Executive Summary
Cavitation Technologies Inc. (CVAT) reported QQ2 2025 revenue of 76,000 USD with a gross profit of 63,000 USD, yielding a robust gross margin of 82.9%. However, operating income registered a loss of 299,000 USD as operating expenses exceeded revenue by a wide margin, resulting in a negative operating margin of -3.93%. The company posted a pretax income of 579,000 USD and net income of 579,000 USD, supported primarily by total other income of 878,000 USD rather than core operating performance. EBITDA stood at 581,000 USD, with an EBITDA margin of 7.64%. The stark divergence between minimal top-line revenue and positive net income underscores a heavy reliance on non-operating items and one-off effects rather than sustainable operating cash flows. Diluted earnings per share were 0.002 USD, on a weighted average diluted share count of 284.3 million. The quarter also featured a negative equity position (total stockholders’ deficit of 23,000 USD) despite a cash cushion of 681,000 USD at period end, signaling structural balance sheet weaknesses amid a modest liquidity profile (current ratio ~1.14). Net cash from operating activities was -201,000 USD, while investing activities consumed 880,000 USD, contributing to a net cash increase of 679,000 USD driven by non-operating items or financing activities not shown in the cash flow line items. Management commentary is not provided in the transcript data, limiting direct attribution of the headline drivers to stated guidance. This report outlines the implications for investors, the sustainability of earnings, and the roadmap for CVAT going forward.
Key Performance Indicators
QoQ: -32.30% | YoY:-2 035.71%
QoQ: 355.07% | YoY:3 718.75%
QoQ: 350.00% | YoY:2 100.00%
Key Insights
Revenue: 76,000 USD (QoQ not applicable; YoY not available for prior Q2 in the data) | YoY revenue change: -60.42% | Gross Profit: 63,000 USD | Gross Margin: 82.9% | Operating Income: -299,000 USD | Operating Margin: -3.93% | EBITDA: 581,000 USD | EBITDA Margin: 7.64% | Net Income: 579,000 USD | Net Margin: 7.62% | EPS: 0.002 | EPS Diluted: 0.002 | Weighted Avg Shares: 284,289,740 | Cash and Cash Equivalents: 681,000 USD | Total Assets: 718,000 USD | Total Liabilities: 741,000 USD | Total Stockh...
Financial Highlights
Revenue: 76,000 USD (QoQ not applicable; YoY not available for prior Q2 in the data) | YoY revenue change: -60.42% | Gross Profit: 63,000 USD | Gross Margin: 82.9% | Operating Income: -299,000 USD | Operating Margin: -3.93% | EBITDA: 581,000 USD | EBITDA Margin: 7.64% | Net Income: 579,000 USD | Net Margin: 7.62% | EPS: 0.002 | EPS Diluted: 0.002 | Weighted Avg Shares: 284,289,740 | Cash and Cash Equivalents: 681,000 USD | Total Assets: 718,000 USD | Total Liabilities: 741,000 USD | Total Stockholders’ Equity: -23,000 USD | Current Ratio: 1.144 | Quick Ratio: 1.126 | Cash Ratio: 1.111 | Days Inventory Outstanding: 76.15 | Cash Conversion Cycle: -1,059.23 days | Net Debt: -538,000 USD (net cash) | Free Cash Flow: -201,000 USD
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
76.00K |
-60.42% |
N/A |
| Gross Profit |
63.00K |
-60.13% |
N/A |
| Operating Income |
-299.00K |
-2 035.71% |
-32.30% |
| Net Income |
579.00K |
3 718.75% |
355.07% |
| EPS |
0.00 |
2 100.00% |
350.00% |
Key Financial Ratios
operatingProfitMargin
-393%
operatingCashFlowPerShare
$-0
Management Commentary
Transcript data for QQ2 2025 is not provided in the source material. As a result, there are no management-quoted highlights or thematically grouped insights from an earnings call to cite in this report.
Forward Guidance
No formal quarter-specific guidance is disclosed in the provided data. Given the revenue profile and the reliance on non-operating income to deliver net earnings, CVAT’s forward-looking assessment hinges on monetization of its Nano Reactor and Nano Neutralization technologies, potential licensing agreements, and deployment pilots within industrial fluids processing, renewable fuels, water treatment, and related markets. Key factors investors should monitor include: (1) progression of licensing deals or system installations that meaningfully scale revenue; (2) sustainability of non-operating income drivers (e.g., one-time gains, grants, or fair-value adjustments); (3) runway of cash to fund operating activities and R&D until core revenue scales; (4) changes in working capital and any debt maturities; and (5) strategic partnerships or customer wins that validate product-market fit for industrial oil refining and other markets.