Maison Solutions Inc (MSS) Q4 2023 Earnings Report

Revenue: $16.93 million in QQ4 2023, YoY +19.33%, QoQ +24.47%. Gross Profit: $2.10 million, Gross Margin ~12.42% (down from prior periods). Operating Income: -$2.43 million, Operating Margin -14.38%. EBITDA: -$2.25 million, EBITDA Margin -13.27%. Net Income: -$2.78 million, Net Margin -16.41%. Earnings per Share (EPS): -$0.14. Cash Flow: Operating cash flow -$2.62 million; Free cash flow -$2.68 million. Balance Sheet: Total assets $82.41 million; Total liabilities $71.69 million; Stockholders’ equity $10.50 million. Cash position collapsed to $1,101 at period end from $9.41 million at the start; net cash burn from operations and investing activities totaled approximately -$9.41 million for the quarter. Leverage: Total debt $61.05 million; Debt/Equity ~2.10; Debt-to-capitalization ~0.68; Current ratio 0.41; Quick ratio 0.18. These metrics indicate a high-leverage, cash-burn profile with limited near-term liquidity.

The investment case for MSS remains highly speculative in the near term. The quarter shows meaningful top-line growth but severe profitability and liquidity headwinds persist. Absent a plan to meaningfully reduce opex, improve gross margins, and restore positive free cash flow, the stock carries elevated risk and limited upside potential. Investors should await visible signs of operational discipline, such as a reduced cash burn trajectory, deleveraging actions (debt refinancing or equity infusion), and a clearer path to translating revenue gains into sustainable earnings. Should management demonstrate a credible plan to stabilize liquidity and extend the balance sheet runway, MSS could transition from a high-risk punt to a higher-conviction position. Key factors to monitor include: (1) quarterly EBITDA progression and gross margin trend, (2) working capital improvements and cash conversion, (3) debt management and any refinancing activity, and (4) progress in expanding profitable online/offline mix.