CX Network Group Inc (CXKJ) reported QQ2 2025 revenue of $609,285 and a gross profit of $510,680, yielding an impressive gross margin of 83.8%. Despite the top‑line growth, the company generated a negative operating result of $314,842 and a net loss of $192,877 for the quarter, with an EPS of -$0.0005. The elevated selling, general and administrative expenses combined with negative operating leverage kept EBITDA negative at $-314,842, underscoring persistent profitability headwinds even as revenue advances.
From a liquidity and balance sheet perspective, CXKJ exhibits material risk: total assets of $3.24 million versus total liabilities of $8.60 million result in negative stockholders’ equity of $-5.36 million. The current ratio sits at 0.326 and the quick and cash ratios are similarly depressed, signaling near-term liquidity stress. Operating cash flow was negative at $-49,574 for the quarter, with free cash flow approximately $-10,686, and financing activities contributing a meaningful but volatile source of cash flow (net financing effect: $-121,489 for the period). Management commentary (if available) would be critical to assess any planned capital raises, working capital optimization, or strategic pivots. Absent explicit forward guidance, investors should weigh the potential for continued liquidity support against the risk of dilution and ongoing cash burn.
Overall, the company shows revenue momentum but remains unprofitable and balance-sheet constrained. The near-term investment case depends on stabilization or improvement of operating cash flow, reduction of cash burn, and any credible plan to restore equity and strengthen liquidity, alongside clear path to sustainable EBITDA positive operation.