Investment Thesis
Aeluma is an early-stage semiconductor company with exceptional revenue growth (407.6% YoY) and a fortress balance sheet ($37.8M cash, 0.01x debt/equity). While currently unprofitable with negative free cash flow of -$2.1M, loss trajectories are improving significantly (200.7% YoY improvement in net income) and the company has 18+ years of cash runway, providing sufficient time to demonstrate path to profitability if growth continues.
Strengths
- Exceptional revenue growth of 407.6% year-over-year from semiconductor applications
- Fortress balance sheet with $37.8M cash representing 89% of total assets and minimal debt (0.01x leverage)
- Rapidly improving profitability trajectory with net income losses declining 200.7% YoY and EPS improving 37.8% YoY
- Exceptional liquidity position (26.10x current ratio) providing flexibility for R&D and operations
Risks
- Company remains unprofitable with substantial operating losses (-$9.7M) and negative operating margins (-249.9%)
- Negative free cash flow (-$2.1M annually) indicates company is burning capital despite revenue growth
- Revenue base extremely small ($3.9M) with unclear sustainability of 400%+ growth rates typical of early-stage semiconductor companies
- Missing gross margin data raises questions about product economics and actual unit profitability
Key Metrics to Watch
- Quarterly revenue growth sustainability and deceleration trajectory toward normalized growth rates
- Operating cash flow inflection point and timeline to positive FCF with current cash runway
- Gross margin achievement and product-level unit economics as volumes scale
- Path to operating profitability and timeline relative to remaining cash reserves
Financial Metrics
Revenue
3.9M
Net Income
-5.1M
EPS (Diluted)
$-0.30
Free Cash Flow
-2.1M
Total Assets
42.5M
Cash
37.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-249.9%
Net Margin
-132.7%
ROE
-12.8%
ROA
-12.1%
FCF Margin
-53.7%
Balance Sheet & Liquidity
Current Ratio
26.10x
Quick Ratio
26.10x
Debt/Equity
0.01x
Debt/Assets
5.7%
Interest Coverage
-3,231.00x
Long-term Debt
296.5K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-14T07:01:12.498726 |
Data as of: 2026-03-31 |
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