Investment Thesis
Oppenheimer Holdings is operationally unprofitable with -4.6% net margin and burning cash at an unsustainable $190M annually against only $34.6M in cash reserves, creating an acute liquidity crisis. Despite 15% revenue growth, deteriorating profitability and severe negative operating cash flows signal fundamental operational distress that threatens solvency within months.
Strengths
- Zero long-term debt provides financial flexibility and no maturity pressures
- Revenue growing 15% YoY demonstrates market demand despite profitability challenges
- Asset base of $3.8B provides tangible enterprise backing
Risks
- Critical liquidity crisis: $34.6M cash against $190M annual operating cash burn rate
- Unprofitable operations with -$27M operating income and -$20.6M net income despite revenue growth
- Negative free cash flow of -$190M (-42.7% FCF margin) is mathematically unsustainable given current cash reserves
Key Metrics to Watch
- Operating cash flow - must turn positive within next 2 quarters or solvency severely threatened
- Cash and equivalents - monitor for depletion; current burn rate unsustainable
- Net income and operating income - require path to profitability to stabilize business model
Financial Metrics
Revenue
445.1M
Net Income
-20.6M
EPS (Diluted)
$-1.93
Free Cash Flow
-190.0M
Total Assets
3.8B
Cash
34.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-6.1%
Net Margin
-4.6%
ROE
-2.2%
ROA
-0.5%
FCF Margin
-42.7%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
74.7%
Interest Coverage
-0.63x
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: 2026-05-06T12:09:34.627134 |
Data as of: 2026-03-31 |
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