Everything Blockchain Inc (EBZT) Q1 2025 Earnings Report

Executive Summary

Everything Blockchain Inc (EBZT) reported a tough Q1 2025, with revenue plummeting 75.95% year-over-year to $63,000, compounded by spiraling expenses leading to a net loss of $1,384,000. Management emphasized the need for strategic pivots and scaling efforts to revitalize performance, particularly amid intensified competition within the blockchain software application landscape. This report focuses on the financial metrics, operational challenges, and insights gleaned from the earnings call that demonstrate EBZT's current market position. Management expressed commitment to refining product offerings, especially through their EB Control solution aimed at enhancing cybersecurity, while also exploring cost-control measures to mitigate operational losses. Investors are encouraged to stay alert to execution on these strategies as they assess the company's recovery potential amidst a backdrop of sector volatility.

Key Performance Indicators

Revenue

63.00K

QoQ: -20.25% | YoY:-75.95%

Gross Profit

-140.00K

-2.22% margin

QoQ: -2 233.33% | YoY:-166.67%

Operating Income

-1.35M

QoQ: -18.29% | YoY:24.68%

Net Income

-1.38M

QoQ: -12.25% | YoY:23.91%

EPS

-0.08

QoQ: -11.80% | YoY:54.72%

Revenue Trend

Margin Analysis

Key Insights

**Revenue**: $63,000, a decrease of 75.95% YoY and a decline of 20.25% QoQ, reflecting struggling demand and competitive pressures.
**Gross Profit**: -$140,000, with a gross profit ratio of -222.22% due to disproportionately high costs of revenue amounting to $203,000.
**Operating Income**: -$1,352,000, a slight improvement from the prior quarter (QoQ change of 18.29%).
**Net Income**: -$1,384,000, indicative of ongoing operational challenges with a net income ratio of -21.97%.
**Cash Flows**: Net cash used in operating activities was -$415,000, demonstrating a cash burn trend requiring immediate corrective measures.

Financial Highlights

### Key Financial Metrics
- Revenue: $63,000, a decrease of 75.95% YoY and a decline of 20.25% QoQ, reflecting struggling demand and competitive pressures.
- Gross Profit: -$140,000, with a gross profit ratio of -222.22% due to disproportionately high costs of revenue amounting to $203,000.
- Operating Income: -$1,352,000, a slight improvement from the prior quarter (QoQ change of 18.29%).
- Net Income: -$1,384,000, indicative of ongoing operational challenges with a net income ratio of -21.97%.
- Cash Flows: Net cash used in operating activities was -$415,000, demonstrating a cash burn trend requiring immediate corrective measures.
- Balance Sheet Health: Current ratio of 0.106 indicates significant liquidity pressures, amidst total liabilities of $4,001,000 and stockholders’ equity of $17,964,000.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	63.00K	-75.95%	-20.25%
Gross Profit	-140.00K	-166.67%	-2 233.33%
Operating Income	-1.35M	24.68%	-18.29%
Net Income	-1.38M	23.91%	-12.25%
EPS	-0.08	54.72%	-11.80%

Key Financial Ratios

currentRatio

0.11

grossProfitMargin

-222%

operatingProfitMargin

-2146%

netProfitMargin

-2197%

returnOnAssets

-6.3%

returnOnEquity

-7.7%

debtEquityRatio

0.09

operatingCashFlowPerShare

$-0.02

freeCashFlowPerShare

$-0.02

priceToBookRatio

0.59

priceEarningsRatio

-1.92

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
EBZT Focus	-2.22%	-21.46%	-7.70%	-1.92%
TWOH	7.35%	-1.78%	28.70%	-10.40%
INTV	66.20%	-1,022.04%	25.20%	-1.21%
LSPKF	61.40%	-13.10%	-8.03%	-6.06%
FMEGF	-90.00%	-2.96%	-6.62%	-10.00%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	0.00	0.00	+0.0%	View
Q3 2025	0.00	-0.76	+0.0%	View
Q2 2025	0.06	-0.05	-86.6%	View
Q1 2025	0.06	-0.08	-76.0%	View
Q4 2024	0.08	-0.07	-48.0%	View

Everything Blockchain Inc (EBZT) Q1 2025 Earnings Report

Earnings Highlights