Executive Summary
The Marygold Companies Inc (MGLD) delivered QQ3 2025 results that show a clear revenue contraction alongside a notable improvement in gross margin. Revenue for the quarter was USD 7.027 million, down 10.8% year-over-year (YoY) and 12.2% quarter-over-quarter (QoQ). Despite a gross margin of approximately 75.0% (gross profit USD 5.272 million), operating income remained negative at USD -1.504 million and net income was USD -1.012 million, translating to an EPS of -0.02. The company reported EBITDA of USD -0.887 million with an EBITDAR ratio of -0.126, underscoring that profitability remains a work-in-progress while gross discipline has modestly improved the bottom-line rigidity of cost of revenue relative to sales. Cash flow from operations was negative (USD -2.234 million), contributing to negative free cash flow of USD -2.278 million and a net cash decrease of USD -8.916 million for the period. The balance sheet shows a solid equity base (Total stockholders’ equity USD 24.276 million) and modest leverage (Total debt USD 4.924 million; net debt USD 0.603 million) with healthy liquidity metrics (current ratio 2.68, quick ratio 2.42, cash ratio 0.53). While liquidity remains adequate, the ongoing cash burn from operating activities and the lack of near-term profitability warrant a cautious near-term investment stance. The company’s broad diversification across asset management and other segments implies a multi-year path to leverage scale across its businesses, including potential upside from fintech initiatives and cross-segment synergies if cost discipline and revenue recovery take hold.
Key Performance Indicators
QoQ: -12.21% | YoY:-10.82%
QoQ: -11.07% | YoY:27.65%
QoQ: 42.07% | YoY:-91.30%
QoQ: 53.27% | YoY:-52.67%
Key Insights
Revenue: USD 7.027 million; YoY: -10.82%, QoQ: -12.21% | Gross Profit: USD 5.272 million; YoY: +27.65%, QoQ: -11.07% | Gross Margin: 0.7502 | Operating Income: USD -1.504 million; YoY: -2.24%, QoQ: +17.63% | EBITDA: USD -0.887 million; EBITDARatio: -0.126 | Net Income: USD -1.012 million; YoY: -91.30%, QoQ: +42.07% | EPS: -0.02; YoY: -52.67%, QoQ: +53.27% | Operating Cash Flow: USD -2.234 million | Free Cash Flow: USD -2.278 million | Net Change in Cash: USD -8.916 million | Cash at End of Perio...
Financial Highlights
Revenue: USD 7.027 million; YoY: -10.82%, QoQ: -12.21% | Gross Profit: USD 5.272 million; YoY: +27.65%, QoQ: -11.07% | Gross Margin: 0.7502 | Operating Income: USD -1.504 million; YoY: -2.24%, QoQ: +17.63% | EBITDA: USD -0.887 million; EBITDARatio: -0.126 | Net Income: USD -1.012 million; YoY: -91.30%, QoQ: +42.07% | EPS: -0.02; YoY: -52.67%, QoQ: +53.27% | Operating Cash Flow: USD -2.234 million | Free Cash Flow: USD -2.278 million | Net Change in Cash: USD -8.916 million | Cash at End of Period: USD 4.383 million | Cash at Beginning of Period: USD 13.299 million | Current Ratio: 2.68 | Quick Ratio: 2.42 | Debt to Equity: 0.203 | Debt to Asset: 0.147 | Interest Coverage: 4.63 | DSO: 29.70 days | DIO: 110.00 days | CCC: 139.70 days | Price to Book: 1.60 | Price to Sales: 5.52 | EPS Diluted: -0.02
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.03M |
-10.82% |
-12.21% |
| Gross Profit |
5.27M |
27.65% |
-11.07% |
| Operating Income |
-1.50M |
-2.24% |
17.63% |
| Net Income |
-1.01M |
-91.30% |
42.07% |
| EPS |
-0.02 |
-52.67% |
53.27% |
Key Financial Ratios
operatingProfitMargin
-21.4%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.06
Management Commentary
Note: No earnings transcript provided for QQ3 2025. Consequently, there are no management quotes to quote or themes to extract from an earnings call within the data set supplied. Where transcript content becomes available, this section should summarize management themes by revenue strategy, operating efficiency, product development, and market conditions, with direct quotes and context.
Forward Guidance
No formal forward guidance was disclosed in the QQ3 2025 filing or transcripts provided. In the absence of explicit targets, the assessment removes numerical guidance but highlights areas that will be critical to the next phase of performance: (1) revenue stabilization or growth in core asset management and advisory services to support a higher utilization of the company’s diversified platform; (2) continued cost discipline to convert gross margin strength into positive operating leverage; (3) monetization and successful scaling of fintech initiatives and cross-segment synergies across its diversified businesses; (4) balance-sheet discipline to maintain prudent leverage given ongoing cash burn. Investors should monitor quarterly trends in revenue mix, trajectory of operating expenses, progress on cost containment initiatives, and any updates on the fintech development roadmap or asset-management AUM growth that could serve as catalysts for margin improvement and cash flow generation.