/
Services-computer programming, data processing, etc. company · L3 · FY ends Dec · Revenue $283M · -8.34% margin · $13M FCF
The business is unprofitable at the operating level (-8.34% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 13.1%, still solid. Margins contracted 4.5pp, which offsets some of the top-line progress.
Free cash flow declined 54% versus the prior year, cash generation momentum has weakened. ROIC dropped from -12.19% to -27.81%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$283M
▲ +13.1% YoY
Net Income (TTM)
-$33M
▼ -187.5% YoY
Op. Margin
-8.34%
▼ -4.5pp YoY
ROIC
-27.81%
▼ -15.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$13M
▼ -54.2% YoY
Op. Cash Flow (TTM)
$15M
▼ -51.5% YoY
Net Debt
-$29M
Net Cash Position
Cash & Equiv.
$72M
5Y CAGR: +24.8%
Continue Research