SMST reported Q3 2024 results with revenue of $60.16 million and an operating margin of 29.4%, underscoring a materially positive core operating performance at the earnings level. Yet net income remained negative at approximately $6.22 million, yielding a net margin of -10.3% for the quarter. The company generated solid operating cash flow ($34.23 million) and free cash flow of about $41.71 million, contributing to a net cash position that remains favorable despite a modest sequential cash outflow driven by investing activity. The balance sheet shows a cash position of roughly $36.7 million and no long-term debt, but includes goodwill and intangible assets in the vicinity of $56.2 million. Overall, SMST demonstrates operational efficiency and liquidity strength, but the bottom-line earnings trajectory is impaired by high non-operating charges and leverage-related dynamics typical of an ETF issuer with complex product structures.
Key Performance Indicators
Revenue
Decreasing
60.16M
QoQ: 5.46% | YoY: -42.38%
Gross Profit
Decreasing
60.16M
1.00% margin
QoQ: 5.46% | YoY: -42.38%
Operating Income
Increasing
17.70M
QoQ: 10.62% | YoY: 100.00%
Net Income
Decreasing
-6.22M
QoQ: -33.82% | YoY: -100.00%
EPS
Decreasing
-0.07
QoQ: 99.87% | YoY: -100.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $60.16M (YoY -42.38%, QoQ +5.46%). Gross Profit: $60.16M (same as revenue; gross margin 100%). Operating Income: $17.70M (YoY +100%, QoQ +10.62%). Net Income: -$6.22M (YoY -100%, QoQ -33.82%). EPS: -$0.0704 (YoY -100%, QoQ +99.87%). EBITDA: $17.70M; EBITDARatio: 0.2942; Operating Income Margin: 0.2942; Net Income Margin: -0.1034. Free Cash Flow: $41.71M; Cash From Operating Activities: $34.23M. Balance sheet: Total Assets $1.937B; Total Liabilities $1.251B; Stockholders’ Equity $343.88M; Net Debt: -$36.70M. Cash and cash equivalents: $36.70M; No long-term debt shown; Goodwill: $53.64M; Intangibles: $2.59M. Growth/Profitability metrics reflect a high-margin core but offset by non-operating charges and leverage mechanics inherent in the ETF structure.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
60.16M
-42.38%
5.46%
Gross Profit
60.16M
-42.38%
5.46%
Operating Income
17.70M
100.00%
10.62%
Net Income
-6.22M
-100.00%
-33.82%
EPS
-0.07
-100.00%
99.87%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
29.40%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Weak
-0.10%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
P/E Ratio
Negative
-42.93x
Negative earnings make P/E ratio not meaningful
Price to Book
Premium
3.11x
Trading at premium to book value, reflects strong intangibles or growth
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Daily Target 15X Short MSTR ETF (SMST) QQ1 2024 Results: Modest Revenue, Slim Operating Margin, and Net Loss Amid Elevated Interest and Other Expenses...