Investment Thesis
Angel Studios exhibits severe financial distress despite exceptional 233% revenue growth: the company is unprofitable with -12.0% net margins, technically insolvent with -41.5M negative stockholders' equity, and faces critical liquidity constraints with 0.59x current ratio and 106.2M debt load unserviceable by negative operating income (-2.9x interest coverage). The business model has failed to achieve profitability at scale and balance sheet health is deteriorating.
Strengths
- Exceptional revenue growth of 233% YoY demonstrates strong market demand
- Positive operating and free cash flow (1.9M) provides runway despite profitability losses
- Cash position of 38.9M provides near-term liquidity buffer
Risks
- Negative stockholders' equity of -41.5M indicates technical insolvency and balance sheet deterioration
- Critical liquidity crisis with current ratio of 0.59x unable to cover current liabilities
- High debt burden (106.2M) with negative interest coverage (-2.9x) and inability to service from operations
- Persistent unprofitability with -12.0% net margin and -2.3% operating margin despite massive revenue scale
- Thin free cash flow margins (1.6%) provide minimal cushion for debt service or investment
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margins
- Debt refinancing runway and ability to service 106.2M long-term debt with current cash burn
- Whether stockholders' equity can return to positive territory and cash flow sustainability
Financial Metrics
Revenue
115.1M
Net Income
-13.8M
EPS (Diluted)
$-0.08
Free Cash Flow
1.9M
Total Assets
213.1M
Cash
38.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-2.3%
Net Margin
-12.0%
ROE
N/A
ROA
-6.5%
FCF Margin
1.6%
Balance Sheet & Liquidity
Current Ratio
0.59x
Quick Ratio
0.59x
Debt/Equity
N/A
Debt/Assets
119.5%
Interest Coverage
-2.85x
Long-term Debt
106.2M
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: 2026-05-06T16:52:42.744143 |
Data as of: 2026-03-31 |
Powered by Claude AI