Starguide Group Inc (STRG) delivered an exceedingly modest QQ2 2025 top line of $42, generating a gross profit of $33 on a reported gross margin of 78.6%. However, the company remains dramatically unprofitable with an EBITDA of -$15.1 million and a net loss of -$15.27 million for the quarter. The principal drivers are outsized operating expenses and interest burden that far exceed the revenue base, culminating in a severely negative operating and net income profile (operating income of -$15.86 million; net income -$15.27 million; EPS -$0.0053). Cash flow from operations was deeply negative at -$15.34 million, while liquidity remains extreme, with cash at period-end of $63 and an implicit current ratio near zero. The balance sheet shows total assets of $1.88 thousand against total liabilities of $293.6 thousand, producing a negative stockholders’ equity of approximately -$261.7 thousand—a condition consistent with a development-stage shell company that has limited current business activity and substantial leverage.
Given the tiny revenue base, negative profitability, and fragile liquidity, STRG poses an extraordinary risk profile and operates with a structurally weak balance sheet. The QQ2 2025 results do not appear to be accompanied by any formal forward guidance in the filing. Absent a material strategic pivot (e.g., debt restructuring, capital raise, asset monetization, or a business plan that meaningfully scales revenue), the investment thesis remains highly speculative and skewed toward downside risk. Investors should monitor any new financing activity, potential strategic alternatives, and any changes in regulatory or exchange status that could impact listing viability and capital access.