Investment Thesis
Guerrilla RF exhibits severe financial distress despite 13% revenue growth: negative stockholders equity of -$18.2M indicates technical insolvency, while -$4.7M operating losses and -$1.4M operating cash flow demonstrate the company is burning cash faster than its revenue can support. Weak liquidity (current ratio 1.04x) combined with negative free cash flow creates existential sustainability risk without capital injection.
Strengths
- Revenue growth of 13% YoY demonstrates market demand for RF semiconductor products
- Gross margin of 65.3% indicates core products have inherent profitability and pricing power
- Cash balance of $4.2M provides short-term operational runway
Risks
- Negative stockholders equity of -$18.2M means liabilities exceed assets; company is technically insolvent
- Operating cash flow of -$1.4M indicates core operations are cash flow negative and unsustainable
- Operating losses of -$4.7M with -20.5% margin show company cannot yet cover fixed costs from revenue
- Liquidity crisis emerging: current ratio 1.04x and quick ratio 0.83x threaten ability to meet near-term obligations
- Free cash flow of -$2.8M unsustainable; company requires external capital or operational restructuring
- Zero insider Form 4 filings in 90 days suggests lack of insider confidence
Key Metrics to Watch
- Quarterly operating cash flow trend and timeline to cash flow breakeven
- Cash burn rate and remaining months of runway at current burn
- Operating margin improvement trajectory toward profitability
- Any capital raises or financing announcements to address negative equity
Financial Metrics
Revenue
22.7M
Net Income
-7.0M
EPS (Diluted)
$-0.06
Free Cash Flow
-2.8M
Total Assets
19.5M
Cash
4.2M
Profitability Ratios
Gross Margin
65.3%
Operating Margin
-20.5%
Net Margin
-30.7%
ROE
N/A
ROA
-35.8%
FCF Margin
-12.2%
Balance Sheet & Liquidity
Current Ratio
1.04x
Quick Ratio
0.83x
Debt/Equity
N/A
Debt/Assets
90.5%
Interest Coverage
N/A
Long-term Debt
144.8K
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: 2026-04-10T22:24:22.788343 |
Data as of: 2025-12-31 |
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