PhenixFIN (PFX) reported Q4 2024 revenue of 8.53 million and net income of 6.10 million, with EPS of 2.99. The quarter shows a striking divergence between weak operating performance and a sizable non-operating income contribution, culminating in a positive bottom line despite an operating loss. Operating income was negative at -13.99 million, as elevated operating costs and interest/amortization weighed on margins, while total other income and expenses added 19.21 million of non-operating income, driving income before tax to 5.22 million and a net income print of 6.10 million. The result translates to a net income margin of 7.16% and an EPS of 2.99, but the core business appears to be producing negative EBITDA and negative operating leverage.
The balance sheet reflects strong liquidity with cash and cash equivalents of 67.57 million and a heavy allocation to long-term investments (~227.92 million), underpinning a net cash position (-67.57 million in net debt) amid a substantial asset base. However, accumulated deficits (retained earnings of -544.60 million) and a fragile operating margin profile highlight a structure that relies on non-operating items for profitability. Revenue for the four-quarter period shows YoY growth of about 50.3% but QoQ declines of roughly 42.9%, signaling sequential revenue volatility typical of asset-management vehicles with material non-operating items.
From a strategic lens, PhenixFIN operates as a small-cap BDC investing in private debt and equity securities across North America. The market environment for private debt remains cyclical and sensitive to interest rates and credit quality. Management commentary (where available) typically centers on portfolio deployment, NAV performance, and fee-related earnings; in this data set, explicit call transcripts are not provided, limiting direct quotes. Investors should monitor portfolio yields, realized vs. unrealized gains, leverage dynamics, and the sustainability of non-operating income contributions.
Key Performance Indicators
Revenue
Increasing
8.53M
QoQ: -42.87% | YoY: 50.26%
Gross Profit
Increasing
8.53M
1.00% margin
QoQ: -42.87% | YoY: 100.69%
Operating Income
Decreasing
-13.99M
QoQ: -477.94% | YoY: -515.16%
Net Income
Decreasing
6.10M
QoQ: 134.01% | YoY: -16.85%
EPS
Decreasing
2.99
QoQ: 131.78% | YoY: -15.30%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue (TTM Q4 2024): 8.53 million; gross profit 8.53 million; gross margin 100% by design of revenue recognition in the data set.
- Operating income (Q4 2024): -13.99 million; EBIT margin: -1.64% (negative core operating profitability).
- Net income (Q4 2024): 6.10 million; net margin 7.16%; yoy -16.85% vs prior year fourth quarter; QoQ +134.01%.
- EBITDA: -2.23 million; EBITDA margin: -26.19%.
- Income before tax: 5.22 million; tax expense: -0.89 million (tax benefit).
- EPS (diluted): 2.99; weighted average shares: 2.040 million.
- Cash flow: operating cash flow 8.71 million; net change in cash +58.705 million; cash at end of period 67.57 million; free cash flow 8.71 million.
- Balance sheet: total assets 302.75 million; cash and equivalents 67.57 million; long-term investments 227.92 million; total liabilities 142.44 million; long-term debt 135.72 million; net debt = -67.57 million (net cash).
- Valuation/multiples: P/E ~ 3.98; price-to-book ~ 0.61; price-to-sales ~ 11.39; enterprise value multiple ~ -13.23 (reflecting net cash position).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.53M
50.26%
-42.87%
Gross Profit
8.53M
100.69%
-42.87%
Operating Income
-13.99M
-515.16%
-477.94%
Net Income
6.10M
-16.85%
134.01%
EPS
2.99
-15.30%
131.78%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-1.64%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Excellent
71.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
2.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.81%
Return on equity suggests inefficient capital allocation
P/E Ratio
Value
3.98x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.61x
Trading below book value, potential value opportunity or distressed
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