Executive Summary
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.
Key Performance Indicators
QoQ: -12.49% | YoY:-8.94%
QoQ: -15.33% | YoY:-12.26%
QoQ: -19.35% | YoY:-21.21%
QoQ: -27.45% | YoY:-50.39%
QoQ: -26.67% | YoY:-50.00%
Key Insights
Revenue: $4,912,000; YoY change: -8.94%; QoQ change: -12.49%
Gross Profit: $2,298,000; YoY change: -12.26%; QoQ change: -15.33%; Gross Margin: 46.78%
EBITDA: $1,196,000; EBITDA Margin: 24.35%
Operating Income: $1,196,000; Operating Margin: 24.35%
Net Income: $1,607,000; Net Margin: 32.72%; EPS: $0.33; Diluted EPS: $0.33
Tax Rate (effective): ~28.9%
Cash Flow: Net cash from operating activities $0.649 million; Free cash flow $0.598 million
Capital Allocation: Purchases of investments and minor bu...
Financial Highlights
Revenue: $4,912,000; YoY change: -8.94%; QoQ change: -12.49%
Gross Profit: $2,298,000; YoY change: -12.26%; QoQ change: -15.33%; Gross Margin: 46.78%
EBITDA: $1,196,000; EBITDA Margin: 24.35%
Operating Income: $1,196,000; Operating Margin: 24.35%
Net Income: $1,607,000; Net Margin: 32.72%; EPS: $0.33; Diluted EPS: $0.33
Tax Rate (effective): ~28.9%
Cash Flow: Net cash from operating activities $0.649 million; Free cash flow $0.598 million
Capital Allocation: Purchases of investments and minor buybacks; Net cash from financing activities -$0.032 million; Net change in cash +$0.126 million
Balance Sheet: Cash & cash equivalents $5.58 million; Short-term investments $37.15 million; Total cash & investments $42.73 million; Total current assets $60.66 million; Total assets $63.72 million; Total liabilities $7.39 million; Stockholders’ equity $56.33 million; Debt: None reported; Net debt: -$5.58 million (net cash)
Liquidity & Efficiency: Current ratio 12.90x; Quick ratio 10.48x; Cash ratio 1.19x; DSO 112.54 days; DIO 391.40 days; DPO 12.02 days; CCC ~492 days
Valuation (as of QQ3 2025 data): P/E ~13.1x; P/B ~1.50x; P/S ~17.14x; Enterprise value multiple ~65.74x; Price to Free Cash Flow ~140.80x; Dividend yield: 0%
Note: All figures are USD and based on the QQ3 2025 quarter and 4-quarter trailing data provided.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.91M |
-8.94% |
-12.49% |
| Gross Profit |
2.30M |
-12.26% |
-15.33% |
| Operating Income |
1.20M |
-21.21% |
-19.35% |
| Net Income |
1.61M |
-50.39% |
-27.45% |
| EPS |
0.33 |
-50.00% |
-26.67% |
Key Financial Ratios
operatingProfitMargin
24.3%
operatingCashFlowPerShare
$0.13
freeCashFlowPerShare
$0.12
Management Commentary
No earnings call transcript was provided in the dataset. As a result, the synthesis of management commentary and thematic highlights cannot be completed from the transcript. If you can supply the QQ3 2025 earnings call transcript, I will extract themes on strategy, operations, market conditions, and management tone with direct quotes and context.
Forward Guidance
No formal forward guidance was included in the provided data. Given the strong liquidity position, zero long-term debt, and positive quarterly net income, management could deploy capital toward strategic initiatives (e.g., product line expansion, customer diversification, or potential acquisitions) if demand stabilizes or improves. Investors should monitor: (1) revenue trajectory in upcoming quarters to determine if the QQ3 decline is a short-term cycle or a structural shift, (2) the efficiency of working capital management given the very long inventory cycle, and (3) any communicated capital allocation plans (buybacks, dividends, or capex) that could unlock additional value. Absent explicit guidance, the achievability of any implied targets will hinge on stabilization of demand for electronic components and security-related devices and continued disciplined cost control.