MindWalk (HYFT) Is Pivoting to Recurring AI Revenue. Can ReefIQ Offset Widening Losses?

MindWalk Holdings Corp. (NASDAQ: HYFT) is transitioning its strategy to focus on recurring AI revenue through the launch of ReefIQ data platform. In its first quarter of fiscal year 2027, the company reported C$3.8 million in revenue, a 21.3% increase compared to the same period last year. Gross profit grew by 47.1%, reaching C$2.2 million or 58.6% gross margins, up from 48.3% in the same period last year.

MindWalk has partnered with AMD and Vultr to deploy AMD Instinct GPUs for ReefIQ, expanding its compute capacity and potentially lowering costs for enterprise clients. The company is negotiating with large players in the pharmaceutical market for enterprise-level ReefIQ deployments, making up 80% of its commercial pipeline by value.

Operating cash burn has improved to C$4 million in net cash for operating activities from C$4.2 million in the same period last year. However, operating losses increased by 47% year-over-year to C$6.13 million, and net loss widened to $6.1 million. Institutional interest remains low, with only 2 hedge funds holding positions in the stock.