Executive Summary
KeyStar Corp reported a challenging QQ1 2025, showing a net loss of $5.27 million on negative revenue of $3.34 thousand, a heavy interest burden, and a material drag from other operating items. While YoY revenue appears to rebound by approximately 98% and gross profit shows robust margin signals, the quarter’s headline numbers reflect significant impairments and a fragile liquidity position that constrains near-term operating leverage. EBITDA is negative at approximately $2.03 million, and free cash flow remains deeply negative, underscoring a high cash burn environment.
From a balance sheet perspective, the company carries a sizable debt load (total debt about $11.67 million) and negative stockholders’ equity (about -$18.41 million), with a current ratio near 0.041 and a cash ratio of ~0.013. These liquidity metrics imply a narrow cash runway and elevated refinancing risk unless operational improvements, asset optimization, or external financing are secured. Management commentary is not included in the provided transcript data, limiting insight into underlying strategic pivots. Investors should monitor cash burn, debt maturities, potential deleveraging actions, and any forthcoming guidance or restructuring updates.
Key Performance Indicators
Key Insights
Revenue: YoY +98.47%, QoQ +95.92% (currency USD). Gross Profit: YoY +94.68%, QoQ +67.90% (gross margin reported as 29.84%). EBITDA: -$2.034 million. Net Income: YoY -4.17%, QoQ +58.59% (net loss of -$5.269 million). EPS: -$0.07; YoY +41.67%, QoQ +66.67%.
Notes: The QQ1 2025 period shows negative revenue in reported terms (-$3.337k) alongside a substantial gross profit deficit (-$99.569k) and a large total tax-equivalent charge embedded in other income/expenses; these items contribute to a mean...
Financial Highlights
Revenue: YoY +98.47%, QoQ +95.92% (currency USD). Gross Profit: YoY +94.68%, QoQ +67.90% (gross margin reported as 29.84%). EBITDA: -$2.034 million. Net Income: YoY -4.17%, QoQ +58.59% (net loss of -$5.269 million). EPS: -$0.07; YoY +41.67%, QoQ +66.67%.
Notes: The QQ1 2025 period shows negative revenue in reported terms (-$3.337k) alongside a substantial gross profit deficit (-$99.569k) and a large total tax-equivalent charge embedded in other income/expenses; these items contribute to a meaningful net loss despite favorable margin signals. Interest expense remains a dominant cost driver at approximately $1.01 million, compounding the profitability challenge. The company also posted negative operating income and a sizable total other income/expense impact, resulting in a net cash outflow from operations of roughly $2.29 million and a free cash flow burn of about $2.40 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
-3.34K |
98.47% |
95.92% |
| Gross Profit |
-99.57K |
94.68% |
67.90% |
| Net Income |
-5.27M |
-4.17% |
58.59% |
| EPS |
-0.07 |
41.67% |
66.67% |
Key Financial Ratios
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
Management Commentary
No earnings call transcript data provided in the dataset. As a result, management commentary themes, tone, and verbatim quotes could not be extracted. Investors should seek the official transcript to corroborate management’s stated strategy on liquidity restoration, cost discipline, and any restructuring plans.
Forward Guidance
No explicit forward guidance is present in the provided data. Given the balance sheet fragility (very low liquidity ratios, negative equity) and the ongoing cash burn, the company would need either a material operating turnaround or external capital to stabilize the liquidity runway. Potential near-term catalysts could include: (1) debt refinancing or equity infusion to restore financial flexibility, (2) cost containment and SG&A normalization to reduce cash burn, (3) monetization of non-core assets or restructuring of intangible assets to improve balance sheet metrics, and (4) improved cash collection and working capital optimization. Investors should monitor any forthcoming guidance on liquidity runway, capex reductions, debt maturity dates, and strategic reviews of non-core assets or lines of business.