Versus Systems Inc. Common Stock (VS)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Versus Systems sells gamification and rewards software to venues, conferences, theme parks, and advertisers. It is a tiny five-employee operation, and that tells me the competitive position is fragile. I see little evidence of a durable moat. The filed numbers are erratic. In fiscal 2023, revenue was $271,169 and net loss was $9.5 million, or EPS -$10.44. In fiscal 2024, revenue was $57,288 and net loss was $4.0 million, or EPS -$1.54. In fiscal 2025, revenue was $2.2 million and net loss was $1.8 million, or EPS -$0.37. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, had revenue of $6,821, net income of $473,297, and diluted EPS of $0.10. Fiscal Q1 2026, ended 2026-03-31, had revenue of $17,300 and a net loss of $683,200, or EPS -$0.14. Those are not the numbers of a business with dependable demand. Free cash flow is negative $2.1 million trailing, a -34.1% FCF yield. At the 2026-10-13 close, FairStock shows P/B of 0.53 and P/E of -2.89. ROE is -58.58% and ROCE is -32.99%, signs of capital destruction. Piotroski is 4/9 and Altman Z is -39.55, which flags distress. The Lynch category is none because of losses in each of the last four years. A sub-book price might tempt a Graham-style bargain hunter, but without stable earnings or cash generation, it is a speculation on a turnaround, not a margin-of-safety investment. I prefer businesses that produce cash and have durable advantages; this one has not yet shown either.

In plain English: Versus Systems makes software that adds games and rewards to events, venues, and advertising. The business looks weak because it has lost money in each of the last four years and brings in very little revenue, though it did report a positive net income in the latest filed quarter. The share price is low compared with the value of its accounting assets, but the losses and cash burn make it hard to call cheap with confidence.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer