Investment Thesis
UPEXI exhibits severe financial distress with negative stockholders equity (-51.9M) and catastrophic operating losses (-213M) that completely overwhelm 1447% revenue growth, indicating fundamental business model failure. The company is burning through its minimal cash reserves (3.5M) at -17.2M annually via operations, creating an acute solvency crisis within 3-4 quarters.
Strengths
- Exceptional 1447% YoY revenue growth demonstrates strong market demand or successful business expansion
- High gross profit margin of 88.5% indicates underlying product/service-level unit economics are viable
- Current ratio of 1.72x shows technically adequate short-term liquidity coverage
Risks
- Negative stockholders equity of -51.9M represents technical insolvency and balance sheet destruction
- Operating expenses of ~232M against 21.8M revenue reveals severe structural profitability failure and unsustainable cost structure
- Negative operating cash flow of -17.2M combined with 3.5M cash reserves creates imminent liquidity crisis within months
Key Metrics to Watch
- Path to stockholders equity recovery and whether company avoids further deterioration
- Operating expense reduction required to achieve cash flow breakeven and timeline
- Cash runway and whether capital raise or debt restructuring occurs before depletion
Financial Metrics
Revenue
21.8M
Net Income
-221.5M
EPS (Diluted)
$-3.66
Free Cash Flow
-17.3M
Total Assets
200.4M
Cash
3.5M
Profitability Ratios
Gross Margin
88.5%
Operating Margin
-974.9%
Net Margin
-1,013.9%
ROE
N/A
ROA
-110.6%
FCF Margin
-79.1%
Balance Sheet & Liquidity
Current Ratio
1.72x
Quick Ratio
1.72x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
-3,919.54x
Long-term Debt
27.4M
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: 2026-05-14T09:24:55.205662 |
Data as of: 2026-03-31 |
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