Recent News
Feb. 16, 2026 — A majority owner executed a block sale of roughly 1.45 million shares, reported in regulatory filings. Apr. 10, 2026 — A law-firm inquiry into company officers and directors initiated a formal investigation; the firm publicly announced the inquiry. Apr. 29, 2026 — Market data showed a sizeable decline in short interest reported for the name.
Technical Analysis
Directional indicators: ADX sits at 27.92, indicating a strong trend environment in place. DI+ currently measures 28.67 with a peak-and-reversal pattern, which implies bearish directional pressure as DI+ pulls back; DI- at 15.15 also shows a peak-and-reversal, which implies DI- declining and therefore provides a countervailing bullish element—together these readings suggest a loss of directional conviction despite trend strength, increasing the chance of sideways consolidation that can compress valuation multiples.
MACD and momentum: MACD reads 0.47 with the MACD line above its signal at 0.40 after a recent dip-and-reversal; that configuration signals renewed bullish momentum in the very short term, supporting price resilience above short-term averages and tempering immediate downside risk.
MRO: The Momentum/Regression Oscillator stands at 11.07 (positive), indicating the current price sits above the model target and therefore faces a higher probability of mean reversion downward; the MRO’s peak-and-reversal inflection reinforces the likelihood of corrective pressure toward fair-value levels implied by WMDST’s valuation.
RSI and price structure: RSI at 58.07 has peaked-and-reversed, suggesting momentum losing steam though not yet overbought; price closed at $14.61, above the 12-day EMA ($14.00) and the 200-day average ($13.56), which supports near-term price support but leaves limited upside room before higher targets identified by analysts.
Moving averages & volatility: The 12-day EMA trends higher while the 50-day and 200-day averages lag the current price, consistent with short-to-intermediate bullish bias but declining momentum indicators create a higher probability of a trading-range phase rather than a clean breakout. Volume sits modestly above recent averages, indicating interest but not decisive conviction.
Fundamental Analysis
Reported quarter and guidance: The company disclosed first-quarter 2026 revenue of approximately $129.9 million and accompanying commentary raising outlook for 2026; Q1 results showed an EPS beat with reported EPS of $0.14 versus an estimate of $0.13 (EPS surprise ~7.7%).
Profitability and margins: Operating margin stands at 24.85% and EBIT margin at 24.9%, reflecting solid operating leverage on current revenue levels. EBIT margin decreased QoQ by 35.35% and declined YoY by 120.42% on the supplied metric labels; the current EBIT margin sits below the industry peer mean of 33.995% and below the industry peer median of 34.627%, indicating margin levels remain lower than the peer central tendency despite strong gross margins of 74.844%.
Top-line and cash: Total revenue per the provided metrics equals $125,974,000 with a reported revenue growth metric of 8.82% (usage varies by reporting window), while the quarter-on-quarter revenue dynamics included a reported 38% year-over-year lift for Q1 2026 per the company release. Cash and short-term investments total $87,045,000, and net cash flow increased materially in the period with operating cash flow of $24,758,000 and free cash flow of $21,856,000 (free cash flow yield ≈ 0.97%).
Leverage and balance-sheet composition: Total debt registers $400,588,000 with net debt at $308,814,000; debt-to-equity sits at 8.52 and debt-to-assets at 0.754, reflecting a capital structure with substantial leverage relative to equity. Interest coverage remains positive (≈5.67x) but leverage metrics constrain flexibility and heighten sensitivity to slowing cash generation.
Valuation context and WMDST view: Price multiples read high—P/E at 121.25 and price-to-book at 47.73—both above the industry peer means (P/E mean ≈ 99.67; price-to-book mean ≈ 8.39). Forward P/E remains elevated near 74.05 while enterprise multiple and EV/EBITDA metrics remain rich versus typical media & interactive peers. The current valuation as determined by WMDST: over-valued. The combination of elevated multiples, modest free-cash-flow yield, and meaningful leverage argues that upside requires sustained execution on revenue conversion and margin expansion to justify current prices.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-05-07 |
| NEXT REPORT DATE: | 2026-08-06 |
| CASH FLOW | Begin Period Cash Flow | $ 6.9 M |
| Operating Cash Flow | $ 24.8 M | |
| Capital Expenditures | $ -2.90 M | |
| Change In Working Capital | $ -21.25 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 80.7 M | |
| End Period Cash Flow | $ 87.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 126.0 M | |
| Forward Revenue | $ 55.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 31.7 M | |
| Depreciation | $ 1.1 M | |
| Depreciation and Amortization | $ 1.1 M | |
| Research and Development | $ 14.6 M | |
| Total Operating Expenses | $ 94.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 94.3 M | |
| EBITDA | $ 32.4 M | |
| EBIT | $ 31.4 M | |
| Operating Income | $ 31.3 M | |
| Interest Income | — | |
| Interest Expense | $ 5.5 M | |
| Net Interest Income | $ -5.54 M | |
| Income Before Tax | $ 25.8 M | |
| Tax Provision | $ 5.6 M | |
| Tax Rate | 21.57 % | |
| Net Income | $ 20.3 M | |
| Net Income From Continuing Operations | $ 20.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.14 | |
| EPS Difference | $ 0.01 | |
| EPS Surprise | 7.692 % | |
| Forward EPS | $ 0.19 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 531.0 M | |
| Intangible Assets | $ 354.5 M | |
| Net Tangible Assets | $ -307.53 M | |
| Total Current Assets | $ 166.0 M | |
| Cash and Short-Term Investments | $ 87.0 M | |
| Cash | $ 87.0 M | |
| Net Receivables | $ 67.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 4.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.7 M | |
| Short-Term Debt | $ 20.0 M | |
| Total Current Liabilities | $ 84.9 M | |
| Net Debt | $ 308.8 M | |
| Total Debt | $ 400.6 M | |
| Total Liabilities | $ 484.0 M | |
| EQUITY | ||
| Total Equity | $ 47.0 M | |
| Retained Earnings | $ -97.06 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 0.25 | |
| Shares Outstanding | 185.035 M | |
| Revenue Per-Share | $ 0.68 | |
| VALUATION | Market Capitalization | $ 2.2 B |
| Enterprise Value | $ 2.6 B | |
| Enterprise Multiple | 78.869 | |
| Enterprise Multiple QoQ | 17.8 % | |
| Enterprise Multiple YoY | -402.007 % | |
| Enterprise Multiple IPRWA | high: 172.49 median: 80.873 GRND: 78.869 mean: 76.807 low: -131.235 |
|
| EV/R | 20.298 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 11.297 | |
| Asset To Liability | 1.097 | |
| Debt To Capital | 0.895 | |
| Debt To Assets | 0.754 | |
| Debt To Assets QoQ | 16.97 % | |
| Debt To Assets YoY | 2309.326 % | |
| Debt To Assets IPRWA | high: 0.935 GRND: 0.754 mean: 0.129 median: 0.1 low: 0.001 |
|
| Debt To Equity | 8.522 | |
| Debt To Equity QoQ | 113.485 % | |
| Debt To Equity YoY | -7574.836 % | |
| Debt To Equity IPRWA | GRND: 8.522 high: 2.068 mean: 0.202 median: 0.143 low: -0.935 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 47.727 | |
| Price To Book QoQ | 21.256 % | |
| Price To Book YoY | -306.589 % | |
| Price To Book IPRWA | GRND: 47.727 high: 12.969 median: 9.015 mean: 8.388 low: -3.34 |
|
| Price To Earnings (P/E) | 121.245 | |
| Price To Earnings QoQ | 28.156 % | |
| Price To Earnings YoY | -594.764 % | |
| Price To Earnings IPRWA | high: 160.153 GRND: 121.245 median: 109.822 mean: 99.666 low: -47.921 |
|
| PE/G Ratio | -2.945 | |
| Price To Sales (P/S) | 17.809 | |
| Price To Sales QoQ | -26.178 % | |
| Price To Sales YoY | -42.804 % | |
| Price To Sales IPRWA | high: 33.532 median: 32.888 mean: 30.648 GRND: 17.809 low: 0.004 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 74.048 | |
| Forward PE/G | -1.798 | |
| Forward P/S | 41.052 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.362 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.26 | |
| Asset Turnover Ratio QoQ | 10.676 % | |
| Asset Turnover Ratio YoY | 24.415 % | |
| Asset Turnover Ratio IPRWA | high: 0.492 GRND: 0.26 median: 0.201 mean: 0.191 low: 0.002 |
|
| Receivables Turnover | 1.987 | |
| Receivables Turnover Ratio QoQ | -0.505 % | |
| Receivables Turnover Ratio YoY | -4.736 % | |
| Receivables Turnover Ratio IPRWA | high: 10.405 mean: 2.165 GRND: 1.987 median: 1.897 low: 0.163 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 45.912 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 36.795 | |
| Cash Conversion Cycle Days QoQ | 2.496 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 97.243 GRND: 36.795 median: -2.112 mean: -3.069 low: -294.971 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.553 | |
| CapEx To Revenue | -0.023 | |
| CapEx To Depreciation | -2.756 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 422.9 M | |
| Net Invested Capital | $ 442.9 M | |
| Invested Capital | $ 442.9 M | |
| Net Tangible Assets | $ -307.53 M | |
| Net Working Capital | $ 81.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.025 | |
| Current Ratio | 1.955 | |
| Current Ratio QoQ | 137.458 % | |
| Current Ratio YoY | 13.329 % | |
| Current Ratio IPRWA | high: 10.171 mean: 2.096 median: 2.005 GRND: 1.955 low: 0.114 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.356 | |
| Cost Of Debt | 1.27 % | |
| Interest Coverage Ratio | 5.666 | |
| Interest Coverage Ratio QoQ | -40.678 % | |
| Interest Coverage Ratio YoY | -125.527 % | |
| Interest Coverage Ratio IPRWA | high: 289.65 median: 132.265 mean: 110.889 GRND: 5.666 low: -107.388 |
|
| Operating Cash Flow Ratio | 0.115 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 9.117 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 20.912 % | |
| Revenue Growth | 8.818 % | |
| Revenue Growth QoQ | -20.401 % | |
| Revenue Growth YoY | -5.05 % | |
| Revenue Growth IPRWA | high: 44.631 % mean: 11.799 % median: 11.22 % GRND: 8.818 % low: -27.55 % |
|
| Earnings Growth | -41.176 % | |
| Earnings Growth QoQ | -141.176 % | |
| Earnings Growth YoY | -95.309 % | |
| Earnings Growth IPRWA | high: 300.0 % mean: 2.12 % median: -1.742 % GRND: -41.176 % low: -143.243 % |
|
| MARGINS | ||
| Gross Margin | 74.844 % | |
| Gross Margin QoQ | -0.233 % | |
| Gross Margin YoY | -0.697 % | |
| Gross Margin IPRWA | high: 100.0 % GRND: 74.844 % mean: 62.882 % median: 59.793 % low: 5.477 % |
|
| EBIT Margin | 24.9 % | |
| EBIT Margin QoQ | -35.35 % | |
| EBIT Margin YoY | -120.424 % | |
| EBIT Margin IPRWA | high: 107.803 % median: 34.627 % mean: 33.995 % GRND: 24.9 % low: -89.445 % |
|
| Return On Sales (ROS) | 24.854 % | |
| Return On Sales QoQ | -36.402 % | |
| Return On Sales YoY | -120.386 % | |
| Return On Sales IPRWA | high: 85.377 % median: 31.568 % mean: 31.098 % GRND: 24.854 % low: -89.445 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 21.9 M | |
| Free Cash Flow Yield | 0.974 % | |
| Free Cash Flow Yield QoQ | -46.921 % | |
| Free Cash Flow Yield YoY | 4.731 % | |
| Free Cash Flow Yield IPRWA | high: 19.19 % GRND: 0.974 % median: 0.656 % mean: 0.588 % low: -24.396 % |
|
| Free Cash Growth | -57.348 % | |
| Free Cash Growth QoQ | -243.863 % | |
| Free Cash Growth YoY | -4167.234 % | |
| Free Cash Growth IPRWA | high: 452.0 % mean: 7.658 % median: 0.368 % GRND: -57.348 % low: -588.0 % |
|
| Free Cash To Net Income | 1.079 | |
| Cash Flow Margin | 7.742 % | |
| Cash Flow To Earnings | 0.481 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.176 % | |
| Return On Assets QoQ | -33.173 % | |
| Return On Assets YoY | -115.77 % | |
| Return On Assets IPRWA | high: 13.424 % median: 6.089 % mean: 5.779 % GRND: 4.176 % low: -16.222 % |
|
| Return On Capital Employed (ROCE) | 7.031 % | |
| Return On Equity (ROE) | 0.431 | |
| Return On Equity QoQ | -0.817 % | |
| Return On Equity YoY | -54.213 % | |
| Return On Equity IPRWA | GRND: 0.431 high: 0.175 median: 0.083 mean: 0.082 low: -0.443 |
|
| DuPont ROE | 34.351 % | |
| Return On Invested Capital (ROIC) | 5.555 % | |
| Return On Invested Capital QoQ | -43.409 % | |
| Return On Invested Capital YoY | -97.93 % | |
| Return On Invested Capital IPRWA | high: 12.209 % median: 7.518 % mean: 7.068 % GRND: 5.555 % low: -22.288 % |
|