Executive Summary
Kindcard Inc (KCRD) reported QQ1 2025 revenue of USD 85,053 thousand with a gross profit of USD 43,822 thousand, producing a gross margin of 51.5%. The company remains unprofitable, posting an operating loss of USD 87,280 thousand and a net loss of USD 89,532 thousand, translating to an EPS of -0.0009. YoY revenue declined by 34.5% and QoQ by 19.4%, underscoring a challenging revenue trajectory in a competitive Software Infrastructure segment. While gross margins held above 50%, the business is burdened by a heavy cost base and a thin liquidity cushion, culminating in a negative equity position and mounting liabilities.
Balance sheet and cash flow highlights reveal acute liquidity stress: cash and cash equivalents of USD 10,351 thousand against total liabilities of USD 1,012,375 thousand and total stockholders’ equity of -USD 883,804 thousand. Current ratio and quick ratio stand at 0.0405x, signaling near-term liquidity risk. Net cash from operating activities was negative USD 28,615 thousand, with financing activity providing a USD 29,319 thousand inflow that left the net cash change at USD 704 thousand and ending cash of USD 10,351 thousand. The firm carries a net debt position of USD 665,851 thousand, with total debt of USD 676,202 thousand, suggesting significant leverage ahead of potential revenue recovery.
Management commentary and forward guidance are not included in the provided dataset, limiting the ability to anchor the narrative to explicit targets. Nevertheless, the earnings backdrop implies that near-term value creation hinges on stabilizing or accelerating revenue growth, achieving meaningful cost discipline, and addressing balance sheet fragility. Investors should monitor liquidity developments, debt maturities, and any announced strategic plans around product monetization and customer acquisition.
Key Performance Indicators
QoQ: -19.36% | YoY:-34.52%
QoQ: -25.88% | YoY:-59.94%
QoQ: 46.26% | YoY:-448.52%
QoQ: 44.23% | YoY:-368.21%
QoQ: 43.75% | YoY:-350.00%
Key Insights
Revenue: USD 85,053; YoY: -34.52%; QoQ: -19.36%
Gross Profit: USD 43,822; Gross Margin: 51.5%; YoY: -59.94%; QoQ: -25.88%
Operating Income: USD -87,280; Operating Margin: -1.026% (approx. -1.03%); YoY: -448.52%; QoQ: +46.26%
Net Income: USD -89,532; Net Margin: -1.053%; YoY: -368.21%; QoQ: +44.23%
EPS: -0.0009; YoY: -350.00%; QoQ: +43.75%
Operating Cash Flow: USD -28,615; Free Cash Flow: USD -28,615
Cash at End of Period: USD 10,351
Total Assets: USD 128,570
Total Liabilities: USD 1,012,375
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Financial Highlights
Revenue: USD 85,053; YoY: -34.52%; QoQ: -19.36%
Gross Profit: USD 43,822; Gross Margin: 51.5%; YoY: -59.94%; QoQ: -25.88%
Operating Income: USD -87,280; Operating Margin: -1.026% (approx. -1.03%); YoY: -448.52%; QoQ: +46.26%
Net Income: USD -89,532; Net Margin: -1.053%; YoY: -368.21%; QoQ: +44.23%
EPS: -0.0009; YoY: -350.00%; QoQ: +43.75%
Operating Cash Flow: USD -28,615; Free Cash Flow: USD -28,615
Cash at End of Period: USD 10,351
Total Assets: USD 128,570
Total Liabilities: USD 1,012,375
Total Stockholders’ Equity: USD -883,804
Current Ratio: 0.0405x; Quick Ratio: 0.0405x; Debt to Equity (approximate negative equity): not meaningful in traditional terms due to negative equity; Net Debt: USD 665,851
Notes: Figures are USD thousands unless otherwise stated. The company reports a high level of current liabilities driven by payables and other current liabilities, contributing to a severely constrained liquidity profile. The data show a heavy cost base with limited top-line growth lid to offset the expense burden.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
85.05K |
-34.52% |
-19.36% |
| Gross Profit |
43.82K |
-59.94% |
-25.88% |
| Operating Income |
-87.28K |
-448.52% |
46.26% |
| Net Income |
-89.53K |
-368.21% |
44.23% |
| EPS |
0.00 |
-350.00% |
43.75% |
Key Financial Ratios
operatingProfitMargin
-102.6%
operatingCashFlowPerShare
$-0
Management Commentary
Transcript data not provided in the dataset. Consequently, a thematic synthesis of management commentary and quotes from the QQ1 2025 earnings call cannot be generated. When available, a summary would cover: strategy (growth versus monetization and go-to-market initiatives), operations (cost structure changes, headcount efficiency, product roadmap), market conditions (customer demand signals, competitive dynamics), and liquidity management (cost controls, funding plans, debt maturities). Please supply the earnings call transcript or quotes for a detailed highlights section.
No transcript data available in the provided dataset.
— N/A
No transcript data available in the provided dataset.
— N/A
Forward Guidance
There is no explicit management guidance for QQ2 2025 or beyond in the provided data. Given the current financials, the forward outlook hinges on three main levers: (1) revenue stabilization or growth in the closed-loop payments software platform, (2) meaningful operating expense optimization to improve EBITDA and free cash flow, and (3) securing additional liquidity or de-leveraging to reduce financing risk. Absent explicit targets, scenarios should consider moderate revenue re-acceleration coupled with aggressive variable cost management and a measured approach to capital expenditure. Key factors investors should monitor include: cadence of new customer wins or upsell to existing customers, changes in the payment processing economics (per-transaction margins), progress on reducing working capital strain, and any announced financing arrangements or debt restructurings. If the company can approach breakeven on operating income or achieve modest profitability while stabilizing cash burn, the valuation and risk profile could improve; otherwise, liquidity risk remains a dominant near-term concern.