CXJ Group Co Limited (ECXJ) Q4 2024 Earnings Report

CXJ Group reported a modestly growing top line for QQ4 2024, driven by YoY and QoQ revenue expansion (YoY +62.6%, QoQ +42.9%), alongside a robust gross margin of approximately 91%. However, the bottom line remained negative due to substantial non-operating charges, with total other income/expenses net of about -$7.59 million, offsetting the positive operating income of roughly $5.64 million. The resulting net loss of about -$1.94 million and negative free cash flow of -$7,142 highlight a company transitioning from a period of operating profitability to a cash-generating constraint driven by non-core items and working-capital dynamics.

From a balance-sheet perspective, CXJ exhibits very tight liquidity: current ratio ~0.27 and quick ratio ~0.24, with total current liabilities near $1.98 million and cash/equivalents around $2.5k. Intangibles and goodwill constitute a meaningful asset base (goodwill $1.74 million), while retained earnings remain negative, underscoring ongoing capital-structure challenges. Net debt stands at approximately $69.9k with limited cash conversion capability, as reflected in a CCC of -23.3 days.

Management commentary is not captured in the provided transcript data, limiting the ability to quote specific guidance or qualitative color. As a result, the investment thesis hinges on the reconciliation of a solid gross margin and positive operating income against recurring non-operating charges and liquidity constraints. Investors should monitor non-operating drivers, working-capital efficiency, and any management guidance on path to sustainable profitability and liquidity restoration.