Investment Thesis
Mediaco faces a severe financial crisis despite 39.5% revenue growth. The company is unprofitable (-29.8% net margin), burning cash operationally (-$2.0M), and has critical liquidity distress with a 0.39x current ratio and only $3.1M cash. With $64.1M in debt, 1.79x leverage, and negative interest coverage (-55.4x), the company cannot service its obligations without significant restructuring.
Strengths
- Strong top-line growth of 39.5% YoY demonstrates market demand for radio broadcasting services
- Substantial asset base of $274.9M provides collateral and operational foundation
- Revenue of $31.4M indicates ongoing viable operations in the sector
Risks
- Critical liquidity crisis: 0.39x current ratio with only $3.1M cash against substantial liabilities
- Severe unprofitability: -24.0% operating margin, -29.8% net margin, and negative free cash flow of -$2.2M
- Unsustainable leverage with $64.1M long-term debt, 1.79x debt-to-equity ratio, and inability to cover interest payments
- Deteriorating EPS of -$0.11 with -950% YoY decline signals worsening fundamentals
- Negative operating cash flow indicates core business cannot generate cash for debt service or operations
Key Metrics to Watch
- Operating cash flow - must turn positive for viability
- Liquidity ratios (current and quick) - need to exceed 1.0x
- Operating margin path to profitability
- Debt refinancing ability and interest payment capacity
- Cash runway and burn rate sustainability
Financial Metrics
Revenue
31.4M
Net Income
-9.4M
EPS (Diluted)
$-0.11
Free Cash Flow
-2.2M
Total Assets
274.9M
Cash
3.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-24.0%
Net Margin
-29.8%
ROE
-26.1%
ROA
-3.4%
FCF Margin
-6.9%
Balance Sheet & Liquidity
Current Ratio
0.39x
Quick Ratio
0.39x
Debt/Equity
1.79x
Debt/Assets
87.0%
Interest Coverage
-55.37x
Long-term Debt
64.1M
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: 2026-05-21T07:48:37.594251 |
Data as of: 2026-03-31 |
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