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Versus Systems Inc. (VS) Fundamental Analysis & AI Grade 2026

VS Nasdaq Services-Computer Processing & Data Preparation A1 CIK: 0001701963
Updated This Month • Analysis: May 23, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
78% Confidence
N/A
C
78% Conf
Pending
Analysis scheduled

📊 VS Key Takeaways

Revenue: $17.3K
Net Margin: -3,949.1%
Free Cash Flow: $103.8K
Current Ratio: 1.57x
Debt/Equity: 0.00x
EPS: $-0.14
AI Grade: C with 78% confidence
Versus Systems Inc. (VS) receives a C fundamental grade with 78% confidence from our AI analysis based on SEC 10-K filings. With revenue of $17.3K, net profit margin of -3,949.1%, and return on equity (ROE) of -7.1%, Versus Systems Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete VS stock analysis for 2026.

Is Versus Systems Inc. (VS) a Good Investment?

Claude

Versus Systems exhibits critical financial distress with only $17.3K in quarterly revenue against $818.7K in operating losses, indicating an unsustainable business model with poor product-market fit. Despite year-over-year loss improvement and positive free cash flow, the company's cash runway appears limited at current burn rates, with no clear path to profitability or revenue scale. Management must demonstrate significant revenue acceleration and expense rationalization to justify continued holding.

Versus Systems Inc. Key Strengths (VS)

Claude
  • + Positive operating and free cash flow despite large net losses ($144.0K operating CF, $103.8K FCF)
  • + Reduced net loss year-over-year (16.4% improvement) and 3,711% revenue growth from minimal base
  • + Strong balance sheet with no long-term debt, reasonable liquidity (1.57x current ratio), and $422.9K cash position

VS Stock Risks: Versus Systems Inc. Investment Risks

Claude
  • ! Microscopic revenue base ($17.3K) with massive operating losses ($818.7K), implying estimated 6-month cash runway at current burn rates
  • ! Negative operating margin of -4,732% and net margin of -3,949% indicate fundamental unprofitability and poor operational efficiency
  • ! High cash burn relative to minimal revenue suggests weak product-market fit and lack of commercial traction in Services-Computer Processing sector

Key Metrics to Watch

Claude
  • * Quarterly revenue trajectory—need sequential growth acceleration to $100K+ quarterly run rate within 2-3 quarters
  • * Operating expense reduction and path to operating cash flow breakeven—must reduce operating losses toward $300K range
  • * Cash balance burn rate—critical to monitor runway; any acceleration in burn below 6-month threshold triggers existential risk

Versus Systems Inc. (VS) Financial Metrics & Key Ratios

Revenue
$17.3K
Net Income
$-683.2K
EPS (Diluted)
$-0.14
Free Cash Flow
$103.8K
Total Assets
$1.7M
Cash Position
$422.9K

💡 AI Analyst Insight

The 599.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.

VS Profit Margin, ROE & Profitability Analysis

Gross Margin 100.0%
Operating Margin -4,732.3%
Net Margin -3,949.1%
ROE -7.1%
ROA -41.2%
FCF Margin 599.9%

VS vs Technology Sector: How Versus Systems Inc. Compares

How Versus Systems Inc. compares to Technology sector averages

Net Margin
VS -3,949.1%
vs
Sector Avg 18.0%
VS Sector
ROE
VS -7.1%
vs
Sector Avg 22.0%
VS Sector
Current Ratio
VS 1.6x
vs
Sector Avg 2.5x
VS Sector
Debt/Equity
VS 0.0x
vs
Sector Avg 0.5x
VS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Versus Systems Inc. Stock Overvalued? VS Valuation Analysis 2026

Based on fundamental analysis, Versus Systems Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-7.1%
Sector avg: 22%
Net Profit Margin
-3,949.1%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Versus Systems Inc. Balance Sheet: VS Debt, Cash & Liquidity

Current Ratio
1.57x
Quick Ratio
1.57x
Debt/Equity
0.00x
Debt/Assets
27.7%
Interest Coverage
-46.01x
Long-term Debt
N/A

VS Revenue & Earnings Growth: 5-Year Financial Trend

VS 5-year financial data: Year 2023: Revenue $1.1M, Net Income -$22.5M, EPS $-192.89. Year 2024: Revenue $271.2K, Net Income -$9.5M, EPS $-10.44. Year 2025: Revenue $2.2M, Net Income -$4.0M, EPS $-1.54.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Versus Systems Inc.'s revenue has grown significantly by 97% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.54 indicates the company is currently unprofitable.

VS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
599.9%
Free cash flow / Revenue

VS Quarterly Earnings & Performance

Quarterly financial performance data for Versus Systems Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $17.3K -$683.2K $-0.14
Q3 2025 $3.8K -$537.8K N/A
Q2 2025 $23.3K -$289.4K $-0.06
Q1 2025 $26.5K -$961.7K $-0.20
Q3 2024 $3.8K -$529.0K $-0.22
Q2 2024 $26.9K -$1.3M $-0.54
Q1 2024 $26.5K -$1.3M $-0.53

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Versus Systems Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$144.0K
Cash generated from operations
Capital Expenditures
$40.2K
Investment in assets
Dividends
None
No dividend program

VS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Versus Systems Inc. (CIK: 0001701963)

📋 Recent SEC Filings

Date Form Document Action
May 15, 2026 10-Q ea0289827-10q_versus.htm View →
May 5, 2026 8-K ea0289226-8k_versus.htm View →
Apr 16, 2026 8-K ea0286374-8k_versus.htm View →
Apr 15, 2026 10-K ea0286026-10k_versus.htm View →
Mar 3, 2026 8-K ea0279497-8k_versus.htm View →

Frequently Asked Questions about VS

What is the AI rating for VS?

Versus Systems Inc. (VS) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VS's key strengths?

Claude: Positive operating and free cash flow despite large net losses ($144.0K operating CF, $103.8K FCF). Reduced net loss year-over-year (16.4% improvement) and 3,711% revenue growth from minimal base.

What are the risks of investing in VS?

Claude: Microscopic revenue base ($17.3K) with massive operating losses ($818.7K), implying estimated 6-month cash runway at current burn rates. Negative operating margin of -4,732% and net margin of -3,949% indicate fundamental unprofitability and poor operational efficiency.

What is VS's revenue and growth?

Versus Systems Inc. reported revenue of $17.3K.

Does VS pay dividends?

Versus Systems Inc. does not currently pay dividends.

Where can I find VS SEC filings?

Official SEC filings for Versus Systems Inc. (CIK: 0001701963) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is VS's EPS?

Versus Systems Inc. has a diluted EPS of $-0.14.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is VS's fundamental grade?

Based on our AI fundamental analysis in June 2026, Versus Systems Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is VS stock overvalued or undervalued?

Valuation metrics for VS: ROE of -7.1% (sector avg: 22%), net margin of -3,949.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is VS's AI grade for 2026?

Our dual AI analysis gives Versus Systems Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is VS's free cash flow?

Versus Systems Inc.'s operating cash flow is $144.0K, with capital expenditures of $40.2K. FCF margin is 599.9%.

How does VS compare to other Technology stocks?

Vs Technology sector averages: Net margin -3,949.1% (avg: 18%), ROE -7.1% (avg: 22%), current ratio 1.57 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 23, 2026 | Data as of: 2026-03-31 | Powered by Claude AI