Down 56.5%, trading at 23.5x earnings: An AI smallcap worth a fresh look

AI is creating a new market for data analytics firms, but demand alone does not guarantee profits. One smallcap grew revenue 21.6% in Q1 FY27, yet its adjusted EBITDA margin fell to 20.4%. With a large client cutting business and investments in AI and Databricks adding to costs, the company must prove that new growth can offset lost revenue and deliver better returns.