Yahoo Finance
Apr. 28, 2026
Q4 2025 Data
Price: $5.60. Shares: 29.3m, Cap: $165m
Summary
*Tiny is holding company that set out to be the Berkshire Hathaway of internet companies. However, the stock had lost over 80% in value since its IPO at 2023.
*There are combined reasons for the poor stock performance including been initial overvalued, CEO transition, business headwinds, stock dilution and debt load caused by acquisition, etc.
*Fundamentally the underline businesses are actually doing quite ok with good FCF that offers a very attractive valuation based on current price level.
Business
(1) History
In 2006, Andrew Wilkinson founded MetaLab as a design and product studio. It was very profitable since the beginning. In 2009, he also founded Pixel Union, an early partner to Shopify Inc. providing premium themes for merchants.
In the same year, Chris Sparling joined the company and became CFO of both companies. Since then, they became very close business partners.
Since 2013, they started investing together. In 2014, Andrew sold his 80% stack of Pixel Union to a family office.
In 2016 Tiny Capital was officially incorporated as a permanent holding company to acquire profitable internet business.
In 2017, Tiny acquired Dribbble, a creative platform for designers to showcase work, discover inspiration, and connect with employers and other creators.
In 2019, it bought back Pixel Union. Combined with other Shopify related business, it created a Shopify-ecosystem platform called WeCommerce. It provides software, themes, and services businesses that support merchants on Shopify.
In 2020, WeCommerce was listed on the TSX Venture Exchange. In January 2023, Tiny and WeCommerce agreed to an all-share merger, and the deal closed in April 2023, with the combined public company renamed Tiny Ltd.
In 2024, both Andrew and & Chris stepped down from their Co-CEO role.
In 2025, it acquired 66% of DJ software company Serato for USD$66m. The company issued 6m new shares and $35m in convertible debt.
(2) Product & Services
Digital Services: Metalab is the original agency business that contract graphic design work for businesses.
Software & Apps: WeCommerce and Serato. WeCommerce's business seems stalled since 2023. With the including of Serato, the software segment became Tiny's biggest sub-division.
Creative Platform: Dribbble & Creative Market
Dribbble is a marketplace for digital designers. Creative Market is an online marketplace for digital design assets.
Tiny Fund I:
Tiny currently owns around 21% of Tiny Fund I. valued at around 45m on balance sheet. Major holdings inside the fund:
(1) Aeropress coffee maker: Portable coffee maker.
(2) Mateina: Yerba Mate drinks.
(3) Letterboxd: Film review social media platform.
(3) Industry
(4) Seasonality
(5)Employees
2. Management
(1) Management
Andrew Wilkinson: Original founder of Metalab.
Chris Sparling: Originally worked for a bank and joined Metalab as CFO. Been Andrew's business partner ever since.
(2) Ownership and Compensation
Andrew Wilkinson: 15m shares. 51%.
Chris Sparling: 2.3m shares. 8%.
It pays CEO and CFO around $450k to $500k per year in 2024.
3. Financial data
Notes: debt
As Q4 25: Cash: around 30m. Debt: 135m. Interest is around 11%.
Notes: Share Data
Shares outstanding: 29m.
Options and RSU: very minimal.
4. Valuation and comments
(1) Except Serato, it seems all other businesses are facing some headwinds. Especially the creative platform revenue are down quite a lot YoY. The digital service segment logged growth in the first 3Q if not counting the divested 2 businesses. However, in Q4, it is down by 9% YoY. The software business is also just trending down for the whole year if not counting contribution from Serato since May. 2025.
(1) Except Serato, it seems all other businesses are facing some headwinds. Especially the creative platform revenue are down quite a lot YoY. The digital service segment logged growth in the first 3Q if not counting the divested 2 businesses. However, in Q4, it is down by 9% YoY. The software business is also just trending down for the whole year if not counting contribution from Serato since May. 2025.
(2) The Serato acquisition added around $40m in revenue and around $10m in adjusted EBITDA. It still seems quite expensive at USD$100 valuation. On the positive side, it added around $30m in ARR(annual recurring revenue). Now the ARR is around $70m.
(3) Current net debt stands at around $105m which is a little high. However, if take the 45m valuation of the Tiny fund I away, it is just around 60m which is much lower. On a EV/EBITDA bases, it is currently traded around ($165m+$60m)/$38m=5.8.
(4) It generated 25m FCF for the whole year 2025. However, there is a 8.2m one time license deal in Q2 from the digital service segment. Real FCF is just around $17m. Still it is a much better result than previous 2 years. On price/FCF bases, it is 10 times. It is quite a cheap valuation.
(5) Despite both being retired from the CEO role, Andrew and Chris still on the board and hold majority of the shares. It is been clear that their interest is for capital allocation while not running the business. Whether they are still involved in the M&A of Serato remains unknown.
5. Risk
(1) Both the Metalab and Dribbble business face downward pressure. They are both tied to the designing industry. Along with WeCommerce, a lots of the demand of its product or service might fluctuate along with economy circle.
(2) The software industry is facing heavy disruption from AI adoption. While the Serato platform is unlikely to be replaced by AI. The WeCommerce related business might face tough competitions. The designer market might as well facing headwinds from AI adoptions.
(3) Although the company generated very good cash flow in 2025. It might not generate similar amount going forward.
(4) The debt interest is quite high and need to be paid down. It might not be able to generate enough cash to do so.
(5) The company might continue to do expensive acquisitions and issuing more shares or debt.
6. Conclusion
Despite the pressure of the some of its businesses face and the debt it took. As a whole, the company has been managed well and the profit has gone up. The downside risk has been largely discounted by the low share price. It has potential to do very well in the future.
7. Links
