Fuse Group Holding Inc (FUST) reported Q4 2024 revenue of USD 129,885 and generated positive EBITDA of USD 23,173, with net income of USD 22,221 and an EPS of USD 0.0017. QoQ revenue rose 57.7%, and EBITDA margin stood at 17.8%, underscoring a rare instance of profitability at a micro-cap level in a consulting niche tied to mining and biotech targets.
However, the company carries a highly unusual balance sheet: total assets of USD 85,374 against total liabilities of USD 252,173, producing a headline stockholders’ equity of negative USD 166,799. Cash flow from operations was USD 25,760 in the quarter, with free cash flow equal to operating cash flow (no incremental capex beyond USD 4 reported), leaving USD 67,601 in cash at period end. Net debt stood at USD 38,635, despite a near-term debt burden of USD 106,236. The contrast between meaningful operating cash flow and a structurally negative equity base signals significant balance sheet risk and potential solvency concerns absent a deliberate deleveraging or capital-structure adjustment. No management call transcripts were provided in the data, limiting visibility into strategic actions and forward guidance.
Given the micro-cap profile, the quarter reflects a narrow revenue base but a cash-generating core. The investment case hinges on whether Fuse Group can scale revenue meaningfully, reduce leverage, and secure a sustainable profitability trajectory, while managing the risk embedded in its reported equity position and debt load.