Energy Focus Inc

Energy Focus Inc has a market price of $4.23 and a market capitalization of $26.66 million, with a price-to-book ratio of 8.27 and a price-to-tangible-book ratio of 8.27. The company's liquidity position is characterized by $972,000 in cash and equivalents, a current ratio of 1.87, and no long-term debt. However, the company reported negative operating cash flow of -$58,000 and free cash flow of -$410,000, indicating limited liquidity generation.

The company's profitability metrics are weak, with a net loss of $418,000 and an operating loss of $412,000. Return on equity is -12.96%, and return on assets is -5.64%, both significantly below industry norms. Gross profit of $120,000 on $833,000 in revenue suggests margin compression, with a gross margin of approximately 14.4%.

Energy Focus Inc operates in a single business segment and does not disclose geographic revenue breakdowns in the latest financial data. The lack of segment or geographic diversification increases exposure to regional or product-specific downturns.

The company's revenue of $833,000 represents a decline from prior periods, and no specific growth drivers are disclosed in the latest filings. The absence of positive revenue momentum and the current operating losses suggest a challenging near-term outlook.

Risk factors include low liquidity and the potential for dilution, though no immediate filing-based flags were detected. The company has no long-term debt, which reduces financial leverage risk, but the negative operating cash flow and free cash flow indicate ongoing operational challenges.

Recent filings and transcripts do not highlight any significant events or strategic initiatives that would alter the company's current trajectory. The lack of disclosed capital expenditures or R&D investments further suggests limited near-term growth catalysts.

Net losses improved significantly, declining 35.1% year-over-year to $1.0 million in the latest fiscal period.

The company eliminated all long-term debt by FY2025, resulting in a zero debt-to-equity ratio.

Free cash flow burn rate decreased by 33.2% year-over-year, reaching a low of $1.6 million.

Gross profit turned positive at $672,000 in the latest period, reversing the negative trend from FY2023.

Liquidity risk is assessed as low, supported by a strong current ratio of 5.04.

The company carries a high credit risk flag despite its low leverage and liquidity metrics.

Revenue $4.9M, −15,0% YoY; Operating income +60,3% YoY.

• ▍Revenue $4.9M, −15,0% YoY
• ▍Operating income +60,3% YoY
• ▍Net income +63,1% YoY
• ▍Free cash flow +63,9% YoY
• ▍Net margin -32.6%

Revenue $5.7M, −4,2% YoY; Operating income +57,5% YoY.

• ▍Revenue $5.7M, −4,2% YoY
• ▍Operating income +57,5% YoY
• ▍Net income +58,2% YoY
• ▍Free cash flow +57,2% YoY
• ▍Net margin -75.1%

Revenue $6.0M, −39,5% YoY; Operating income −31,8% YoY.

• ▍Revenue $6.0M, −39,5% YoY
• ▍Operating income −31,8% YoY
• ▍Net income −30,3% YoY
• ▍Free cash flow −24,5% YoY
• ▍Net margin -172.2%

Revenue $9.9M; Operating income -$7.0M.

• ▍Revenue $9.9M
• ▍Operating income -$7.0M
• ▍Net margin -79.9%