George Risk Industries (RSKIA) reported QQ3 2025 revenue of $4.912 million, representing a year-over-year decline of 8.9% and a quarter-over-quarter drop of 12.5%. Despite the softer top line, the company maintained a robust gross margin of 46.78%, producing gross profit of $2.298 million. EBITDA stood at $1.196 million with an EBITDA margin of 24.35%, and net income reached $1.607 million, translating to a net margin of 32.72% and an EPS of $0.33 for the quarter. The company ended the period with a solid liquidity profile: cash and short-term investments total $42.73 million, and it held a net cash position of approximately $5.58 million after accounting for financing activity. Operating cash flow was $0.649 million, with free cash flow of $0.598 million, underscoring earnings quality and cash-generation capability even as revenue declined.
The balance sheet remains exceptionally solid for a small-cap OTC name: total assets of $63.72 million versus liabilities of $7.39 million, and total stockholders’ equity of $56.33 million. Notably, the company carries no long-term debt in the reported period, reinforcing a conservative capital structure and ample balance-sheet cushion to weather demand cycles. However, the reported working capital dynamics exhibit a long cash conversion cycle: days sales outstanding (DSO) at ~112 days, days inventory outstanding (DIO) at ~391 days, and days payable outstanding (DPO) at ~12 days, yielding a cash conversion cycle around 492 days. This suggests elevated working capital tied to inventory and receivables, which could squeeze near-term liquidity efficiency if demand deteriorates further. Management commentary is not included in the dataset, so no direct on-quarter guidance or qualitative tone from the earnings call is available for incorporation.
Overall, the QQ3 2025 results illustrate solid profitability and a strong liquidity position, but revenue decline and an extended working capital cycle are notable areas for monitoring. The absence of debt mitigates financial risk, while a relatively favorable valuation versus some peers provides an attractive entry point for investors focusing on balance-sheet stability and cash generation. An investment stance should weigh the upside potential from continued margin resilience and potential capital allocation against the downside risk from organic revenue softness and working-capital intensity.