NNUPD reported QQ1 2025 revenue of $0.479 million, marking a 20.3% year-over-year increase against QQ1 2024, while QoQ revenue declined 19.1% versus Q4 2024. Gross margin remained robust at 57.1%, but operating income remained negative at $(0.0858) million, with net income turning positive at $0.0255 million. The most striking feature of the quarter is the balance sheet: an exceptionally strong liquidity position with cash and cash equivalents of $11.209 million and virtually no debt ($14.2k in short-term debt), resulting in a net debt position of $(11.195) million. This creates a substantial liquidity cushion and strategic optionality, albeit on the back of a small and volatile revenue base.
Management commentary is not reflected in the supplied transcript data; as a result, the analysis relies on disclosed financial metrics and implied quarterly dynamics. The company’s heavy reliance on non-operating income and non-cash items to achieve net income underscored in the quarter suggests a high sensitivity to one-time components and accounting artifacts rather than steady operating profitability. Investors should monitor the company’s ability to grow revenue meaningfully, sustain margin discipline, and convert operating performance into consistent cash generation going forward.
Key Performance Indicators
Revenue
Increasing
479.00K
QoQ: -19.10% | YoY: 20.26%
Gross Profit
Increasing
273.70K
57.14% margin
QoQ: -15.55% | YoY: 65.28%
Operating Income
Increasing
-85.80K
QoQ: 83.37% | YoY: 92.60%
Net Income
Increasing
25.50K
QoQ: 106.47% | YoY: 102.48%
EPS
Increasing
0.00
QoQ: 105.41% | YoY: 102.04%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability metrics:
- Revenue: $0.479 million (Q1 2025) vs. $0.398 million (Q1 2024) = +20.3% YoY; QoQ: -19.1% from $0.592 million in Q4 2024.
- Gross Profit: $0.2737 million; Gross Margin: 57.14% (0.5714).
- Operating Income: $(0.0858) million; Operating Margin: (17.91)%.
- Net Income: $0.0255 million; Net Margin: 5.32%.
- EBITDA: $(0.0858) million; EBITDARatio: (17.91)%.
- EPS: $0.0020 basic and diluted; Weighted average shares: 10.792 million.
Leverage, liquidity and cash flow:
- Total cash and equivalents: $11.209 million; Total debt: $0.0142 million; Net debt: $(11.1952) million.
- Current ratio: 45.66x; Quick ratio: 44.50x; Cash ratio: 39.96x – signaling extreme liquidity for a small-cap, but also highlighting a low-risk balance sheet.
- Net cash provided by operating activities: $0.3697 million; Free cash flow: $0.3697 million.
- Major working capital moves: Accounts receivable $1.1793 million; Inventory $0.3238 million; Accounts payable $0.0420 million; Other non-cash items $0.2996 million.
- Cash at end of period: $11.2094 million; Retained earnings: $(12.0230) million; Total stockholders’ equity: $13.6673 million.
Valuation and efficiency:
- Receivables turnover and cash conversion cycle indicate extended collection period (DSO 221.6 days; CCC 335.95 days).
- Asset turnover: 0.0341x; Gross margin remains solid, but operating leverage remains constrained due to elevated SG&A and other operating costs.
- Price-to-book (P/B) around 1.25x; Price-to-sales (P/S) 35.67x; Price-to-earnings (P/E) 167.5x; Enterprise value multiple is negative due to net cash position, signaling an unusual but favorable balance sheet stance for liquidity-focused investors.
Overall assessment:
- The QQ1 2025 results deliver a positive net income in a quarter of negative operating performance, driven by non-operating income and atypical items rather than core operating strength. The company’s strongest attribute is the balance sheet: a cash-rich, nearly debt-free profile with ample liquidity to fund experimentation, strategic partnerships, or select growth opportunities. However, revenue scale and operating profitability remain material issues, and the business shows elevated working capital needs (high DSO) with limited efficiency in asset utilization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
479.00K
20.26%
-19.10%
Gross Profit
273.70K
65.28%
-15.55%
Operating Income
-85.80K
92.60%
83.37%
Net Income
25.50K
102.48%
106.47%
EPS
0.00
102.04%
105.41%
Key Financial Ratios
Gross Profit Margin
Good
57.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.18%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
5.32%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.18%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.19%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
45.66
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
167.50x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.25x
Price-to-book ratio reasonable for profitable companies
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