• We expect demand for KDOZ solutions to remain strong as regulators crack down on misuse of children’s data and targeted advertising, driving the need for safe, age-verified digital ads. Recent actions include Disney’s (NYSE: DIS) $10M fine for collecting data on children under 13 via mislabelled YouTube content, Australia’s plan to raise the minimum social media age to 16 (with penalties up to A$50M), and platforms like Instagram and Roblox adding age-based filter and supervision tools to better protect teen users.
  • We continue to expect record revenue and EPS in 2025. KDOZ trades at 1.46x forward EV/Revenue, well below the sector average of 2.54x, a 43% discount.

Price and Volume (1-year)

* Kidoz Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in US$ unless otherwise specified.

Financials

Record Q3 revenue of $3.67M, up 60% YoY, and 3% above our estimate

2025 (9M) revenue rose 35% YoY to a record $8.84M

In Q3-2025, North America accounted for 54% of revenue vs 48% in Q3-2024

Gross margin fell 4 pp YoY to 49%, 1 pp below our forecast, likely due to competition

G&A and other expenses rose 27% YoY, 7% above our estimate, mainly due to higher R&D spending on AI integration; a strategic move we view positively to stay competitive

Higher revenue narrowed EPS losses

 Balance sheet remains healthy, with zero debt

Source: FRC / Company

Can raise up to C$1.53M from in-the-money options

FRC Projections and Valuation

The global kids digital ad market is projected to grow from $6B in 2025, to $15B by 2035 (10.5% CAGR), driven by increased device use among children, rising digital media consumption, and engaging ad formats

Per industry consensus, global digital ad spending growth is anticipated to slow to 8% in 2025 vs 10% in 2024, reflecting the absence of major cyclical events, economic and trade uncertainties, and tighter data privacy rules. Growth is expected to accelerate in 2026, supported by rising global GDP from easing monetary conditions, and the potential easing of geopolitical tensions and uncertainties, boosting advertiser confidence.

Source: FRC / Various

Historically, we estimate that KDOZ's revenue growth outpaced global digital ad spending growth by 1.75x on average

Following a strong Q3 and robust ad outlook, we are raising our short- and long-term revenue forecasts

Source: FRC

We are lowering 2025 EPS due to higher R&D, but raising 2026 EPS on stronger revenue 

Our DCF valuation rose from C$0.87 to C$0.90/share, driven by higher revenue estimates

Digital AdTech Companies

Source: S&P Capital IQ / FRC

KDOZ is trading at 1.46x forward EV/Revenue (up from 1.05x in our previous report), but still below the sector average of 2.54x (down from 2.74x)

Our comparables valuation fell from $0.53 to $0.51/share due to the lower sector multiple

We are reiterating our BUY rating, and maintaining our fair value estimate at C$0.70 (the average of our DCF and comparables valuations). KDOZ posted strong Q3 revenue growth, outperforming major ad platforms. Regulatory pressures and rising demand for safe, age-verified advertising support continued growth. Trading at 1.46x forward EV/Revenue, KDOZ remains attractively valued versus the sector, offering potential upside.

Risks

We believe the company is exposed to the following key risks:

  • Operates in a highly competitive space 
  • Unfavorable changes in regulations
  • Ability to attract publishers and brands will be key to long-term growth
  • FOREX
  • Reliance on digital ad spending trends
  • Changes in U.S. or global tariff policies that could affect client budgets
  • Data privacy or security breaches could impact advertiser trust and platform reputation

Maintaining our risk rating of 4 (Speculative)

APPENDIX