Recent News
On August 27, 2025 the company announced participation in two investor events: the Goldman Sachs Communacopia + Technology Conference (presentation scheduled for September 10, 2025) and the Piper Sandler Growth Frontiers Conference (presentation scheduled for September 11, 2025). The company also scheduled an investor day presentation for 2025.
Technical Analysis
ADX / DI+/DI-: ADX at 27.6 indicates a strong underlying trend. DI+ decreasing signals weakening directional upside. DI- showing a dip & reversal indicates rising downside pressure. Together these directional readings point to near-term bearish momentum that conflicts with the stock’s WMDST under-valued assessment.
MACD: MACD sits at 0.26 and trends lower while remaining below its 0.40 signal line, indicating bearish momentum and limited near-term upside until the MACD moves back above its signal.
MRO (Momentum/Regression Oscillator): MRO at -9.31 indicates the current price sits below the model target and implies potential for price increase toward that target; this suggests mean-reversion upside that could offset short-term technical weakness and supports the valuation case.
RSI: RSI at 54.05, decreasing, indicates waning short-term momentum and aligns with the MACD and directional indicators that currently favor downside risk over immediate strength.
Price Versus Moving Averages & Ichimoku: The 12-day EMA shows a peak & reversal, and the closing price ($29.32) sits below the 20-day average ($30.24) and slightly below the 50-day average ($29.41) while roughly matching the 200-day average ($29.29). This configuration suggests short-term resistance near recent short-term averages while the longer-term baseline holds, reinforcing potential for a range-bound correction before any sustained advance—an important consideration given WMDST’s under-valued determination.
Fundamental Analysis
Revenue And Growth: Total revenue of $148,815,000 reflects mixed growth signals: revenue growth year-over-year declined by 3.68%, while revenue growth quarter-over-quarter jumped by 65.87%, showing strong sequential recovery in demand for subscription and platform solutions.
Profitability: EBIT stands at -$8,066,000 and operating income at -$9,296,000, producing an EBIT margin of -5.42% (EBIT margin QoQ changed by -152.08%, EBIT margin YoY changed by -3.47%). Gross margin sits at 59.22%, below the industry peer mean of about 72.56% and below the industry peer median of about 73.23%, indicating lower gross profitability versus peers even as revenue stabilizes.
Earnings & Cash Flow: EPS actual of -$0.13 missed the estimate of -$0.11, an EPS surprise of -18.18%. EBITDA equals $2,636,000 while free cash flow totaled $12,588,000, yielding a free cash flow yield of 0.38%, slightly above the industry peer mean free cash flow yield of about 0.26%. Cash and short-term investments amount to $122,935,000, supporting liquidity even as net income registers a loss of -$15,257,000.
Balance Sheet & Leverage: Total debt equals $269,485,000 with net debt of $80,565,000 and a debt-to-assets ratio of 16.68%. Debt-to-equity stands at 0.255. Interest coverage remains negative at -1.82x, reflecting operating losses that drive coverage below breakeven despite modest cost of debt (1.282%). Current ratio registers at 1.03, near the industry peer mean current ratio of about 1.15, supporting short-term liquidity adequacy.
Operational Efficiency & Returns: Asset turnover registers 0.091, roughly in line with the industry peer mean of 0.104 but below the peer median; return on assets equals -0.93% and return on equity equals -1.44%, both negative but showing YoY improvements in reported growth metrics. Research & development investment totals $34,667,000, supporting product development and AI-enabled capabilities.
Valuation Metrics: Price-to-sales at 22.02 and enterprise-value-to-revenue at 23.00 reflect a premium multiple on current revenue while forward P/E sits near 129.65. Book value per share stands at $9.17 with price/book at 3.10, below the industry peer mean price/book of about 19.02 and below the peer median of about 26.46. The current WMDST valuation classifies the stock as under-valued, a view grounded in cash generation, sequential revenue recovery, and a large installed customer base despite negative margins and a loss per share.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-26 |
| NEXT REPORT DATE: | 2025-11-26 |
| CASH FLOW | Begin Period Cash Flow | $ 133.6 M |
| Operating Cash Flow | $ 17.7 M | |
| Capital Expenditures | $ -5.15 M | |
| Change In Working Capital | $ -4.12 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -10.36 M | |
| End Period Cash Flow | $ 123.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 148.8 M | |
| Forward Revenue | $ -61.23 M | |
| COSTS | ||
| Cost Of Revenue | $ 60.7 M | |
| Depreciation | $ 1.5 M | |
| Depreciation and Amortization | $ 10.7 M | |
| Research and Development | $ 34.7 M | |
| Total Operating Expenses | $ 158.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 88.1 M | |
| EBITDA | $ 2.6 M | |
| EBIT | $ -8.07 M | |
| Operating Income | $ -9.30 M | |
| Interest Income | $ 513.0 K | |
| Interest Expense | $ 4.4 M | |
| Net Interest Income | $ -3.93 M | |
| Income Before Tax | $ -12.51 M | |
| Tax Provision | $ 1.2 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -15.26 M | |
| Net Income From Continuing Operations | $ -13.72 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.11 | |
| EPS Actual | $ -0.13 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -18.182 % | |
| Forward EPS | $ 0.22 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.6 B | |
| Intangible Assets | $ 1.2 B | |
| Net Tangible Assets | $ -166.05 M | |
| Total Current Assets | $ 255.1 M | |
| Cash and Short-Term Investments | $ 122.9 M | |
| Cash | $ 122.9 M | |
| Net Receivables | $ 82.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 17.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 14.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 248.6 M | |
| Net Debt | $ 80.6 M | |
| Total Debt | $ 269.5 M | |
| Total Liabilities | $ 548.9 M | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ -393.04 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.17 | |
| Shares Outstanding | 115.445 M | |
| Revenue Per-Share | $ 1.29 | |
| VALUATION | Market Capitalization | $ 3.3 B |
| Enterprise Value | $ 3.4 B | |
| Enterprise Multiple | 1298.662 | |
| Enterprise Multiple QoQ | 953.266 % | |
| Enterprise Multiple YoY | -46.363 % | |
| Enterprise Multiple IPRWA | NCNO: 1298.662 high: 913.757 median: 119.829 mean: 87.35 low: -981.793 |
|
| EV/R | 23.004 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.529 | |
| Asset To Liability | 2.944 | |
| Debt To Capital | 0.203 | |
| Debt To Assets | 0.167 | |
| Debt To Assets QoQ | -1.091 % | |
| Debt To Assets YoY | 2262.04 % | |
| Debt To Assets IPRWA | high: 0.701 mean: 0.333 median: 0.314 NCNO: 0.167 low: 0.005 |
|
| Debt To Equity | 0.255 | |
| Debt To Equity QoQ | -1.772 % | |
| Debt To Equity YoY | 2656.757 % | |
| Debt To Equity IPRWA | high: 2.26 mean: 0.382 NCNO: 0.255 median: 0.183 low: -0.716 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.101 | |
| Price To Book QoQ | 9.922 % | |
| Price To Book YoY | -10.622 % | |
| Price To Book IPRWA | high: 29.644 median: 26.458 mean: 19.018 NCNO: 3.101 low: -17.466 |
|
| Price To Earnings (P/E) | -214.856 | |
| Price To Earnings QoQ | -231.0 % | |
| Price To Earnings YoY | -193.084 % | |
| Price To Earnings IPRWA | high: 693.657 mean: 193.863 median: 137.934 low: -59.027 NCNO: -214.856 |
|
| PE/G Ratio | 1.185 | |
| Price To Sales (P/S) | 22.019 | |
| Price To Sales QoQ | 4.937 % | |
| Price To Sales YoY | -21.814 % | |
| Price To Sales IPRWA | high: 95.267 mean: 45.357 median: 42.816 NCNO: 22.019 low: 5.82 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 129.646 | |
| Forward PE/G | -0.715 | |
| Forward P/S | -53.611 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -47.379 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.091 | |
| Asset Turnover Ratio QoQ | 3.066 % | |
| Asset Turnover Ratio YoY | -2.546 % | |
| Asset Turnover Ratio IPRWA | high: 0.231 median: 0.104 mean: 0.104 NCNO: 0.091 low: 0.048 |
|
| Receivables Turnover | 1.772 | |
| Receivables Turnover Ratio QoQ | 28.015 % | |
| Receivables Turnover Ratio YoY | -9.663 % | |
| Receivables Turnover Ratio IPRWA | high: 3.437 NCNO: 1.772 mean: 1.751 median: 1.716 low: 0.56 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 51.486 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 23.079 | |
| CapEx To Revenue | -0.035 | |
| CapEx To Depreciation | -3.524 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ -166.05 M | |
| Net Working Capital | $ 6.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.494 | |
| Current Ratio | 1.026 | |
| Current Ratio QoQ | -2.259 % | |
| Current Ratio YoY | -5.379 % | |
| Current Ratio IPRWA | high: 5.697 mean: 1.154 NCNO: 1.026 median: 0.942 low: 0.477 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 102.233 | |
| Cost Of Debt | 1.282 % | |
| Interest Coverage Ratio | -1.815 | |
| Interest Coverage Ratio QoQ | -153.842 % | |
| Interest Coverage Ratio YoY | -55.204 % | |
| Interest Coverage Ratio IPRWA | high: 93.343 median: 4.713 mean: -1.495 NCNO: -1.815 low: -142.62 |
|
| Operating Cash Flow Ratio | -0.007 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 23.068 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.115 % | |
| Revenue Growth | 3.246 % | |
| Revenue Growth QoQ | 65.866 % | |
| Revenue Growth YoY | -3.68 % | |
| Revenue Growth IPRWA | high: 21.486 % median: 4.141 % NCNO: 3.246 % mean: 1.58 % low: -6.143 % |
|
| Earnings Growth | -181.25 % | |
| Earnings Growth QoQ | -643.755 % | |
| Earnings Growth YoY | 588.744 % | |
| Earnings Growth IPRWA | high: 45.833 % mean: 2.86 % median: -7.629 % low: -13.529 % NCNO: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 59.218 % | |
| Gross Margin QoQ | -1.257 % | |
| Gross Margin YoY | -0.084 % | |
| Gross Margin IPRWA | high: 90.981 % median: 73.229 % mean: 72.561 % low: 65.011 % NCNO: 59.218 % |
|
| EBIT Margin | -5.42 % | |
| EBIT Margin QoQ | -152.08 % | |
| EBIT Margin YoY | -3.473 % | |
| EBIT Margin IPRWA | high: 29.144 % median: 23.337 % mean: 18.996 % NCNO: -5.42 % low: -41.293 % |
|
| Return On Sales (ROS) | -6.247 % | |
| Return On Sales QoQ | -160.027 % | |
| Return On Sales YoY | 11.256 % | |
| Return On Sales IPRWA | high: 31.435 % median: 22.821 % mean: 18.252 % NCNO: -6.247 % low: -44.13 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 12.6 M | |
| Free Cash Flow Yield | 0.384 % | |
| Free Cash Flow Yield QoQ | -77.918 % | |
| Free Cash Flow Yield YoY | 214.754 % | |
| Free Cash Flow Yield IPRWA | high: 2.218 % NCNO: 0.384 % mean: 0.263 % median: 0.246 % low: -1.333 % |
|
| Free Cash Growth | -76.069 % | |
| Free Cash Growth QoQ | -87.474 % | |
| Free Cash Growth YoY | -16.937 % | |
| Free Cash Growth IPRWA | high: 259.959 % mean: -36.78 % NCNO: -76.069 % median: -87.615 % low: -90.392 % |
|
| Free Cash To Net Income | -0.825 | |
| Cash Flow Margin | -1.253 % | |
| Cash Flow To Earnings | 0.122 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.934 % | |
| Return On Assets QoQ | -373.9 % | |
| Return On Assets YoY | 19.897 % | |
| Return On Assets IPRWA | high: 3.261 % median: 1.678 % mean: 1.083 % NCNO: -0.934 % low: -9.564 % |
|
| Return On Capital Employed (ROCE) | -0.59 % | |
| Return On Equity (ROE) | -0.014 | |
| Return On Equity QoQ | -378.227 % | |
| Return On Equity YoY | 40.604 % | |
| Return On Equity IPRWA | high: 0.121 mean: 0.056 median: 0.032 NCNO: -0.014 low: -0.192 |
|
| DuPont ROE | -1.433 % | |
| Return On Invested Capital (ROIC) | -0.506 % | |
| Return On Invested Capital QoQ | -154.703 % | |
| Return On Invested Capital YoY | -109.603 % | |
| Return On Invested Capital IPRWA | high: 8.236 % median: 3.218 % mean: 2.244 % NCNO: -0.506 % low: -6.365 % |
|