Overall Score

Revenue Model

Revenue is still supported by a high gross margin profile at 73.7% and a price-to-sales ratio of 2.52x.

The business remains unprofitable with a net profit margin of -15.7% and negative EBIT margin of -10.6%.

Profitability

Gross margin remains strong at 73.7%, but operating profitability is still negative with EBIT margin at -10.6% and EBITDA margin at -4.1%.

Returns remain weak, with ROA at -7.8%, ROE at -11.5%, and ROIC at -5.0%.

Cash Generation

Operating cash flow is positive, but free cash flow remains negative, with free cash flow yield at -0.3% and free cash flow per share at -0.08.

Cash conversion remains poor, with a cash conversion cycle of 720.2 days and operating cash flow ratio of 0.14.

Balance Sheet

Liquidity remains solid with a current ratio of 4.78x and quick ratio of 2.17x.

Leverage is manageable, with debt-to-equity at 0.27x and debt-to-assets at 0.18x, though solvency remains negative.

Operating Efficiency

Asset turnover is modest at 0.49x, indicating limited efficiency in generating revenue from assets.

Working capital is positive at $199.7M, but inventory efficiency is very weak with 754.1 days of inventory outstanding.