Investment Thesis
NextTrip is in severe financial distress with catastrophic profitability metrics, burning cash at an unsustainable rate, and deteriorating liquidity. The company operates at massive losses with negative operating cash flow of -2.5M and negative margins exceeding -500%, indicating a fundamentally broken business model that requires immediate restructuring or strategic intervention.
Strengths
- Positive revenue growth of 9.3% YoY demonstrates market demand for services
- Gross margin of 20.1% indicates the core product has economic viability at the unit level
- Maintains positive stockholders equity of 5.9M and no long-term debt, providing some balance sheet cushion
Risks
- Operating income of -10.9M on 2.1M revenue indicates completely unsustainable cost structure with negative 521% operating margin
- Negative free cash flow of -2.5M and operating cash burn will deplete the 2.4M cash position within approximately one year at current rates
- Current ratio of 0.85x and quick ratio of 0.70x signal immediate liquidity crisis, with liabilities exceeding current assets
- Net loss of -10.6M on minimal revenue suggests serious operational inefficiencies or excessive overhead that cannot support growth
- Zero insider Form 4 filings in 90 days may indicate lack of confidence or inactivity in management
Key Metrics to Watch
- Quarterly operating cash flow trend and months of cash runway remaining
- Revenue growth sustainability and gross margin stability
- Operating expense reduction progress and path to positive EBITDA
Financial Metrics
Revenue
2.1M
Net Income
-10.6M
EPS (Diluted)
$-1.39
Free Cash Flow
-2.5M
Total Assets
14.4M
Cash
2.4M
Profitability Ratios
Gross Margin
20.1%
Operating Margin
-521.2%
Net Margin
-507.1%
ROE
-180.5%
ROA
-73.7%
FCF Margin
-117.3%
Balance Sheet & Liquidity
Current Ratio
0.85x
Quick Ratio
0.70x
Debt/Equity
0.00x
Debt/Assets
56.5%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-04-03T21:48:11.406927 |
Data as of: 2025-11-30 |
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