Recent News
On August 12, 2025 the board authorized a common stock repurchase program of up to $150 million. On September 2, 2025 management announced participation at the Truist Technology Symposium on September 4, 2025 to discuss AI transformation and enterprise technology themes.
Technical Analysis
ADX / DI+/DI-: ADX at 21.28 signals an emerging trend strength. DI+ at 20.78 showed a dip-and-reversal, indicating renewed bullish pressure; DI- at 25.87 registered a peak-and-reverse, indicating falling bearish pressure. Together these directional moves imply building bullish directional bias despite ADX remaining near the emerging threshold.
MACD: MACD sits at -0.50 above the signal line at -0.72 and recently completed a dip-and-reversal, signaling a shift to bullish momentum as MACD crossed above its signal line. Momentum now favors upside continuation unless MACD reverses back below the signal.
MRO (Momentum/Regression Oscillator): MRO at 5.08 registers positive, indicating price currently trades modestly above the model target and carries some downward potential to mean revert. The recent dip-and-reversal in MRO suggests that the over-target condition softened and momentum may stabilize.
RSI: RSI at 43.22 sits below neutral but shows a dip-and-reversal pattern, consistent with a recovery from recent weakness. The indicator leaves room for further upside before reaching overbought territory.
Price vs Moving Averages & Bands: The last close at $40.19 trades above the 12-day and 26-day EMAs (~$38.80 and $39.23) and the 20-day average ($38.91), but below the 50-day ($40.99) and well under the 200-day ($51.18). Price rests between the Bollinger upper 1x and 2x bands, implying short-term strength inside a longer-term downtrend. Average daily volume near 971,304 exceeded 10/50/200-day averages, indicating stronger participation on recent moves.
Fundamental Analysis
Revenue and Growth: Total revenue reported $135,039,000 with year-over-year revenue growth of 36.98% and quarter-over-quarter revenue change of -28.63%. Yearly top-line expansion stands as the primary fundamental strength supporting the current valuation.
Profitability: Gross margin at 74.76% exceeds the industry peer mean of 72.32% and remains a structural advantage. Operating margin (EBIT margin) at -3.12% underperforms the industry peer mean of 34.27% and the industry peer median of 43.47%, and declined QoQ by roughly 29.36 percentage points and YoY by about 12.82 percentage points, reflecting continued margin pressure from operating costs.
Earnings Per Share: Reported EPS stands at -$0.18 versus an estimate of -$0.11, a shortfall of $0.07 and an EPS surprise ratio of -63.64%. That EPS outcome weakens near-term earnings narrative despite revenue strength.
Cash Flow & Balance Sheet: Cash and short-term investments total $313,109,000 with operating cash flow $38,343,000 and free cash flow $35,590,000, producing a free cash flow yield of 0.95%, slightly above the industry peer mean of 0.53%. Debt remains minimal: total debt $16,114,000 and debt-to-assets 1.80%, supporting financial flexibility for share repurchases or investment.
Valuation Metrics: Price-to-book at 7.23 falls below the industry peer mean of 12.07. Price-to-sales at 27.81 sits below the industry peer mean of 45.69. Trailing P/E at ~175x exceeds the industry peer mean of ~139x, while forward P/E near 238x embeds elevated forward expectations. WMDST values the stock as fair-valued based on the combination of high gross margins, strong revenue growth, subdued profitability, and available cash.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 323.4 M |
| Operating Cash Flow | $ 38.3 M | |
| Capital Expenditures | $ -2.75 M | |
| Change In Working Capital | $ 11.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -10.10 M | |
| End Period Cash Flow | $ 313.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 135.0 M | |
| Forward Revenue | $ -1.23 B | |
| COSTS | ||
| Cost Of Revenue | $ 34.1 M | |
| Depreciation | $ 5.9 M | |
| Depreciation and Amortization | $ 5.9 M | |
| Research and Development | $ 37.9 M | |
| Total Operating Expenses | $ 139.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 101.0 M | |
| EBITDA | $ 1.7 M | |
| EBIT | $ -4.21 M | |
| Operating Income | $ -4.21 M | |
| Interest Income | $ 4.6 M | |
| Interest Expense | — | |
| Net Interest Income | $ 4.6 M | |
| Income Before Tax | $ 400.0 K | |
| Tax Provision | $ 928.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -528.00 K | |
| Net Income From Continuing Operations | $ -528.00 K | |
| EARNINGS | ||
| EPS Estimate | $ -0.11 | |
| EPS Actual | $ -0.18 | |
| EPS Difference | $ -0.07 | |
| EPS Surprise | -63.636 % | |
| Forward EPS | $ 0.23 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 894.2 M | |
| Intangible Assets | $ 367.0 M | |
| Net Tangible Assets | $ 152.8 M | |
| Total Current Assets | $ 455.9 M | |
| Cash and Short-Term Investments | $ 313.1 M | |
| Cash | $ 313.1 M | |
| Net Receivables | $ 89.7 M | |
| Inventory | — | |
| Long-Term Investments | $ 9.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 16.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 349.9 M | |
| Net Debt | — | |
| Total Debt | $ 16.1 M | |
| Total Liabilities | $ 374.4 M | |
| EQUITY | ||
| Total Equity | $ 519.8 M | |
| Retained Earnings | $ -505.40 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.35 | |
| Shares Outstanding | 81.877 M | |
| Revenue Per-Share | $ 1.65 | |
| VALUATION | Market Capitalization | $ 3.8 B |
| Enterprise Value | $ 3.5 B | |
| Enterprise Multiple | 2013.347 | |
| Enterprise Multiple QoQ | -114.705 % | |
| Enterprise Multiple YoY | 424.95 % | |
| Enterprise Multiple IPRWA | INTA: 2013.347 high: 634.148 mean: 91.222 median: 82.154 low: -577.222 |
|
| EV/R | 25.614 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.72 | |
| Asset To Liability | 2.388 | |
| Debt To Capital | 0.03 | |
| Debt To Assets | 0.018 | |
| Debt To Assets QoQ | -11.84 % | |
| Debt To Assets YoY | 120.024 % | |
| Debt To Assets IPRWA | high: 1.095 mean: 0.161 median: 0.098 INTA: 0.018 low: 0.002 |
|
| Debt To Equity | 0.031 | |
| Debt To Equity QoQ | -8.203 % | |
| Debt To Equity YoY | 108.333 % | |
| Debt To Equity IPRWA | high: 3.008 mean: 0.299 median: 0.176 INTA: 0.031 low: -0.874 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.226 | |
| Price To Book QoQ | -24.334 % | |
| Price To Book YoY | 11.948 % | |
| Price To Book IPRWA | high: 34.07 mean: 12.071 median: 10.727 INTA: 7.226 low: -16.218 |
|
| Price To Earnings (P/E) | 175.386 | |
| Price To Earnings QoQ | -21.844 % | |
| Price To Earnings YoY | -24.576 % | |
| Price To Earnings IPRWA | high: 564.562 INTA: 175.386 mean: 139.031 median: 130.187 low: -357.639 |
|
| PE/G Ratio | -0.226 | |
| Price To Sales (P/S) | 27.814 | |
| Price To Sales QoQ | -23.646 % | |
| Price To Sales YoY | 22.218 % | |
| Price To Sales IPRWA | high: 113.355 median: 48.199 mean: 45.69 INTA: 27.814 low: 1.219 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 237.829 | |
| Forward PE/G | -0.307 | |
| Forward P/S | -3.053 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -5.636 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.158 | |
| Asset Turnover Ratio QoQ | -1.107 % | |
| Asset Turnover Ratio YoY | -2.014 % | |
| Asset Turnover Ratio IPRWA | high: 0.416 INTA: 0.158 mean: 0.13 median: 0.129 low: 0.0 |
|
| Receivables Turnover | 1.792 | |
| Receivables Turnover Ratio QoQ | 3.189 % | |
| Receivables Turnover Ratio YoY | 37.534 % | |
| Receivables Turnover Ratio IPRWA | high: 4.687 INTA: 1.792 mean: 1.421 median: 1.257 low: 0.131 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 50.909 | |
| 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 | 1.274 | |
| CapEx To Revenue | -0.02 | |
| CapEx To Depreciation | -0.464 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 519.8 M | |
| Net Invested Capital | $ 519.8 M | |
| Invested Capital | $ 519.8 M | |
| Net Tangible Assets | $ 152.8 M | |
| Net Working Capital | $ 106.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.895 | |
| Current Ratio | 1.303 | |
| Current Ratio QoQ | -10.523 % | |
| Current Ratio YoY | 14.33 % | |
| Current Ratio IPRWA | high: 9.787 mean: 1.695 median: 1.353 INTA: 1.303 low: 0.079 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.38 | |
| Cost Of Debt | 16.515 % | |
| Interest Coverage Ratio | -1.232 | |
| Interest Coverage Ratio QoQ | -26.078 % | |
| Interest Coverage Ratio YoY | -268.448 % | |
| Interest Coverage Ratio IPRWA | high: 181.115 median: 54.034 mean: 37.82 INTA: -1.232 low: -203.84 |
|
| Operating Cash Flow Ratio | -0.061 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 43.644 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 9.915 % | |
| Revenue Growth | 4.627 % | |
| Revenue Growth QoQ | -28.629 % | |
| Revenue Growth YoY | 36.975 % | |
| Revenue Growth IPRWA | high: 32.808 % median: 9.099 % mean: 6.946 % INTA: 4.627 % low: -28.474 % |
|
| Earnings Growth | -775.0 % | |
| Earnings Growth QoQ | -3354.935 % | |
| Earnings Growth YoY | -10949.783 % | |
| Earnings Growth IPRWA | high: 157.143 % median: 5.491 % mean: 4.935 % low: -200.0 % INTA: -775.0 % |
|
| MARGINS | ||
| Gross Margin | 74.761 % | |
| Gross Margin QoQ | 0.088 % | |
| Gross Margin YoY | 2.237 % | |
| Gross Margin IPRWA | high: 91.297 % INTA: 74.761 % mean: 72.321 % median: 68.585 % low: 33.069 % |
|
| EBIT Margin | -3.121 % | |
| EBIT Margin QoQ | -29.357 % | |
| EBIT Margin YoY | -1282.197 % | |
| EBIT Margin IPRWA | high: 74.313 % median: 43.473 % mean: 34.273 % INTA: -3.121 % low: -124.558 % |
|
| Return On Sales (ROS) | -3.121 % | |
| Return On Sales QoQ | -29.357 % | |
| Return On Sales YoY | -1282.197 % | |
| Return On Sales IPRWA | high: 76.082 % median: 44.901 % mean: 34.033 % INTA: -3.121 % low: -117.376 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 35.6 M | |
| Free Cash Flow Yield | 0.948 % | |
| Free Cash Flow Yield QoQ | 34.659 % | |
| Free Cash Flow Yield YoY | -1.965 % | |
| Free Cash Flow Yield IPRWA | high: 6.936 % INTA: 0.948 % median: 0.694 % mean: 0.528 % low: -8.108 % |
|
| Free Cash Growth | 7.601 % | |
| Free Cash Growth QoQ | -81.983 % | |
| Free Cash Growth YoY | -89.89 % | |
| Free Cash Growth IPRWA | high: 278.713 % median: 25.957 % mean: 12.176 % INTA: 7.601 % low: -316.997 % |
|
| Free Cash To Net Income | -67.405 | |
| Cash Flow Margin | -15.921 % | |
| Cash Flow To Earnings | 40.72 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.062 % | |
| Return On Assets QoQ | -83.06 % | |
| Return On Assets YoY | -26.19 % | |
| Return On Assets IPRWA | high: 18.439 % median: 4.609 % mean: 3.907 % INTA: -0.062 % low: -24.058 % |
|
| Return On Capital Employed (ROCE) | -0.774 % | |
| Return On Equity (ROE) | -0.001 | |
| Return On Equity QoQ | -83.0 % | |
| Return On Equity YoY | -31.081 % | |
| Return On Equity IPRWA | high: 0.214 median: 0.079 mean: 0.07 INTA: -0.001 low: -0.337 |
|
| DuPont ROE | -0.104 % | |
| Return On Invested Capital (ROIC) | -0.641 % | |
| Return On Invested Capital QoQ | -7.77 % | |
| Return On Invested Capital YoY | 443.22 % | |
| Return On Invested Capital IPRWA | high: 14.979 % median: 7.176 % mean: 5.598 % INTA: -0.641 % low: -13.978 % |
|