Enlightify Inc reported subdued top-line performance for QQ1 2024, with revenue of $17.36 million and a gross profit of $3.99 million, yielding a gross margin of approximately 23.0%. The company posted a net loss of $1.84 million and an EBITDA loss of $1.07 million, resulting in an EBITDA margin of about -6.1% and an operating margin of -10.16%. The year-over-year revenue decline of roughly 22.5% and gross profit decline of roughly 14.3% reflect ongoing fundamental headwinds, including a stretched working capital cycle and elevated inventories. Despite the earnings softness, Enlightify maintains a solid balance sheet with ample liquidity and very modest leverage: total debt stands at $5.65 million against total assets of $182.86 million and total stockholders’ equity of $122.75 million, yielding a net debt position of negative $61.64 million and a current ratio near 2.04.
Operating cash flow remained negative at -$2.55 million in the quarter, driven by working capital dynamics (accounts receivable and working capital movements) and a large build in receivables and inventories. Free cash flow was -$2.60 million, highlighting ongoing cash-generation headwinds even as the balance sheet remains robust. The company’s valuation metrics imply a cheap multiple backdrop (P/S ~1.62, P/B ~0.27) that arguably prices in macro and execution risk, but also signals potential upside if Enlightify can stabilize margins and improve working capital efficiency. Management commentary for QQ1 2024 is not included in the provided transcript dataset; as a result, the analysis relies on quantitative results and industry context to outline the investment thesis going forward.