Kindcard’s QQ2 2025 results show a revenue decline accompanied by a substantial operating loss and a balance sheet with negative equity. Revenue stood at 81,740 with a gross profit of 63,541 and a gross margin of approximately 77.7%. However, the company posted an operating loss of 84,055 and a net loss of 84,055, with an EPS of -0.0009. EBITDA was -61,769, and the company reported negative operating cash flow of -48,478, culminating in a free cash flow of -48,480 for the quarter. QoQ momentum shows a modest improvement in operating profitability (operating income margin improving by about 3.7%), but the QoQ revenue decline and persistent cash burn underscore structural profitability and liquidity challenges.
Key YoY shifts include a revenue drop of approximately 35.17% and gross profit decline of ~41.72%, while gross margin remained robust at ~77.7%. The balance sheet exhibits severe leverage and liquidity stress: total liabilities materially exceed assets, resulting in negative stockholders’ equity (-967,859) and extremely low liquidity ratios (current ratio ~0.0367; cash ratio ~0.0160). Net debt stands at ~338,163 with cash at period end of 14,857. Collectively, these dynamics imply heightened liquidity risk and a near-term need for external financing or substantial operating improvement to re-establish financial flexibility.
Given the absence of formal forward guidance in the provided material and no available earnings-call transcripts for QQ2 2025, the investment outlook remains highly conditional on future operating improvements, working-capital optimization, and potential capital-raising activities. Investors should weigh the potential upside from any acceleration in revenue growth and margin stabilization against the pronounced balance-sheet fragility and cash-burn trajectory.