Investment Thesis
Marpai demonstrates severe financial distress with negative stockholders' equity of -$32.6M, indicating the company is technically insolvent. Operating and net margins are deeply negative at -74.9% and -91.5% respectively, while the company is burning cash with -$7.8M in free cash flow, leaving only $133K in cash reserves against $43.5M in liabilities.
Strengths
- Revenue of $18.1M provides a minimal operational base
- Net loss improved 25% year-over-year, suggesting loss reduction trend
- Flat revenue maintenance indicates some operational stability in core business
Risks
- Negative stockholders' equity of -$32.6M indicates technical insolvency and existential risk
- Critical liquidity crisis with current ratio of 0.40x and only $133K cash against $43.5M liabilities
- Severe operational losses with -$7.5M operating cash burn and -91.5% net margin unsustainable long-term
- Negative ROA of -151.9% and negative interest coverage of -5.0x demonstrate inability to service debt or generate returns
- Long-term debt of $19.4M represents 56% of total liabilities with impaired repayment capacity
Key Metrics to Watch
- Cash position and monthly burn rate to determine runway
- Operating cash flow trend toward positive territory
- Net margin improvement and path to profitability
- Long-term debt refinancing or restructuring developments
- Revenue growth acceleration and gross margin expansion
Financial Metrics
Revenue
18.1M
Net Income
-16.6M
EPS (Diluted)
$-0.95
Free Cash Flow
-7.8M
Total Assets
10.9M
Cash
133.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-74.9%
Net Margin
-91.5%
ROE
N/A
ROA
-151.9%
FCF Margin
-43.2%
Balance Sheet & Liquidity
Current Ratio
0.40x
Quick Ratio
0.40x
Debt/Equity
N/A
Debt/Assets
398.6%
Interest Coverage
-5.00x
Long-term Debt
19.4M
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: 2026-04-02T05:40:10.387347 |
Data as of: 2025-12-31 |
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