Investment Thesis
Cuentas Inc. exhibits severe fundamental distress with negative stockholders' equity of -$3.4M, indicating the company is technically insolvent. Revenue has collapsed 71.2% year-over-year while operating losses exceed $899K, demonstrating a business in acute financial crisis with no clear path to profitability.
Strengths
- Long-term debt of $120K is manageable relative to total liabilities
- Operating cash flow loss of -$967K suggests some operational activity despite losses
- Data freshness is current as of 2025-09-30
Risks
- Negative stockholders' equity of -$3.4M indicates technical insolvency and shareholder equity destruction
- Severe liquidity crisis with current ratio of 0.07x and only $1K cash against $3.7M liabilities
- Revenue collapse of 71.2% YoY combined with negative gross margin of -11.1% indicates fundamental business model failure
- Persistent operating losses of -$899K with negative operating margin of -133% demonstrate inability to control costs
- Negative free cash flow of -$978K draining remaining capital with no clear turnaround strategy
Key Metrics to Watch
- Stockholders' equity trend - recovery above zero line critical for solvency
- Revenue stabilization and return to gross profit margin positivity
- Operating cash flow improvement and path to operating income breakeven
Financial Metrics
Revenue
676.0K
Net Income
-317.0K
EPS (Diluted)
$-0.12
Free Cash Flow
-978.0K
Total Assets
271.0K
Cash
1.0K
Profitability Ratios
Gross Margin
-11.1%
Operating Margin
-133.0%
Net Margin
-46.9%
ROE
N/A
ROA
-117.0%
FCF Margin
-144.7%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
1,368.3%
Interest Coverage
-179.80x
Long-term Debt
120.0K
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: 2026-03-23T05:18:11.217832 |
Data as of: 2025-09-30 |
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