Investment Thesis
Broadway Financial is in severe financial distress with revenue collapsed 99.7% YoY and operating losses of $24.5M, indicating fundamental business failure or crisis restructuring. The company's negative free cash flow, minimal cash reserves relative to $1.3B assets, and deeply negative profitability ratios (-9.4% ROE, -1.8% ROA) suggest acute viability concerns typical of a failing financial institution.
Strengths
- Positive operating cash flow of $230K provides minimal liquidity cushion
- Stockholders' equity of $262.8M still exists, maintaining some balance sheet foundation
- Zero long-term debt burden reduces fixed obligation constraints
Risks
- Revenue collapse of 99.7% YoY indicates operational shutdown or catastrophic business loss
- Operating loss of $24.5M with negative margins exceeding -13000% reveals complete unprofitability
- Negative free cash flow (-$13K) with only $10.5M cash against $1.3B assets signals liquidity crisis
- Negative ROE and ROA destroying shareholder value at accelerating pace
- Interest coverage of -3.4x demonstrates inability to service financial obligations from operations
- As federally chartered savings institution, data pattern suggests potential regulatory intervention or forced restructuring
Key Metrics to Watch
- Quarterly revenue stabilization and return to positive growth trajectory
- Operating income path to profitability and margin improvement
- Capital adequacy ratios and regulatory compliance status
- Asset quality metrics, non-performing loans, and loan loss provisions
Financial Metrics
Revenue
184.0K
Net Income
-24.8M
EPS (Diluted)
$-3.23
Free Cash Flow
-13.0K
Total Assets
1.3B
Cash
10.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-13,298.9%
Net Margin
-13,475.5%
ROE
-9.4%
ROA
-1.8%
FCF Margin
-7.1%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
80.5%
Interest Coverage
-3.37x
Long-term Debt
N/A
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: 2026-04-29T15:43:35.664361 |
Data as of: 2025-12-31 |
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