Investment Thesis
Teucrium Commodity Trust exhibits unsustainable unit economics with a -204% net margin and -$39.4M negative operating cash flow on only $13M revenue, indicating severe operational losses and rapid cash depletion. While revenue grew 132.9% YoY and the company maintains a substantial $205.3M cash cushion with minimal debt, the fundamental business model is broken and unprofitable at scale.
Strengths
- Large cash position of $205.3M provides significant operational runway
- Minimal debt burden with only $17.0M in total liabilities
- Strong revenue growth of 132.9% year-over-year demonstrates market demand
Risks
- Catastrophic unit economics: -$204.2% net margin means losing $2.04 for every $1.00 in revenue
- Negative operating cash flow of -$39.4M indicating rapid capital depletion at ~6-year runway
- Structural profitability crisis: losses of $26.5M dwarf $13M revenue, suggesting fundamentally unviable cost structure
- Deteriorating cash efficiency with -304% free cash flow margin despite revenue growth
Key Metrics to Watch
- Operating cash flow trend - must reach positive territory for viability
- Net income trajectory - profitability essential given current burn rate
- Cash balance depletion rate - monitor months of runway remaining
- Revenue per unit cost structure - requires dramatic operational restructuring
Financial Metrics
Revenue
13.0M
Net Income
-26.5M
EPS (Diluted)
$0.00
Free Cash Flow
-39.4M
Total Assets
241.7M
Cash
205.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
-204.2%
ROE
N/A
ROA
-11.0%
FCF Margin
-304.0%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
N/A
Debt/Assets
7.1%
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: 2026-04-19T02:00:22.394250 |
Data as of: 2025-12-31 |
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