Two Canadian Stocks That Just Posted Great Financials

The stock market continues to make lofty new highs, mostly on the back of AI and related bubbles. Most growth and tech stocks have stretched valuations, but you can still find some great deals if you look for them. Two Canadian stocks just posted great financial results. Strong revenue growth and even stronger growth in net income. Their stock prices have increased in reaction to the improved financials, but given the low valuations there is clear room to move up some more. Those stocks are NexgenRx Inc. (NEGXF) (NXG.V) and Ostrom Climate Solutions Inc. (COO.V). If you chase value instead of hype, you won't leave yourself exposed to that kind of immediate and devastating loss that can happen when the bubble bursts on high-flying stocks. If you like our picks you can follow this blog by clicking the follow button on the top of the left hand panel. We have 1038 followers on here as well as 132 followers on our Canadian blog. You can also follow us on X @StockTradePicks which has over 5,000 followers. 

NXG rose 25% to close at $0.425 on Friday after posting strong results in Q1 2026. 

TORONTO, ON / ACCESS Newswire / May 21, 2026 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its financial results for the first quarter ended March 31, 2026, with net income of $1,228,288 and EBITDA of $1,444,036, representing increases of $701,078 and $615,635, respectively, compared to the same period in 2025. The Company also earned total revenue for the quarter of $4,997,521, representing an increase of $520,441 as compared to the first quarter of 2025.

During the first quarter of 2026, the Company made meaningful progress across its business through disciplined execution and continued investment in growth and innovation. These efforts were evidenced by solid financial results delivered by the Company in the quarter. Total revenue was $4,997,521, an increase of $520,441, or 11.62%, compared to the first quarter of 2025, which was driven by new business growth and higher claims volumes. The Company reported positive EBITDA of $1,444,036 for the quarter. Net income and EBITDA improved by $701,078 and $615,635, respectively, compared to the same period in 2025, supported by increased transaction volumes, operational efficiencies, and prudent expense management.

This chart in the MD&A is a good summary of the direction of the company:

While NXG was generally earning a small net income every quarter, this past quarter took a clear step forward. Record revenue of just under $5 million along with cost containment so that all of the growth in revenue flowed through to the bottom line. That resulted in a $0.016 EPS for Q1 - more than the $0.013 EPS achieved for all of 2025. Prior to these results, the company was trading around $0.35, or about a 27x multiple. If the new reality is $0.05 EPS per year, a 20 P/E leads to a $1.00 stock price. Not much more needs to be said here than this NXG is a clear strong buy at these levels. 

Ostrom released their Q4 a couple of weeks ago, and these results were even better.

• Fiscal year 2025 revenue totaled $25,773,561, representing an increase of $22,310,750, or approximately 644%, from $3,462,811 in fiscal 2024. This increase was driven primarily by materially higher VER sales, which increased to $24,330,687 in 2025 from $1,959,496 in the prior year. Consulting and advisory revenue was $1,442,874, compared with $1,503,315 in 2024.
• Gross profit for the year was $3,971,087, compared to $754,999 in 2024, representing an increase of $3,216,088. Gross margin was approximately 15.4%, compared to 21.8% in the prior year. The margin profile reflects a higher-volume VER trading year in which certain transactions relied on externally sourced or higher-cost inventory, while absolute gross profit increased materially despite the lower margin on certain trades.
• The Company reported net income for fiscal 2025 of $1,592,510, compared to a net loss of $4,579,652 in fiscal 2024, representing a year-over-year improvement of approximately $6.2 million. The improvement reflected higher gross profit, lower operating expenses, and income recognized on extinguishment of deferred revenue arising from the settlement of obligations under an Emission Reduction Purchase Agreement ("ERPA"), partially offset by the impairment of the right-of-use asset and higher finance and interest costs.
• Q4 2025 revenue reached approximately $18,164,391, compared to $1,568,181 in Q4 2024. The increase was driven primarily by a significant increase in VER sales activity, including transactions connected to stronger compliance-market demand and customer delivery timing in the fourth quarter.
• Gross profit for Q4 2025 was approximately $2,264,463, compared to $86,207 in Q4 2024. The year-over-year increase reflects substantially higher VER sales volume during the quarter, partly offset by a lower gross margin profile on certain high-volume trading activity.
• The Company generated net income of approximately $2,941,233 in Q4 2025, compared to a net loss of $1,373,756 in Q4 2024. This variance was driven by increased revenue and gross profit, operating cost discipline, and the recognition of income on extinguishment of the ERPA project advance.

The company's MD&A summarized quarterly results. Like NXG, there was a substantial financial improvement for the last reported quarter. Except this one was much more pronounced:

COO earned a $0.026 EPS in Q4. The company cautioned that its financials will be subject to fluctuation. But even with that caveat, $0.075 is far too cheap for this kind of financial performance. If the company achieves a $0.05 EPS for 2026 - half the pace of Q4 - a 10x earnings multiple generates a $0.50 target. The company's Q1 2026 results are due out in a few days. Pay close attention to them. If Q1 follows up Q4's results, this thinly traded stock could skyrocket. 

Disclosure: We are long NXG.V, COO.V