EPS of $0.00 increased by 12.5% from previous year
Net income of -364.85K
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Xeriant Inc (XERI) QQ1 2025 Earnings Analysis: Severe liquidity strain amid high R&D burn in the nascent eVTOL/defense tech play
Executive Summary
Xeriant’s QQ1 2025 results show a continued burn on an extremely lean cash base with no reported revenue for the period. The company delivered an operating loss of $358,795 and a net loss of $364,846 for the quarter, accompanied by a cash burn from operations of $353,095 and a closing cash balance of $300,022. Lacking revenue visibility in the period, the company remains heavily dependent on external financing to support R&D and corporate overhead. On a sequential basis, profitability metrics improved modestly on a QoQ basis (Operating Income QoQ +59.9%; Net Income QoQ +68.6%; EPS QoQ +73.1%), but the year-over-year declines still reflect a deteriorating earnings backdrop amid ongoing burn.
From a balance-sheet perspective, liquidity is extremely tight. Current liabilities exceed current assets by a wide margin (current ratio 0.0361; cash ratio ~0.0339), and total stockholders’ equity remains deeply negative. This combination signals meaningful solvency risk absent a near-term infusion of capital or a material revenue/operating-scale improvement. The company carries a debt load of approximately $7.75 million and negative equity, highlighting a fragile financial posture in a capital-intensive sector that includes eVTOL and defense-relevant technologies. Management commentary—where available—would be essential to gauge visibility on strategic partnerships, IP monetization, and potential funding events that could alter this trajectory.
Key Performance Indicators
Operating Income
-358.80K
QoQ: 59.87% | YoY:-12.51%
Net Income
-364.85K
QoQ: 68.57% | YoY:-9.21%
EPS
0.00
QoQ: 73.08% | YoY:12.50%
Revenue Trend
Margin Analysis
Key Insights
Operating Income: YoY -12.51%; QoQ +59.87% (−$358,795 in QQ1 2025; see note on scale below)
Net Income: YoY -9.21%; QoQ +68.57% (−$364,846 in QQ1 2025)
EPS: YoY +12.50%; QoQ +73.08% (−0.00070 per share in QQ1 2025)
EBITDA: −$279,859 (negative, reflecting high overhead and R&D burn)
Net cash used in operating activities: −$353,095 for QQ1 2025
Financial Highlights
Revenue: Not disclosed for QQ1 2025; no gross profit, gross margin data reported.
Profitability and earnings (QoQ and YoY comparisons where available):
- Operating Income: YoY -12.51%; QoQ +59.87% (−$358,795 in QQ1 2025; see note on scale below)
- Net Income: YoY -9.21%; QoQ +68.57% (−$364,846 in QQ1 2025)
- EPS: YoY +12.50%; QoQ +73.08% (−0.00070 per share in QQ1 2025)
- EBITDA: −$279,859 (negative, reflecting high overhead and R&D burn)
Cash flow and liquidity:
- Net cash used in operating activities: −$353,095 for QQ1 2025
- Free cash flow: −$353,095
- Cash at end of period: $300,022
- Change in working capital: −$229,131; Accounts payable: −$197,218; Other working capital movements: −$31,913; Other non-cash items: $247,880
Balance sheet highlights:
- Total assets: $354,827
- Cash and cash equivalents: $300,022
- Total current liabilities: $8,852,490
- Total debt (short-term): $7,745,475; Net debt: $7,445,453
- Retained earnings: $(27,073,761)
- Total stockholders’ equity: $(5,630,346) (negative)
- Current ratio: 0.0361; Quick ratio: 0.0361; Cash ratio: 0.0339
Key takeaways:
- The QQ1 2025 quarter shows a continued cash burn with no disclosed revenue, resulting in a fragile liquidity position unless capital markets or strategic financing movements provide support.
- Management commentary—if provided—would be critical to understand plans for monetization of IP, Halo VTOL concepts, and near-term partnerships or funding opportunities that could de-risk the balance sheet.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-358.80K
-12.51%
59.87%
Net Income
-364.85K
-9.21%
68.57%
EPS
0.00
12.50%
73.08%
Key Financial Ratios
currentRatio
0.04
returnOnAssets
-102.8%
returnOnEquity
6.48%
debtEquityRatio
-1.38
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-1.75
priceEarningsRatio
-6.75
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript not provided in the dataset. As a result, there are no management quotes or THEMES to quote verbatim. In a typical Xeriant earnings call, expected themes would include updates on Halo VTOL development, IP monetization steps, partnership discussions, and fundraising timelines. Investors should seek management articulation on: (1) progress toward revenue-generating milestones, (2) capital allocation strategy and burn rate normalization, (3) anticipated catalysts (regulatory progress, partnerships, or grant/funding support), and (4) liquidity runway under current market conditions.
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Forward Guidance
No explicit forward guidance is present in the provided data for QQ1 2025. Given the company’s lack of reported revenue and heavy cash burn, a cautious outlook is warranted. Near-term guidance considerations and potential catalysts include:
- Availability of new financing or strategic partnerships that extend the runway and enable commercialization of VTOL/hybrid-electric technologies.
- Milestones in Halo VTOL and other aerospace tech pipelines that could unlock licensing or collaboration opportunities.
- Progress in regulatory approvals, certifications, or defense-related programs that could materialize revenue or grant support.
- Broad industry trends toward electrification and urban air mobility, weighed against capital intensity and development timelines.
Assessment: Absent concrete revenue visibility or margin expansion, the investment thesis hinges on successful fundraising and milestone-driven monetization. Investors should monitor any disclosed guidance on burn rate targets, milestone-based funding rounds, and partner/audience roadmap over the next quarters.
Key factors to monitor: capital availability, contract/partnership announcements, IP licensing deals, government/defense funding, and any changes in management’s commentary regarding path to profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
XERI Focus
0.00%
0.00%
6.48%
-6.75%
UMAV
0.00%
0.00%
5.06%
-56.50%
RYCEY
23.80%
13.30%
-25.10%
15.37%
ACHR
0.00%
0.00%
-9.24%
-7.57%
LHX
26.30%
10.20%
2.02%
25.36%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Xeriant presents a high-risk, high-reward investment profile. The QQ1 2025 results confirm a cash-burn, no-revenue scenario with a fragile liquidity position and negative equity, which necessitates external capital to sustain operations. The current financials imply that near-term profitability is unlikely without a significant shift in strategy or market acceptance, making the stock highly sensitive to financing events and investor appetite for venture-stage aerospace tech.
Key Investment Factors
Growth Potential
Strategic opportunities lie in electric/hybrid propulsion, VTOL development, and Halo drone/IP monetization. If Xeriant can translate R&D into licensing agreements, co-development deals, or government contracts, the addressable market could broaden beyond purely R&D burn to revenue opportunities.
Profitability Risk
High liquidity risk due to negative equity and a substantial debt load relative to cash on hand; no disclosed revenue for QQ1 2025; reliance on continued external funding; execution risk in bringing VTOL and related technologies to market; potential dilution from future equity financings; regulatory and certification risks in aerospace tech.
Financial Position
Balance sheet shows tight liquidity with current liabilities far exceeding current assets and a negative equity position. Cash burn is ongoing, with debt carrying costs (interest expense) that add to cash outflows. Near-term survival depends on capital raises or strategic monetization of IP and partnerships.
SWOT Analysis
Strengths
Niche focus on hybrid/electric propulsion and VTOL technologies with IP in Halo VTOL drone concepts
Experienced management and technical team within the aerospace R&D space
Portfolio of advanced materials and infrastructure positioning for future propulsion systems
Weaknesses
No disclosed revenue for QQ1 2025; persistent operating losses
Negative stockholders’ equity and high debt load relative to cash
Severe liquidity constraints (very low current ratio) and ongoing cash burn
Heavy reliance on external financing for operations and development
Opportunities
Growing demand for electric and hybrid-electric aircraft in both civilian and defense contexts
Potential licensing, partnerships, or government funding to monetize IP and accelerate commercialization
Halo VTOL concept could attract collaboration with strategic aerospace players or defense contractors
Threats
Regulatory hurdles and certification timelines for new propulsion and VTOL platforms
Competition from established aerospace and defense players with greater balance sheet strength
Market risk if funding environments tighten or if revenue milestones are not achieved timely
Execution risk in converting R&D milestones into commercial contracts or licenses