Starco Brands Inc

Starco Brands Inc has a debt-to-equity ratio of 0.24, indicating a relatively low level of leverage compared to the industry median. However, the company's current ratio of 0.57 suggests a liquidity challenge, as it has less than one dollar in current assets for every dollar of current liabilities. The company's free cash flow is negative at -3.6 million USD, which may limit its ability to fund operations or invest in growth without external financing.

In terms of profitability, Starco Brands Inc reported a net loss of 4.5 million USD and an operating loss of 3.9 million USD in the latest period. The return on equity of -14.24% and return on assets of -5.53% indicate that the company is not generating returns for its shareholders or effectively utilizing its assets. These metrics are below the industry median, suggesting that the company is underperforming its peers in terms of profitability and asset efficiency.

The company's revenue is concentrated in a single business segment, as disclosed in its latest financial report. There is no geographic diversification provided in the available data, which may expose the company to regional economic risks. The lack of segment and geographic diversification could limit the company's ability to mitigate risks associated with market-specific downturns.

Starco Brands Inc's revenue in the latest period was 15.5 million USD, which is a significant decline from the previous year's revenue of 52.5 million USD as reported in the IR observations. The company's operating cash flow is positive at 822,450 USD, but this is insufficient to cover its capital expenditures and other operational needs. The negative free cash flow and declining revenue suggest that the company may face challenges in sustaining its operations without additional capital.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's liquidity constraints. The low dilution risk is supported by the absence of significant dilution sources in the available data. However, the company's financial position may require close monitoring for any changes in its capital structure or access to financing.

Recent events and filings do not provide specific details on the company's strategic initiatives or operational changes. The latest actual EPS of -0.03 USD and revenue of 52.5 million USD indicate a challenging performance, which may affect investor sentiment and the company's ability to attract new business. The lack of recent positive developments or strategic announcements may further impact the company's market position.

Starco Brands reported $40.5 million in revenue for fiscal year 2025, indicating continued operational scale despite profitability challenges.

The company generated $15.7 million in gross profit in FY2025, suggesting underlying product margins remain positive before operating expenses.

Starco Brands maintains a debt-to-equity ratio of 0.24, which is below the cohort median of 0.14, indicating relatively lower leverage.

Net income deteriorated significantly to a $20.9 million loss in FY2025, worsening from a $17.7 million loss in the prior year.

Free cash flow turned deeply negative at -$17.9 million in FY2025, reflecting severe cash burn and liquidity pressure.

The company faces high credit risk and a current ratio of only 0.44, signaling potential short-term solvency issues.

Revenue $11.0M, −29,3% YoY; Operating income +87,8% YoY.

• ▍Revenue $11.0M, −29,3% YoY
• ▍Operating income +87,8% YoY
• ▍Net income +84,0% YoY
• ▍Free cash flow +89,6% YoY
• ▍Net margin -16.8%

Revenue $10.9M, −29,8% YoY; Operating income +163,5% YoY.

• ▍Revenue $10.9M, −29,8% YoY
• ▍Operating income +163,5% YoY
• ▍Net income +142,1% YoY
• ▍Free cash flow +170,6% YoY
• ▍Net margin 17.3%

Revenue $12.1M; Operating income $6.2M.

• ▍Revenue $12.1M
• ▍Operating income $6.2M
• ▍Net margin 38.9%

Revenue $15.5M; Operating income -$5.6M.

• ▍Revenue $15.5M
• ▍Operating income -$5.6M
• ▍Net margin -41.0%

Revenue $15.6M; Operating income -$11.1M.

• ▍Revenue $15.6M
• ▍Operating income -$11.1M
• ▍Net margin -74.2%

Revenue $40.5M, −31,0% YoY; Operating income −30,5% YoY.

• ▍Revenue $40.5M, −31,0% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −18,6% YoY
• ▍Free cash flow −20,2% YoY
• ▍Net margin -51.7%

Revenue $58.7M, −7,8% YoY; Operating income +68,3% YoY.

• ▍Revenue $58.7M, −7,8% YoY
• ▍Operating income +68,3% YoY
• ▍Net income +61,8% YoY
• ▍Free cash flow +66,0% YoY
• ▍Net margin -30.1%