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Services-prepackaged software company · L3 · FY ends Dec · Revenue $3M · -208.60% margin · -$5M FCF
The business is unprofitable at the operating level (-208.60% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue growth slowed to 1.0%, essentially flat. Margins also contracted 103.7pp. This is a business that needs a catalyst.
ROIC dropped from -52.42% to -119.21%, capital efficiency is deteriorating. Negative free cash flow of -$5M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$3M
▲ +1.0% YoY
Net Income (TTM)
-$6M
▼ -79.5% YoY
Op. Margin
-208.60%
▼ -103.7pp YoY
ROIC
-119.21%
▼ -66.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$5M
▼ -146.0% YoY
Op. Cash Flow (TTM)
-$5M
▼ -149.3% YoY
Net Debt
-$11M
Net Cash Position
Cash & Equiv.
$11M
3Y CAGR: +2.6%
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