Investment Thesis
Super League Enterprise is in severe financial distress with collapsing revenue (-29.9% YoY), massive operating losses (-115% margin), and unsustainable cash burn of $10.7M annually. While the company maintains adequate short-term liquidity ($14.4M cash) and zero debt, the fundamentals indicate structural profitability challenges with no evident path to recovery, leaving approximately 1.3 years of runway at current burn rates.
Strengths
- Adequate short-term liquidity cushion with $14.4M in cash and 4.36x current ratio
- Zero debt burden (0.00x debt-to-equity) provides financial flexibility for restructuring
- 40.5% gross margin indicates core business model has some inherent viability if operational execution improves
Risks
- Revenue collapse of 29.9% YoY signals severe market loss of demand, customer attrition, or competitive displacement
- Extreme operating losses with -115.1% operating margin and -182.7% net margin demonstrate fundamental operational dysfunction
- Unsustainable cash burn of $10.7M annually against $11.3M revenue base with limited runway before capital depletion
- Zero capital expenditure suggests business is in survival mode without growth reinvestment
- Operating leverage is deeply negative, indicating company loses $1.15+ for every dollar of revenue generated
Key Metrics to Watch
- Quarterly revenue trend and stabilization point (critical leading indicator)
- Monthly cash burn rate and estimated runway remaining
- Operating margin trajectory toward breakeven profitability
- Customer concentration, retention rates, and contract pipeline viability
Financial Metrics
Revenue
11.3M
Net Income
-20.7M
EPS (Diluted)
$-4.96
Free Cash Flow
-10.7M
Total Assets
21.9M
Cash
14.4M
Profitability Ratios
Gross Margin
40.5%
Operating Margin
-115.1%
Net Margin
-182.7%
ROE
-118.2%
ROA
-94.7%
FCF Margin
-94.1%
Balance Sheet & Liquidity
Current Ratio
4.36x
Quick Ratio
4.36x
Debt/Equity
0.00x
Debt/Assets
19.8%
Interest Coverage
-725.17x
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: 2026-04-16T00:57:23.980799 |
Data as of: 2025-12-31 |
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