PhenixFIN Corporation 525 (PFXNZ) Q2 2024 Earnings Report

PhenixFIN’s QQ2 2024 results show a nuanced mix of operating performance and one-off/non-operating gains that drive net income higher than the standard operating line. Revenue declined modestly year-over-year (YoY) by 3.72% to USD 4.66 million and quarter-over-quarter (QoQ) by 18.58%, while gross profit remained robust at USD 4.60 million yielding a gross margin of approximately 98.76%. Operating income stood at USD 2.14 million (margin ~2.42%), yet net income reached USD 5.37 million driven by sizeable non-operating income/expense components. The company generated negative cash flow from operating activities (USD -14.58 million) in QQ2, reflecting working capital movements and significant non-cash adjustments, even as investing activities delivered USD 23.54 million from maturities of investments. Balance sheet strength is evident in a large, long-duration asset base (long-term investments of USD 220.05 million) and a solid liquidity position (USD 19.12 million cash at period end, current ratio ~2.95). Relative to peers, PFXNZ trades at a low price-to-book multiple (~0.30) and a modest price-to-earnings multiple (~2.15), but exhibits a high price-to-sales ratio (~16.14), suggesting investors price long-duration asset value and potential future exits, while recognizing earnings quality challenges highlighted by negative operating cash flow.