Investment Thesis
T Stamp Inc is a severely unprofitable software company with a -265% net margin and -$5.7M operating cash burn against only $3.1M revenue, indicating a fundamentally broken business model. While the company maintains adequate liquidity ($6M cash), at current burn rates it has approximately one year of runway with no credible path to profitability.
Strengths
- Strong liquidity position with $6.0M cash and 7.85x current ratio
- Conservative capital structure with 0.13x debt/equity ratio
- EPS improved 76.5% YoY, demonstrating some operational improvement trajectory
Risks
- Catastrophic profitability with -265.2% net margin and -$7.7M operating losses against only $3.1M revenue
- Negative operating cash flow of -$5.7M annually with ~12 month cash runway at current burn rate
- Anemic revenue growth of 1.9% YoY insufficient to approach breakeven; would require 3-4x revenue expansion
- High insider Form 4 activity (16 filings in 90 days) may signal insider concerns or capital structure changes
- Absence of gross margin data suggests potential transparency or operational tracking issues
Key Metrics to Watch
- Quarterly operating cash flow trend and cash runway depletion rate
- Revenue growth acceleration and gross margin realization
- Path to operating breakeven and timeline to cash burn cessation
Financial Metrics
Revenue
3.1M
Net Income
-8.3M
EPS (Diluted)
$-2.67
Free Cash Flow
-5.7M
Total Assets
11.2M
Cash
6.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-244.0%
Net Margin
-265.2%
ROE
-95.4%
ROA
-74.1%
FCF Margin
-182.6%
Balance Sheet & Liquidity
Current Ratio
7.85x
Quick Ratio
7.85x
Debt/Equity
0.13x
Debt/Assets
20.9%
Interest Coverage
N/A
Long-term Debt
1.1M
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: 2026-04-11T15:06:19.835957 |
Data as of: 2025-12-31 |
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