Investment Thesis
Jet.AI operates with a fundamentally broken business model: negative gross margins (-13.9%) indicate the company loses money on every unit of service provided. Combined with a 34.6% YoY revenue collapse and $3.0M annual operating cash burn against minimal revenue, the company is destroying shareholder value at an unsustainable rate.
Strengths
- Strong cash position of $13.5M provides operational runway
- Negligible debt (0.00x debt/equity ratio) eliminates financial leverage risk
- Adequate liquidity (4.09x current ratio) ensures near-term obligation coverage
Risks
- Negative gross margin (-13.9%) proves unit economics are unsustainable—company loses money on each service provided
- Revenue collapsed 34.6% YoY, indicating loss of market traction and demand destruction
- Operating cash burn of $3.0M annually will exhaust $13.5M cash reserves in approximately 4.5 years without business model recovery
Key Metrics to Watch
- Gross margin recovery to positive territory (currently -13.9%)
- Revenue stabilization and growth inflection point (currently declining 34.6% YoY)
- Operating cash flow path to breakeven or profitability
Financial Metrics
Revenue
1.7M
Net Income
-2.7M
EPS (Diluted)
$-6.68
Free Cash Flow
-3.1M
Total Assets
39.4M
Cash
13.5M
Profitability Ratios
Gross Margin
-13.9%
Operating Margin
-170.4%
Net Margin
-159.5%
ROE
-7.5%
ROA
-6.8%
FCF Margin
-181.5%
Balance Sheet & Liquidity
Current Ratio
4.09x
Quick Ratio
4.09x
Debt/Equity
0.00x
Debt/Assets
9.4%
Interest Coverage
-36.13x
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: 2026-05-23T08:38:22.580754 |
Data as of: 2026-03-31 |
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