AOXY reported Q3 2025 revenue of 10.585 million USD with an implied gross margin of 100% (gross profit 10.585; gross margin 1.00), EBITDA of 5.103 million and net income of 2.818 million, yielding a net margin of 26.6% and an EPS of 0.0009. YoY revenue and gross profit declined 1.72%, while QoQ revenue declined 20.15% as the quarter lapped a stronger Q2 base. The operating margin remained robust at 48.21%, supported by controlled operating expenses (GA&A of 5.482 million) and a streamlined cost structure. Balance-sheet data depict a asset-heavy profile (PPE at 585.65 million) financed with a modest debt load (short-term debt 127.029 million; total debt 127.029 million) and a cash balance of 57.705 million, producing a net debt position of 69.324 million. Liquidity metrics are tight (current ratio and quick ratio both at 0.202), suggesting limited cushion to fund short-term obligations without accessing external financing. Despite the negative retained earnings balance (-20.75 billion), the company generated operating cash flow of 11.224 million and free cash flow of 11.224 million during the quarter, with financing activities contributing an outflow of 18.93 million, primarily driven by debt repayments. Management commentary from the earnings call is not provided in the available transcript, limiting direct quote-based interpretation, but the results imply a deliberate capital structure management strategy and a focus on asset-backed cash flow. Investors should monitor balance-sheet resilience, potential asset monetization, and any guidance on Danish property lease activity and diversification of revenue streams.
Key Performance Indicators
Revenue
Decreasing
10.59K
QoQ: -20.15% | YoY: -1.72%
Gross Profit
Decreasing
10.59K
1.00% margin
QoQ: -20.15% | YoY: -1.72%
Operating Income
Decreasing
5.10K
QoQ: -34.10% | YoY: -5.32%
Net Income
Increasing
2.82K
QoQ: -45.30% | YoY: 11.83%
EPS
Increasing
0.00
QoQ: -43.75% | YoY: 12.50%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Revenue: 10.585 million USD in Q3 2025; YoY change: -1.72%; QoQ change: -20.15%.
- Gross Profit: 10.585 million USD; Gross Margin: 1000.0% (reported as 1.0000). No separate cost of revenue identified in the period.
- EBITDA: 5.103 million USD; EBITDA margin: 48.21% (EBITDA/Revenue).
- Operating Income: 5.103 million USD; Operating Margin: 48.21%.
- Net Income: 2.818 million USD; Net Margin: 26.62%.
- Earnings per Share (EPS): 0.0009; Diluted EPS: 0.0009; Weighted average shares outstanding: 3.292 million (basic) / 3.303 million (diluted).
Cash flow and liquidity
- Operating cash flow: 11.224 million USD; Free cash flow: 11.224 million USD.
- Net change in cash: -6.858 million USD; Cash at end of period: 57.705 million USD; Cash at beginning: 64.563 million USD.
- Change in working capital: 0.370 million; Accounts payable: 0.422 million; Other working capital: -0.052 million; Other non-cash items: 8.036 million.
- Financing activities: net outflow of 18.930 million USD; Effect of foreign exchange: 0.208 million.
Balance sheet and leverage
- Total assets: 644.509 million USD; PPE net: 585.649 million USD.
- Total current assets: 58.860 million USD; Total current liabilities: 291.459 million USD; Total liabilities: 291.459 million USD.
- Cash and cash equivalents: 57.705 million USD; Short-term debt: 127.029 million USD; Total debt: 127.029 million USD; Net debt: 69.324 million USD.
- Shareholders’ equity: 53?3.05 million USD; Retained earnings: -20,753.276 thousand USD (negative accumulated deficit); Accumulated OCI: 16.231 thousand USD; Other stockholders’ equity: 21,057.116 thousand USD; Debt ratio: 0.197; Debt-to-equity: 0.360; Price-to-book: 0.723; Price-to-sales: 24.11.
Valuation and efficiency
- Price-to-sales (P/S): 24.11x; Price-to-book (P/B): 0.723x; Price-to-earnings (P/E): 22.64x; Enterprise value multiple: 63.60x.
- Asset turnover: 0.0164x; Fixed asset turnover: 0.0181x; Cash flow to debt: 0.0884x.
- Current and quick ratios: 0.202x; Cash ratio: 0.198x.
Notes on inputs
- Four-quarter view indicates Q2 2025 revenue 13.256 million; Q1 2025 revenue 10.885 million; Q4 2024 revenue 10.673 million.
- The company operates a Danish land-based asset and a 750 square meter parcel used as a fuel station, plus a non-core distribution business (cargo straps and tie downs).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
10.59K
-1.72%
-20.15%
Gross Profit
10.59K
-1.72%
-20.15%
Operating Income
5.10K
-5.32%
-34.10%
Net Income
2.82K
11.83%
-45.30%
EPS
0.00
12.50%
-43.75%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
48.20%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
26.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.44%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.80%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.20
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Moderate
0.36
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
22.64x
P/E ratio in line with market averages
Price to Book
Undervalued
0.72x
Trading below book value, potential value opportunity or distressed
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