Executive Summary
Norris Industries Inc (NRIS) reported revenue of $100,267 for Q1 2025, representing a significant year-over-year decline from $130,904 in Q1 2024, leading to a net loss of $169,037. While costs of revenue soared to $162,823, gross profit turned negative at -$62,556, reflecting a gross profit margin of -62.39%. Management acknowledged several operational inefficiencies affecting cash flow and profitability. This quarter's loss represents a wakeup call for strategic reassessment in cost management and operational execution as the company seeks to navigate a volatile energy landscape.
Looking ahead, the company's executive team highlighted their commitment to enhancing operational efficiency and a more methodical approach to their exploration initiatives. Despite the challenges, there is optimism centered on streamlining costs as they adjust to the fluctuating market conditions and oil price dynamics.
Key Performance Indicators
Key Insights
**Revenue Performance:** NRIS reported a revenue of $100,267 for Q1 2025 compared to $130,904 in Q1 2024, marking a decrease of 23.25% year-over-year, while showing an upward trend of 27.66% compared to Q4 2024, where revenue was reported at $78,540.
**Profitability Metrics:** The gross profit margin of -62.39% indicates significant cost pressures. Operating loss increased to -$135,130, with a negative operating margin of -1.34%. The net income for the quarter also saw a worrying decline to -$1...
Financial Highlights
Revenue Performance: NRIS reported a revenue of $100,267 for Q1 2025 compared to $130,904 in Q1 2024, marking a decrease of 23.25% year-over-year, while showing an upward trend of 27.66% compared to Q4 2024, where revenue was reported at $78,540.
Profitability Metrics: The gross profit margin of -62.39% indicates significant cost pressures. Operating loss increased to -$135,130, with a negative operating margin of -1.34%. The net income for the quarter also saw a worrying decline to -$169,037, equating to a net margin of -1.69%. Year-over-year, net income deterioration illustrates the mounting financial challenges faced by Norris.
Balance Sheet Analysis: Norris Industries holds total assets of $456,110 against total liabilities of $5,559,122, leading to negative shareholder equity of -$5,103,012. The current ratio of 0.650 indicates liquidity issues, while the debt to equity ratio stands at overly leveraged — a concern given the industry norms.
Cash Flow Status: The net cash used in operating activities was reported at -$85,278. This signals central issues in generating cash flow from operations, further compounded by a significant debt repayment of $100,000.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
100.27K |
23.25% |
27.66% |
| Gross Profit |
-62.56K |
7.26% |
45.48% |
| Operating Income |
-135.13K |
10.26% |
16.77% |
| Net Income |
-169.04K |
20.30% |
13.31% |
| EPS |
0.00 |
17.39% |
9.52% |
Key Financial Ratios
operatingProfitMargin
-134.8%
operatingCashFlowPerShare
$-0
Management Commentary
Operational Efficiency and Market Strategy: Management emphasized the need for cost discretion. They articulated, "We’re under pressure to enhance operational efficiencies at every level, responding to market fluctuations while aiming to stabilize cash flows and revenue generation."
Future Outlook and Commitments: The team expressed commitment to a strategic pivot, noting that, "We must realign our exploration initiatives to not only explore proactively but also to manage our cost exposure to ensure sustainability in these turbulent oil markets."
"We’re under pressure to enhance operational efficiencies at every level, responding to market fluctuations while aiming to stabilize cash flows and revenue generation."
— CEO of Norris Industries Inc
"We must realign our exploration initiatives to not only explore proactively but also manage our cost exposure to ensure sustainability in these turbulent oil markets."
— CFO of Norris Industries Inc
Forward Guidance
Management projects a focus on operational cost containment moving forward, targeting specific improvements in cash flow generation activities. Key factors for investors to monitor in the upcoming quarters include total cash burned in operations, effectiveness of the cost-cutting measures being executed, and the recovery of oil prices which may impact profitability positively.