Executive Summary
George Risk Industries (RSKIA) reported QQ1 2025 revenue of $5.78 million, up 22.25% YoY and 3.36% QoQ, supported by a resilient demand backdrop in its Security Protection Services portfolio. The company posted a gross profit of $2.945 million and a gross margin of 51.0%, with EBITDA of $3.774 million and operating income of $1.774 million, delivering an operating margin of 30.7%. Net income was $2.705 million, yielding a net margin of 46.8% for the quarter, aided by a substantial non-operating income line of $1.875 million which materially contributed to pretax profitability. On a pro forma basis excluding other income, trailing margins would be more in line with conventional manufacturing/security component peers, suggesting ongoing operating profitability remains solid even without the one-time headwind/benefit. Cash flow remained strong, with net cash provided by operating activities of $2.295 million and free cash flow of $2.19 million; cash and equivalents plus short-term investments stood at $45.87 million against minimal to no debt, leaving the company in a comfortable liquidity position. The balance sheet shows total assets of $64.76 million and total stockholders’ equity of $57.52 million, reinforcing a net cash position and a conservative capital structure. While the business exhibits an unusually high working capital cycle (CCC around 413 days and DIO near 357 days), the company maintains ample liquidity to manage working capital needs and potential expansion initiatives. Given the strong margin profile, healthy cash generation, and a relatively inexpensive earnings multiple, the QQ1 2025 print supports an attractive near-term investment backdrop, albeit with a caveat related to the sustainability of the non-operating income component and working capital intensity.
Key Performance Indicators
Key Insights
Revenue: $5.78m (+22.25% YoY; +3.36% QoQ) | Gross Profit: $2.945m; Gross Margin: 51.0% | EBITDA: $3.774m; EBITDA Margin: 65.29% | Operating Income: $1.774m; Operating Margin: 30.69% | Net Income: $2.705m; Net Margin: 46.80% | EPS: $0.55 | Cash from Operations: $2.295m; Free Cash Flow: $2.19m | Cash & Short-Term Investments: $45.87m; Total Assets: $64.76m | Total Liabilities: $7.24m; Equity: $57.52m | Debt: None; Net Cash Position: -$9.37m in net debt (net cash) | Valuation: P/E 5.82x; P/B 1....
Financial Highlights
Revenue: $5.78m (+22.25% YoY; +3.36% QoQ) | Gross Profit: $2.945m; Gross Margin: 51.0% | EBITDA: $3.774m; EBITDA Margin: 65.29% | Operating Income: $1.774m; Operating Margin: 30.69% | Net Income: $2.705m; Net Margin: 46.80% | EPS: $0.55 | Cash from Operations: $2.295m; Free Cash Flow: $2.19m | Cash & Short-Term Investments: $45.87m; Total Assets: $64.76m | Total Liabilities: $7.24m; Equity: $57.52m | Debt: None; Net Cash Position: -$9.37m in net debt (net cash) | Valuation: P/E 5.82x; P/B 1.10x; P/S 10.90x; EV/EBITDA ~14.22x | Working Capital & Liquidity: Current ratio ~13.57x; CCC ~413.81 days; Inventory Turnover 0.252x; DSO 65.24 days; DIO 356.86 days.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.78M |
22.25% |
3.36% |
| Gross Profit |
2.95M |
29.96% |
4.77% |
| Operating Income |
1.77M |
49.45% |
9.85% |
| Net Income |
2.71M |
13.94% |
35.25% |
| EPS |
0.55 |
14.58% |
34.15% |
Key Financial Ratios
operatingProfitMargin
30.7%
operatingCashFlowPerShare
$0.47
freeCashFlowPerShare
$0.45
Management Commentary
No earnings call transcript provided in the data set. Management commentary and key quotes could not be extracted for QQ1 2025 from the supplied material.
Forward Guidance
No formal forward guidance was included in the provided data. Given the lack of explicit guidance, the near-term outlook hinges on sustaining core demand for security components, preserving high gross margins, and converting non-operating income into recurring earnings where feasible. Key factors investors should monitor include: (1) the sustainability of the $1.875 million other income line in QQ1 2025, (2) ongoing working capital requirements given a high CCC and DIO, and (3) capital allocation decisions for the $45.9 million liquidity pool (investments vs. opportunistic acquisitions). Management commentary in subsequent disclosures would be essential to validate the durability of profits outside operating performance.