Investment Thesis
Jones Soda demonstrates topline growth momentum (+42.2% YoY) but remains fundamentally distressed with negative operating cash flow (-$1.3M), severe unprofitability (-18.8% operating margin), and critical liquidity concerns (0.96x current ratio). The balance sheet shows extreme leverage with only $1.5M equity against $13.8M liabilities, creating minimal financial cushion for continued losses.
Strengths
- Strong revenue growth at 42.2% YoY demonstrates market demand
- No long-term debt reduces refinancing risk
- Net loss improved 82% YoY showing operational progress toward breakeven
Risks
- Negative operating cash flow (-$1.3M) indicates unsustainable business model despite revenue growth
- Operating margin of -18.8% means burning 18.8 cents per revenue dollar
- Current ratio of 0.96x with quick ratio of 0.77x signals imminent liquidity distress
- Stockholders' equity of only $1.5M against $13.8M liabilities leaves no margin for error
- Negative free cash flow (-$1.7M) requires external financing to sustain operations
Key Metrics to Watch
- Path to operating profitability and positive operating cash flow
- Current ratio trend and working capital management
- Gross margin expansion to improve cost structure
- Liquidity runway given cash burn rate
Financial Metrics
Revenue
25.3M
Net Income
-1.8M
EPS (Diluted)
$-0.01
Free Cash Flow
-1.7M
Total Assets
15.2M
Cash
3.6M
Profitability Ratios
Gross Margin
26.7%
Operating Margin
-18.8%
Net Margin
-7.0%
ROE
-121.4%
ROA
-11.7%
FCF Margin
-6.8%
Balance Sheet & Liquidity
Current Ratio
0.96x
Quick Ratio
0.77x
Debt/Equity
0.00x
Debt/Assets
90.4%
Interest Coverage
-238.30x
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: 2026-04-11T22:51:21.006477 |
Data as of: 2025-12-31 |
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