Slinger Bag’s QQ3 2024 results show a pronounced revenue surge to USD 3.27 million, up 58.14% year over year and a staggering 805.21% quarter over quarter, driven by a low prior base and accelerating demand for the Slinger Launcher and related tennis accessories. The quarterly gross margin stood at 77.26%, underscoring a favorable product mix and scalar gross profit of USD 2.53 million. Positive EBITDA of approximately USD 0.53 million indicates meaningful operating leverage at the reported scale, with operating income also at USD 0.53 million (about 16.20% of revenue). Despite these positives, net income registered a loss of USD 0.41 million for QQ3 2024, reflecting a discrepancy between high operating profitability and the bottom line, likely arising from tax effects and non-operating charges embedded in the period.
Cash-flow metrics reveal a cautiously positive operating cash flow (about USD 0.041 million) and a free cash flow of USD 0.041 million, but the balance sheet shows limited liquidity: cash at period end was USD 83,710 with a negative net change of USD 1.56 million in the period. Working capital dynamics were material, including a substantial drop in accounts receivable and a large working-capital impact (change in working capital: USD -9.39 million; accounts receivable: USD -9.96 million). These movements imply timing effects and potential channel mix shifts that warrant attention as the company scales. With a weighted-average share count of roughly 6.37 million, basic/diluted EPS stood at USD -0.065 and USD -0.0646, respectively, underscoring that profitability is not yet translating to per-share earnings despite stronger topline growth.
Overall, the QQ3 2024 performance demonstrates meaningful revenue growth and operating profitability on an EBITDA basis, but the company remains challenged on a net income basis and faces liquidity and working-capital headwinds. Investors should monitor progression toward sustained net income generation, continued cash-flow resilience, and balance-sheet improvements as the business scales.”,