Recent News
On August 6, 2025 the company released its second-quarter 2025 financial results and updated full-year 2025 guidance, narrowing full-year sales guidance to approximately $1.0 billion and revising non-GAAP adjustments for acquired in‑process R&D; the company also updated its non-GAAP presentation to exclude an IPR&D adjustment beginning in Q2.
Technical Analysis
Directional indicators show a low-strength market: ADX at 14.1 signals no established trend, but the directional movement lines favor the upside — DI+ registered a dip-and-reversal (bullish) while DI‑ decreased (bullish), implying that short-term directional pressure points toward recovery relative to the stock’s fair-valued baseline.
MACD sits at -$0.14 while the signal line sits at -$0.32; MACD increased and crossed above its signal line, a bullish momentum confirmation that supports the prospect of a short-term push higher from current levels.
MRO registers -11.82, a negative reading that indicates the market price sits below the model target and therefore carries measurable upside potential; the magnitude suggests moderate upward pressure into the near term.
RSI at 42.54 and rising shows building buying interest without overextension, which aligns with a recovery scenario that retains room to move higher before reaching neutral territory.
Price structure supports a contained rebound: the close at $12.77 sits above the 20‑day average $12.56 and the 12‑day EMA showed a dip-and-reversal, while the stock remains below the 50‑day average $13.17 and well below the 200‑day average $22.20. Bollinger band widths remain narrow with the 1x upper band at $12.92 and lower at $12.20, and SuperTrend lower support at $11.30 provides a nearby structural floor. Volume on the latest session, ~1.54M, tracked below the 10‑day average, indicating moves have lacked high conviction so far.
Fundamental Analysis
Profitability shows ongoing strain: EBIT at -$55,185,000 produces an EBIT margin of -22.93%, well below the industry peer mean of 18.51% and industry peer median of 17.48%. QoQ the EBIT margin declined by -55.48%, while YoY the EBIT margin improved by 82.05% versus prior-year levels, reflecting wide quarter-to-quarter swings in operating profitability.
Top-line and growth metrics present mixed signals. Reported total revenue equals $240,678,000. Reported revenue growth stands at 2.67% on one metric, while reported revenue growth year-over-year shows -83.08% and quarter-over-quarter change shows -115.64%; those contrasting growth indicators indicate volatile period-to-period comparisons that require careful calendar alignment when interpreting trend changes.
Cash and liquidity provide a meaningful buffer: cash and short-term investments total $315,361,000, cash ratio 1.25, current ratio 2.44 and quick ratio 1.88, supporting operations despite negative free cash flow of -$15,702,000 and operating cash flow -$9,496,000. Free cash flow growth shows a strong YoY gain per the provided metric, but free cash flow itself remains negative for the latest period.
Leverage sits elevated: total debt $449,008,000 produces a debt-to-equity ratio of 336.88% versus an industry peer mean of 62.67%, and debt-to-assets 51.27% indicates material leverage on the balance sheet. Interest expense remains small in absolute terms at $2,537,000 and cost of debt at 0.489%.
Market multiples present mixed signals. Price-to-book at 7.73 runs above the industry peer mean of 6.29 and median of 6.87, while trailing PE appears negative due to losses. EPS came in at -$0.48 versus an estimate of -$0.40, producing an EPS surprise of -20%. Forward EPS remains negative, and the enterprise multiple and forward multiples reflect the company’s loss-making status on a GAAP basis. Gross margin at 52.29% underperforms the industry peer mean of 62.20%, even as gross profit totals $125,855,000.
WMDST values the stock as fair-valued given the combination of large cash resources, above-average leverage, stretched profitability, and the mixed growth signals that showed both QoQ deterioration and YoY improvement in selected margins.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 53.6 M |
| Operating Cash Flow | $ -9.50 M | |
| Capital Expenditures | $ -6.21 M | |
| Change In Working Capital | $ 9.2 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 10.5 M | |
| End Period Cash Flow | $ 64.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 240.7 M | |
| Forward Revenue | $ 23.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 114.8 M | |
| Depreciation | $ 4.4 M | |
| Depreciation and Amortization | $ 4.4 M | |
| Research and Development | $ 48.1 M | |
| Total Operating Expenses | $ 272.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 125.9 M | |
| EBITDA | $ -50.82 M | |
| EBIT | $ -55.19 M | |
| Operating Income | $ -31.86 M | |
| Interest Income | — | |
| Interest Expense | $ 2.5 M | |
| Net Interest Income | $ -2.54 M | |
| Income Before Tax | $ -57.72 M | |
| Tax Provision | $ -5.32 M | |
| Tax Rate | 9.22 % | |
| Net Income | $ -52.40 M | |
| Net Income From Continuing Operations | $ -52.40 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.40 | |
| EPS Actual | $ -0.48 | |
| EPS Difference | $ -0.08 | |
| EPS Surprise | -20.0 % | |
| Forward EPS | $ -0.30 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 875.7 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 133.3 M | |
| Total Current Assets | $ 614.8 M | |
| Cash and Short-Term Investments | $ 315.4 M | |
| Cash | $ 64.1 M | |
| Net Receivables | $ 128.4 M | |
| Inventory | $ 142.6 M | |
| Long-Term Investments | $ 17.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 55.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 251.7 M | |
| Net Debt | $ 245.0 M | |
| Total Debt | $ 449.0 M | |
| Total Liabilities | $ 742.5 M | |
| EQUITY | ||
| Total Equity | $ 133.3 M | |
| Retained Earnings | $ -1.23 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 1.97 | |
| Shares Outstanding | 67.531 M | |
| Revenue Per-Share | $ 3.56 | |
| VALUATION | Market Capitalization | $ 1.0 B |
| Enterprise Value | $ 1.2 B | |
| Enterprise Multiple | -22.901 | |
| Enterprise Multiple QoQ | 65.204 % | |
| Enterprise Multiple YoY | -76.473 % | |
| Enterprise Multiple IPRWA | high: 123.29 median: 110.415 mean: 94.184 TNDM: -22.901 low: -147.649 |
|
| EV/R | 4.835 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.571 | |
| Asset To Liability | 1.18 | |
| Debt To Capital | 0.771 | |
| Debt To Assets | 0.513 | |
| Debt To Assets QoQ | -4.136 % | |
| Debt To Assets YoY | 1085.754 % | |
| Debt To Assets IPRWA | high: 0.843 TNDM: 0.513 mean: 0.298 median: 0.289 low: 0.0 |
|
| Debt To Equity | 3.369 | |
| Debt To Equity QoQ | 6.072 % | |
| Debt To Equity YoY | 1843.481 % | |
| Debt To Equity IPRWA | TNDM: 3.369 high: 2.173 mean: 0.627 median: 0.579 low: -0.395 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.729 | |
| Price To Book QoQ | -19.408 % | |
| Price To Book YoY | -33.852 % | |
| Price To Book IPRWA | high: 16.759 TNDM: 7.729 median: 6.869 mean: 6.287 low: -5.981 |
|
| Price To Earnings (P/E) | -38.025 | |
| Price To Earnings QoQ | 12.167 % | |
| Price To Earnings YoY | -56.295 % | |
| Price To Earnings IPRWA | high: 249.6 mean: 136.734 median: 121.658 TNDM: -38.025 low: -167.592 |
|
| PE/G Ratio | 1.341 | |
| Price To Sales (P/S) | 4.28 | |
| Price To Sales QoQ | -32.628 % | |
| Price To Sales YoY | -65.242 % | |
| Price To Sales IPRWA | high: 73.117 mean: 32.467 median: 24.499 TNDM: 4.28 low: 0.6 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -70.219 | |
| Forward PE/G | 2.476 | |
| Forward P/S | 43.916 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -20.344 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.268 | |
| Asset Turnover Ratio QoQ | 7.921 % | |
| Asset Turnover Ratio YoY | 13.324 % | |
| Asset Turnover Ratio IPRWA | high: 0.412 TNDM: 0.268 median: 0.124 mean: 0.121 low: 0.008 |
|
| Receivables Turnover | 1.888 | |
| Receivables Turnover Ratio QoQ | -2.911 % | |
| Receivables Turnover Ratio YoY | -18.73 % | |
| Receivables Turnover Ratio IPRWA | high: 3.133 TNDM: 1.888 mean: 1.734 median: 1.672 low: 0.374 |
|
| Inventory Turnover | 0.809 | |
| Inventory Turnover Ratio QoQ | 1.427 % | |
| Inventory Turnover Ratio YoY | 17.031 % | |
| Inventory Turnover Ratio IPRWA | high: 2.014 TNDM: 0.809 mean: 0.648 median: 0.568 low: 0.084 |
|
| Days Sales Outstanding (DSO) | 48.341 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 114.449 | |
| Cash Conversion Cycle Days QoQ | -0.314 % | |
| Cash Conversion Cycle Days YoY | -19.737 % | |
| Cash Conversion Cycle Days IPRWA | high: 448.876 mean: 171.048 median: 167.784 TNDM: 114.449 low: -175.55 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.663 | |
| CapEx To Revenue | -0.026 | |
| CapEx To Depreciation | -1.421 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 442.4 M | |
| Net Invested Capital | $ 442.4 M | |
| Invested Capital | $ 442.4 M | |
| Net Tangible Assets | $ 133.3 M | |
| Net Working Capital | $ 363.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.253 | |
| Current Ratio | 2.443 | |
| Current Ratio QoQ | 6.105 % | |
| Current Ratio YoY | -19.858 % | |
| Current Ratio IPRWA | high: 19.146 mean: 2.549 TNDM: 2.443 median: 1.718 low: 0.027 |
|
| Quick Ratio | 1.876 | |
| Quick Ratio QoQ | 3.529 % | |
| Quick Ratio YoY | -21.037 % | |
| Quick Ratio IPRWA | high: 12.697 mean: 1.88 TNDM: 1.876 median: 1.167 low: 0.315 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -8.836 | |
| Cost Of Debt | 0.489 % | |
| Interest Coverage Ratio | -21.752 | |
| Interest Coverage Ratio QoQ | -75.551 % | |
| Interest Coverage Ratio YoY | 39.54 % | |
| Interest Coverage Ratio IPRWA | high: 52.298 mean: 15.503 median: 11.456 TNDM: -21.752 low: -88.481 |
|
| Operating Cash Flow Ratio | -0.22 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 45.477 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.033 % | |
| Revenue Growth | 2.669 % | |
| Revenue Growth QoQ | -115.643 % | |
| Revenue Growth YoY | -83.081 % | |
| Revenue Growth IPRWA | high: 26.158 % median: 8.281 % mean: 6.321 % TNDM: 2.669 % low: -39.052 % |
|
| Earnings Growth | -28.358 % | |
| Earnings Growth QoQ | -99.577 % | |
| Earnings Growth YoY | 19.101 % | |
| Earnings Growth IPRWA | high: 166.667 % mean: 11.366 % median: 9.851 % TNDM: -28.358 % low: -180.612 % |
|
| MARGINS | ||
| Gross Margin | 52.292 % | |
| Gross Margin QoQ | 3.528 % | |
| Gross Margin YoY | 2.878 % | |
| Gross Margin IPRWA | high: 91.006 % median: 63.683 % mean: 62.2 % TNDM: 52.292 % low: -7.085 % |
|
| EBIT Margin | -22.929 % | |
| EBIT Margin QoQ | -55.479 % | |
| EBIT Margin YoY | 82.048 % | |
| EBIT Margin IPRWA | high: 33.709 % mean: 18.512 % median: 17.478 % TNDM: -22.929 % low: -200.872 % |
|
| Return On Sales (ROS) | -13.237 % | |
| Return On Sales QoQ | -74.298 % | |
| Return On Sales YoY | 5.097 % | |
| Return On Sales IPRWA | high: 39.857 % mean: 19.015 % median: 18.374 % TNDM: -13.237 % low: -193.243 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -15.70 M | |
| Free Cash Flow Yield | -1.524 % | |
| Free Cash Flow Yield QoQ | -64.925 % | |
| Free Cash Flow Yield YoY | 254.419 % | |
| Free Cash Flow Yield IPRWA | high: 4.685 % median: 0.712 % mean: 0.678 % TNDM: -1.524 % low: -19.501 % |
|
| Free Cash Growth | -75.734 % | |
| Free Cash Growth QoQ | -213.103 % | |
| Free Cash Growth YoY | 1224.716 % | |
| Free Cash Growth IPRWA | high: 310.383 % mean: 85.695 % median: 14.619 % TNDM: -75.734 % low: -376.098 % |
|
| Free Cash To Net Income | 0.3 | |
| Cash Flow Margin | -22.971 % | |
| Cash Flow To Earnings | 1.055 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -5.829 % | |
| Return On Assets QoQ | -57.813 % | |
| Return On Assets YoY | 77.659 % | |
| Return On Assets IPRWA | high: 16.404 % mean: 1.756 % median: 1.686 % TNDM: -5.829 % low: -26.44 % |
|
| Return On Capital Employed (ROCE) | -8.843 % | |
| Return On Equity (ROE) | -0.393 | |
| Return On Equity QoQ | -53.236 % | |
| Return On Equity YoY | 198.406 % | |
| Return On Equity IPRWA | high: 0.175 median: 0.032 mean: 0.029 TNDM: -0.393 low: -0.524 |
|
| DuPont ROE | -36.317 % | |
| Return On Invested Capital (ROIC) | -11.323 % | |
| Return On Invested Capital QoQ | -21.105 % | |
| Return On Invested Capital YoY | -311.211 % | |
| Return On Invested Capital IPRWA | high: 5.672 % median: 2.571 % mean: 2.238 % TNDM: -11.323 % low: -19.888 % |
|