Investment Thesis
Edible Garden is a severely distressed company burning significant cash with negative profitability across all metrics. The company loses $2.44 for every dollar of revenue generated, has negative free cash flow of -$9.7M, and insufficient liquidity (0.80x current ratio) to sustain operations without additional financing or dramatic operational improvements.
Strengths
- Positive gross margin of 11.5% indicates viable unit economics at the production level
- Manageable debt-to-equity ratio of 0.21x suggests balance sheet not overleveraged relative to equity base
- Some insider activity (2 Form 4 filings in 90 days) may indicate management confidence
Risks
- Massive operating losses (-$10.1M) with operating margin of -116.1% indicate broken business model at scale
- Severe cash burn with operating cash flow of -$9.1M and only $828K in cash reserves; company will exhaust liquidity within weeks
- Persistent unprofitability with net loss of -$21.2M and net margin of -244.7% creates existential threat
- Deteriorating liquidity position with current ratio of 0.80x below critical 1.0x threshold
- Revenue flat to declining (-1.4% YoY) while losses accelerate indicates execution challenges
- Negative return metrics (ROE -164.4%, ROA -105.5%) destroy shareholder value at alarming rate
Key Metrics to Watch
- Monthly cash burn rate and runway until capital constraints force action
- Path to operating cash flow breakeven and timeline for operational profitability
- Revenue growth and gross margin sustainability under continued cash constraints
Financial Metrics
Revenue
8.7M
Net Income
-21.2M
EPS (Diluted)
$9.95
Free Cash Flow
-9.7M
Total Assets
20.1M
Cash
828.0K
Profitability Ratios
Gross Margin
11.5%
Operating Margin
-116.1%
Net Margin
-244.7%
ROE
-164.4%
ROA
-105.5%
FCF Margin
-111.6%
Balance Sheet & Liquidity
Current Ratio
0.80x
Quick Ratio
0.51x
Debt/Equity
0.21x
Debt/Assets
35.8%
Interest Coverage
-8.29x
Long-term Debt
2.7M
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: 2026-03-24T01:20:10.978456 |
Data as of: 2025-09-30 |
Powered by Claude AI