Recent News
Since June 15, 2026 the company drew regulatory and governance attention with investor-action notices reported in late June and follow-up filings in August and September; the company also filed multiple Form 8‑K updates describing operational changes and privacy-program enhancements in early September, and announced executive participation at the Goldman Sachs Communacopia + Technology Conference scheduled for September 10, 2026.
Technical Analysis
Directional indicators show an emerging trend: ADX at 20.56 signals trend development rather than strong directional conviction. DI‑ (24.68) exceeds DI+ (16.00); DI+ recorded a peak-and-reverse (bearish) while DI‑ also recorded a peak-and-reverse (bullish), creating a contested directional picture that favors near-term stabilization over a decisive trend extension.
MACD sits below its signal line (MACD -0.12; signal -0.05) and continues decreasing, which represents bearish momentum. No bullish MACD cross appears; declining MACD momentum supports the view that upward impulses face resistance until momentum indicators turn higher.
MRO registers positive at 9.07, indicating the current price sits above the model target and therefore carries potential downward pressure; the MRO has shown a peak-and-reverse pattern consistent with reduced upside potential in the near term.
RSI at 52.65 and trending downward implies momentum cooling from a neutral zone rather than oversold or overbought extremes; this aligns with short-term averages above the last close (12‑day EMA 15.44; 20‑day average 15.47) while the 200‑day average (13.40) remains below price, confirming longer-term outperformance despite current cooling.
Price structure and volatility provide context: 20‑day standard deviation at $0.25 and narrow Bollinger bands (upper/lower ~ $15.73 / $15.22) point to compressed intraday moves; short‑term EMAs and the 50‑day average (15.89) sit above the close ($15.28), reinforcing near-term resistance around recent moving averages, while the 52‑week range ($9.73–$18.50) leaves room for both re‑acceleration and further consolidation.
Fundamental Analysis
Top line and margin profile drive the valuation picture. Total revenue of $138,138,000 registered in the period; year‑over‑year revenue change shows a decline of 42.37% while quarter‑over‑quarter revenue rose 100.32%, reflecting lumpy timing effects across recent quarters. Gross profit reached $103,571,000 with a gross margin of 74.98%, supporting strong unit economics for the platform model.
Operating performance remains profitable: EBIT at $29,421,000 and EBITDA at $30,316,000 produce an EBIT margin of 21.30%, which sits slightly below the industry peer mean of 25.804% and below the industry peer median of 23.112%, indicating margins competitive but not outperforming the peer center. Operating margin at 23.53% and return on sales at 23.53% corroborate efficient conversion of revenue to operating income.
Earnings metrics include EPS actual of $0.13 versus estimate $0.15, an EPS surprise of -13.33%. Trailing PE stands at 112.80x while forward PE sits near 66.45x, reflecting market expectations for earnings improvement; price‑to‑sales at 18.45x and a negative price‑to‑book of -217.14x reflect high revenue multiple and negative book value respectively.
Cash flow and liquidity present mixed signals. Operating cash flow reached $40,806,000 with free cash flow of $37,961,000 and a free cash flow yield of 1.49%; free cash flow to net income exceeds 200%, which highlights strong conversion in the reported period. Cash and short‑term investments total $6,504,000 against net debt of $379,816,000 and total debt of $389,595,000, producing leverage metrics that demand monitoring despite an interest coverage ratio of 4.51 that covers current interest expense.
Balance‑sheet structure shows total assets of $462,838,000 and total equity of -$11,738,000, resulting in a large negative tangible‑net position and a debt‑to‑assets ratio of 84.18%. Asset turnover at 0.296 compares favorably to the industry peer mean of 0.14522, indicating relatively high revenue generation per asset base.
Growth and profitability trends: revenue growth (general) of 6.31% contrasts with the YoY decline noted above; earnings growth shows -7.14% YoY with sharper QoQ contraction when viewed on the reported cadence. R&D investment at $20,305,000 and marketing/operating spend contribute to lumpy near‑term profitability but support product initiatives referenced in recent corporate materials. The current valuation as determined by WMDST places the stock as under‑valued relative to its free‑cash profile and long‑term earnings potential.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-06 |
| NEXT REPORT DATE: | 2026-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 24.4 M |
| Operating Cash Flow | $ 40.8 M | |
| Capital Expenditures | $ -2.85 M | |
| Change In Working Capital | $ -1.33 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -17.31 M | |
| End Period Cash Flow | $ 7.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 138.1 M | |
| Forward Revenue | $ 65.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 34.6 M | |
| Depreciation | $ 895.0 K | |
| Depreciation and Amortization | $ 895.0 K | |
| Research and Development | $ 20.3 M | |
| Total Operating Expenses | $ 105.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 103.6 M | |
| EBITDA | $ 30.3 M | |
| EBIT | $ 29.4 M | |
| Operating Income | $ 32.5 M | |
| Interest Income | — | |
| Interest Expense | $ 6.5 M | |
| Net Interest Income | $ -6.53 M | |
| Income Before Tax | $ 22.9 M | |
| Tax Provision | $ 5.1 M | |
| Tax Rate | 22.5 % | |
| Net Income | $ 17.7 M | |
| Net Income From Continuing Operations | $ 17.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.15 | |
| EPS Actual | $ 0.13 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -13.333 % | |
| Forward EPS | $ 0.19 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 462.8 M | |
| Intangible Assets | $ 358.8 M | |
| Net Tangible Assets | $ -370.53 M | |
| Total Current Assets | $ 93.0 M | |
| Cash and Short-Term Investments | $ 6.5 M | |
| Cash | $ 6.5 M | |
| Net Receivables | $ 69.7 M | |
| Inventory | — | |
| Long-Term Investments | $ 3.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 3.1 M | |
| Short-Term Debt | $ 20.0 M | |
| Total Current Liabilities | $ 84.5 M | |
| Net Debt | $ 379.8 M | |
| Total Debt | $ 389.6 M | |
| Total Liabilities | $ 474.6 M | |
| EQUITY | ||
| Total Equity | $ -11.74 M | |
| Retained Earnings | $ -52.57 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -0.07 | |
| Shares Outstanding | 173.825 M | |
| Revenue Per-Share | $ 0.79 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 2.9 B | |
| Enterprise Multiple | 96.715 | |
| Enterprise Multiple QoQ | 60.855 % | |
| Enterprise Multiple YoY | -28.177 % | |
| Enterprise Multiple IPRWA | high: 151.041 GRND: 96.715 mean: 35.223 median: 28.715 low: -148.283 |
|
| EV/R | 21.225 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -39.431 | |
| Asset To Liability | 0.975 | |
| Debt To Capital | 1.031 | |
| Debt To Assets | 0.842 | |
| Debt To Assets QoQ | 0.36 % | |
| Debt To Assets YoY | 60.257 % | |
| Debt To Assets IPRWA | high: 0.88 GRND: 0.842 mean: 0.147 median: 0.108 low: 0.001 |
|
| Debt To Equity | -33.191 | |
| Debt To Equity QoQ | -107.05 % | |
| Debt To Equity YoY | -2265.774 % | |
| Debt To Equity IPRWA | high: 1.435 mean: 0.23 median: 0.181 low: -0.928 GRND: -33.191 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -217.144 | |
| Price To Book QoQ | -108.108 % | |
| Price To Book YoY | -1234.195 % | |
| Price To Book IPRWA | high: 7.974 median: 6.956 mean: 6.592 low: -4.526 GRND: -217.144 |
|
| Price To Earnings (P/E) | 112.798 | |
| Price To Earnings QoQ | 24.656 % | |
| Price To Earnings YoY | -56.122 % | |
| Price To Earnings IPRWA | high: 120.236 GRND: 112.798 mean: 47.563 median: 38.859 low: -47.824 |
|
| PE/G Ratio | -15.791 | |
| Price To Sales (P/S) | 18.452 | |
| Price To Sales QoQ | 6.811 % | |
| Price To Sales YoY | -46.482 % | |
| Price To Sales IPRWA | high: 32.525 median: 25.718 mean: 21.895 GRND: 18.452 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 66.447 | |
| Forward PE/G | -9.302 | |
| Forward P/S | 39.137 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -4.885 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.296 | |
| Asset Turnover Ratio QoQ | 14.073 % | |
| Asset Turnover Ratio YoY | 74.174 % | |
| Asset Turnover Ratio IPRWA | high: 0.524 GRND: 0.296 mean: 0.145 median: 0.142 low: 0.002 |
|
| Receivables Turnover | 1.976 | |
| Receivables Turnover Ratio QoQ | 5.012 % | |
| Receivables Turnover Ratio YoY | 4.578 % | |
| Receivables Turnover Ratio IPRWA | high: 7.774 mean: 2.025 GRND: 1.976 median: 1.813 low: 0.137 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 46.181 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 36.009 | |
| Cash Conversion Cycle Days QoQ | -10.203 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 117.383 GRND: 36.009 median: 1.866 mean: -11.677 low: -436.789 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 16.204 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -3.179 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 354.6 M | |
| Net Invested Capital | $ 374.6 M | |
| Invested Capital | $ 374.6 M | |
| Net Tangible Assets | $ -370.53 M | |
| Net Working Capital | $ 8.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.077 | |
| Current Ratio | 1.101 | |
| Current Ratio QoQ | -16.308 % | |
| Current Ratio YoY | -55.564 % | |
| Current Ratio IPRWA | high: 7.2 mean: 2.616 median: 2.534 GRND: 1.101 low: 0.272 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.851 | |
| Cost Of Debt | 1.29 % | |
| Interest Coverage Ratio | 4.506 | |
| Interest Coverage Ratio QoQ | -30.009 % | |
| Interest Coverage Ratio YoY | -35.387 % | |
| Interest Coverage Ratio IPRWA | high: 58.055 median: 20.86 mean: 19.723 GRND: 4.506 low: -56.707 |
|
| Operating Cash Flow Ratio | 0.214 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.172 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.717 % | |
| Revenue Growth | 6.308 % | |
| Revenue Growth QoQ | 100.318 % | |
| Revenue Growth YoY | -42.372 % | |
| Revenue Growth IPRWA | high: 27.383 % mean: 8.421 % median: 8.02 % GRND: 6.308 % low: -21.965 % |
|
| Earnings Growth | -7.143 % | |
| Earnings Growth QoQ | -117.857 % | |
| Earnings Growth YoY | -64.285 % | |
| Earnings Growth IPRWA | high: 250.0 % median: 71.429 % mean: 55.938 % GRND: -7.143 % low: -191.304 % |
|
| MARGINS | ||
| Gross Margin | 74.976 % | |
| Gross Margin QoQ | 0.08 % | |
| Gross Margin YoY | 1.729 % | |
| Gross Margin IPRWA | high: 100.0 % GRND: 74.976 % mean: 63.788 % median: 61.649 % low: 7.209 % |
|
| EBIT Margin | 21.298 % | |
| EBIT Margin QoQ | -34.92 % | |
| EBIT Margin YoY | -10.7 % | |
| EBIT Margin IPRWA | high: 45.687 % mean: 25.804 % median: 23.112 % GRND: 21.298 % low: -69.708 % |
|
| Return On Sales (ROS) | 23.529 % | |
| Return On Sales QoQ | -28.444 % | |
| Return On Sales YoY | 0.723 % | |
| Return On Sales IPRWA | high: 39.835 % mean: 32.107 % median: 27.199 % GRND: 23.529 % low: -58.436 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 38.0 M | |
| Free Cash Flow Yield | 1.489 % | |
| Free Cash Flow Yield QoQ | 4.933 % | |
| Free Cash Flow Yield YoY | 45.98 % | |
| Free Cash Flow Yield IPRWA | high: 12.447 % GRND: 1.489 % mean: -0.025 % median: -0.134 % low: -22.254 % |
|
| Free Cash Growth | 19.164 % | |
| Free Cash Growth QoQ | -58.115 % | |
| Free Cash Growth YoY | -67.05 % | |
| Free Cash Growth IPRWA | high: 394.126 % GRND: 19.164 % mean: -139.517 % median: -157.879 % low: -612.712 % |
|
| Free Cash To Net Income | 2.139 | |
| Cash Flow Margin | 13.108 % | |
| Cash Flow To Earnings | 1.021 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.8 % | |
| Return On Assets QoQ | -28.839 % | |
| Return On Assets YoY | 40.118 % | |
| Return On Assets IPRWA | high: 15.853 % mean: 11.631 % median: 7.409 % GRND: 3.8 % low: -16.758 % |
|
| Return On Capital Employed (ROCE) | 7.776 % | |
| Return On Equity (ROE) | -1.512 | |
| Return On Equity QoQ | -104.741 % | |
| Return On Equity YoY | -1805.121 % | |
| Return On Equity IPRWA | high: 0.279 mean: 0.154 median: 0.1 low: -0.386 GRND: -1.512 |
|
| DuPont ROE | -325.575 % | |
| Return On Invested Capital (ROIC) | 6.088 % | |
| Return On Invested Capital QoQ | -24.653 % | |
| Return On Invested Capital YoY | 47.695 % | |
| Return On Invested Capital IPRWA | high: 8.219 % GRND: 6.088 % median: 3.585 % mean: 3.531 % low: -11.818 % |
|