Revenue and profitability
- Revenue: USD 361,544 in QQ2 2024, down -84.25% YoY and -48.71% QoQ from Q1 2024 revenue of USD 704,899.
- Gross Profit: USD -70,884; Gross Margin: -19.61% (vs. prior-year positives in some quarters but negative in QQ2 2024).
- Operating Income: USD -1,367,896; Operating Margin: -3.78%.
- EBITDA: USD -1,362,982; EBITDA Margin: -3.77%.
- Net Income: USD -1,366,144; Net Margin: -3.78%; EPS: -0.24 (diluted) on 5,778,787 shares outstanding.
- YoY changes reflect a substantial top-line contraction and negative gross margin dynamics; QoQ changes show a large reduction in SG&A in QQ2, contributing to a modest sequential improvement in operating metrics but not enough to reverse the overall loss position.
Liquidity and cash flow
- Net cash provided by operating activities: USD 75,372.
- Free cash flow: USD 75,372.
- Net change in cash: USD -68,314; cash at end of period: USD 1,642,969; cash at beginning: USD 1,711,283.
- Working capital impact: working capital increase of USD 1,446,430, with accounts receivable +USD 171,017, inventory +USD 493,851, accounts payable -USD 369,615, and other working capital items +USD 1,151,177; FX impact of -USD 75,056.
- Debt activity: debt repayment of USD -69,450; financing activities net cash outflow USD -68,630; financing-related items +USD 820.
Capital structure and efficiency
- Weighted average shares outstanding: 5,778,787; EPS diluted: -0.24.
- No material long-term debt disclosed in the QQ2 release; interest expense USD 3,162 in QQ2; liquidity remains modest but workable given cash position and positive operating cash flow in the quarter.
Interpretation
- The QQ2 2024 results depict a challenging demand environment for Slinger Bag’s niche tennis-training hardware, with a dramatic revenue drop and negative gross margin. Management commentary (where available) is needed to confirm whether this reflects seasonality, channel disruptions, pricing, or mix effects. The sequential SG&A reduction suggests cost-control actions or one-time adjustments, which helped turn operating leverage more favorable on a QoQ basis, yet the company remains loss-making on a GAAP basis despite positive operating cash flow. Investors should weigh the potential for topline stabilization and margin inflection against the backdrop of a small addressable market, limited visibility into consumer adoption, and dependence on continued cost discipline.