Executive Summary
The Marygold Companies Inc (MGLD) reported QQ4 2024 results with revenue of $8.265 million and a robust gross margin of 72.5%, highlighting the strength of its underlying business model. However, the quarter delivered a material bottom-line shortfall, with a net loss of $1.857 million and EBITDA of $(2.246) million, driven by a high operating expense base of $11.017 million that overwhelmed gross profit. On a per-share basis, earnings were negative at $(0.046) per share, with YoY declines in profitability, though topline declined more modestly than earnings, evidenced by a YoY revenue change of -6.9% and a QoQ revenue increase of +4.9%.
The balance sheet remains meaningfully liquid, supported by cash and short-term investments totaling roughly $15.0 million and a net cash position (net debt of approximately $(4.07) million). The company carries minimal debt, a strong current ratio of 4.63x, and a liquidity cushion that provides flexibility to pursue strategic opportunities, including potential monetization of non-core assets or fintech initiatives. Cash burn is evident in operating activities at $(0.695) million for the quarter and free cash flow of $(0.719) million, underscoring the need for sustainable margin expansion or revenue growth to return to positive cash flow generation.
Overall, MGLD presents a bifurcated investment narrative: a solid liquidity position and a diversified asset base that could unlock future value, contrasted with a near-term profitability challenge that requires operational discipline and a clearer path to sustainable earnings. Absent a specified forward-looking guidance, the near-term catalyst will likely hinge on cost optimization, execution in fee-based revenue streams, and the potential monetization of non-core ventures, including fintech initiatives.
Key Performance Indicators
QoQ: -87.08% | YoY:-837.65%
QoQ: -251.04% | YoY:-658.04%
QoQ: -251.15% | YoY:-647.62%
Key Insights
Revenue: $8,265,000 (YoY -6.86%, QoQ +4.89%). Gross Profit: $5,994,000 (YoY -8.81%, QoQ +45.13%); Gross Margin: 72.52%
Operating Income: $(2,752,000) (YoY -837.65%, QoQ -87.08%); EBITDA: $(2,246,000) (EBITDA Margin -27.17%)
Net Income: $(1,857,000) (Net Margin -22.47%); EPS: $(0.046) (Diluted: $(0.046))
Balance Sheet: Total Assets $32.899 million; Total Liabilities $6.285 million; Total Equity $26.614 million; Cash & Cash Equivalents $5.461 million; Short-Term Investments $9.551 million; Net...
Financial Highlights
Revenue: $8,265,000 (YoY -6.86%, QoQ +4.89%). Gross Profit: $5,994,000 (YoY -8.81%, QoQ +45.13%); Gross Margin: 72.52%
Operating Income: $(2,752,000) (YoY -837.65%, QoQ -87.08%); EBITDA: $(2,246,000) (EBITDA Margin -27.17%)
Net Income: $(1,857,000) (Net Margin -22.47%); EPS: $(0.046) (Diluted: $(0.046))
Balance Sheet: Total Assets $32.899 million; Total Liabilities $6.285 million; Total Equity $26.614 million; Cash & Cash Equivalents $5.461 million; Short-Term Investments $9.551 million; Net Debt $(4.071) million; Current Ratio 4.63; Quick Ratio 4.22; Cash Ratio 1.04
Cash Flow: Net cash provided by operating activities $(0.695) million; Free Cash Flow $(0.719) million; Net Change in Cash $1.019 million; Cash at End of Period $5.523 million; CFO negative, but funded by investment income and liquidity reserves. Capex $(0.024) million; Investing Activities $(1.829) million; Financing Activities $(0.013) million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.27M |
-6.86% |
4.89% |
| Gross Profit |
5.99M |
-8.81% |
45.13% |
| Operating Income |
-2.75M |
-837.65% |
-87.08% |
| Net Income |
-1.86M |
-658.04% |
-251.04% |
| EPS |
-0.05 |
-647.62% |
-251.15% |
Key Financial Ratios
operatingProfitMargin
-33.3%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
Transcript not provided in the data set. As a result, no management quotes or themes from an earnings call are available to extract verbatim insights. Revenue, margin dynamics, and liquidity are the primary data points available for assessment; once a transcript is available, key themes typically include cost control initiatives, strategic monetization plans for non-core businesses, and updates on any fee-based (asset management/fintech) revenue initiatives.
Not available in the provided transcript data.
— N/A
Not available in the provided transcript data.
— N/A
Forward Guidance
No explicit forward guidance is included in the provided data. Given the revenue stability but continued negative profitability, management guidance could plausibly focus on cost optimization, improving operating leverage, and advancing any monetization plans for non-core ventures (notably fintech) or cross-segment cross-selling. Investors should monitor: (1) quarterly progress on reducing the expense base (particularly G&A and SG&A), (2) any disclosed milestones for fintech monetization or asset management fee growth, and (3) changes in working capital efficiency that could alter cash flow trajectory. Realized improvement in EBITDA and free cash flow would be key catalysts to re-rate the stock more favorably given the net cash position and low leverage.