DBMM reported a challenging Q4 2024 with revenue of $29.199 million, representing a YoY decline of 66.93% and a QoQ decline of 31.03%. Gross profit was $6.442 million, yielding a gross margin of 22.06%, while selling, general and administrative expenses totaled $144.502 million, driving total operating expenses to $167.259 million and producing an EBITDA of negative $107.290 million. Operating income stood at a loss of $138.060 million, culminating in a net loss of $343.867 million for the quarter. Net income margin was -11.78%, and the company reported an EBITDAR of -$3.674x, indicating significant leverage and operating under-performance despite a modest gross margin.
From the balance sheet, DBMM exhibits pronounced liquidity stress: current ratio and quick ratio both at 0.00805, cash and cash equivalents of $49,815, and total current liabilities of $7.628 million. Short-term debt amounts to $3.725 million, with total debt at $3.739 million and net debt of $3.689 million. Accumulated deficits have driven negative shareholders’ equity of approximately $(7.581) million. Cash flow from operations was negative at $(119.496) thousand for the period, while net change in cash was a positive $26.230 thousand driven by financing activities of $147.931 thousand. Free cash flow was negative $(119.496) thousand.
Overall, the stock trades in a high-risk category given the combination of sustained losses, near-zero liquidity metrics, and negative equity. Absent a credible near-term path to operating profitability or a material balance-sheet recapitalization, investors should approach DBMM with a high tolerance for risk and a focus on any forthcoming strategic plan, debt restructuring, or asset-light monetization opportunities that could stabilize cash flow and improve liquidity.