Summary of QQ4 2025 performance:
- Revenue of $143.9 million, down 16.8% year over year and up 0.6% quarter over quarter. Gross profit was $105.9 million with a gross margin of 73.6%. Operating income declined to a loss of $6.2 million, while EBITDA stood at $9.2 million, implying an EBITDA margin near 6.4%. Net income was a loss of $7.0 million, or -$0.0118 per share on a diluted basis.
- The company generated solid cash flow characteristics: operating cash flow of $41.5 million and free cash flow of $40.4 million for the quarter, contributing to a net cash position (net debt) of approximately -$27.7 million and a cash balance around the mid-to-upper $260s million range, supported by $71.1 million in short-term investments and total cash and investments near $337.8 million.
- Balance sheet signals liquidity and stability: total assets of about $1.30 billion, total liabilities of $575.7 million, and total stockholders’ equity of $719.9 million. The company maintains a modest level of leverage (long-term debt ~$224M) and a robust cash cushion to support strategic investments in Cybersecurity, IoT, and licensing. The quarter reflects ongoing investment in growth initiatives alongside a positive cash generation cadence, which is key for the investment thesis despite a near-term bottom-line gap.