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Services-business services, nec company · DE · FY ends May · Revenue $485M · -18.14% margin · $15M FCF
The business is unprofitable at the operating level (-35.69% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 12.9% YoY. Margins deteriorated 40.2pp alongside, both lines moving the wrong way.
Free cash flow declined 22% versus the prior year, cash generation momentum has weakened. ROIC dropped from 4.62% to -46.79%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$485M
▼ -12.9% YoY
Net Income (TTM)
-$98M
▼ -1011.8% YoY
Op. Margin
-18.14%
▼ -40.2pp YoY
ROIC
-31.09%
▼ -51.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$15M
▼ -22.1% YoY
Op. Cash Flow (TTM)
$16M
▼ -13.8% YoY
Net Debt
-$58M
Net Cash Position
Cash & Equiv.
$83M
5Y CAGR: -4.8%
5Y CAGR: -19.3%
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