Recent News
Dec 5, 2025 — Several shop analysts trimmed one-year price targets, lowering the consensus average and narrowing upside expectations. Jan 12–13, 2026 — a senior finance executive disclosed a small stock sale, drawing attention to insider activity. Nov 25, 2025 — management scheduled an investor presentation at a December technology conference, keeping investor outreach active into December and beyond.
Technical Analysis
Directional indicators show bearish pressure: DI+ sits at 19.38 and recorded a peak-and-reversal, while DI– sits at 34.41 with a dip-and-reversal; ADX at 20.3 signals an emerging trend rather than a strong one. These readings align with downside bias and limited trend strength, implying short-term price direction may track catalyst flow rather than a sustained breakout.
Momentum measures confirm bearish momentum: MACD stands negative at -2.60 and sits below the signal line (-1.67) following a peak-and-reversal, indicating declining bullish momentum and continued downside bias in the near term.
MRO registers slightly negative at -0.4 with a peak-and-reversal, which indicates the market price trades modestly below internal target levels but lacks sufficient magnitude to imply a rapid mean-reversion rally; any rebound looks likely to be shallow absent fresh positive catalysts.
RSI at 40.91 with a peak-and-reversal signals mild sell-side control without extreme oversold breadth; the indicator supports the view of controlled downside rather than capitulation.
Price sits below short-, medium- and long-term averages: close at $60.02 versus the 12-day EMA (~$68.94), 20-day average ($70.09), 50-day average ($73.74) and 200-day average ($82.36). The close trades beneath the 1x and 2x lower Bollinger bands (lower 1x: $65.48; lower 2x: $60.87), indicating price has stretched below typical volatility bands and faces layered overhead resistance near the 20–50 day averages and the super trend upper at $69.04.
Volatility and volume context: 42-day beta at 2.29 signals elevated sensitivity to market moves; recent volume (~2.98M) outpaced the 10-day average (~1.75M), implying heightened investor attention during the pullback. Together, these technicals support a near-term rangebound downside bias that could persist until event-driven information alters sentiment.
Fundamental Analysis
Top-line and margin dynamics show mixed signals. Total revenue registers at $423,481,000 with reported revenue growth at 1.97% alongside a year-over-year revenue growth figure of -61.79%; both sequential and year comparisons require context from management disclosures, but the supplied figures show revenue moving at low single-digit growth in one measure and a material YoY decline in the other.
Profitability remains challenged on an operating basis: operating margin stands at -1.945% and EBIT margin at 1.80%. EBIT margin compares below the industry peer mean (approximately 49.39%) and far below the industry peer median (about 60.27%), indicating materially lower operating profitability versus typical application software peers. QoQ and YoY EBIT margin improvements (QoQ +17.55%, YoY +40.13%) imply recent margin expansion from a depressed base.
Earnings per share arrived at -$0.48 versus an estimate of -$0.13, a difference of -$0.35 and an EPS surprise of -269.23%. That deviation reflects continued headline negative EPS and pressure on near-term per-share profitability.
Balance sheet and cash flow position display clear strengths: cash and short-term investments total $1,396,071,000, and free cash flow registers $26,007,000 with a free cash flow yield of 0.28%. The current ratio sits at 1.97 and the cash ratio at 1.51, supporting short-term liquidity. Debt measures show total debt of $590,707,000 and debt-to-assets of 23.85%; debt-to-EBITDA reads 56.29, indicating leverage headroom is limited relative to earnings metrics.
Margins remain resilient at the gross level (gross margin ~75.91%), supporting product pricing power even as operating costs compress profitability. Return on equity stands negative at -5.76% and return on assets at -2.05%, reflecting losses at the net level despite strong gross profitability.
Valuation context and WMDST view: WMDST values the stock as fair-valued. Price multiples show a P/E of ~135.7 and a P/B of ~10.31; P/B sits slightly below the industry peer mean (~11.80) and P/E near but marginally below the industry peer mean (~137.71). The mean analyst price target sits near $66.34 versus the current $60.02, indicating priced-in modest upside but constrained by negative EPS and mixed growth signals.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-11-20 |
| NEXT REPORT DATE: | 2026-02-19 |
| CASH FLOW | Begin Period Cash Flow | $ 666.0 M |
| Operating Cash Flow | $ 26.6 M | |
| Capital Expenditures | $ -605.00 K | |
| Change In Working Capital | $ -60.61 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 138.1 M | |
| End Period Cash Flow | $ 804.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 423.5 M | |
| Forward Revenue | $ -152.86 M | |
| COSTS | ||
| Cost Of Revenue | $ 102.0 M | |
| Depreciation | $ 2.9 M | |
| Depreciation and Amortization | $ 2.9 M | |
| Research and Development | $ 108.2 M | |
| Total Operating Expenses | $ 431.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 321.5 M | |
| EBITDA | $ 10.5 M | |
| EBIT | $ 7.6 M | |
| Operating Income | $ -8.24 M | |
| Interest Income | — | |
| Interest Expense | $ 6.3 M | |
| Net Interest Income | $ -6.29 M | |
| Income Before Tax | $ 1.3 M | |
| Tax Provision | $ 52.6 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -51.28 M | |
| Net Income From Continuing Operations | $ -51.28 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.13 | |
| EPS Actual | $ -0.48 | |
| EPS Difference | $ -0.35 | |
| EPS Surprise | -269.231 % | |
| Forward EPS | $ 0.70 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 377.9 M | |
| Net Tangible Assets | $ 513.2 M | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 1.4 B | |
| Cash | $ 800.6 M | |
| Net Receivables | $ 260.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 17.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 37.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 927.0 M | |
| Net Debt | — | |
| Total Debt | $ 590.7 M | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 891.1 M | |
| Retained Earnings | $ -1.18 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.42 | |
| Shares Outstanding | 105.820 M | |
| Revenue Per-Share | $ 4.00 | |
| VALUATION | Market Capitalization | $ 9.2 B |
| Enterprise Value | $ 8.4 B | |
| Enterprise Multiple | 798.871 | |
| Enterprise Multiple QoQ | -12.573 % | |
| Enterprise Multiple YoY | -14.929 % | |
| Enterprise Multiple IPRWA | ESTC: 798.871 high: 554.615 mean: 68.473 median: 61.115 low: -363.609 |
|
| EV/R | 19.796 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.779 | |
| Asset To Liability | 1.562 | |
| Debt To Capital | 0.399 | |
| Debt To Assets | 0.239 | |
| Debt To Assets QoQ | 1.321 % | |
| Debt To Assets YoY | 4953.39 % | |
| Debt To Assets IPRWA | high: 0.687 ESTC: 0.239 mean: 0.169 median: 0.087 low: 0.004 |
|
| Debt To Equity | 0.663 | |
| Debt To Equity QoQ | 8.37 % | |
| Debt To Equity YoY | 5010.948 % | |
| Debt To Equity IPRWA | high: 1.275 ESTC: 0.663 mean: 0.189 median: 0.147 low: -1.778 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 10.312 | |
| Price To Book QoQ | 13.672 % | |
| Price To Book YoY | -6.289 % | |
| Price To Book IPRWA | high: 39.175 mean: 11.796 ESTC: 10.312 median: 9.178 low: -27.991 |
|
| Price To Earnings (P/E) | 135.677 | |
| Price To Earnings QoQ | -1.636 % | |
| Price To Earnings YoY | -7.1 % | |
| Price To Earnings IPRWA | high: 697.934 mean: 137.713 ESTC: 135.677 median: 116.644 low: -66.95 |
|
| PE/G Ratio | 20.351 | |
| Price To Sales (P/S) | 21.698 | |
| Price To Sales QoQ | 2.264 % | |
| Price To Sales YoY | -11.221 % | |
| Price To Sales IPRWA | high: 101.971 mean: 44.446 median: 44.141 ESTC: 21.698 low: 6.148 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 184.022 | |
| Forward PE/G | 27.602 | |
| Forward P/S | -90.946 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.055 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.169 | |
| Asset Turnover Ratio QoQ | 4.343 % | |
| Asset Turnover Ratio YoY | 1.565 % | |
| Asset Turnover Ratio IPRWA | high: 0.275 ESTC: 0.169 median: 0.125 mean: 0.122 low: 0.047 |
|
| Receivables Turnover | 1.754 | |
| Receivables Turnover Ratio QoQ | 26.184 % | |
| Receivables Turnover Ratio YoY | 8.612 % | |
| Receivables Turnover Ratio IPRWA | high: 2.828 ESTC: 1.754 mean: 1.581 median: 1.485 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 52.031 | |
| 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 | 0.471 | |
| CapEx To Revenue | -0.001 | |
| CapEx To Depreciation | -0.209 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ 513.2 M | |
| Net Working Capital | $ 898.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.506 | |
| Current Ratio | 1.969 | |
| Current Ratio QoQ | -5.562 % | |
| Current Ratio YoY | -1.186 % | |
| Current Ratio IPRWA | high: 4.448 ESTC: 1.969 median: 1.386 mean: 1.318 low: 0.491 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 56.29 | |
| Cost Of Debt | 0.844 % | |
| Interest Coverage Ratio | 1.208 | |
| Interest Coverage Ratio QoQ | 20.96 % | |
| Interest Coverage Ratio YoY | 66.781 % | |
| Interest Coverage Ratio IPRWA | high: 66.552 median: 66.552 mean: 49.861 ESTC: 1.208 low: -9.8 |
|
| Operating Cash Flow Ratio | -0.083 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.063 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.879 % | |
| Revenue Growth | 1.973 % | |
| Revenue Growth QoQ | -71.464 % | |
| Revenue Growth YoY | -61.793 % | |
| Revenue Growth IPRWA | high: 13.653 % median: 4.635 % mean: 4.621 % ESTC: 1.973 % low: -6.711 % |
|
| Earnings Growth | 6.667 % | |
| Earnings Growth QoQ | -75.897 % | |
| Earnings Growth YoY | -90.277 % | |
| Earnings Growth IPRWA | high: 53.741 % mean: 14.985 % median: 10.811 % ESTC: 6.667 % low: -91.667 % |
|
| MARGINS | ||
| Gross Margin | 75.908 % | |
| Gross Margin QoQ | -1.038 % | |
| Gross Margin YoY | 1.894 % | |
| Gross Margin IPRWA | high: 91.096 % ESTC: 75.908 % mean: 69.889 % median: 68.036 % low: 61.57 % |
|
| EBIT Margin | 1.795 % | |
| EBIT Margin QoQ | 17.551 % | |
| EBIT Margin YoY | 40.125 % | |
| EBIT Margin IPRWA | high: 60.268 % median: 60.268 % mean: 49.392 % ESTC: 1.795 % low: -23.567 % |
|
| Return On Sales (ROS) | -1.945 % | |
| Return On Sales QoQ | -14.43 % | |
| Return On Sales YoY | -251.835 % | |
| Return On Sales IPRWA | high: 47.094 % median: 47.094 % mean: 38.066 % ESTC: -1.945 % low: -27.164 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 26.0 M | |
| Free Cash Flow Yield | 0.283 % | |
| Free Cash Flow Yield QoQ | -76.058 % | |
| Free Cash Flow Yield YoY | -32.938 % | |
| Free Cash Flow Yield IPRWA | high: 3.753 % ESTC: 0.283 % median: 0.164 % mean: 0.116 % low: -1.998 % |
|
| Free Cash Growth | -75.036 % | |
| Free Cash Growth QoQ | -429.64 % | |
| Free Cash Growth YoY | 172.037 % | |
| Free Cash Growth IPRWA | high: 403.227 % mean: -38.767 % ESTC: -75.036 % median: -77.08 % low: -132.549 % |
|
| Free Cash To Net Income | -0.507 | |
| Cash Flow Margin | -18.095 % | |
| Cash Flow To Earnings | 1.494 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -2.051 % | |
| Return On Assets QoQ | 113.202 % | |
| Return On Assets YoY | 76.506 % | |
| Return On Assets IPRWA | high: 8.509 % median: 5.909 % mean: 4.728 % ESTC: -2.051 % low: -10.846 % |
|
| Return On Capital Employed (ROCE) | 0.49 % | |
| Return On Equity (ROE) | -0.058 | |
| Return On Equity QoQ | 127.201 % | |
| Return On Equity YoY | 83.514 % | |
| Return On Equity IPRWA | high: 0.205 median: 0.098 mean: 0.097 ESTC: -0.058 low: -0.138 |
|
| DuPont ROE | -5.507 % | |
| Return On Invested Capital (ROIC) | 0.411 % | |
| Return On Invested Capital QoQ | 26.462 % | |
| Return On Invested Capital YoY | -232.154 % | |
| Return On Invested Capital IPRWA | high: 13.9 % median: 9.056 % mean: 7.369 % ESTC: 0.411 % low: -11.474 % |
|