New Risk • Jun 14
New major risk - Negative shareholders equity The company has negative equity. Total equity: -zł81k This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Negative equity (-zł81k). Revenue has declined by 62% over the past year. Market cap is less than US$10m (zł14.1m market cap, or US$3.85m). Minor Risk Revenue is less than US$5m (zł13m revenue, or US$3.5m). Announcement • May 28
Polaris IT Group S.A., Annual General Meeting, Jun 22, 2026 Polaris IT Group S.A., Annual General Meeting, Jun 22, 2026, at 11:00 Central European Standard Time. New Risk • May 27
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended December 2024. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported December 2024 fiscal period end). Shares are highly illiquid. Revenue has declined by 42% over the past year. Market cap is less than US$10m (zł15.8m market cap, or US$4.35m). Announcement • Nov 12
Polaris IT Group S.A. to Report Q3, 2025 Results on Nov 14, 2025 Polaris IT Group S.A. announced that they will report Q3, 2025 results on Nov 14, 2025 Reported Earnings • Feb 19
Full year 2024 earnings released: zł0.066 loss per share (vs zł0.018 profit in FY 2023) Full year 2024 results: zł0.066 loss per share (down from zł0.018 profit in FY 2023). Revenue: zł20.7m (down 42% from FY 2023). Net loss: zł4.02m (down 485% from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 18
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: zł4.70m (down 52% from 2Q 2023). Net loss: zł31.9k (down 106% from profit in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Announcement • Jun 06
Polaris IT Group S.A., Annual General Meeting, Jun 29, 2024 Polaris IT Group S.A., Annual General Meeting, Jun 29, 2024. Buy Or Sell Opportunity • Jun 04
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 37% to zł0.50. The fair value is estimated to be zł0.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 73% over the last 3 years. Meanwhile, the company became loss making. New Risk • May 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 10% per year over the past 5 years. Market cap is less than US$10m (zł32.6m market cap, or US$8.31m). Minor Risks Share price has been volatile over the past 3 months (7.3% average weekly change). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). New Risk • May 20
New major risk - Revenue and earnings growth Earnings have declined by 10% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 10% per year over the past 5 years. Market cap is less than US$10m (zł30.9m market cap, or US$7.89m). Minor Risk Share price has been volatile over the past 3 months (7.1% average weekly change). Reported Earnings • May 20
First quarter 2024 earnings released First quarter 2024 results: Revenue: zł8.06m (down 20% from 1Q 2023). Net income: zł107.2k (down 94% from 1Q 2023). Profit margin: 1.3% (down from 18% in 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. New Risk • Apr 03
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: zł39.3m (US$9.93m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (zł39.3m market cap, or US$9.93m). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: zł0.018 (vs zł0.051 in FY 2022) Full year 2023 results: EPS: zł0.018 (down from zł0.051 in FY 2022). Revenue: zł35.6m (down 21% from FY 2022). Net income: zł1.04m (down 65% from FY 2022). Profit margin: 2.9% (down from 6.6% in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 67 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 17
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: zł9.37m (up 72% from 3Q 2022). Net income: zł635.3k (up zł836.6k from 3Q 2022). Profit margin: 6.8% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 38 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 17
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: zł9.73m (flat on 2Q 2022). Net income: zł575.9k (down 46% from 2Q 2022). Profit margin: 5.9% (down from 11% in 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 43 percentage points per year, which is a significant difference in performance. New Risk • Jul 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 8.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (zł50.0m market cap, or US$12.2m). Announcement • Jun 17
Polaris IT Group S.A., Annual General Meeting, Jul 11, 2023 Polaris IT Group S.A., Annual General Meeting, Jul 11, 2023, at 11:00 Central European Standard Time. Reported Earnings • Mar 24
Full year 2022 earnings released Full year 2022 results: Revenue: zł44.8m (down 63% from FY 2021). Net income: zł2.97m (down 65% from FY 2021). Profit margin: 6.6% (down from 7.1% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Sep 09
Polaris IT Group S.A., Annual General Meeting, Sep 30, 2022 Polaris IT Group S.A., Annual General Meeting, Sep 30, 2022, at 11:00 Central European Standard Time. Reported Earnings • May 20
First quarter 2022 earnings released First quarter 2022 results: Revenue: zł19.8m (down 81% from 1Q 2021). Net income: zł6.95m (down 48% from 1Q 2021). Profit margin: 35% (up from 13% in 1Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 65% per year whereas the company’s share price has increased by 60% per year. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 20% share price gain to zł1.24, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 8x in the Specialty Retail industry in Poland. Total returns to shareholders of 312% over the past three years. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 22% share price gain to zł1.22, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 8x in the Specialty Retail industry in Poland. Total returns to shareholders of 249% over the past three years. Is New 90 Day High Low • Feb 20
New 90-day high: zł1.95 The company is up 3.0% from its price of zł1.90 on 20 November 2020. The Polish market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 10.0% over the same period. Is New 90 Day High Low • Dec 21
New 90-day low: zł1.25 The company is down 44% from its price of zł2.22 on 22 September 2020. The Polish market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 5.0% over the same period. Is New 90 Day High Low • Dec 04
New 90-day low: zł1.50 The company is down 34% from its price of zł2.26 on 04 September 2020. The Polish market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 1.0% over the same period. Is New 90 Day High Low • Nov 16
New 90-day low: zł2.00 The company is down 25% from its price of zł2.68 on 18 August 2020. The Polish market is down 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 3.0% over the same period. Valuation Update With 7 Day Price Move • Nov 16
Market pulls back on stock over the past week After last week's 29% share price decline to zł2.00, the stock is trading at a trailing P/E ratio of 27.3x, down from the previous P/E ratio of 38.2x. This compares to an average P/E of 9x in the Specialty Retail industry in Poland. Total returns to shareholders over the past year are 82%. Valuation Update With 7 Day Price Move • Oct 30
Market pulls back on stock over the past week After last week's 17% share price decline to zł2.66, the stock is trading at a trailing P/E ratio of 36.3x, down from the previous P/E ratio of 43.6x. This compares to an average P/E of 8x in the Specialty Retail industry in Poland. Total returns to shareholders over the past year are 113%. Valuation Update With 7 Day Price Move • Oct 19
Market bids up stock over the past week After last week's 44% share price gain to zł3.00, the stock is trading at a trailing P/E ratio of 40.9x, up from the previous P/E ratio of 28.4x. This compares to an average P/E of 8x in the Specialty Retail industry in Poland. Total returns to shareholders over the past year are 178%. Is New 90 Day High Low • Oct 19
New 90-day high: zł3.00 The company is up 3.0% from its price of zł2.90 on 21 July 2020. The Polish market is down 9.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Specialty Retail industry, which is up 6.0% over the same period. Is New 90 Day High Low • Sep 23
New 90-day low: zł2.22 The company is down 28% from its price of zł3.10 on 25 June 2020. The Polish market is down 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 21% over the same period.