Versus Systems

Software - Application · Technology

Price

$1.53

-0.04 (-2.85%)

Market Cap

$7.5M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+8131.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 60K (2021) → 4.9M (2025)

Versus Systems is a small software company that builds a platform letting video game publishers and broadcasters add prize-based rewards into their games and live streams. Instead of just watching or playing, users can win real prizes — like gift cards or products — by completing in-game challenges. The company sells its technology to game developers, sports broadcasters, and brands looking to keep audiences engaged longer.

Versus makes money by taking a share of the prizes or transactions that flow through its platform, and it also charges licensing fees to clients who use its software. The company operates primarily in North America and is very small, with a market cap near zero and heavy operating losses, meaning it spends far more than it earns. The near-100% gross margin shows the software itself is efficient, but the core risk is whether the company can sign enough clients and grow revenue fast enough to survive before running out of cash.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-91.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+30.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$48,065/ year

↓ Declining (-80% vs prior year)

2.2% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

64.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$422,903 cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Versus Systems's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Operating Margin

-4732.3%

Losing money on operations — -4732.3%

ROCE

-8.5%

Weak — -8.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+765.0%

Fast-growing sales (765.0% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-79.9%

Burning cash (-79.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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