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 34 per cent over the past 52 weeks as of Tuesday’s close. It hit a record of 1,179.02 on Oct. 15. The Russell 2000 in the U.S. is up about 1 per cent over the past 52 weeks. It hit a record 2,541.67 on Oct. 15.
Small-cap summar
Extendicare Inc. (EXE-T) shares closed up 16 per cent on Wednesday after the company reported third-quarter results that were ahead of expectations.
After markets closed on Tuesday, the Markham, Ont.-based long-term care and home health care services company reported revenue of $440.3-million, up from $359.1-million a year earlier. The results beat expectations of $415.4-million, according to S&P Capital IQ.
Adjusted EBITDA came in at $50.8-million up from $36.1-million a year ago and ahead of expectations of $38.1-million.
Net earnings of $24.1-million or 28.1 cents per share were in line with expectations and compared to $16.3-million or 18.7 cents a year ago.
Adjusted funds from operations (AFFO) came in at $29.5-million or 34.5 cents, ahead of expectations of 28 cents and up from $23.1-million or 25.3 cents a year ago.
“This quarter marks our strongest performance in recent years, reflecting margin improvements across all segments, augmented by a full quarter impact of our recent acquisitions,” said CEO Michael Guerriere in a release. “The aging demographic is driving demand in a fragmented seniors care market, providing opportunity for further accretive acquisitions that demonstrate the value creation potential of our strategy.”
National Bank Financial analyst Giuliano Thornhill said in a Nov. 11 note that the company “delivered a strong Q3 beat, driven by robust HHC [home health care] growth and margin expansion, reinforcing its position as a compelling play on demographic and system-driven health care demand.”
Mr. Thornhill, who has an “outperform” (buy) rating and $17.50 target price on the stock, also wrote that he expects “accelerating demographics and a struggling health care system to continue to drive demand” for the company.
“With both primary risks (labour availability/policy) muted near term, we expect EXE’s shares to re-rate higher and more accurately reflect its organic growth potential and capital-light structure. At 10x EBITDA vs. our 11x target plus low leverage levels, EXE remains attractively valued.”
Canaccord Genuity analyst Tania Armstrong-Whitworth said AFFO was above her estimate of 28 cents per share. “Based on EXE’s $0.126/share dividend in Q3, the payout ratio was a healthy 36% (down sequentially from 43% in Q2),” she wrote in a note. She has a “buy” and $16.50 price target on the stock.
**
Stingray Group Inc. (RAY-A-T) shares closed up 17 per cent on Wednesday after the company reported second-quarter earnings that beat expectations and announced an acquisition.
After markets closed on Tuesday, the Montreal-based music, media and technology company reported revenue of $113.3-million for the period ended Sept. 30, up 21 per cent from $93.6-million in the second quarter last year. The result surpassed expectations of $108.1-million.
Adjusted EBITDA rose to $39.5-million from $34-million last year and was ahead of consensus of $38.5-million.
Net income more than doubled to $11.8-million or 17 cents per share versus $5.8 million or 8 cents a year ago. Adjusted EPS of 32 cents beat expectations of 31 cents and compared to 24 cents last year.
The company also announced an agreement to acquire TuneIn Holdings Inc., a live audio streaming and ad monetization company in a deal valued at up to US$175-million. Stingray said it will pay US$150-million at closing and up to US$25-million 12 months following the closing. Stingray said it secured an additional US$150 million term loan under its renewed credit facility to finance the transaction.
“This acquisition marks a pivotal moment in Stingray’s journey to further strengthen its position as a global leader in audio entertainment and digital advertising sales,” stated co-founder and CEO Eric Boyko.
Cannacord Genuity analyst Aravinda Galappatthige said the results were positive and beat his expectations.
In a note, he said the TuneIn Holdings is expected to bring US$10-million in expected cost synergies within 12 to 18 months, “which would drive further margin expansion, in our view.”
Mr. Galappatthige has a “buy” and $13 target on the stock.
**
Northwest Healthcare Properties REIT (NWH-UN-T) units closed up 12 per cent on Wednesday after the company swung to a profit in its third quarter and announced a share buyback plan.
After markets closed on Tuesday, the investor and operator of global health care infrastructure assets reported revenue from investment properties was $104.3-million, down 2.6 per cent from a year ago, “primarily reflecting the disposition of non-core assets during 2024 and 2025 year-to-date, partially offset by same property revenue growth.”
It said same-property net operating income increased by 4.4 per cent to $76.9-million compared the same period last year.
Net income was $31.2-million compared to net loss of $157.3-million last year, “primarily due to lower interest expense, positive fair value adjustments on investment properties and financial instruments, partially offset by lower net operating income resulting from asset dispositions,” the company stated.
Adjusted funds from operations came in at 11 cents per unit, beating expectations of 10 cents and up from 9 cents per unit a year ago.
The REIT also announced a normal course issuer bid involving different debentures.
**
Chemtrade Logistics Income Fund (CHE-UN-T) shares closed up 5 per cent on Wednesday after the company reported third-quarter results that largely beat expectations. The Toronto-based industrial chemicals and services company also reported record quarterly adjusted EBITDA and raised its full-year guidance for the same financial metric.
After markets closed on Tuesday, Chemtrade reported revenue of $532.8-million, up 12.4 per cent year-over-year and ahead of expectations of $496.9-million.
Adjusted EBITDA of $151.2-million was up 10 per cent year over year, which the company said was its highest on record for a quarter, “primarily due to higher selling prices for several products, partially offset by lower selling prices for chlorine and higher input costs.” The result also beat expectations of $125.3-million.
Net earnings of $42.4-million were down 29.5 per cent from $60.1-million a year ago. The company said the drop was mainly due to losses from changes in the fair value of debentures and higher depreciation and amortization expense.
“Although global trade tensions were prevalent through 2025 and still persist, Chemtade’s business has shown resilience and continues to deliver strong results with market conditions for its products remaining favourable,” the company stated.
The company raised its fiscal 2025 adjusted EBITDA to above $503-million, which it said would be a record.
“The updated guidance excludes earnings from Polytec as the timing of closing the acquisition is subject to regulatory approvals, which have been delayed due to the U.S. Government shutdown,” it stated.
The guidance is ahead of expectations of $491.2-million for fiscal 2025.
“The choice of the $502.6 million bar is significant in that this was the prior high-water mark Adj. EBITDA level achieved in 2023,” National Bank Financial analyst Zachary Evershed wrote in a note.
“Implied guidance for Q4/25 indicates next quarter should clock in above $93.8-million,“ he added, noting that it sets a lower bar versus the Street’s $107.7-million forecast (and his team’s $108.8-million forecast). ”Given the extent of the strength of Q3 results, and that Q4 could range higher, we do not believe this should undermine the beat and raise,” he wrote.
He has an “outperform” (buy) on the stock with a $17.50 target.
**
Martinrea International Inc. (MRE-T) reported lower sales that missed expectations but higher earnings per share that beat consensus for its third quarter ended Sept. 30.
After markets closed on Tuesday, the Vaughan, Ont.-based auto parts company reported sales of $1.19-billion, down 3.8 per cent from $1.24-billion from the same quarter last year. The result in the latest quarter was below expectations of $1.24-billion, according to S&P Capital IQ.
“The total decrease in sales was driven by year-over-year decreases in the North America and Europe operating segments, partially offset by a year-over-year increase in the rest of the world,” the company stated.
Net earnings came in at $35.8-million or 49 cents per share, up from $14.2-million or 19 cents a year ago. Adjusted EPS was 52 cents per share, which was ahead of expectations of 47 cents and compared to 19 cents a year earlier.
Adjusted EBITDA of $140.4-million was down from $154.1-million a year ago and below expectations of $142.8-million.
“We are very pleased with our performance in the third quarter, stated CEO Pat D’Eramo. ”Adjusted operating income margin was higher year over year, as we continued to drive operating improvements and negotiated commercial recoveries from our customers, largely for volume shortfalls on electric vehicle programs. We generated positive results, notwithstanding the current environment as it relates to tariffs, and a production disruption at Jaguar Land Rover (JLR), one of our key customers."
**
Aimia Inc. (AIM-T) reported a drop in sales in its third quarter but a return to profitability for the first time since 2022.
Before markets opened on Wednesday, the investment holding company reported revenue of $126.4-million, down 2.1 per cent from $129.1-million a year earlier. The expectation was for revenue of $129.5-million.
“The decline was attributable to unfavourable economic and market conditions that impacted Cortland and Bozzetto,” its two investment companies, the company stated. Bozzetto is a specialty chemicals company and Cortland International is a rope and netting solutions company.
Adjusted EBITDA of $20.3-million was up 35 per cent from $15-million last year and roughly in line with expectations of $20-million.
Net earnings of $1.4-million or nil per share was an improvement from a net loss of $2.2-million or 7 cents last year.
“Aimia’s net earnings in Q3 2025 marked its first quarter of profitability attributable to equity holders since Q3 2022,” the company stated.
**
Computer Modelling Group (CMG-T) reported a 2-per-cent revenue increase but a drop in adjusted EBITDA and profit for its second quarter ended Sept. 30.
After markets closed on Tuesday, the Calgary-based company that makes reservoir simulation and seismic interpretation software, reported revenue of $30.2-million for the quarter, up from $29.5-million a year earlier. The result was ahead of expectations of $29.4-million.
Adjusted EBITDA decreased by 25 per cent to $7.6-million year over year and was slightly below expectations of $7.7-million.
Net income of $2.7-million or 3 cents per share was down from $3.8-million or 5 cents a year ago. The expectation was for EPS to come in at 4 cents in the latest quarter.
The company said the drop in revenue from reservoir and production solutions “had a more pronounced effect on adjusted EBITDA, given its higher-margin profile, and was partially offset by contributions from our acquisitions.”
It said revenue in the second half of its fiscal year is expected to be higher than in the first half, “reflecting the timing of seasonal contract renewals and revenue recognition. Organic recurring revenue growth is expected to turn positive in the fourth quarter and remain positive on an annual basis in fiscal 2027.”
The company also said adjusted EBITDA and free cash flow are expected to improve in the second half of its fiscal year. “However, on a full-year basis, adjusted EBITDA (excluding future acquisitions) will be lower in fiscal 2026 compared to fiscal 2025 due to the decline in organic revenue and professional services.”
Ventum Capital Markets analyst Amr Ezzat noted that management also pointed to a “record-strength M&A pipeline,” including the establishment of a new $100-million credit facility, as well as a share repurchase program.
“While growth investment and strategic M&A remain core priorities, management views current valuation levels as a meaningful discount to intrinsic value,” he wrote. We remain constructive on the longer-term strategy, but near-term fundamentals remain soft."
He has a “neutral” (hold) rating and $7.50 target on the stock.
Canaccord Genuity analyst Doug Taylor wrote in a note that the results were ahead of Street expectations, “despite ongoing steep organic growth declines following the loss of a top-10 customer that was reported last quarter. This was in part due to a greater contribution from acquired assets (SeisWare) than we had anticipated.”
Mr. Taylor added that the company “pointed to expectations that organic growth for recurring revenue, a key watch item, would turn positive in Q4, consistent with our understanding of the timing of the recent Shell license for CoFlow.”
On Monday, the company announced a multi-year software licensing agreement with Shell for its simulation solutions, including its CoFlow product.
He has a “hold” rating on the stock and $6.50 price target..
**
Westport Fuel Systems Inc. (WPRT-T) reported a drop in sales and a wider loss for its second quarter ended Sept 30.
After markets closed on Monday, the Vancouver-based company reported revenue of US$1.6-million compared to US$4.9 million in the same quarter last year. The result was ahead of expectations of US$1.1-million
Its net loss from continuing operations of US$10.4-million or 79 cents US per share compared to a net loss from continuing operations of US$6-million or 22 cents US for the same quarter last year. The expectation was for a loss of 57 cents US in the latest quarter.
Adjusted EBITDA came in at negative US$5.9-million compared to negative US$0.8-million for the same period in 2024. The expectation was for an adjusted EBITDA loss of US$6-million.
**
Calian Group Ltd. (CGY-T) said it’s selling parts of its business and seeking new board members after a months-long campaign from one of its major shareholders to streamline the company and focus on its defence business.
In a release Tuesday, the Ottawa-based company said it had entered into a co-operation agreement with key shareholder Plantro Ltd., the private holding company of activist investor Matt Proud, which led to its decision to expedite an ongoing board renewal process and divest “certain non-core assets.”
The company would not specify which assets it is selling, and there is no timeline for when the sale will be complete.
Read the full Globe story here:
**
Premium Brands Holdings Corp. (PBH-T) reported third-quarter earnings that fell short of expectations, excluding revenue.
Before markets opened on Monday, the Vancouver-based specialty foods provider reported record third-quarter revenue of $2-billion, up 19.1 per cent compared to $1.67-billion for the third quarter of 2024. The result beat expectations of $1.9-billion.
Adjusted EBITDA was a record $179.1-million up from $159.4-million a year ago “despite significant protein cost inflation challenges, mainly associated with beef products,” the company stated. The result missed expectations of $181.4-million.
The company swung to a loss of $1.7-million or 4 cents per share compared to a profit of $25.4-million or 57 cents a year ago. Adjusted earnings of $1.27 per share came in below consensus estimates of $1.40 and compared to $1.11 last year.
Find analyst commentary on the company’s latest earnings in Tuesday’s analyst upgrades and downgrades report.
**
Upcoming small-cap earnings:
Nov. 12: Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T), Thinkific Labs Inc. (THNC-T), North American Construction Group Ltd. (NOA-T), Taseko Mines Ltd. (TKO-T)
Nov. 13: Superior Plus Corp. (SPB-T), Total Energy Services Inc. (TOT-T), Profound Medical Corp. (PRN-T), AutoCanada Inc. (ACQ-T), Ballard Power Systems (BLDP-T), KP Tissue Inc. (KPT-T), Corby Spirit and Wine Limited (CSW-A-T), Automotive Properties REIT (APR-UN-T), H&R REIT (HR-UN-T), GO Residential REIT (GO-U-T), Fiera Capital Corp. (FSZ-T), Plaza Retail REIT (PLZ-UN-T), Auxly Cannabis Group Inc. (XLY-T), Intermap Technologies Corp. IMP-T
Nov. 14: Conifex Timber Inc. (CFF-T), Neo Performance Materials Inc. (NEO-T), MDA Space (MDA-T), Ag Growth International Inc. (AFN-T),
Nov. 20: Real Matters Inc. (REAL-T), Sucro Ltd. (SUGR-X)
Nov. 27: Rogers Sugar Inc. (RSI-T)
Dec. 3: EQB Inc. (EQB-T)
Dec. 5: Laurentian Bank (LB-T)
Dec 10: Transcontinental Inc. (TCL-A-T)