Executive Summary
Encision Inc. reported QQ4 2024 revenue of $1.525 million, down 15.6% year-over-year from $1.806 million in the prior-year quarter and down 3.6% quarter-over-quarter. The company posted a gross margin of 42.4% but still delivered a notable operating loss of $0.402 million and a net loss of $0.409 million, driven by elevated operating expenses and the fixed-cost structure that remains disproportionate to the modest top-line scale. EBITDA was negative at $0.309 million, with an EBITDAR of -20.2%. Diluted EPS stood at -$0.0347. On the balance sheet, Encision carries $1.333 million of total debt against cash of $0.0425 million, yielding a net debt position of approximately $1.29 million. Liquidity remains tight, as reflected by a current ratio of 1.99, a quick ratio of 0.84, and a cash ratio of 0.0348. Free cash flow for the period was negative at -$0.0156 million, and operating cash flow totaled -$0.0100 million, underscoring ongoing cash burn at the scale of the business. Management commentary is not captured in the provided transcript, limiting the ability to extract direct guidance or forward-looking qualifiers from an earnings call. The result paints a picture of a small-cap medical devices company navigating a low-volume year with persistent cost discipline needs and revenue growth constraints, while potentially laying the groundwork for longer-term improvement through product adoption and operating leverage once revenue scales meaningfully.
Key Performance Indicators
QoQ: -3.58% | YoY:-15.56%
QoQ: -11.17% | YoY:-36.54%
QoQ: -112.25% | YoY:-402.50%
QoQ: -97.46% | YoY:-243.70%
QoQ: -97.16% | YoY:-243.56%
Key Insights
Revenue: $1.525 million in QQ4 2024, down -15.56% YoY and -3.58% QoQ. Gross Profit: $0.646 million, gross margin 42.36% (YoY -36.54%, QoQ -11.17%). Operating Income: -$0.402 million, operating margin -26.36% (YoY change large negative; QoQ deterioration). Net Income: -$0.409 million, net margin -26.82% (YoY -243.70%, QoQ -97.46%). EPS: -$0.0347 basic/diluted, YoY -243.56%, QoQ -97.16%. EBITDA: -$0.3087 million, EBITDARatio -0.2024. Cash flow: Net cash from operating activities -$0.0100 million; ...
Financial Highlights
Revenue: $1.525 million in QQ4 2024, down -15.56% YoY and -3.58% QoQ. Gross Profit: $0.646 million, gross margin 42.36% (YoY -36.54%, QoQ -11.17%). Operating Income: -$0.402 million, operating margin -26.36% (YoY change large negative; QoQ deterioration). Net Income: -$0.409 million, net margin -26.82% (YoY -243.70%, QoQ -97.46%). EPS: -$0.0347 basic/diluted, YoY -243.56%, QoQ -97.16%. EBITDA: -$0.3087 million, EBITDARatio -0.2024. Cash flow: Net cash from operating activities -$0.0100 million; free cash flow -$0.0156 million; cash at end of period $42,509. Balance sheet: total assets $3.811 million; total liabilities $1.983 million; total stockholders’ equity $1.827 million. Cash position $42.5k; total debt $1.333 million; net debt $1.290 million. Liquidity metrics: current ratio 1.989; quick ratio 0.839; cash ratio 0.0348. Leverage: debt-to-equity 0.730; debt-to-capitalization 0.422; interest coverage negative (-39.32x). Efficiency: receivables turnover 1.711x; inventory turnover 0.627x; asset turnover 0.400x; capital expenditure 0.0 (small) with capex not meaningfully offsetting depreciation. Valuation signals: price-to-book 4.45x; price-to-sales 5.33x; enterprise value multiple -30.49x (reflecting negative earnings).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.53M |
-15.56% |
-3.58% |
| Gross Profit |
646.00K |
-36.54% |
-11.17% |
| Operating Income |
-402.00K |
-402.50% |
-112.25% |
| Net Income |
-409.00K |
-243.70% |
-97.46% |
| EPS |
-0.03 |
-243.56% |
-97.16% |
Key Financial Ratios
operatingProfitMargin
-26.4%
operatingCashFlowPerShare
$-0
Management Commentary
No formal earnings call transcript is provided for QQ4 2024 in the data set. Consequently, management commentary and direct quotes from an earnings call are not available to accompany the financials. The analysis relies on the disclosed 10-Q/10-K data rather than verbatim management transcripts.
Forward Guidance
No explicit forward guidance was captured in the provided data. Investors should monitor upcoming quarterly results for any reformulations of outlook, particularly around: (1) demand trajectory for active electrode monitoring (AEM) surgical instruments and EndoShield burn protection systems, (2) cost containment progress and operating leverage as volume scales, (3) working capital dynamics given inventory levels and receivables, and (4) potential debt repayment plans or financing arrangements. Given the current scale and profitability profile, meaningful improvement in profitability will likely require a sustained revenue ramp or meaningful gross margin/overhead optimization.