Overview of quarterly metrics (Q1 2025 vs prior periods):
- Revenue: $4,699,000; YoY change: -17.82%; QoQ change: -2.81%
- Gross Profit: $4,699,000; QoQ change: -1.90% (no YoY data provided)
- Operating Income: $939,000; YoY change: -56.59%; QoQ change: +13.96%
- Net Income: $941,000; YoY change: -22.87%; QoQ change: +47.49%
- EPS: $0.31; YoY change: -22.50%; QoQ change: +47.62%
- Net income margin: ~20.03% (net income 0.941M on revenue 4.699M)
- Operating margin: ~19.98% (operating income 0.939M on revenue 4.699M)
- Tax impact: income tax expense is shown as -$2,000 (indicating a tax benefit in this period)
- Cash flow: Operating cash flow $0.871M; Free cash flow $0.859M; Net cash from operating activities $0.871M; Net cash used in investing activities $(16.621)M; Net cash used in financing activities $(11.396)M; Net change in cash $6.096M; Cash at end of period $41.044M
- Balance sheet highlights: Total assets $628.404M; Total liabilities $574.137M; Total stockholders’ equity $54.267M; Cash & equivalents $41.044M; Short-term investments $29.934M; Long-term investments $523.740M; Debt outstanding $5.50M; Net debt negative $35.54M; Book value per share (implied by PB ratio) ~ $0.71 on a market price-to-book basis
- Liquidity and leverage: Current ratio 15.95x (very high liquidity by banking norms); Debt-to-capitalization ~9.2%; Debt-to-equity ~0.101; ROE ~1.73%; ROA ~0.15%
- Valuation: Price-to-book value ~0.71x; Dividend yield ~1.06%; Dividend payout ratio ~43.5%
- Note: The company reports a substantial securities position (Long-term investments of $523.7M) relative to total assets, which shapes the liquidity profile and earnings sensitivity to securities gains/losses and interest rate movements.
Key takeaway: The QQ1 2025 results depict a liquidity-rich, low-leverage balance sheet with a modest but positive net income contribution despite topline challenges. The high security portfolio and favorable liquidity provide a cushion, but profitability will hinge on net interest income dynamics and the ability to grow the loan book or diversify revenue streams.