The Marygold Companies Inc (MGLD) delivered Q2 2025 revenue of $8.00 million, marking a -5.36% year-over-year decline but a modest +1.19% sequential uptick. Gross profit reached $5.93 million, yielding a robust gross margin of approximately 74.1%, underscoring the asset-light, fee-based component of the business. However, operating performance remained unprofitable, with operating income at -$1.83 million and EBITDA at -$1.68 million, driven by elevated operating and SG&A costs that outpaced revenue gains. Net income stood at -$1.75 million with an EPS of -$0.0428, compressing profitability and posing continued earnings risks in the near term.
The balance sheet shows a solid liquidity position, including cash and short-term investments totaling roughly $14.9 million against total liabilities of about $9.65 million, and a stockholders’ equity base of $23.35 million. Net debt remains negative (-$0.41 million), signaling modest leverage and a cushion to fund near-term operating needs. Free cash flow was negative at -$0.776 million, reflecting ongoing cash burn in operations and modest investing activity. The company’s current ratio of 2.77 and quick ratio of 2.50 point to healthy short-term liquidity, though profitability and cash generation require improvement to support sustainable equity value.
Without a disclosed management outlook in the data provided, the QQ2 2025 results suggest a path of stabilizing revenue with continued margin discipline and cost management as critical catalysts for a turn toward positive earnings and cash flow. Investors should monitor AUM-related growth, cost-to-revenue efficiency, and any monetization initiatives in non-core segments to validate a longer-term improvement trajectory.