BioLargo Inc

BioLargo operates with a strong liquidity position, as evidenced by $4.34 million in cash and equivalents and a current ratio of 2.11, indicating the company can cover its short-term liabilities more than twice over. However, the company's free cash flow is negative at -$1.60 million, driven by capital expenditures of -$863,000, which suggests ongoing investment in operations or expansion. The debt-to-equity ratio of 0.07 reflects a conservative capital structure with minimal leverage.

Profitability metrics are weak, with a return on equity of -5.05% and a return on assets of -4.17%, both significantly below the industry median for Commodity Chemicals. The company reported a net loss of $410,000 and an operating loss of $763,000, indicating challenges in converting revenue into profit. Gross profit of $2.25 million on $4.76 million in revenue yields a gross margin of 47.3%, which is in line with the industry median but insufficient to offset operating costs.

The company's revenue is not segmented by product or geography in the latest financial data, but it is disclosed that the majority of revenue comes from the sale of water treatment systems and related services. There is no indication of geographic diversification, and the company appears to be concentrated in a single business line.

Looking ahead, the company is expected to maintain a flat revenue trajectory, with no significant growth or contraction projected in the current or next fiscal year. The lack of analyst price targets beyond $0.32 per share and a mean recommendation of 2.00 (Hold) suggests limited near-term upside. The absence of strong buy or buy ratings from analysts further underscores the cautious outlook.

Risk factors include the company's negative net income and operating income, which could pressure liquidity if cash flow from operations does not improve. However, the risk of dilution is currently low, as there are no immediate filing-based flags for equity issuance or share buybacks. The company's liquidity risk is also rated as low, supported by its strong cash position and manageable debt levels.

Recent filings and transcripts do not highlight any material events or strategic shifts. The company continues to focus on its core water treatment business, with no new product launches or major partnerships disclosed in the latest available data.

Analysts project 184.2% upside to a $0.32 target price, signaling strong potential for significant share price appreciation.

Net income improved by 39.9% year-over-year, demonstrating a positive trend in profitability despite ongoing operational losses.

Operating income improved by 54.4% year-over-year, indicating meaningful progress in reducing core operational losses for the company.

Debt-to-equity ratio of 0.07 is well above the cohort median, suggesting a conservative capital structure with low leverage risk.

Dilution and liquidity risks are rated low, providing a stable financial environment for potential long-term value creation.

Free cash flow deteriorated significantly to -$15.0 million, reflecting substantial cash burn and poor liquidity generation capabilities.

Credit risk is flagged as high, posing significant challenges for debt servicing and potential financial distress in the near term.

Return on equity of -5.05% falls below the cohort median, demonstrating an inability to generate positive returns for shareholders.

Revenue $617.0k, −83,1% YoY; Operating income −148,2% YoY.

• ▍Revenue $617.0k, −83,1% YoY
• ▍Operating income −148,2% YoY
• ▍Net income −191,2% YoY
• ▍Free cash flow −143,6% YoY
• ▍Net margin -478.6%

Revenue $1.1M, −74,7% YoY; Operating income −576,7% YoY.

• ▍Revenue $1.1M, −74,7% YoY
• ▍Operating income −576,7% YoY
• ▍Net income −1 106,5% YoY
• ▍Free cash flow −584,2% YoY
• ▍Net margin -587.4%

Revenue $2.8M, −44,6% YoY; Operating income −127,2% YoY.

• ▍Revenue $2.8M, −44,6% YoY
• ▍Operating income −127,2% YoY
• ▍Net income −170,3% YoY
• ▍Free cash flow −66,0% YoY
• ▍Net margin -42.9%

Revenue $3.3M, −31,3% YoY; Operating income −144,0% YoY.

• ▍Revenue $3.3M, −31,3% YoY
• ▍Operating income −144,0% YoY
• ▍Net income −181,7% YoY
• ▍Free cash flow −16,3% YoY
• ▍Net margin -35.3%

Revenue $3.7M; Operating income -$1.6M.

• ▍Revenue $3.7M
• ▍Operating income -$1.6M
• ▍Net margin -27.7%

Revenue $4.4M; Operating income -$1.1M.

• ▍Revenue $4.4M
• ▍Operating income -$1.1M
• ▍Net margin -12.3%

Revenue $5.0M; Operating income -$793.0k.

• ▍Revenue $5.0M
• ▍Operating income -$793.0k
• ▍Net margin -8.8%

Revenue $4.8M; Operating income -$763.0k.

• ▍Revenue $4.8M
• ▍Operating income -$763.0k
• ▍Net margin -8.6%

Revenue $7.8M, −56,3% YoY; Operating income −250,8% YoY.

• ▍Revenue $7.8M, −56,3% YoY
• ▍Operating income −250,8% YoY
• ▍Net income −390,4% YoY
• ▍Free cash flow −176,0% YoY
• ▍Net margin -151.7%

Revenue $17.8M, +45,4% YoY; Operating income +7,5% YoY.

• ▍Revenue $17.8M, +45,4% YoY
• ▍Operating income +7,5% YoY
• ▍Net income +31,4% YoY
• ▍Free cash flow −8,0% YoY
• ▍Net margin -13.5%

Revenue $12.2M, +107,8% YoY; Operating income +12,2% YoY.

• ▍Revenue $12.2M, +107,8% YoY
• ▍Operating income +12,2% YoY
• ▍Net income +21,7% YoY
• ▍Free cash flow +6,2% YoY
• ▍Net margin -28.7%

Revenue $5.9M, +132,5% YoY; Operating income +23,1% YoY.

• ▍Revenue $5.9M, +132,5% YoY
• ▍Operating income +23,1% YoY
• ▍Net income +36,8% YoY
• ▍Free cash flow +22,4% YoY
• ▍Net margin -76.0%