Executive Summary
QQ1 2026 for Kindcard Inc shows a mixed margin story but a severe earnings and liquidity challenge. Revenue reached $85.6 million, down 18.9% year-over-year and 38.6% quarter-over-quarter, while gross profit was $65.8 million for a gross margin of about 76.9%. The operating loss was $55.1 million and EBITDA was negative $36.6 million, yielding a net loss of $55.1 million and an EPS of โ$0.0006. The company posted materially negative free cash flow of โ$36.8 million, and cash at period-end was $10.0 million. On the balance sheet, total liabilities stood at $1.186 billion against total assets of $84.2 million, resulting in negative equity of approximately โ$1.1016 billion and a net debt of about $420 million. The current ratio is critically low (~0.059x), underscoring substantial liquidity risk and a need for external funding or a material shift in cost structure. Despite a strong gross margin in the period, the business remains pressured by high fixed costs and a stretched balance sheet, raising questions about near-term profitability and financial runway. Management commentary from the earnings call is not provided in the supplied material; absent specific guidance, the outlook hinges on revenue growth, disciplined OpEx management, and potential liquidity events.
Key Performance Indicators
QoQ: -38.59% | YoY:-18.85%
QoQ: -42.32% | YoY:11.33%
QoQ: -625.67% | YoY:66.10%
QoQ: -625.67% | YoY:65.70%
QoQ: -500.00% | YoY:62.50%
Key Insights
Revenue: $85.6m; YoY ฮ: -18.85%; QoQ ฮ: -38.59%; Gross Profit: $65.8m; Gross Margin: 76.90%; Operating Income: -$55.1m; Operating Margin: -64.33%; EBITDA: -$36.6m; EBITDA Margin: -42.77%; Net Income: -$55.1m; Net Margin: -64.33%; EPS: -$0.0006; Weighted Avg Shares: 98.17m; Cash From Operations: -$36.81m; Free Cash Flow: -$36.81m; Cash & Equivalents: $10.0m; Total Assets: $84.16m; Total Liabilities: $1,185.71m; Total Stockholdersโ Equity: โ$1,101.56m; Current Ratio: ~0.059x; Net Debt: $...
Financial Highlights
Revenue: $85.6m; YoY ฮ: -18.85%; QoQ ฮ: -38.59%; Gross Profit: $65.8m; Gross Margin: 76.90%; Operating Income: -$55.1m; Operating Margin: -64.33%; EBITDA: -$36.6m; EBITDA Margin: -42.77%; Net Income: -$55.1m; Net Margin: -64.33%; EPS: -$0.0006; Weighted Avg Shares: 98.17m; Cash From Operations: -$36.81m; Free Cash Flow: -$36.81m; Cash & Equivalents: $10.0m; Total Assets: $84.16m; Total Liabilities: $1,185.71m; Total Stockholdersโ Equity: โ$1,101.56m; Current Ratio: ~0.059x; Net Debt: $420.05m; Total Debt: $430.06m; Book Value per Share: negative due to equity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
85.59K |
-18.85% |
-38.59% |
| Gross Profit |
65.82K |
11.33% |
-42.32% |
| Operating Income |
-55.06K |
66.10% |
-625.67% |
| Net Income |
-55.06K |
65.70% |
-625.67% |
| EPS |
0.00 |
62.50% |
-500.00% |
Management Commentary
No earnings call transcript was provided in the materials. Therefore, there are no management quotes or theme-based highlights to extract at this time. If a transcript becomes available, potential themes to extract would include strategy execution (monetization of the closed-loop payments platform), cost optimization plans, progress on partnerships or customer growth, regulatory/compliance updates, and clarifications on liquidity plans and fundraising.
Forward Guidance
No formal forward guidance was published in the provided materials. Given the current profitability and liquidity profile, investors should be attentive to: (1) liquidity runway and needs for additional financing or debt facilities; (2) planned OpEx reduction versus revenue growth trajectory; (3) monetization milestones for the payments platform and any new product launches; (4) any guidance related to customer wins, ARPU changes, and contract pipeline. Absent explicit targets, the achievability of a path to EBITDA break-even or positive free cash flow will depend on accelerated revenue growth coupled with meaningful cost discipline and a favorable financing environment.