/
Services-educational services company · E9 · FY ends Dec · Revenue $4M · -47.55% margin · -$637K FCF
The business is unprofitable at the operating level (-47.55% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 43.1%, still solid. Margins contracted 81.6pp, which offsets some of the top-line progress.
ROIC dropped from 8.12% to -10.14%, capital efficiency is deteriorating. Negative free cash flow of -$637K. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$4M
▲ +43.1% YoY
Net Income (TTM)
-$2M
▼ -297.3% YoY
Op. Margin
-47.55%
▼ -81.6pp YoY
ROIC
-10.14%
▼ -18.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$637K
▲ +17.6% YoY
Op. Cash Flow (TTM)
-$13K
▲ +98.1% YoY
Net Debt
-$3M
Net Cash Position
Cash & Equiv.
$3M
Continue Research