Exchange: OTC | Sector: Real Estate | Industry: Real Estate Services
Q3 2025
Published: May 1, 2025
Earnings Highlights
Revenue of $0.01M down 1.7% year-over-year
EPS of $0.00 increased by 12.5% from previous year
Gross margin of 100.0%
Net income of 2.82K
"N/A" - N/A
Advanced Oxygen Technologies Inc (AOXY) QQ3 2025 Results — Real Estate Services Focused Performance and Danish Asset Footprint
Executive Summary
AOXY reported Q3 2025 revenue of 10.585 million USD with an implied gross margin of 100% (gross profit 10.585; gross margin 1.00), EBITDA of 5.103 million and net income of 2.818 million, yielding a net margin of 26.6% and an EPS of 0.0009. YoY revenue and gross profit declined 1.72%, while QoQ revenue declined 20.15% as the quarter lapped a stronger Q2 base. The operating margin remained robust at 48.21%, supported by controlled operating expenses (GA&A of 5.482 million) and a streamlined cost structure. Balance-sheet data depict a asset-heavy profile (PPE at 585.65 million) financed with a modest debt load (short-term debt 127.029 million; total debt 127.029 million) and a cash balance of 57.705 million, producing a net debt position of 69.324 million. Liquidity metrics are tight (current ratio and quick ratio both at 0.202), suggesting limited cushion to fund short-term obligations without accessing external financing. Despite the negative retained earnings balance (-20.75 billion), the company generated operating cash flow of 11.224 million and free cash flow of 11.224 million during the quarter, with financing activities contributing an outflow of 18.93 million, primarily driven by debt repayments. Management commentary from the earnings call is not provided in the available transcript, limiting direct quote-based interpretation, but the results imply a deliberate capital structure management strategy and a focus on asset-backed cash flow. Investors should monitor balance-sheet resilience, potential asset monetization, and any guidance on Danish property lease activity and diversification of revenue streams.
Key Performance Indicators
Revenue
10.59K
QoQ: -20.15% | YoY:-1.72%
Gross Profit
10.59K
1.00% margin
QoQ: -20.15% | YoY:-1.72%
Operating Income
5.10K
QoQ: -34.10% | YoY:-5.32%
Net Income
2.82K
QoQ: -45.30% | YoY:11.83%
EPS
0.00
QoQ: -43.75% | YoY:12.50%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 10.585 million USD in Q3 2025; YoY change: -1.72%; QoQ change: -20.15%.
Gross Profit: 10.585 million USD; Gross Margin: 1000.0% (reported as 1.0000). No separate cost of revenue identified in the period.
EBITDA: 5.103 million USD; EBITDA margin: 48.21% (EBITDA/Revenue).
Operating Income: 5.103 million USD; Operating Margin: 48.21%.
Net Income: 2.818 million USD; Net Margin: 26.62%.
Financial Highlights
Revenue and profitability
- Revenue: 10.585 million USD in Q3 2025; YoY change: -1.72%; QoQ change: -20.15%.
- Gross Profit: 10.585 million USD; Gross Margin: 1000.0% (reported as 1.0000). No separate cost of revenue identified in the period.
- EBITDA: 5.103 million USD; EBITDA margin: 48.21% (EBITDA/Revenue).
- Operating Income: 5.103 million USD; Operating Margin: 48.21%.
- Net Income: 2.818 million USD; Net Margin: 26.62%.
- Earnings per Share (EPS): 0.0009; Diluted EPS: 0.0009; Weighted average shares outstanding: 3.292 million (basic) / 3.303 million (diluted).
Cash flow and liquidity
- Operating cash flow: 11.224 million USD; Free cash flow: 11.224 million USD.
- Net change in cash: -6.858 million USD; Cash at end of period: 57.705 million USD; Cash at beginning: 64.563 million USD.
- Change in working capital: 0.370 million; Accounts payable: 0.422 million; Other working capital: -0.052 million; Other non-cash items: 8.036 million.
- Financing activities: net outflow of 18.930 million USD; Effect of foreign exchange: 0.208 million.
Balance sheet and leverage
- Total assets: 644.509 million USD; PPE net: 585.649 million USD.
- Total current assets: 58.860 million USD; Total current liabilities: 291.459 million USD; Total liabilities: 291.459 million USD.
- Cash and cash equivalents: 57.705 million USD; Short-term debt: 127.029 million USD; Total debt: 127.029 million USD; Net debt: 69.324 million USD.
- Shareholders’ equity: 53?3.05 million USD; Retained earnings: -20,753.276 thousand USD (negative accumulated deficit); Accumulated OCI: 16.231 thousand USD; Other stockholders’ equity: 21,057.116 thousand USD; Debt ratio: 0.197; Debt-to-equity: 0.360; Price-to-book: 0.723; Price-to-sales: 24.11.
Valuation and efficiency
- Price-to-sales (P/S): 24.11x; Price-to-book (P/B): 0.723x; Price-to-earnings (P/E): 22.64x; Enterprise value multiple: 63.60x.
- Asset turnover: 0.0164x; Fixed asset turnover: 0.0181x; Cash flow to debt: 0.0884x.
- Current and quick ratios: 0.202x; Cash ratio: 0.198x.
Notes on inputs
- Four-quarter view indicates Q2 2025 revenue 13.256 million; Q1 2025 revenue 10.885 million; Q4 2024 revenue 10.673 million.
- The company operates a Danish land-based asset and a 750 square meter parcel used as a fuel station, plus a non-core distribution business (cargo straps and tie downs).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
10.59K
-1.72%
-20.15%
Gross Profit
10.59K
-1.72%
-20.15%
Operating Income
5.10K
-5.32%
-34.10%
Net Income
2.82K
11.83%
-45.30%
EPS
0.00
12.50%
-43.75%
Key Financial Ratios
currentRatio
0.2
grossProfitMargin
100%
operatingProfitMargin
48.2%
netProfitMargin
26.6%
returnOnAssets
0.44%
returnOnEquity
0.8%
debtEquityRatio
0.36
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
0.72
priceEarningsRatio
22.64
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management commentary on QQ3 2025 results is not available in the provided transcript dataset. Consequently, the following themes are inferred from the disclosed financials and industry context rather than direct quotes:
- Strategic focus on cash-generative assets: The company reports substantial cash flow from operations (11.224 million) and a sizeable PPE base (585.649 million), suggesting stewardship of asset-backed cash flows over pure revenue growth.
- Capital structure discipline: A financing outflow of 18.930 million amid a 127.029 million short-term debt load indicates active debt management and potential refinancing considerations.
- Margin resilience in a capital-light operating structure: EBITDA margin of ~48% and net margin of ~27% imply tight cost control and potential under-recognition of operating costs, given the 100% gross margin figure; the absence of explicit cost of revenue in the period warrants further clarification in subsequent filings.
- Liquidity guardrails and risk factors: With current ratio and quick ratio at 0.202x, liquidity risk is a salient topic; management commentary would likely address working capital optimization, covenant compliance, and liquidity runway under base-case vs stressed scenarios.
N/A
— N/A
N/A
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Forward Guidance
No explicit forward guidance is provided in the QQ3 2025 filing. Given the Real Estate Services backdrop and the Danish property footprint, potential catalysts include: (a) stabilization or expansion of lease revenue from the Danish asset; (b) monetization or partial realization of non-core assets to strengthen liquidity; (c) refinancing of near-term obligations to reduce financing outflows; (d) diversification into higher-margin services (e.g., cargo straps distribution) if scale and margins justify. Investor sensitivity should focus on: liquidity trajectory (current ratio ~0.20 and cash runway), debt maturity profile (short-term debt of 127.0 million), and any guidance on occupancy, lease escalations, and any planned asset sales or acquisitions.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
AOXY Focus
1.00%
48.20%
0.80%
22.64%
MAYS
20.70%
-2.92%
-0.16%
-258.33%
FRPH
92.00%
29.00%
0.32%
103.59%
MLP
39.90%
-73.70%
-6.58%
-49.18%
FTHM
97.30%
-9.27%
-17.20%
-1.63%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
AOXY presents a cash-generative asset-backed profile with a significant PPE base and positive QQ3 cash flow, but the investment thesis is tempered by liquidity constraints and a sizeable near-term debt burden. The stock trades at a relatively high P/S (24.11x) and a modest P/B (0.72x), implying investors price in asset-value support and limited earnings durability. A constructive long-term view would require clarity on (i) occupancy and lease yield stability for the Danish asset, (ii) any confirmed plan for asset monetization or debt refinancing, and (iii) diversification into higher-margin, recurring revenue streams. If management provides credible guidance on liquidity optimization, asset monetization, and occupancy improvement, AOXY could re-rate on a firmer cash-flow-backed valuation. In the near term, risk factors such as the current liquidity crunch and accumulated deficits suggest a cautious stance with emphasis on balance-sheet resilience and governance around capital allocation.
Key Investment Factors
Growth Potential
Moderate potential from asset optimization and selective monetization of Danish property, plus potential expansion of ancillary revenue streams (cargo straps distribution). Growth hinges on improving occupancy, lease rates, and monetizing non-core assets without destabilizing cash flow stability.
Profitability Risk
Material liquidity risk given current ratio of 0.202x; significant short-term debt obligations; negative retained earnings indicating accumulated losses; concentration risk with a Danish asset base; limited disclosure on rent roll, occupancy metrics, and cost of revenue; potential FX exposure if operations or financing involve non-USD locations.
Financial Position
Cash balance robust at ~57.7M USD against 127.0M short-term debt and total debt 127.0M; net debt ~69.3M; PPE dominates the asset base; negative retained earnings suggest past losses but operating cash flow remains positive; valuation metrics (P/S ~24.1x, P/B ~0.72x) imply a premium to sales and a discount to book value, reflecting market assumptions on asset value and earnings durability.
SWOT Analysis
Strengths
Asset-heavy balance sheet with substantial PPE (585.649M) underpinning cash-generating potential.
Positive operating cash flow generation (OCF 11.224M) and free cash flow in QQ3 2025, indicating cash generation capacity from core assets.
Moderate profitability with EBITDA margin around 48% and net margin around 27%, suggesting cost discipline within the operating structure.
Weaknesses
Severe liquidity tightness (current and quick ratios ~0.20x) raising concerns about near-term obligations.
Accumulated deficit (retained earnings negative at approx. -20.75B) signaling historical losses and potential balance-sheet fragility.
Exposure to a single geographic asset base (Denmark) with limited diversification in revenue streams.
Opaque cost structure due to lack of explicit cost of revenue and limited visibility into rent roll and occupancy metrics.
Opportunities
Strategic monetization or partial sale of non-core assets to improve liquidity and reduce leverage.
Rent escalations or lease restructurings on the Danish asset to uplift recurring revenue.
Expansion of ancillary revenue streams (e.g., cargo strap distribution) if scale economics are achieved.
Threats
Interest rate and funding market volatility impacting refinancing and financing costs.
Real estate market cyclicality in Europe and Denmark-specific regulatory shifts.
Ongoing negative retained earnings trend could constrain equity-funded growth or capital raises.