Recent News
On November 5, 2025 Q2 reported third-quarter 2025 results: revenue of $201.7 million, GAAP gross margin about 54.0%, and GAAP net income of $15.0 million; the Board authorized a $150 million share repurchase program. The company also received recognition in a November 2025 vendor assessment and announced community grant recipients in 2025.
Technical Analysis
Directional indicators show a strong trend reading: ADX at 26.75 indicates the market moved beyond emerging trend strength into a stronger directional environment; that strength increases the significance of the directional signals that follow.
DI+ registered a dip-and-reversal at 16.42, a bullish signal that implies renewed buying pressure; however DI- sits higher at 28.46 and displays an increasing trend, which imposes meaningful selling pressure. These opposing DI moves suggest trend strength with conflicting directional forces that may produce volatile swings tied to news or earnings-related flows.
MACD sits negative at -1.42 and has peak-and-reversed, with the MACD line below the signal line (-1.11). That configuration signals bearish momentum and pressure on near-term price bias despite the DI+ dip-and-reversal.
MRO reads -5.29 (negative), indicating the price currently sits below the modeled target and therefore carries measured upside potential toward fair-value levels; the magnitude limits that potential to a modest corrective push rather than a large impulse.
RSI at 45.11 with a peak-and-reversal indicates recent loss of upside momentum and additional short-term downward pressure; combined with MACD this suggests momentum remains tilted lower even as mean-reversion forces (MRO negative) exist.
Price sits below key averages: the 12-day EMA is decreasing and the close ($65.09) sits under the 20-day average ($67.46), 50-day average ($71.19) and 200-day average ($77.56), reinforcing a bearish intermediate bias. The close lies at the lower Bollinger band boundary (~$65.07), which often precedes range-bound mean reversion or continuation depending on trend conviction. Volatility readings remain muted (42-day volatility 2%), so moves may develop more gradually.
Fundamental Analysis
Revenue totaled $201,704,000. YoY revenue growth registers at 172.51% and QoQ revenue growth registers at 17.77%, reflecting substantial expansion year-over-year and quarter-over-quarter momentum in top-line activity.
Gross margin stands at 53.96%, with QoQ improvement of 0.71 percentage points and YoY improvement of 6.05 percentage points, supporting a higher-quality revenue mix and margin expansion at the gross level.
Operating margin equals 5.85% and EBIT margin equals 8.18%. EBIT margin improved QoQ by 7.49 percentage points but shows a YoY change of -274.89% in the provided data. The company’s EBIT margin at 8.18% sits below the industry peer mean of 36.21% and below the industry peer median of 45.06%, indicating material room to catch up on operating profitability versus the peer center of gravity.
EPS came in at $0.64 versus an estimate of $0.56, a $0.08 beat representing a 14.29% upside to consensus. Adjusted EBITDA registered at $30,104,000 while EBIT totaled $16,491,000, reinforcing positive operating leverage versus prior periods.
Cash generation reads positively: operating cash flow at $45,593,000 and free cash flow of $37,250,000 produce a free cash flow yield of 0.84%, which sits above the industry peer mean of 0.48% and supports both reinvestment and capital returns including the new repurchase authorization.
Balance-sheet and leverage metrics show total debt of $539,084,000 with debt-to-assets at 37.79%, above the industry peer mean of 17.13%; net debt remains modest at $21,540,000 given $472,393,000 in cash and $568,734,000 in cash and short-term investments. Interest coverage sits at 12.85x, indicating comfortable coverage of interest expense from operating earnings.
Returns lag peer central tendencies: return on equity at 2.42% and return on assets at 1.07% both fall short of industry peer mean figures, highlighting that earnings conversion into investor returns remains limited relative to peer averages even as earnings growth trends positive.
Valuation context: price multiples include P/E at 110.39x, P/B at 7.09x, and an enterprise multiple of 145.71. WMDST values the stock as under-valued in the current context, a view that the company’s improving margins, positive free cash flow yield, and the announced buyback combine to support upside versus current market pricing.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 416.0 M |
| Operating Cash Flow | $ 45.6 M | |
| Capital Expenditures | $ -8.34 M | |
| Change In Working Capital | $ -15.08 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 58.5 M | |
| End Period Cash Flow | $ 474.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 201.7 M | |
| Forward Revenue | $ 146.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 92.9 M | |
| Depreciation | $ 13.6 M | |
| Depreciation and Amortization | $ 13.6 M | |
| Research and Development | $ 38.9 M | |
| Total Operating Expenses | $ 189.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 108.8 M | |
| EBITDA | $ 30.1 M | |
| EBIT | $ 16.5 M | |
| Operating Income | $ 11.8 M | |
| Interest Income | $ 5.5 M | |
| Interest Expense | $ 1.3 M | |
| Net Interest Income | $ 4.2 M | |
| Income Before Tax | $ 15.2 M | |
| Tax Provision | $ 160.0 K | |
| Tax Rate | 1.052 % | |
| Net Income | $ 15.0 M | |
| Net Income From Continuing Operations | $ 15.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 0.64 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 14.286 % | |
| Forward EPS | $ 0.70 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.4 B | |
| Intangible Assets | $ 595.2 M | |
| Net Tangible Assets | $ 27.7 M | |
| Total Current Assets | $ 707.3 M | |
| Cash and Short-Term Investments | $ 568.7 M | |
| Cash | $ 472.4 M | |
| Net Receivables | $ 69.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 2.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 8.1 M | |
| Short-Term Debt | $ 493.9 M | |
| Total Current Liabilities | $ 731.6 M | |
| Net Debt | $ 21.5 M | |
| Total Debt | $ 539.1 M | |
| Total Liabilities | $ 803.8 M | |
| EQUITY | ||
| Total Equity | $ 622.9 M | |
| Retained Earnings | $ -632.66 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.96 | |
| Shares Outstanding | 62.510 M | |
| Revenue Per-Share | $ 3.23 | |
| VALUATION | Market Capitalization | $ 4.4 B |
| Enterprise Value | $ 4.4 B | |
| Enterprise Multiple | 145.714 | |
| Enterprise Multiple QoQ | -19.722 % | |
| Enterprise Multiple YoY | -67.837 % | |
| Enterprise Multiple IPRWA | high: 725.943 QTWO: 145.714 mean: 90.464 median: 78.121 low: -500.562 |
|
| EV/R | 21.748 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.29 | |
| Asset To Liability | 1.775 | |
| Debt To Capital | 0.464 | |
| Debt To Assets | 0.378 | |
| Debt To Assets QoQ | -2.939 % | |
| Debt To Assets YoY | 4361.039 % | |
| Debt To Assets IPRWA | high: 1.164 QTWO: 0.378 mean: 0.171 median: 0.095 low: 0.001 |
|
| Debt To Equity | 0.865 | |
| Debt To Equity QoQ | -6.231 % | |
| Debt To Equity YoY | 3873.646 % | |
| Debt To Equity IPRWA | high: 2.803 QTWO: 0.865 mean: 0.289 median: 0.167 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.09 | |
| Price To Book QoQ | -19.513 % | |
| Price To Book YoY | -25.096 % | |
| Price To Book IPRWA | high: 32.156 mean: 12.361 median: 10.455 QTWO: 7.09 low: -17.466 |
|
| Price To Earnings (P/E) | 110.388 | |
| Price To Earnings QoQ | -77.694 % | |
| Price To Earnings YoY | -37.4 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 145.673 median: 137.28 QTWO: 110.388 low: -396.374 |
|
| PE/G Ratio | 4.783 | |
| Price To Sales (P/S) | 21.895 | |
| Price To Sales QoQ | -16.992 % | |
| Price To Sales YoY | -18.233 % | |
| Price To Sales IPRWA | high: 95.267 median: 48.871 mean: 45.879 QTWO: 21.895 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 159.654 | |
| Forward PE/G | 6.918 | |
| Forward P/S | 41.542 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.305 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.143 | |
| Asset Turnover Ratio QoQ | 0.533 % | |
| Asset Turnover Ratio YoY | 3.35 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 QTWO: 0.143 mean: 0.127 median: 0.124 low: -0.008 |
|
| Receivables Turnover | 3.098 | |
| Receivables Turnover Ratio QoQ | -2.42 % | |
| Receivables Turnover Ratio YoY | 3.879 % | |
| Receivables Turnover Ratio IPRWA | high: 5.69 QTWO: 3.098 mean: 1.467 median: 1.265 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 29.451 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 22.265 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 QTWO: 22.265 mean: -22.612 median: -38.513 low: -211.399 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -8.272 | |
| CapEx To Revenue | -0.041 | |
| CapEx To Depreciation | -0.613 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 622.9 M | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 27.7 M | |
| Net Working Capital | $ -24.38 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.777 | |
| Current Ratio | 0.967 | |
| Current Ratio QoQ | 7.295 % | |
| Current Ratio YoY | -61.284 % | |
| Current Ratio IPRWA | high: 8.127 mean: 1.704 median: 1.401 QTWO: 0.967 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.907 | |
| Cost Of Debt | 0.235 % | |
| Interest Coverage Ratio | 12.853 | |
| Interest Coverage Ratio QoQ | 16.558 % | |
| Interest Coverage Ratio YoY | -312.68 % | |
| Interest Coverage Ratio IPRWA | high: 225.0 median: 50.142 mean: 37.767 QTWO: 12.853 low: -266.667 |
|
| Operating Cash Flow Ratio | 0.029 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 7.186 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.98 % | |
| Revenue Growth | 3.36 % | |
| Revenue Growth QoQ | 17.771 % | |
| Revenue Growth YoY | 172.506 % | |
| Revenue Growth IPRWA | high: 28.215 % QTWO: 3.36 % mean: 3.107 % median: 1.612 % low: -13.442 % |
|
| Earnings Growth | 23.077 % | |
| Earnings Growth QoQ | -85.315 % | |
| Earnings Growth YoY | 46.159 % | |
| Earnings Growth IPRWA | high: 200.0 % QTWO: 23.077 % mean: 5.011 % median: 1.918 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 53.963 % | |
| Gross Margin QoQ | 0.711 % | |
| Gross Margin YoY | 6.049 % | |
| Gross Margin IPRWA | high: 90.981 % mean: 72.534 % median: 69.046 % QTWO: 53.963 % low: 26.432 % |
|
| EBIT Margin | 8.176 % | |
| EBIT Margin QoQ | 7.494 % | |
| EBIT Margin YoY | -274.888 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 45.059 % mean: 36.214 % QTWO: 8.176 % low: -105.646 % |
|
| Return On Sales (ROS) | 5.854 % | |
| Return On Sales QoQ | 19.25 % | |
| Return On Sales YoY | -225.219 % | |
| Return On Sales IPRWA | high: 76.795 % median: 48.873 % mean: 37.55 % QTWO: 5.854 % low: -133.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 37.2 M | |
| Free Cash Flow Yield | 0.843 % | |
| Free Cash Flow Yield QoQ | 4.074 % | |
| Free Cash Flow Yield YoY | 12.55 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % QTWO: 0.843 % median: 0.676 % mean: 0.479 % low: -10.76 % |
|
| Free Cash Growth | -10.663 % | |
| Free Cash Growth QoQ | -204.396 % | |
| Free Cash Growth YoY | -148.323 % | |
| Free Cash Growth IPRWA | high: 368.524 % median: 0.372 % mean: -7.397 % QTWO: -10.663 % low: -324.945 % |
|
| Free Cash To Net Income | 2.475 | |
| Cash Flow Margin | 10.462 % | |
| Cash Flow To Earnings | 1.402 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.07 % | |
| Return On Assets QoQ | 24.419 % | |
| Return On Assets YoY | -214.316 % | |
| Return On Assets IPRWA | high: 13.583 % median: 4.421 % mean: 3.725 % QTWO: 1.07 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 2.373 % | |
| Return On Equity (ROE) | 0.024 | |
| Return On Equity QoQ | 20.02 % | |
| Return On Equity YoY | -201.385 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.076 mean: 0.065 QTWO: 0.024 low: -0.395 |
|
| DuPont ROE | 2.493 % | |
| Return On Invested Capital (ROIC) | 1.461 % | |
| Return On Invested Capital QoQ | 21.75 % | |
| Return On Invested Capital YoY | -10.258 % | |
| Return On Invested Capital IPRWA | high: 14.226 % median: 6.978 % mean: 5.471 % QTWO: 1.461 % low: -12.344 % |
|