Exchange: OTC | Sector: Communication Services | Industry: Broadcasting
Q2 2025
Published: Jan 21, 2025
Earnings Highlights
Net income of -155.37K
"N/A" - N/A
The Marquie Group Inc (TMGI) QQ2 2025 Earnings Analysis: Distressed Liquidity, Margin Pressure and Leveraged Balance Sheet in Broadcasting
Executive Summary
The Marquie Group Inc (TMGI) reported a challenging QQ2 2025, characterized by meaningful losses and a precarious liquidity position. The operating loss of $64,714 and net loss of $155,374 occurred alongside substantial non-operating and interest expenses (interest expense of $94,015 and other expenses of $64,500), signaling an earnings structure burdened by financing and non-operational costs. While cash generated from operating activities was positive at $62,181 and free cash flow aligned with that figure, the company finished the period with a minimal cash balance of $243 and an extremely weak liquidity profile (current ratio of 0.0000380 and total current liabilities of $6,391,076 against a cash position of just $243). Net debt stood at approximately $4.56 million with negative shareholders’ equity of about $0.144 million, underscoring balance sheet fragility.
YoY improvements exist in some profitability lines (operating income YoY up 61.19%), but QoQ momentum was negative (-6.72% for operating income), and the company continues to incur a heavy interest burden relative to limited disclosed revenue. The reported results imply a business in transition or distress, with a need for strategic debt remediation, potential asset monetization, and tighter control on cash burn. Absent material top-line stabilization or meaningful capital actions, the near-term investment thesis remains highly speculative.
Because the materials do not include an earnings-call transcript, there are no direct management quotes to quote or themes to summarize from the call. Investors should rely on the 10-Q details and any subsequent guidance or commentary from the company for explicit forward-looking commitments.
Key Performance Indicators
Operating Income
-64.71K
QoQ: -6.72% | YoY:61.19%
Net Income
-155.37K
QoQ: 24.19% | YoY:-15.85%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the available data
Gross Profit: Not disclosed
Operating Income: -$64,714; QoQ change -6.72%; YoY change +61.19% (negative base effect with still negative absolute value)
Net Income: -$155,374; QoQ +24.19%; YoY -15.85%
EBITDA: -$61,266
Financial Highlights
Overview ofQQ2 2025 financials (USD):
- Revenue: Not disclosed in the available data
- Gross Profit: Not disclosed
- Operating Income: -$64,714; QoQ change -6.72%; YoY change +61.19% (negative base effect with still negative absolute value)
- Net Income: -$155,374; QoQ +24.19%; YoY -15.85%
- EBITDA: -$61,266
- Interest Expense: $94,015
- Depreciation & Amortization: $93
- Other Non-Operating Items: -$90,660
- Net Cash Provided by Operating Activities: $62,181
- Free Cash Flow: $62,181
- Cash and Cash Equivalents at End of Period: $243
- Total Assets: $6,247,194
- Total Liabilities: $6,391,076
- Total Stockholders’ Equity: -$143,882
- Short-Term Debt: $4,564,094
- Current Liabilities: $6,391,076
- Current Ratio: 0.0000380; Quick Ratio: 0.0000380; Cash Ratio: 0.0000380
- Debt to Assets: 0.731; Debt to Equity: -31.72
- Net Debt: $4,563,851
- Shares Outstanding (avg): 3,325,531,102
- Share-based Metrics: EPS (not disclosed)
- Revenue Visibility: Not disclosed; attendance of notes suggests limited disclosed topline data for QQ2 2025.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-64.71K
61.19%
-6.72%
Net Income
-155.37K
-15.85%
24.19%
Key Financial Ratios
currentRatio
0
returnOnAssets
-2.49%
returnOnEquity
108%
debtEquityRatio
-31.72
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
-2.31
priceEarningsRatio
-0.54
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: No earnings-call transcript data was provided in the materials. As a result, there are no management quotes or theme-based highlights to extract. If the company releases the QQ2 2025 earnings call transcript or a supplemental investor presentation, we can synthesize themes around strategy, operations, and market conditions and extract direct quotes with context.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was provided in the QQ2 2025 filing. Given the reported losses, heavy interest expense, and a fragile liquidity position, near-term guidance would likely focus on balance-sheet stabilization and cash burn reduction. Investors should monitor: (1) debt refinancing or covenant relief opportunities and any material debt maturities beyond the current period, (2) potential asset dispositions or monetization of non-core assets to improve liquidity, (3) cost-cutting measures and operating leverage in the broadcasting and direct-to-consumer segments, (4) any disclosed revenue initiatives, partnerships, or digital expansion plans. Absent concrete targets or milestones, the achievability of guidance remains uncertain and hinges on the company's ability to stabilize cash flow and deleverage.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
TMGI Focus
0.00%
0.00%
1.08%
-53.50%
FTEG
0.00%
0.00%
0.00%
0.00%
PSRU
1.00%
26.60%
0.31%
5.45%
SALM
11.00%
-6.23%
-4.34%
-91.90%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ2 2025 results, The Marquie Group Inc presents a high-risk investment profile. The key driver for any meaningful upside is successful balance-sheet remediation and a credible path to positive cash flow. The company would need to secure debt refinancing or relief, monetize non-core assets, and either realize a topline recovery or achieve cost synergies that meaningfully lift operating margins. In the absence of visible near-term guidance or confirmed strategic actions, the stock would be considered highly speculative and suitable primarily for risk-tolerant investors who can withstand potential total loss of value. Investors should closely monitor liquidity indicators (cash burn rate, days payable outstanding, and working capital evolution), covenant status, any debt amendments, and material disclosures on revenue initiatives or asset divestitures.
Key Investment Factors
Growth Potential
Potential upside if management accelerates monetization of non-core assets and scales digital streaming/sponsorship across the radio/brand network, along with selective product-line synergies to improve cash flow. Any credible top-line recovery would need to be accompanied by cost discipline and debt relief.
Profitability Risk
Key risks include extreme liquidity constraints (cash 243 vs. current liabilities 6.39M), negative equity, reliance on high-interest debt (interest expense of 94,015), and absent disclosed revenue; potential covenant breaches and debt maturities; limited visibility into sustainable cash flows and topline growth.
Financial Position
Balance sheet is fragile: total assets $6,247,194 against liabilities $6,391,076 and negative equity of $-143,882. Short-term debt of $4,564,094 dominates liquidity, while cash is effectively immaterial. The company shows positive operating cash flow in QQ2 2025 but is still deeply unprofitable and overleveraged.
SWOT Analysis
Strengths
Diversified business mix with a live radio programming platform and a pipeline of health and beauty products, providing potential cross-sell opportunities.
Established presence in broadcasting with potential for online streaming reach beyond traditional AM/FM signals.
Weaknesses
Severe liquidity constraints: cash and cash equivalents of $243 against current liabilities of $6.39M imply negligible liquidity runway.
Negative stockholders’ equity (~$-0.144M) and high leverage (short-term debt $4.56M) create solvency risk.
Reported top-line details are not disclosed for QQ2 2025, limiting revenue visibility and unit economics insight.
High interest expense ($94.0k) relative to operating losses signals financing burden that crowds out potential operating improvements.
Opportunities
Digital monetization and streaming expansion to broaden audience reach and advertising revenue.
Monetization of non-core or underutilized assets to reduce debt and improve liquidity.
Operational efficiencies and cost discipline could push towards breakeven if topline stabilizes.
Threats
Liquidity risk and potential covenant violations or refinancing risk given maturing obligations and limited cash flow visibility.
Market headwinds in the broadcasting sector and potential secular shifts toward digital and automated advertising channels.
Delays in executing asset sales or monetization strategies could prolong distress and pressure equity holders.