Digital Brand Media (DBMM) Q2 2025 Earnings Report

Revenue and profitability metrics:
- Revenue: 27.604 million USD in QQ2 2025; YoY change = -65.83%, QoQ change = -4.73% (per reported income metrics).
- Gross Profit: 2.750 million USD; Gross Margin = 9.96% (0.0996).
- Operating Income: -191.629 thousand USD; Operating Margin = -6.94%.
- EBITDA: 310.565 thousand USD; EBITDARatio = 11.25%.
- Net Income: 184.504 thousand USD; Net Margin = 6.68% (net income ratio 6.68%).
- EPS: 0.0002 USD basic and diluted; weighted average shares outstanding ~856.33 million (basic) / ~1.0648 billion (diluted).
Leverage and cash flow:
- Interest Expense: 126.061 thousand USD for QQ2 2025.
- Net Cash from Operating Activities: -160.047 thousand USD; Free Cash Flow: -160.047 thousand USD.
- Net Change in Cash: +10.120 thousand USD; Cash at End of Period: 36.788 thousand USD; Cash at Beginning: 26.668 thousand USD.
- Total Debt: 3.736 million USD; Net Debt: 3.699 million USD.
Balance sheet health:
- Total Assets: 52.754 thousand USD; Total Liabilities: 7.474 million USD; Total Stockholders’ Equity: -7.421 million USD.
- Working capital metrics indicate an ultra-tight liquidity position: Current Ratio = 0.00706; Quick Ratio = 0.00706; Cash Ratio = 0.00492.
- Major drivers of liabilities include short-term debt (3.732 million USD) and substantial other current liabilities (2.819 million USD).
Valuation and capitalization:
- Price-to-Sales (P/S) ≈ 48.08x (based on reported QQ2 2025 revenue and market data in the model); Price-to-Book ≈ -0.179x; Enterprise Value Multiple ≈ 16.18x. These metrics suggest that standard comparables are limited given the company’s negative equity and unusual balance sheet structure.
Notes on data quality: Several ratios in the provided dataset reflect atypical or non-standard definitions (e.g., negative equity, debt ratios exceeding 1, and negative total stockholders’ equity). Interpretations below take the reported values at face value but include caveats about potential accounting anomalies and the non-operating income component that materially impacted quarterly net income.