Investment Thesis
Guru App Factory Corp exhibits severe financial distress with negative stockholders equity of -$32.5K, indicating the company is technically insolvent. Despite modest revenue growth of 14.5% YoY to $26K, the company is burning cash at an alarming rate with operating losses of -$31.2K and negative free cash flow of -$29.2K, leaving only $1K in cash to service $41.5K in liabilities.
Strengths
- Gross margin of 42.3% demonstrates some pricing power or cost structure in core operations
- Revenue grew 14.5% year-over-year showing market traction despite financial distress
- Data is current as of January 31, 2026 providing recent visibility into operations
Risks
- Negative stockholders equity of -$32.5K indicates technical insolvency and existential solvency risk
- Severely constrained liquidity with current ratio of 0.22x and only $1K cash against $41.5K liabilities
- Persistent operating losses with negative operating margin of -119.9% and negative free cash flow of -$29.2K indicating the business model is not sustainable
- Return on assets of -346.4% demonstrates capital is being destroyed at an unsustainable rate
Key Metrics to Watch
- Stockholders equity trend and path to positive equity restoration
- Operating cash flow and timeline to cash flow breakeven
- Debt covenant compliance and refinancing ability given negative equity position
Financial Metrics
Revenue
26.0K
Net Income
-31.2K
EPS (Diluted)
$0.00
Free Cash Flow
-29.2K
Total Assets
9.0K
Cash
1.0K
Profitability Ratios
Gross Margin
42.3%
Operating Margin
-119.9%
Net Margin
-119.9%
ROE
N/A
ROA
-346.4%
FCF Margin
-112.2%
Balance Sheet & Liquidity
Current Ratio
0.22x
Quick Ratio
0.22x
Debt/Equity
N/A
Debt/Assets
460.9%
Interest Coverage
N/A
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: 2026-03-25T12:38:09.698680 |
Data as of: 2026-01-31 |
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