Executive Summary
GPO Plus Inc (GPOX) reported QQ1 2025 revenue of $1.208 million, marking a 24.4% year-over-year increase and an 12% sequential rise from the prior quarter. Despite top-line momentum, the company remains mired in a meaningful net loss and negative EBITDA, with EBITDA of -$0.453 million and net income of -$0.587 million for the quarter. The operating margin deteriorated to -40.17% driven by persistent overhead and cost of revenue pressures, underscoring ongoing operating leverage challenges even as revenue grows. Free cash flow remained negative at -$0.233 million, and net cash from operations was -$0.165 million, highlighting a fragile near-term cash flow profile.
From a balance-sheet perspective, liquidity is a material constraint. Total current liabilities stood at $4.650 billion against total current assets of $0.531 billion, yielding a current ratio of 0.114 and a quick ratio of 0.0236. The company carries total debt of $2.188 billion with net debt of $2.131 billion and negative shareholder equity of -$3.872 billion, signaling structural balance-sheet weakness and elevated financial risk. The company did execute financing activities that added $0.220 million in net cash, but cash at period end was only $0.057 million, underscoring limited liquidity runway.
Revenue growth is a positive signal, but sustaining profitability will require a systemic improvement in operating leverage, working capital efficiency, and potential strategic actions (cost containment, debt refinancing, or business-model optimization). Absent a formal forward-looking guidance release, the near-term investment thesis hinges on management execution to stabilize cash flows, reduce absolute cost structure, and unlock meaningful operating profit while preserving liquidity. Investors should monitor debt maturities, potential capital needs, and any strategic updates that address the negative equity base and persistent losses.
Key Performance Indicators
Key Insights
Revenue: $1,207,741 thousand; YoY growth 24.42%; QoQ growth 11.99%
Gross Profit: $261,747 thousand; Gross Margin 21.67%; YoY Gross Profit growth 17.01%; QoQ 4.91%
Operating Income: -$485,202 thousand; Operating Margin -40.17%; YoY change +47.91%; QoQ +68.87%
Net Income: -$586,709 thousand; Net Margin -48.58%; YoY change +51.82%; QoQ +68.48%
EPS (Diluted): -$0.0102; YoY +66.88%; QoQ +76.33%
EBITDA: -$453,304 thousand; EBITDA Margin -37.53%
Cash Flow: Operating cash flow -$164,788 thousand; Free c...
Financial Highlights
Revenue: $1,207,741 thousand; YoY growth 24.42%; QoQ growth 11.99%
Gross Profit: $261,747 thousand; Gross Margin 21.67%; YoY Gross Profit growth 17.01%; QoQ 4.91%
Operating Income: -$485,202 thousand; Operating Margin -40.17%; YoY change +47.91%; QoQ +68.87%
Net Income: -$586,709 thousand; Net Margin -48.58%; YoY change +51.82%; QoQ +68.48%
EPS (Diluted): -$0.0102; YoY +66.88%; QoQ +76.33%
EBITDA: -$453,304 thousand; EBITDA Margin -37.53%
Cash Flow: Operating cash flow -$164,788 thousand; Free cash flow -$232,662 thousand; Net cash from financing activities +$219,971 thousand; Net change in cash -$12,691 thousand; Cash at end of period $56,724 thousand
Balance Sheet Health: Total assets $912,616 thousand; Total liabilities $4,784,997 thousand; Total stockholdersβ equity -$3,872,381 thousand; Current ratio 0.114; Quick ratio 0.0236; Cash ratio 0.0122; Net debt $2,130,985 thousand; Debt to total assets notably high; Inventory $421,512 thousand; Accounts payable $1,684,470 thousand; Short-term debt $2,053,086 thousand; Long-term debt $134,623 thousand
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.21M |
24.42% |
11.99% |
| Gross Profit |
261.75K |
17.01% |
4.91% |
| Operating Income |
-485.20K |
47.91% |
68.87% |
| Net Income |
-586.71K |
51.82% |
68.48% |
| EPS |
-0.01 |
66.88% |
76.33% |
Key Financial Ratios
operatingProfitMargin
-40.2%
operatingCashFlowPerShare
$-0
Management Commentary
Note: No earnings call transcript is provided in the data. As such, this section cannot quote management verbatim or segment insights by theme with direct quotes. If a transcript becomes available, a structured synthesis (themes: strategy, operations, market conditions) with context and significance will be included here.
Forward Guidance
No explicit QQ1 2025 forward guidance was disclosed in the provided data. Given the revenue expansion yet persistent losses, the near-term path to profitability likely depends on: (1) sustained top-line growth paired with improved gross margins or operating efficiency; (2) aggressive cost containment in G&A and SG&A, and (3) balance-sheet optimization, including debt refinancing or equity-raising to address negative equity and liquidity gaps. Industry backdrop for Industrials/Specialty Business Services suggests potential upside from higher adoption of GPO platforms and professional services, but execution risk remains high. Key monitors: quarterly cash burn rate, working capital dynamics, debt maturities, potential capital raises, and any strategic pivots (e.g., platform monetization, price discipline with vendors, or customer expansion).