Investment Thesis
Mobix Labs exhibits severe financial distress with negative profitability, deteriorating cash flow, and critically weak liquidity. The company generated only $1.9M in revenue while burning $4.8M in operating cash flow, with a current ratio of 0.11x indicating inability to cover short-term obligations. The shareholder equity has been substantially eroded, with negative ROE and ROA metrics suggesting capital destruction.
Strengths
- Gross margin of 31% demonstrates some product-level profitability in the semiconductor space
- Positive gross profit generation of $581K from limited revenue base shows viable product economics at unit level
- Minimal capital expenditure ($26K) suggests the company is prioritizing cash preservation
Risks
- Critically low liquidity with current ratio of 0.11x and cash position of $268K against $28.1M liabilities creates imminent solvency risk
- Severe operating losses of $8.8M on minimal $1.9M revenue indicates inability to scale economically and fundamental business model challenges
- Negative free cash flow of $4.8M annually combined with high debt burden ($6.3M long-term debt, 1.34x debt-to-equity) threatens ongoing operations and violates negative interest coverage
Key Metrics to Watch
- Cash burn rate and runway to profitability or equity raise
- Revenue growth trajectory and ability to scale production to justify fixed costs
- Working capital management and refinancing of near-term liabilities
Financial Metrics
Revenue
1.9M
Net Income
-10.1M
EPS (Diluted)
$-0.16
Free Cash Flow
-4.8M
Total Assets
32.7M
Cash
268.0K
Profitability Ratios
Gross Margin
31.0%
Operating Margin
-471.1%
Net Margin
-540.0%
ROE
-216.9%
ROA
-30.9%
FCF Margin
-255.5%
Balance Sheet & Liquidity
Current Ratio
0.11x
Quick Ratio
0.07x
Debt/Equity
1.34x
Debt/Assets
85.7%
Interest Coverage
-7.99x
Long-term Debt
6.3M
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: 2026-04-02T04:12:11.373410 |
Data as of: 2025-12-31 |
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