Investment Thesis
Despite impressive 71.9% revenue growth, Riot Platforms is fundamentally broken operationally with zero gross profit on $167M revenue, generating -$500M net losses and -$298M negative free cash flow annually. At current burn rate, the company has less than a year of runway despite $205.7M cash reserves, signaling severe operational or market-driven challenges in the core mining business.
Strengths
- Strong revenue growth of 71.9% YoY demonstrates market demand
- Minimal debt burden (0.00x Debt/Equity) provides flexibility
- Substantial asset base of $3.4B and positive stockholders equity of $2.4B
Risks
- Gross profit of only $6.4K on $167.2M revenue indicates fundamental business model deterioration or market collapse
- Catastrophic negative free cash flow of -$298.1M with $205.7M cash implies <1 year cash runway at current burn rate
- Operating losses of -$499.9M despite revenue growth suggest structural unprofitability in core operations
Key Metrics to Watch
- Gross profit and margin recovery from near-zero levels
- Operating cash flow return to positive territory
- Cash reserve depletion rate and path to breakeven FCF
Financial Metrics
Revenue
167.2M
Net Income
-500.5M
EPS (Diluted)
$-1.44
Free Cash Flow
-298.1M
Total Assets
3.4B
Cash
205.7M
Profitability Ratios
Gross Margin
0.0%
Operating Margin
-298.9%
Net Margin
-299.3%
ROE
-20.9%
ROA
-14.6%
FCF Margin
-178.3%
Balance Sheet & Liquidity
Current Ratio
1.08x
Quick Ratio
1.08x
Debt/Equity
0.00x
Debt/Assets
30.3%
Interest Coverage
-1,688.75x
Long-term Debt
5.0M
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: 2026-05-06T18:43:55.858147 |
Data as of: 2026-03-31 |
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