Old Market Capital Corporation (OMCC) delivered a pronounced QoQ revenue rebound for QQ3 2024, posting $3.345 million in revenue, up 584.1% from Q2 2024’s $0.489 million. The gross profit matched revenue at $3.345 million, implying a reported gross margin of 100% in the data, while operating income remains unavailable. Net income was negative at $0.451 million, yielding a net margin of approximately -13.5% and an EPS of -$0.07, highlighting that the quarter’s top-line strength did not translate into profitability on an accrual basis. The company carried a substantial non-operating expense line of $0.872 million, contributing to a pre-tax loss of $0.872 million and an after-tax outcome of -$0.451 million after a $0.103 million tax expense.
From a cash flow perspective, operating cash flow was modestly negative at -$0.116 million, while capex was steep at -$3.571 million, producing a negative free cash flow of -$3.687 million for QQ3 2024. The balance sheet remains conservatively leveraged with a debt ratio of 0.0067 and debt-to-equity around 0.010, underscoring minimal debt exposure. The firm ended the period with $29.475 million in cash, down from $40.658 million at the start of the period, reflecting a net cash outflow of $11.183 million. Valuation metrics show a price-to-book of ~0.80 and a price-to-sales of ~12.63, while the P/E is negative given the loss position. No earnings call transcript was provided in the data, so quotes from management are not available for inclusion. The combination of a robust cash runway, very low leverage, and a meaningful QoQ revenue lift presents a nuanced investment narrative: the business appears to be in a transition phase with near-term profitability hurdles but ample liquidity to fund strategic initiatives and potential growth opportunities. For investors, the key questions center on how OMCC intends to convert revenue momentum into sustainable profitability and cash flow generation, and what guidance, if any, management will provide for 2024/2025.