Investment Thesis
Pineapple Financial exhibits terminal financial distress with negative stockholders equity of -$5.5M, indicating technical insolvency. The company is burning cash at ~$490K annually while generating only $721.7K in revenue against $6.6M in operating losses, creating an unsustainable trajectory with imminent refinancing or restructuring risk.
Strengths
- Revenue growth of 11.1% YoY demonstrates modest market demand
- Net loss improving 11.3% YoY shows operational leverage beginning to emerge
- Maintains $1.5M in cash providing minimal near-term runway
Risks
- Negative stockholders equity of -$5.5M indicates technical insolvency and unlimited downside risk
- Operating losses of -$6.6M represent 915% of revenue, demonstrating severely broken unit economics
- Current ratio of 0.12x indicates acute liquidity crisis with liabilities exceeding current assets by 8x
- Operating cash flow negative at -$489.7K annually with limited cash reserves to sustain burn
- Long-term debt of $12.0M cannot be serviced from operating cash flows or asset value
- Zero insider Form 4 filings in 90 days suggests no management confidence in turnaround
Key Metrics to Watch
- Path to operating profitability and monthly cash burn rate
- Stockholders equity recovery and debt restructuring plans
- Revenue per employee and contribution margin by segment
- Refinancing capability and debt maturity schedule
- Management capital raises or strategic transaction announcements
Financial Metrics
Revenue
721.7K
Net Income
-6.4M
EPS (Diluted)
$-4.79
Free Cash Flow
-491.7K
Total Assets
10.6M
Cash
1.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-909.1%
Net Margin
-891.6%
ROE
N/A
ROA
-60.6%
FCF Margin
-68.1%
Balance Sheet & Liquidity
Current Ratio
0.12x
Quick Ratio
0.12x
Debt/Equity
N/A
Debt/Assets
151.6%
Interest Coverage
-27.70x
Long-term Debt
12.0M
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: 2026-04-14T00:12:20.442463 |
Data as of: 2025-11-30 |
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