Investment Thesis
SES AI demonstrates explosive revenue growth (+929% YoY) with healthy 53.8% gross margins, but faces a critical survival crisis with $61.2M annual free cash burn against only $29.5M cash reserves (~6-month runway). The company is losing $3.47 per dollar of revenue and shows no clear path to profitability, indicating unsustainable unit economics despite scale-up efforts.
Strengths
- Exceptional revenue growth of 929% YoY demonstrates significant market demand
- Strong gross margins of 53.8% suggest product scalability and pricing power
- Zero debt with $214.8M stockholders equity and 8.95x current ratio provide balance sheet resilience
Risks
- Catastrophic cash burn of $61.2M annually against $29.5M cash creates existential 6-month runway risk
- Operating margin of -393.4% and net margin of -347.8% indicate severely negative unit economics with no profitability visibility
- Negative ROE (-34%) and ROA (-26.8%) demonstrate value destruction; operating leverage remains negative despite revenue scaling
Key Metrics to Watch
- Monthly cash burn rate and projected runway extension
- Gross profit absolute growth and operating expense trajectory toward breakeven
- Path to profitability timeline and incremental margin improvements
Financial Metrics
Revenue
21.0M
Net Income
-73.0M
EPS (Diluted)
$-0.22
Free Cash Flow
-61.2M
Total Assets
272.6M
Cash
29.5M
Profitability Ratios
Gross Margin
53.8%
Operating Margin
-393.4%
Net Margin
-347.8%
ROE
-34.0%
ROA
-26.8%
FCF Margin
-291.5%
Balance Sheet & Liquidity
Current Ratio
8.95x
Quick Ratio
8.74x
Debt/Equity
0.00x
Debt/Assets
21.2%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-04-15T17:09:23.588821 |
Data as of: 2025-12-31 |
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