Executive Summary
KeyStar Corp (KEYR) reported a highly unprofitable QQ3 2025, with limited disclosed revenue and a substantial net loss of $5.08 million alongside steep operating expenses. The company posted negative cash from operations (-$3.08 million) and negative free cash flow (-$3.09 million) for the quarter, contributing to a weak liquidity position underscored by a current ratio of ~0.057 and negative shareholders’ equity of approximately -$28.78 million. Although financing activities added about $3.20 million, net cash changed only slightly (-$8.8 thousand) as operating and investing cash flows shocked the balance sheet. The balance sheet shows a small cash balance ($92k) and a large gap between current liabilities ($31.07 million) and current assets ($1.77 million), with intangible assets (~$525k) and a significant non-current liability footprint that signals elevated financial risk. Management commentary is not provided in the supplied transcript data, limiting visibility into strategic pivots or guardrails. As a result, the near-term investment thesis remains highly cautious, hinging on meaningful revenue traction, aggressive cost optimization, or substantial new capital to restore liquidity and fund ongoing operations.
Key Performance Indicators
QoQ: 13.30% | YoY:-33.28%
QoQ: 12.50% | YoY:-25.00%
Key Insights
Revenue: QQ3 2025 revenue reported as 142,827 (gross profit -142,827 against 142,827 cost of revenue), implying a gross loss for the quarter. EBITDA: -1,825,263; Operating income: -1,825,678; Net income: -5,084,084; EPS: -0.07. Cash flow: operating cash flow -$3,078,213; free cash flow -$3,085,243; net cash from financing activities +$3,198,945; net change in cash: -$8,828; cash at period end: $223,330. Balance sheet: cash and equivalents $92,380; total assets $2,297,529; total liabilities $31,0...
Financial Highlights
Revenue: QQ3 2025 revenue reported as 142,827 (gross profit -142,827 against 142,827 cost of revenue), implying a gross loss for the quarter. EBITDA: -1,825,263; Operating income: -1,825,678; Net income: -5,084,084; EPS: -0.07. Cash flow: operating cash flow -$3,078,213; free cash flow -$3,085,243; net cash from financing activities +$3,198,945; net change in cash: -$8,828; cash at period end: $223,330. Balance sheet: cash and equivalents $92,380; total assets $2,297,529; total liabilities $31,072,979; total stockholders’ equity -$28,775,450; debt $867,449; current ratio 0.0569; intangible assets $525,313; other current assets $1,674,852. Key profitability and liquidity ratios point to ongoing cash burn and fragile solvency metrics, with a debt burden modest in absolute terms but amplified by negative equity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Gross Profit |
-142.83K |
91.59% |
-31.72% |
| Operating Income |
-1.83M |
36.43% |
78.55% |
| Net Income |
-5.08M |
-33.28% |
13.30% |
| EPS |
-0.07 |
-25.00% |
12.50% |
Key Financial Ratios
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.04
Management Commentary
Note: The dataset provided does not include an earnings call transcript. Consequently, explicit management quotes or transcript-derived themes are not available. Expected areas of focus for management discussions in a call would typically include: (1) cash burn mitigation strategies and runway, (2) cost containment and headcount adjustments, (3) liquidity enhancements or capital raise plans, (4) strategies to monetize PPE and convention-services segments, and (5) progress on strategic pivots and partnerships. Given the lack of transcript data, the highlights below are forward-looking placeholders based on the reported financials: - Emphasis on preserving liquidity: the company faces a challenging cash burn profile (OCF -$3.08M) and a critically low current ratio (0.0569). - Cost structure review: operating expenses total $1.682M, with G&A at $457k and SG&A at $869k; management would likely discuss optimization opportunities to reduce burn. - Revenue normalization: with only $142.8k quarterly revenue and a gross loss, the company would need to articulate a path to sustainable revenue growth or defensive measures to protect cash. - Capital strategy: given negative equity and small cash balance, a capital-raising plan or debt restructuring would be a natural topic if discussed on the call.
Forward Guidance
There is no explicit forward guidance provided in the data for QQ4 2025 or the full-year outlook. Given the liquidity and profitability pressures, investors should monitor: (a) any disclosed capital-raising plans (equity or debt), (b) anticipated reductions in operating expenses and leverage of non-core assets, (c) progress in converting the convention services and PPE segments into material revenue streams, and (d) potential impairment analyses on intangible assets and any debt covenant relief discussions. Realistic scenarios range from a gradual stabilization if a capital infusion or strategic pivot is announced, to continued erosion if revenue remains flat and burn persists. Key factors to watch: quarterly OCF trajectory, changes in current liabilities, any restructuring announcements, and any vendor or supplier credit term negotiations that could ease working capital stress.