Investment Thesis
Despite extraordinary 4344% revenue growth, Onterris remains deeply unprofitable with negative operating cash flow of -11.6M on 168.5M revenue, indicating poor unit economics or failed integration of recent acquisition. Critical liquidity concern: only 10.0M cash against 310.1M long-term debt and -17.3M free cash flow burn, leaving minimal financial flexibility.
Strengths
- Exceptional top-line revenue growth of 4344% YoY suggests successful business expansion or acquisition
- Net loss improving 83.1% YoY and EPS improving 93.7% YoY show management progress toward profitability
- Current ratio of 1.84x demonstrates reasonable short-term liquidity coverage
- Debt-to-equity ratio of 0.70x is moderate within capital structure
Risks
- Massive revenue growth not translating to profitability: -3.6% operating margin and -7.5% net margin are unsustainable
- Critical cash crisis: only 10.0M liquidity against 310.1M debt while burning -17.3M free cash flow annually
- Negative operating cash flow of -11.6M despite 168.5M revenue indicates fundamental business model issues or failed acquisition integration
- Management consulting firm should generate positive margins; this negative performance suggests operational distress
- Negative ROE (-2.9%) and ROA (-1.3%) indicate shareholder value destruction
Key Metrics to Watch
- Operating cash flow trending to positive; must reach break-even within 2-3 quarters
- Cash position and burn rate; any decline below 8-10M signals liquidity crisis
- Path to operating profitability; current -3.6% margin must improve to +5-10% given business model
- Debt refinancing needs and covenant compliance given limited cash generation
Financial Metrics
Revenue
168.5M
Net Income
-12.7M
EPS (Diluted)
$-0.35
Free Cash Flow
-17.3M
Total Assets
948.0M
Cash
10.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-3.6%
Net Margin
-7.5%
ROE
-2.9%
ROA
-1.3%
FCF Margin
-10.3%
Balance Sheet & Liquidity
Current Ratio
1.84x
Quick Ratio
1.84x
Debt/Equity
0.70x
Debt/Assets
53.6%
Interest Coverage
N/A
Long-term Debt
310.1M
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: 2026-05-08T11:15:16.119142 |
Data as of: 2026-03-31 |
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