Executive Summary
Kindcard’s QQ2 2025 results show a revenue decline accompanied by a substantial operating loss and a balance sheet with negative equity. Revenue stood at 81,740 with a gross profit of 63,541 and a gross margin of approximately 77.7%. However, the company posted an operating loss of 84,055 and a net loss of 84,055, with an EPS of -0.0009. EBITDA was -61,769, and the company reported negative operating cash flow of -48,478, culminating in a free cash flow of -48,480 for the quarter. QoQ momentum shows a modest improvement in operating profitability (operating income margin improving by about 3.7%), but the QoQ revenue decline and persistent cash burn underscore structural profitability and liquidity challenges.
Key YoY shifts include a revenue drop of approximately 35.17% and gross profit decline of ~41.72%, while gross margin remained robust at ~77.7%. The balance sheet exhibits severe leverage and liquidity stress: total liabilities materially exceed assets, resulting in negative stockholders’ equity (-967,859) and extremely low liquidity ratios (current ratio ~0.0367; cash ratio ~0.0160). Net debt stands at ~338,163 with cash at period end of 14,857. Collectively, these dynamics imply heightened liquidity risk and a near-term need for external financing or substantial operating improvement to re-establish financial flexibility.
Given the absence of formal forward guidance in the provided material and no available earnings-call transcripts for QQ2 2025, the investment outlook remains highly conditional on future operating improvements, working-capital optimization, and potential capital-raising activities. Investors should weigh the potential upside from any acceleration in revenue growth and margin stabilization against the pronounced balance-sheet fragility and cash-burn trajectory.
Key Performance Indicators
QoQ: -3.90% | YoY:-35.17%
QoQ: 45.00% | YoY:-41.72%
QoQ: 3.70% | YoY:-154.65%
QoQ: 6.12% | YoY:-154.65%
QoQ: 0.00% | YoY:-200.00%
Key Insights
Revenue: 81,740; YoY -35.17%; QoQ -3.90%.
Gross Profit: 63,541; YoY -41.72%; QoQ +45.00%; Gross Margin: 77.7%.
Operating Income: -84,055; YoY -154.65%; QoQ +3.70%; Operating Income Margin: -1.028 (approximately -102.8%).
Net Income: -84,055; YoY -154.65%; QoQ +6.12%; Net Margin: -1.028 (approximately -102.8%).
EBITDA: -61,769; EBITDA Margin: -75.56%.
EPS: -0.0009; YoY -200.00%; QoQ 0.00%.
Cash Flow: Net cash provided by operating activities -48,478; Free cash flow -48,480; Net cash provided by f...
Financial Highlights
Revenue: 81,740; YoY -35.17%; QoQ -3.90%.
Gross Profit: 63,541; YoY -41.72%; QoQ +45.00%; Gross Margin: 77.7%.
Operating Income: -84,055; YoY -154.65%; QoQ +3.70%; Operating Income Margin: -1.028 (approximately -102.8%).
Net Income: -84,055; YoY -154.65%; QoQ +6.12%; Net Margin: -1.028 (approximately -102.8%).
EBITDA: -61,769; EBITDA Margin: -75.56%.
EPS: -0.0009; YoY -200.00%; QoQ 0.00%.
Cash Flow: Net cash provided by operating activities -48,478; Free cash flow -48,480; Net cash provided by financing activities 68,209; Net change in cash 4,506.
Balance Sheet (selected): Cash and cash equivalents 14,857; Total assets 120,861; Total liabilities 1,088,720; Total stockholders’ equity -967,859; Net debt 338,163; Total debt 353,020.
Liquidity metrics: Current ratio 0.0367; Quick ratio 0.0367; Cash ratio 0.0160.
Capital structure: Negative equity, substantial long-term and current liabilities, suggesting potential covenant and refinancing risks.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
81.74K |
-35.17% |
-3.90% |
| Gross Profit |
63.54K |
-41.72% |
45.00% |
| Operating Income |
-84.06K |
-154.65% |
3.70% |
| Net Income |
-84.06K |
-154.65% |
6.12% |
| EPS |
0.00 |
-200.00% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-102.8%
operatingCashFlowPerShare
$-0
Management Commentary
No QQ2 2025 earnings-call transcript provided in the data set. Consequently, there are no management quotes or theme-by-theme highlights to quote or analyze. Where transcript data would normally inform commentary on strategy, product strategy, customer wins, or cost-structure initiatives, this analysis relies on the disclosed financials and published ratios.
Forward Guidance
No formal forward guidance was included in the provided materials. Given the liquidity constraints, negative equity, and ongoing cash burn, management commentary (if issued elsewhere) would be critical for assessing near-term paths to profitability and capital planning. Investors should monitor:
- Revenue stabilization or growth catalysts (customer adoption, cross-sell, new product introductions) and their impact on gross margins.
- Cost structure optimization, including SG&A reductions or efficiency programs, to drive a path to positive operating cash flow.
- Financing strategy and debt maturities: likelihood and terms of refinancing, potential equity raises, or debt restructuring.
- Working capital management and potential monetization or impairment considerations related to intangibles.
- Any strategic initiatives around product diversification within software infrastructure and closed-loop payments that could unlock additional monetization.
The achievability of near-term profitability hinges on these factors, plus the company’s ability to convert intangible assets into revenue-generating capabilities without exacerbating leverage.
Key monitoring factors for investors: cash burn rate trajectory, changes in current liabilities vs. current assets, debt refinancing options, and any credible guidance on revenue growth or cost-reduction milestones.