Recent News
— Not included. Recent coverage since 2025-12-03 consisted primarily of company financial releases and related reporting; earnings details are discussed below in Fundamental Analysis.
Technical Analysis
Directional Indicators (ADX / DI+ / DI-): ADX at 52.29 signals a very strong directional regime; DI+ shows a dip-and-reversal (bullish) while DI- shows a peak-and-reversal (bullish), indicating the directional system currently favors upward pressure despite prior downward movement.
MACD: MACD at -3.94 has completed a dip-and-reversal and sits above its signal line (-4.08), which constitutes a bullish momentum signal even while the indicator remains negative, implying momentum is shifting upward but not yet fully positive.
MRO (Momentum / Regression Oscillator): MRO at -31.22 (trend decreasing) places the price below target and therefore indicates a potential move higher as the gap to target narrows; the negative, falling MRO strengthens near-term mean-reversion potential.
RSI: RSI at 35.8 with a dip-and-reversal points to a near-oversold condition that has begun to correct higher, supporting short-term buying pressure if follow-through occurs.
Price vs Moving Averages & Ichimoku: Current close $50.53 trades below the 50-day average ($62.52) and the 200-day average ($74.45), while sitting essentially at the 20-day average ($50.63) and below the 12-day EMA (price12dayEMA $50.65, trend decreasing). Tenkan and Kijun lie above price, so short-term momentum improvement faces overhead resistance from those averages and the 50/200-day levels.
Volatility, Beta & Volume: 42-day beta 1.66 implies elevated short-term sensitivity; 10-day average volume (1,431,148) sits slightly below today’s volume (1,509,445), suggesting active participation on the recent move. SuperTrend upper band at $52.55 and the 1x Bollinger upper band near $53.72 provide near-term upside hurdles.
Fundamental Analysis
Earnings, Revenue and Guidance: For the period ending 2025-12-31, total revenue registers at $208,222,000 with GAAP net income of $20,443,000 and reported EPS of $0.68, topping the $0.61 estimate by $0.07 (an EPS surprise of 11.48%). Management provided forward revenue and adjusted EBITDA targets for fiscal 2026 and initial multi‑year framework commentary.
Profitability: EBIT equals $22,025,000 and EBIT margin equals 10.58%, which increased approximately 29.38% quarter-over-quarter and 522.97% year‑over‑year per the reported QoQ/YoY metrics; the EBIT margin sits well below the industry peer mean of 46.71% and the industry peer median of 60.27%, indicating room for margin catch-up even as profitability trends move higher.
Cash Flow and Balance Sheet: Operating cash flow reached $63,696,000 with free cash flow of $56,590,000 and a free cash flow yield of 1.34%. Cash on hand totals $367,631,000 while cash and short‑term investments equal $432,695,000 versus total debt of $346,821,000. Interest coverage stands at 17.69x, signaling ample EBITDA cover for interest obligations despite a debt-to-EBITDA of ~10.04x.
Valuation Multiples: Trailing PE near 98.99 and forward PE about 88.50 reflect elevated multiples; price-to-book sits at 6.38 which falls below the industry peer mean of 11.51 and the industry peer median of 9.18. Price-to-sales equals 20.28 and enterprise multiple sits high. WMDST values the stock as under-valued, implying the current market price fails to capture the company’s improving operating leverage and cash generation.
Growth and Efficiency: Reported total revenue $208.22M with revenue growth metrics showing mixed signals in the provided figures (revenue growth listed at 3.23% with a separate YoY figure at -29.53%); receivables turnover improved modestly QoQ, asset turnover stands at 0.154 and asset growth rate reads -10.54%. R&D spend remains material at $40,631,000, supporting product and AI initiatives referenced in company communications.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-11 |
| NEXT REPORT DATE: | 2026-05-13 |
| CASH FLOW | Begin Period Cash Flow | $ 474.5 M |
| Operating Cash Flow | $ 63.7 M | |
| Capital Expenditures | $ -7.11 M | |
| Change In Working Capital | $ -34.00 K | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -105.23 M | |
| End Period Cash Flow | $ 369.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 208.2 M | |
| Forward Revenue | $ 133.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 92.9 M | |
| Depreciation | $ 12.5 M | |
| Depreciation and Amortization | $ 12.5 M | |
| Research and Development | $ 40.6 M | |
| Total Operating Expenses | $ 189.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 115.3 M | |
| EBITDA | $ 34.6 M | |
| EBIT | $ 22.0 M | |
| Operating Income | $ 18.3 M | |
| Interest Income | $ 5.2 M | |
| Interest Expense | $ 1.2 M | |
| Net Interest Income | $ 3.9 M | |
| Income Before Tax | $ 20.8 M | |
| Tax Provision | $ 337.0 K | |
| Tax Rate | 1.622 % | |
| Net Income | $ 20.4 M | |
| Net Income From Continuing Operations | $ 20.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.61 | |
| EPS Actual | $ 0.68 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 11.475 % | |
| Forward EPS | $ 0.83 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.3 B | |
| Intangible Assets | $ 591.2 M | |
| Net Tangible Assets | $ 70.6 M | |
| Total Current Assets | $ 556.1 M | |
| Cash and Short-Term Investments | $ 432.7 M | |
| Cash | $ 367.6 M | |
| Net Receivables | $ 51.7 M | |
| Inventory | — | |
| Long-Term Investments | $ 3.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 20.5 M | |
| Short-Term Debt | $ 303.4 M | |
| Total Current Liabilities | $ 544.1 M | |
| Net Debt | — | |
| Total Debt | $ 346.8 M | |
| Total Liabilities | $ 614.5 M | |
| EQUITY | ||
| Total Equity | $ 661.8 M | |
| Retained Earnings | $ -612.22 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.55 | |
| Shares Outstanding | 62.741 M | |
| Revenue Per-Share | $ 3.32 | |
| VALUATION | Market Capitalization | $ 4.2 B |
| Enterprise Value | $ 4.1 B | |
| Enterprise Multiple | 119.72 | |
| Enterprise Multiple QoQ | -17.839 % | |
| Enterprise Multiple YoY | -58.747 % | |
| Enterprise Multiple IPRWA | high: 798.871 QTWO: 119.72 mean: 118.189 median: 61.115 low: -442.099 |
|
| EV/R | 19.871 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.928 | |
| Asset To Liability | 2.077 | |
| Debt To Capital | 0.344 | |
| Debt To Assets | 0.272 | |
| Debt To Assets QoQ | -28.083 % | |
| Debt To Assets YoY | 84.857 % | |
| Debt To Assets IPRWA | high: 0.687 QTWO: 0.272 mean: 0.168 median: 0.087 low: 0.004 |
|
| Debt To Equity | 0.524 | |
| Debt To Equity QoQ | -39.448 % | |
| Debt To Equity YoY | 42.568 % | |
| Debt To Equity IPRWA | high: 2.989 QTWO: 0.524 mean: 0.247 median: 0.147 low: -1.778 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.382 | |
| Price To Book QoQ | -9.989 % | |
| Price To Book YoY | -43.017 % | |
| Price To Book IPRWA | high: 39.175 mean: 11.507 median: 9.178 QTWO: 6.382 low: -21.803 |
|
| Price To Earnings (P/E) | 98.995 | |
| Price To Earnings QoQ | -10.32 % | |
| Price To Earnings YoY | -46.092 % | |
| Price To Earnings IPRWA | high: 522.411 mean: 128.103 QTWO: 98.995 median: 90.345 low: -185.3 |
|
| PE/G Ratio | 15.839 | |
| Price To Sales (P/S) | 20.284 | |
| Price To Sales QoQ | -7.357 % | |
| Price To Sales YoY | -35.975 % | |
| Price To Sales IPRWA | high: 116.554 mean: 45.258 median: 44.141 QTWO: 20.284 low: 4.135 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 88.503 | |
| Forward PE/G | 14.161 | |
| Forward P/S | 32.347 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.385 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.154 | |
| Asset Turnover Ratio QoQ | 7.403 % | |
| Asset Turnover Ratio YoY | 8.059 % | |
| Asset Turnover Ratio IPRWA | high: 0.373 QTWO: 0.154 mean: 0.13 median: 0.125 low: 0.0 |
|
| Receivables Turnover | 3.425 | |
| Receivables Turnover Ratio QoQ | 10.539 % | |
| Receivables Turnover Ratio YoY | -6.439 % | |
| Receivables Turnover Ratio IPRWA | high: 4.512 QTWO: 3.425 mean: 1.563 median: 1.485 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 26.643 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 12.588 | |
| Cash Conversion Cycle Days QoQ | -43.46 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 130.17 QTWO: 12.588 mean: -47.376 median: -67.075 low: -67.09 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 17.4 | |
| CapEx To Revenue | -0.034 | |
| CapEx To Depreciation | -0.567 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 661.8 M | |
| Net Invested Capital | $ 965.2 M | |
| Invested Capital | $ 965.2 M | |
| Net Tangible Assets | $ 70.6 M | |
| Net Working Capital | $ 12.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.795 | |
| Current Ratio | 1.022 | |
| Current Ratio QoQ | 5.723 % | |
| Current Ratio YoY | -27.027 % | |
| Current Ratio IPRWA | high: 7.11 mean: 1.814 median: 1.386 QTWO: 1.022 low: 0.466 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.035 | |
| Cost Of Debt | 0.277 % | |
| Interest Coverage Ratio | 17.691 | |
| Interest Coverage Ratio QoQ | 37.634 % | |
| Interest Coverage Ratio YoY | 567.457 % | |
| Interest Coverage Ratio IPRWA | high: 148.909 median: 66.552 mean: 46.129 QTWO: 17.691 low: -110.193 |
|
| Operating Cash Flow Ratio | 0.117 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 14.055 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -10.543 % | |
| Revenue Growth | 3.231 % | |
| Revenue Growth QoQ | -3.839 % | |
| Revenue Growth YoY | -29.531 % | |
| Revenue Growth IPRWA | high: 19.11 % mean: 6.028 % median: 4.58 % QTWO: 3.231 % low: -7.075 % |
|
| Earnings Growth | 6.25 % | |
| Earnings Growth QoQ | -72.917 % | |
| Earnings Growth YoY | -65.625 % | |
| Earnings Growth IPRWA | high: 153.333 % mean: 13.881 % QTWO: 6.25 % median: 4.918 % low: -163.158 % |
|
| MARGINS | ||
| Gross Margin | 55.366 % | |
| Gross Margin QoQ | 2.6 % | |
| Gross Margin YoY | 5.191 % | |
| Gross Margin IPRWA | high: 91.096 % mean: 71.925 % median: 68.036 % QTWO: 55.366 % low: 40.427 % |
|
| EBIT Margin | 10.578 % | |
| EBIT Margin QoQ | 29.379 % | |
| EBIT Margin YoY | 522.968 % | |
| EBIT Margin IPRWA | high: 78.69 % median: 60.268 % mean: 46.714 % QTWO: 10.578 % low: -44.038 % |
|
| Return On Sales (ROS) | 8.793 % | |
| Return On Sales QoQ | 50.205 % | |
| Return On Sales YoY | 417.845 % | |
| Return On Sales IPRWA | high: 76.917 % median: 47.094 % mean: 36.858 % QTWO: 8.793 % low: -31.502 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 56.6 M | |
| Free Cash Flow Yield | 1.34 % | |
| Free Cash Flow Yield QoQ | 58.956 % | |
| Free Cash Flow Yield YoY | 111.024 % | |
| Free Cash Flow Yield IPRWA | high: 4.564 % QTWO: 1.34 % mean: 0.204 % median: 0.164 % low: -1.998 % |
|
| Free Cash Growth | 51.919 % | |
| Free Cash Growth QoQ | -586.908 % | |
| Free Cash Growth YoY | 943.179 % | |
| Free Cash Growth IPRWA | high: 265.627 % QTWO: 51.919 % mean: -23.951 % median: -77.08 % low: -132.549 % |
|
| Free Cash To Net Income | 2.768 | |
| Cash Flow Margin | 30.487 % | |
| Cash Flow To Earnings | 3.105 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.513 % | |
| Return On Assets QoQ | 41.402 % | |
| Return On Assets YoY | 11538.462 % | |
| Return On Assets IPRWA | high: 16.207 % median: 5.909 % mean: 4.921 % QTWO: 1.513 % low: -10.846 % |
|
| Return On Capital Employed (ROCE) | 3.008 % | |
| Return On Equity (ROE) | 0.031 | |
| Return On Equity QoQ | 27.856 % | |
| Return On Equity YoY | 9553.125 % | |
| Return On Equity IPRWA | high: 0.298 median: 0.098 mean: 0.086 QTWO: 0.031 low: -0.282 |
|
| DuPont ROE | 3.183 % | |
| Return On Invested Capital (ROIC) | 2.245 % | |
| Return On Invested Capital QoQ | 53.662 % | |
| Return On Invested Capital YoY | -334.342 % | |
| Return On Invested Capital IPRWA | high: 20.316 % median: 9.056 % mean: 7.324 % QTWO: 2.245 % low: -11.474 % |
|