Executive Summary
Dalrada Financial Corporation reported QQ3 2024 with topline revenue of $10.31 million, up 8.8% year-over-year, aided by a broadening services footprint. However, the quarter delivered a material operating loss of $2.29 million and a net loss of $2.88 million, driven by a substantial fixed cost base and elevated working capital dynamics. EBITDA remained negative at roughly $2.30 million, underscoring earnings quality challenges despite improving gross margins (≈45.7%). The company also experienced meaningful cash burn, with operating cash flow of about -$2.18 million and free cash flow of about -$2.16 million, contributing to a tight liquidity posture and a modest cash balance of ~$0.53 million at quarter end. These factors highlight a bifurcated trajectory: on one hand, revenue growth signals demand momentum or client expansion; on the other hand, profitability and liquidity pressures demand disciplined cost management and working capital optimization to regain operating leverage.
Key Performance Indicators
QoQ: 164.74% | YoY:64.62%
Key Insights
Revenue: $10.31M (YoY +8.77%, QoQ +69.57%; Gross Profit: $4.71M, Gross Margin ~45.72% (YoY +64.62%, QoQ +164.74%); Operating Income: -$2.29M, Operating Margin ~-22.22% (YoY +37.08%, QoQ +45.81%); Net Income: -$2.88M, Net Margin ~-27.97% (YoY +28.39%, QoQ +46.68%); EPS: -$0.031 (YoY +38%, QoQ +48.42%)....
Financial Highlights
Revenue: $10.31M (YoY +8.77%, QoQ +69.57%; Gross Profit: $4.71M, Gross Margin ~45.72% (YoY +64.62%, QoQ +164.74%); Operating Income: -$2.29M, Operating Margin ~-22.22% (YoY +37.08%, QoQ +45.81%); Net Income: -$2.88M, Net Margin ~-27.97% (YoY +28.39%, QoQ +46.68%); EPS: -$0.031 (YoY +38%, QoQ +48.42%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.31M |
8.77% |
69.57% |
| Gross Profit |
4.71M |
64.62% |
164.74% |
| Operating Income |
-2.29M |
37.08% |
45.81% |
| Net Income |
-2.88M |
28.39% |
46.68% |
| EPS |
-0.03 |
38.00% |
48.42% |
Key Financial Ratios
operatingProfitMargin
-22.2%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
Note: No earnings call transcript was provided for QQ3 2024 in the data set. Therefore, management quotes and call-specific themes are not available. The qualitative signal inferred from the results points to ongoing profitability challenges despite revenue growth, with attention required on cost structure, working capital management, and cash flow normalization.
Forward Guidance
No formal forward guidance was included in the provided data. Based on the QQ3 2024 results, the implicit path to sustainable profitability would require: (1) stabilization or reduction of operating expenses to move EBITDA into positive territory, (2) improvement in working capital efficiency to reduce cash burn (notably accounts receivable and payables dynamics), and (3) revenue discipline alongside potential high-margin incremental services. Investors should monitor any management commentary on cost-control initiatives, pricing strategies, contract mix, and capital allocation plans that could meaningfully shift the earnings trajectory in upcoming quarters.