Cemtrex Inc delivered a Q1 2025 result that showcased a meaningful top-line decline on a YoY basis alongside a pronounced bottom-line deterioration driven by operating expenses and other income items. Revenue totaled $13.74 million, down 17.2% year over year and 6.4% quarter over quarter, with gross margin holding around 41.5% despite the sales decline. The company reported a large operating loss of $28.67 million and a net loss of $28.75 million, resulting in an EPS of -$16.30 for the quarter. EBITDA was deeply negative at approximately $27.73 million, underscoring ongoing cost and efficiency headwinds. On the balance sheet, Cemtrex carries substantial leverage with total liabilities of $48.18 million against total assets of $46.69 million and negative shareholders’ equity of about -$1.56 million. Cash and cash equivalents stood at roughly $4.22 million, with total debt of about $24.63 million and net debt around $20.41 million. Operating cash flow was negative at about -$1.20 million, with free cash flow of -$2.13 million for the quarter. Liquidity metrics remain in the tight, but manageable range for a high-leverage software/infrastructure player, as evidenced by a current ratio of 1.17 and a quick ratio of 0.72.
From a growth and strategic angle, CETX continues to deploy its Advanced Technologies and Industrial Services portfolio, including IoT/SmartDesk and related security/automation offerings, but face material profitability challenges and working-capital intensity. The absence of an explicit management-guidance point for QQ2/2025 in the provided materials heightens execution risk, making near-term milestones around gross margin stabilization, opex control, and debt reduction pivotal for investor confidence. The combination of a fragile balance sheet, negative equity, and continued cash burn suggests a high-risk, high-uncertainty path to sustained profitability unless the company can monetize its technology stack and achieve meaningful scale.
Overall, the quarter underscores a turning point where stabilizing cash burn and restoring balance-sheet health will be critical to transform the business from a loss-making growth story into a credible value proposition for long-dated software/infrastructure investors.