Investment Thesis
Prairie Operating Co. faces existential financial distress with stockholders' equity of only $400K against $836M in liabilities and extreme leverage of 967.5x debt-to-equity ratio. Despite revenue growth of 2,943.8%, the core business is deeply unprofitable with -183% net margin and -229% operating margin, while critical liquidity metrics (0.24x current ratio, $263K cash) indicate imminent solvency risk.
Strengths
- Operating cash flow positive at $42.3M despite substantial net losses
- Strong revenue growth of 2,943.8% year-over-year signals potential operational recovery
- Free cash flow of $42.1M and 50.4% FCF margin suggest some underlying cash generation capability
Risks
- Technical insolvency: stockholders' equity of $400K is essentially worthless relative to $836M in liabilities
- Critical liquidity crisis: current ratio of 0.24x with only $263K cash cannot support $387M debt obligations
- Extreme leverage of 967.5x debt-to-equity with negative interest coverage of -23.3x; unable to service debt from operations
- Core business deeply unprofitable: -183% net margin and -229% operating margin with 0.1% gross margin
- Negative operating income of -$191M cannot sustain long-term operations despite positive OCF
Key Metrics to Watch
- Cash balance and liquidity runway; ability to avoid default in next 12 months
- Path to operating profitability; whether business model can reach positive EBIT
- Debt refinancing and covenant compliance; any asset sales or capital restructuring
- Stockholders' equity trend; risk of further dilution or complete wipeout
Financial Metrics
Revenue
83.4M
Net Income
-152.7M
EPS (Diluted)
$-2.16
Free Cash Flow
42.1M
Total Assets
958.8M
Cash
263.0K
Profitability Ratios
Gross Margin
0.1%
Operating Margin
-229.1%
Net Margin
-183.0%
ROE
-38,168.3%
ROA
-15.9%
FCF Margin
50.4%
Balance Sheet & Liquidity
Current Ratio
0.24x
Quick Ratio
0.23x
Debt/Equity
967.50x
Debt/Assets
87.2%
Interest Coverage
-23.31x
Long-term Debt
387.0M
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: 2026-05-16T10:00:51.159349 |
Data as of: 2026-03-31 |
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