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Oil & gas field machinery & equipment company · E9 · Revenue $25M · -12.55% margin · -$3M FCF
The business is unprofitable at the operating level (-12.55% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 31.7%, still solid. Margins contracted 27.3pp, which offsets some of the top-line progress.
ROIC dropped from 21.90% to -14.73%, capital efficiency is deteriorating. Negative free cash flow of -$3M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$25M
▲ +31.7% YoY
Net Income (TTM)
-$6M
▼ -334.0% YoY
Op. Margin
-12.55%
▼ -27.3pp YoY
ROIC
-14.73%
▼ -36.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$3M
▼ -6.8% YoY
Op. Cash Flow (TTM)
-$3M
▼ -5.3% YoY
Net Debt
$5M
Cash & Equiv.
$1M
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