Communications services, nec company · E9 · FY ends Mar · Revenue $10M · -1.93% margin · -$61K FCF
The business is unprofitable at the operating level (-1.93% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 22.3%, still solid. Free cash flow declined 105% despite revenue growth, conversion is weakening.
Free cash flow declined 105% versus the prior year, cash generation momentum has weakened. ROIC dropped from -1.03% to -6.05%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$10M
▲ +22.3% YoY
Net Income (TTM)
-$231K
▼ -5084.8% YoY
Op. Margin
-1.93%
▼ -1.5pp YoY
ROIC
-6.05%
▼ -5.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$61K
▼ -105.2% YoY
Op. Cash Flow (TTM)
$488K
▼ -70.1% YoY
Net Debt
$281K
Cash & Equiv.
$443K
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