Investment Thesis
EBR Systems is in severe financial distress with collapsing revenues (-49.2% YoY), massive operating losses (-$46.1M), and deeply negative cash flow (-$53.2M operating, -$56.9M free cash flow). Despite adequate liquidity ratios, the company is burning cash rapidly with only $5.8M in cash against $41.8M in long-term debt, indicating insolvency risk within 12 months absent dramatic operational turnaround or capital infusion.
Strengths
- Positive gross margin of 30.3% indicates product-level economics are viable
- Current ratio of 5.20x provides near-term liquidity buffer for operations
- Only 1 insider Form 4 filing in 90 days suggests minimal opportunistic selling
Risks
- Revenue collapse of 49.2% YoY indicates severe demand destruction or market rejection
- Operating cash burn of $53.2M with only $5.8M cash on hand creates imminent liquidity crisis
- Long-term debt of $41.8M versus equity of $25.6M with negative interest coverage (-8.2x) signals debt default risk
- Net losses of $48.8M and operating losses of $46.1M show unsustainable business model
- Negative free cash flow of $56.9M indicates company cannot self-fund operations
Key Metrics to Watch
- Monthly operating cash burn rate and cash runway to depletion
- Revenue stabilization or recovery trajectory in next two quarters
- Debt covenant compliance status and refinancing availability
- Capital raising activities including equity dilution or debt restructuring
Financial Metrics
Revenue
1.6M
Net Income
-48.8M
EPS (Diluted)
$-0.12
Free Cash Flow
-56.9M
Total Assets
97.2M
Cash
5.8M
Profitability Ratios
Gross Margin
30.3%
Operating Margin
-2,850.2%
Net Margin
-3,015.3%
ROE
-190.6%
ROA
-50.1%
FCF Margin
-3,517.3%
Balance Sheet & Liquidity
Current Ratio
5.20x
Quick Ratio
4.22x
Debt/Equity
1.63x
Debt/Assets
73.7%
Interest Coverage
-8.17x
Long-term Debt
41.8M
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: 2026-03-23T23:42:11.205146 |
Data as of: 2025-12-31 |
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