Investment Thesis
Super League Enterprise is in severe financial distress with 29.9% YoY revenue decline, negative operating cash flow of -$2.5M, and operating losses consuming 138.5% of revenue. While the balance sheet remains intact with minimal debt and 3.25x liquidity, the underlying business model is fundamentally broken with no evidence of operational stabilization.
Strengths
- Minimal debt burden (0.0x debt/equity ratio) provides financial flexibility
- Strong liquidity position (3.25x current ratio) with $4.2M cash reserves
- Gross margin of 35.9% suggests potential value in underlying cost structure if operations can be corrected
Risks
- Severe revenue contraction of 29.9% YoY signals fundamental loss of market demand or competitive collapse
- Negative operating cash flow of -$2.5M indicates core business is consuming cash unsustainably
- Operating margin of -138.5% demonstrates systemic operational inefficiency with losses exceeding total revenue
Key Metrics to Watch
- Revenue stabilization and return to growth - current trajectory unsustainable
- Operating cash flow conversion from negative to positive - critical viability indicator
- Cash burn rate relative to remaining reserves - assess timeline to potential insolvency
Financial Metrics
Revenue
3.0M
Net Income
-4.1M
EPS (Diluted)
$-4.96
Free Cash Flow
-2.5M
Total Assets
19.5M
Cash
4.2M
Profitability Ratios
Gross Margin
35.9%
Operating Margin
-138.5%
Net Margin
-134.9%
ROE
-27.9%
ROA
-20.8%
FCF Margin
-84.0%
Balance Sheet & Liquidity
Current Ratio
3.25x
Quick Ratio
3.25x
Debt/Equity
0.00x
Debt/Assets
25.4%
Interest Coverage
-231.06x
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: 2026-05-17T07:40:50.696121 |
Data as of: 2026-03-31 |
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