Investment Thesis
Mediaco Holding is a deeply unprofitable radio broadcaster with severe operational and financial distress. Despite 39.5% YoY revenue growth, the company posted a -50% net margin, -18.6% operating margin, and -$66.7M net loss with extremely poor capital efficiency (ROE of -144%, ROA of -22.9%). The combination of critical liquidity crisis (0.46x current ratio, only $5.1M cash), high leverage (1.37x debt/equity), and negative interest coverage (-182.1x) indicates imminent solvency concerns.
Strengths
- Strong top-line revenue growth of 39.5% YoY demonstrates market demand and business expansion
- Positive free cash flow of $1.2M despite net losses indicates some underlying cash generation
- Operating cash flow positive at $2.0M shows ability to generate some cash from operations
Risks
- Critical liquidity crisis with current ratio of 0.46x and only $5.1M cash against substantial liabilities
- Massive net losses (-$66.7M) and -50% net margin indicate fundamentally broken unit economics
- Negative interest coverage ratio of -182.1x reflects inability to service debt obligations from operating income
- High leverage (1.37x debt/equity, $63.3M long-term debt) combined with negative profitability creates refinancing/default risk
- Severely negative returns on capital (ROE -144%, ROA -22.9%) indicate systematic value destruction
- Zero insider buying activity in last 90 days suggests no confidence from management
Key Metrics to Watch
- Operating cash flow trend and sustainability given negative profitability
- Debt refinancing ability and covenant compliance given negative interest coverage
- Cash burn rate and runway given only $5.1M liquidity and -$66.7M recent losses
- Path to operating profitability and margin improvement from current -18.6% operating margin
- Working capital management to address 0.46x current ratio crisis
Financial Metrics
Revenue
133.3M
Net Income
-66.7M
EPS (Diluted)
$-0.84
Free Cash Flow
1.2M
Total Assets
291.1M
Cash
5.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-18.6%
Net Margin
-50.0%
ROE
-144.0%
ROA
-22.9%
FCF Margin
0.9%
Balance Sheet & Liquidity
Current Ratio
0.46x
Quick Ratio
0.46x
Debt/Equity
1.37x
Debt/Assets
84.1%
Interest Coverage
-182.09x
Long-term Debt
63.3M
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: 2026-04-01T17:08:12.697613 |
Data as of: 2025-12-31 |
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