Investment Thesis
Nixxy faces severe financial distress with an 80.8% revenue collapse YoY, deeply negative margins at all levels (gross: 1%, operating: -20.7%, net: -23.3%), and a critical liquidity crisis with only $122.5K cash against $4.1M annual operating burn. Without immediate operational improvement or capital infusion, the company appears headed toward insolvency.
Strengths
- Zero long-term debt eliminates refinancing risk and provides restructuring flexibility
- Positive stockholders equity of $10.4M provides theoretical asset cushion
- Computer programming services sector maintains structural growth potential if company stabilizes
Risks
- Catastrophic 80.8% YoY revenue collapse indicates fundamental business model failure or major customer loss
- Critical liquidity crisis: current ratio 0.23x with only $122.5K cash against $4.1M annual operating burn creates imminent solvency risk
- Persistent value destruction across all profitability metrics: 1.0% gross margin, -23.3% net margin, -104.7% ROE, -67.7% ROA with no path to profitability evident
Key Metrics to Watch
- Quarterly revenue trajectory and customer concentration data
- Operating cash flow trend and months of runway at current burn rate
- Gross margin recovery and evidence of cost structure improvement
Financial Metrics
Revenue
46.8M
Net Income
-10.9M
EPS (Diluted)
$-0.58
Free Cash Flow
-4.1M
Total Assets
16.1M
Cash
122.5K
Profitability Ratios
Gross Margin
1.0%
Operating Margin
-20.7%
Net Margin
-23.3%
ROE
-104.7%
ROA
-67.7%
FCF Margin
-8.7%
Balance Sheet & Liquidity
Current Ratio
0.23x
Quick Ratio
0.23x
Debt/Equity
0.00x
Debt/Assets
34.1%
Interest Coverage
N/A
Long-term Debt
0.0
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: 2026-04-13T07:09:27.021564 |
Data as of: 2025-09-30 |
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