Big Digital Energy Inc

Big Digital Energy Inc operates with a debt-to-equity ratio of 1.48, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.44, suggesting limited short-term liquidity to cover immediate liabilities. Free cash flow is negative at -11,989,570 USD, reflecting a cash outflow after capital expenditures, which may constrain the company's ability to fund operations or growth initiatives without external financing.

Profitability metrics show a return on equity of -1.5187 and a return on assets of -0.2919, both significantly below zero, indicating that the company is not generating returns for shareholders or effectively utilizing its assets. These figures are well below the industry median for IT Services & Consulting, where positive returns are typically expected for firms in a growth phase.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financial data. This lack of diversification increases exposure to regional economic downturns or sector-specific disruptions. No material revenue is attributed to international markets, suggesting a domestic focus.

Looking ahead, the company is projected to experience a decline in revenue, with a negative outlook for the current fiscal year and no clear signs of improvement in the next fiscal year. Historical revenue trends show a significant drop from 39,754,090 USD in the last reported period to 18,771,310 USD in the most recent period, indicating a contraction in business activity.

Risk factors include a medium liquidity risk due to the current ratio and negative free cash flow, as well as a key flag indicating that net cash is negative after subtracting total debt. The company has a low dilution risk, with no near-term pressure for share issuance, and no recent events such as major filings or earnings transcripts that would suggest a change in strategic direction.

Recent investor sentiment is neutral, with one "Hold" recommendation and no "Buy" or "Sell" ratings from analysts. This suggests a cautious outlook, with no strong conviction in either direction. The absence of strong buy or sell ratings may reflect uncertainty about the company's ability to turn around its financial performance.

Net income improved 48.7% year-over-year to a loss of $23.7 million in fiscal 2026.

Operating income improved 55.7% year-over-year to a loss of $19.3 million in fiscal 2026.

Free cash flow improved 40.1% year-over-year to a negative $18.2 million in fiscal 2026.

Dilution risk is assessed as low, suggesting limited immediate pressure on existing shareholder equity.

Capex to revenue ratio of -0.1% ranks in the top quartile of the IT Services cohort.

The company carries high credit risk, signaling significant potential for financial distress or default.

Debt-to-equity ratio of 1.48 is significantly higher than the cohort median of 0.12.

Liquidity risk is assessed as medium, highlighting potential challenges in meeting short-term obligations.

Revenue $3.2M, −78,5% YoY; Operating income −180,2% YoY.

• ▍Revenue $3.2M, −78,5% YoY
• ▍Operating income −180,2% YoY
• ▍Net income −246,2% YoY
• ▍Free cash flow −402,7% YoY
• ▍Net margin -484.3%

Revenue $13.2M, +7,0% YoY; Operating income +113,8% YoY.

• ▍Revenue $13.2M, +7,0% YoY
• ▍Operating income +113,8% YoY
• ▍Net income +102,7% YoY
• ▍Free cash flow +119,2% YoY
• ▍Net margin 2.5%

Revenue $9.5M, −27,3% YoY; Operating income +3,9% YoY.

• ▍Revenue $9.5M, −27,3% YoY
• ▍Operating income +3,9% YoY
• ▍Net income +16,6% YoY
• ▍Free cash flow +4,2% YoY
• ▍Net margin -84.1%

Revenue $15.1M; Operating income -$5.3M.

• ▍Revenue $15.1M
• ▍Operating income -$5.3M
• ▍Net margin -30.0%

Revenue $12.3M; Operating income -$11.4M.

• ▍Revenue $12.3M
• ▍Operating income -$11.4M
• ▍Net margin -99.3%

Revenue $13.1M; Operating income -$6.8M.

• ▍Revenue $13.1M
• ▍Operating income -$6.8M
• ▍Net margin -73.4%

Revenue $18.8M; Operating income -$19.6M.

• ▍Revenue $18.8M
• ▍Operating income -$19.6M
• ▍Net margin -105.3%

Revenue $39.8M, −32,9% YoY; Operating income +55,8% YoY.

• ▍Revenue $39.8M, −32,9% YoY
• ▍Operating income +55,8% YoY
• ▍Net income +48,7% YoY
• ▍Free cash flow +40,1% YoY
• ▍Net margin -59.5%

Revenue $59.3M, +36,0% YoY; Operating income +17,2% YoY.

• ▍Revenue $59.3M, +36,0% YoY
• ▍Operating income +17,2% YoY
• ▍Net income +23,6% YoY
• ▍Free cash flow −17,8% YoY
• ▍Net margin -77.8%

Revenue $43.6M, −48,4% YoY; Operating income −7,5% YoY.

• ▍Revenue $43.6M, −48,4% YoY
• ▍Operating income −7,5% YoY
• ▍Net income −14,5% YoY
• ▍Free cash flow +64,6% YoY
• ▍Net margin -138.7%

Revenue $84.4M, +92,4% YoY; Operating income −13,6% YoY.

• ▍Revenue $84.4M, +92,4% YoY
• ▍Operating income −13,6% YoY
• ▍Net income −17,3% YoY
• ▍Free cash flow +54,3% YoY
• ▍Net margin -62.5%

Revenue $43.9M; Operating income -$43.1M.

• ▍Revenue $43.9M
• ▍Operating income -$43.1M
• ▍Net margin -102.5%