Laredo Oil Inc (LRDC) Q4 2024 Earnings Report

Laredo Oil’s QQ4 2024 results show a bifurcated picture. On the top line, reported revenue showed QoQ strength with an 87.2% sequential increase, supported by an outsized gross profit figure relative to revenue in the reported data. The company posted a gross profit of 43,712 and a gross margin of approximately 183.8%, but this appears inconsistent with the cost of revenue and revenue figures, suggesting possible data formatting or classification issues that warrant clarification. Despite the revenue upturn, operating performance remained weak, as indicated by an operating loss of 715,897 (-30.10% operating margin) and a net loss of 726,335 (-30.54% net margin), with EBITDA deeply negative at -514,898. Interest expense was material at 210,495, contributing to the (-) bottom line. Net income per share stood at -0.0105 (diluted). The company posted negative operating cash flow (-149,381) and a modest free cash flow of 15,495, while capital expenditures ran at 164,876. Balance-sheet signals are cautiously negative: cash at period-end was 1,271,126 (in thousands? per data) and total debt stood at 3,212,828 with net debt of 3,085,702; equity remains negative (-11,186,127), underscoring a leveraged, high-risk capital structure. Liquidity metrics are weak (current ratio 0.156, quick ratio 0.012, cash ratio 0.0098). The company did achieve a positive cash change for the period driven by financing activity, but the underling cash burn from operations suggests near-term liquidity pressure absent ongoing funding or balance-sheet optimization. Going forward, the most consequential factors are management’s ability to improve operating leverage, manage costs, and stabilize working capital, alongside commodity price volatility and the ability to refinance or deleverage over the medium term.