Leverage Shares 2X Long (CNCG) Q1 2022 Earnings Report

In QQ1 2022 (quarter ended 2021-09-30), Concierge Technologies Inc reported revenue of $9.73 million and gross profit of $7.08 million, yielding a robust gross margin of approximately 72.75%. However, the quarter posted an operating loss of $1.65 million and a net loss of $1.88 million, with earnings per share of $0.05 negative on both basic and diluted bases. The drag on profitability is primarily SG&A-driven, as total operating expenses of $6.23 million outweighed the gross profit contribution, resulting in an EBITDA of approximately −$1.48 million and negative operating and net margins of −16.9% and −19.3%, respectively. Despite the profitability headwinds, the balance sheet remains healthy with a strong liquidity position: cash and cash equivalents totaled about $17.30 million, and the company carries a net cash position (net debt) of roughly −$15.34 million after accounting for a modest debt burden of $1.94 million.

Cash flow was constructive in the quarter, with operating cash flow of $0.86 million and free cash flow of $0.86 million. The company ended the period with total assets of $32.16 million, total liabilities of $8.84 million, and stockholders’ equity of $23.32 million, translating into a current ratio of 3.22 and a debt-to-equity ratio of 0.38. While the near-term earnings trajectory remains challenged, the firm’s liquidity runway provides optionality to pursue strategic initiatives, leverage potential monetization of any fintech developments, and pursue expense optimization to restore profitability.

Management commentary and earnings call transcripts for QQ1 2022 are not available in the provided materials; no explicit forward-looking guidance was disclosed. Investors should monitor any cadence of cost discipline, potential monetization actions around fintech assets, and a path to sustainable profitability as the company aggregates contributions from its diversified portfolio across asset management, consumer products, and fintech platforms.