Investment Thesis
NEXTNRG exhibits severe balance sheet insolvency with negative shareholders' equity of -$16.3M and critically inadequate liquidity (0.13x current ratio with only $653.9K cash). The company is structurally unprofitable with a -77.4% operating margin, burning $18.0M in free cash flow annually, and cannot service debt obligations with negative interest coverage of -69.1x.
Strengths
- Still generating revenue of $58.8M despite operational distress
- Marginal YoY improvement in net loss magnitude (1.6% improvement)
- Has secured some long-term debt financing ($9.2M) indicating limited creditor support
Risks
- Negative shareholders' equity of -$16.3M indicates technical insolvency and imminent balance sheet distress
- Critical liquidity crisis with current ratio of 0.13x and only $653.9K cash reserves against $36.9M liabilities
- Operating cash burn of -$14.1M with negative free cash flow of -$18.0M annually unsustainable at current cash levels
- Unable to service debt with negative interest coverage ratio of -69.1x and operating losses exceeding revenue
- Structural unprofitability with net margin of -100.5% indicates fundamental business model failure
Key Metrics to Watch
- Shareholder equity trajectory and quarterly balance sheet deterioration
- Cash and equivalents depletion rate given negative operating cash flow
- Debt covenant compliance status and refinancing risk
- Operating margin trend and path to cash flow breakeven
Financial Metrics
Revenue
58.8M
Net Income
-59.1M
EPS (Diluted)
$-0.51
Free Cash Flow
-18.0M
Total Assets
19.6M
Cash
653.9K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-77.4%
Net Margin
-100.5%
ROE
N/A
ROA
-300.9%
FCF Margin
-30.7%
Balance Sheet & Liquidity
Current Ratio
0.13x
Quick Ratio
0.12x
Debt/Equity
N/A
Debt/Assets
187.9%
Interest Coverage
-69.06x
Long-term Debt
9.2M
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: 2026-04-13T10:57:21.400135 |
Data as of: 2025-09-30 |
Powered by Claude AI