, and supply chain partners in the current climate,” said Paul Davies, president and managing director at Alexander Dennis.
NFI said it doesn’t change its fiscal 2026 guidance announced on March 11.
Stifel analyst Daryl Young said the update follows NFI’s previous announcement in September that it was reviewing its Scottish facilities in response to a flood of low-cost foreign buses and a lack of domestic content/manufacturing requirements. “Recall NFI already took material write-downs on this division in Q3/25,” he wrote in a note.
He added that the U.K. market has seen a flood of low-cost foreign buses in recent years, with 51 per cent of all zero-emission buses purchased in the U.K. sourced from overseas manufacturers, up 25 percentage points from 2024, according to the company.
“These buses are substantially below the price of ADL’s products, which has rendered the subsidiary unable to compete,” he wrote.
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Ag Growth International Inc. (AFN-T) announced on Monday that its CFO, Jim Rudyk, had resigned, effective May 8. “The company will immediately commence a search for a replacement CFO to be based in Winnipeg,” it stated.
It’s the latest in a series of management and other changes at the company in recent weeks.
Last week, the company suspended its dividend and cut the management team to eight members from 17. Earlier this year, the company saw the departure of its CEO and a reconstitution of its board.
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Upcoming small-cap earnings:
April 8: The North West Company Inc. (NWC-T)
April 9: Reitmans (Canada) Ltd. (RET-X), Roots Corp. (ROOT-T), Richelieu Hardware Ltd. (RCH-T)
April 10: Corus Entertainment Inc. (CJR-B-T)
April 14: AGF Management Ltd. (AGF-B-T), Blue Ant Media Corp. (BAMI-T)
April 16: Kraken Robotics Inc. (PNG-X)
April 23: Mullen Group Ltd. (MTL-T)
April 29: Precision Drilling Corp. (PD-T)
April 30: Canada Packers Inc. (CPKR-T), Allied Properties REIT (AP-UN-T), Badger Infrastructure Solutions Ltd. (BDGI-T)
May 1: Real Matters Inc. (REAL-T)
May 5: Curaleaf Holdings Inc.(CURA-T), Russel Metals Inc. (RUS-T), Sienna Senior Living Inc. (SIA-T)
May 6: Western Forest Products Inc. (WEF-T)
May 7: Maple Leaf Foods Inc. (MFI-T), Killam Apartment REIT (KMP-UN-T)
May 11: Cineplex Inc. (CGX-T)
May 12: RFA Financial Inc. (RFA-T)
May 13: Superior Plus Corp. (SPB-T)