Revenue analysis:
- QQ3 2025 revenue: 1,299,100,000 USD; YoY change: -6.24%; QoQ change: -22.20%
- Implication: Revenue decline amid seasonality and demand softness; potential impact from mix shifts toward lower-margin channels or regions.
Gross profit and margin:
- Gross profit: 832,400,000 USD; Gross margin: 64.08%
- YoY gross profit margin change: -7.28%; QoQ: -25.29%
- Implication: While gross margin is robust, the deterioration in gross profit dollars and margin QoQ signals pressure from cost of goods sold leverage or product mix shifts, against a backdrop of fixed overhead absorption.
Operating profitability:
- Operating income: -280,400,000 USD; Operating margin: -21.58%
- EBITDA: -280,400,000 USD; EBITDARatio: -0.216
- YoY operating income delta: -460.41%; QoQ delta: -204.55%
- Implication: Large operating losses driven by fixed cost base and SG&A load; indicates need for volume growth or cost discipline to drive a constructive margin profile.
Net income and earnings per share:
- Net income: -405,700,000 USD; Net margin: -31.22%
- EPS: -0.47; diluted EPS: -0.47
- YoY EPS delta: -11,030.23%; QoQ delta: -2,108.55%
- Implication: The dramatic YoY EPS deterioration reflects bottom-line leverage on negative profitability and charges; near-term earnings power remains weak without a material improvement in top-line growth or cost structure.
Cash flow and liquidity:
- Net cash from operating activities: -122,500,000 USD; Free cash flow: -165,400,000 USD
- Cash (end): 259,400,000 USD; Cash (beginning): 268,600,000 USD
- Capex: -42,900,000 USD
- Implication: Operating cash flow remains negative; continued capex and working capital needs may pressure liquidity without meaningful improvement in profitability or financing actions.
Balance sheet health:
- Total assets: 11,470,500,000 USD; Total liabilities: 7,551,000,000 USD; Total shareholders’ equity: 3,637,400,000 USD
- Cash and equivalents: 243,500,000 USD; Net debt: 3,845,400,000 USD; Total debt: 4,088,900,000 USD
- Current ratio: 0.818; Quick ratio: 0.514; Cash ratio: 0.103
- Implication: Leverage remains a material constraint; liquidity metrics are tight, suggesting a priority on deleveraging and working capital optimization.
Valuation context:
- Price to book value: ~1.31x; Price to sales: ~3.67x; Negative enterprise value multiple reported in ratios context; Price to earnings is negative due to loss; dividend yield effectively zero.
- Implication: Valuation reflects high leverage and earnings volatility; any recovery requires tangible improvements in profitability and cash flow to re-rate shares.
Bottom-line takeaway:
- The QQ3 2025 quarter shows deteriorating profitability and negative cash flow amid a stable but pressured gross margin. The near-term outlook hinges on reducing fixed costs, improving SG&A efficiency, stabilizing revenue, and progress on deleveraging. Investors should monitor management’s execution on cost discipline, portfolio optimization, and cash conversion cycles for a potential turnaround.