Company Overview
FreeCast, Inc. operates within the Communication Services sector, specifically the Broadcasting industry, where it develops and markets an interactive digital media guide designed to facilitate access to a virtual library of entertainment media in the United States. The company's primary offerings include proprietary products such as SmartGuide and Select TV, which utilize technology to search and aggregate content for consumers. As of the latest reporting period, the organization employs 48 individuals to support its operations while maintaining a total market capitalization of $183.45M. The company reported annual revenue of $705,602, a figure that, when viewed alongside the market cap, indicates a valuation significantly elevated relative to its current revenue generation, suggesting a market price that does not fully align with traditional multiples based on sales.
Financial Health
The company reported revenue of $705,602 over the trailing twelve months, yet this revenue was accompanied by a net income of $-13,368,492 and an EBITDA of $-13,027,685. The substantial gap between the positive revenue figure and the massive negative net income reveals a cost structure where operating expenses and other costs far exceed the income generated from sales, resulting in a severe operating loss. Free cash flow for the period was $-7,300,024, which indicates that the company is consuming cash reserves to fund its operations and strategic initiatives rather than generating surplus liquidity for distribution or debt reduction. Regarding profitability metrics, the gross margin stands at 57.1%, indicating that the company retains more than half of its revenue after accounting for the direct costs of production. However, the operating margin is -1433.5% and the profit margin is 0.0%, highlighting that overhead costs are disproportionately high relative to sales volume, preventing the realization of net profitability despite healthy gross margins. On the balance sheet, the company holds $345,723 in cash while carrying $359,315 in debt, resulting in a debt-to-equity ratio that is listed as N/A due to the capital structure constraints often seen in negative equity scenarios. The current ratio is 0.40, which signifies that the company possesses less than half of the current assets required to meet its short-term liabilities, pointing to potential liquidity constraints. Return on Equity is N/A and Return on Assets is -525.8%, metrics that collectively reveal that management effectiveness in generating returns on shareholder capital and total assets is currently negative and unsustainable at the reported levels.
Valuation Assessment
The trailing P/E ratio is N/A and the forward P/E is N/A, a situation that arises because the company has not generated positive earnings over the trailing twelve months, rendering traditional earnings-based valuation multiples inapplicable. The price-to-book ratio is listed at -213.81, a negative figure that indicates the market capitalization is priced below the company's book value, reflecting the asset base of the firm in a manner that accounts for accumulated losses. The price-to-sales ratio is 259.99 and the EV/EBITDA is -14.08, alternative metrics that suggest the market is pricing the company based on non-earnings factors or speculative future potential rather than current profitability or enterprise value relative to earnings. The stock has traded between a 52-week high of $33.00 and a 52-week low of $1.88, illustrating a wide trading range that reflects significant price volatility and investor sentiment shifts over the past year. The beta value is N/A, meaning that the historical volatility relative to the broader market cannot be quantified with the standard beta metric due to data limitations or the nature of the stock's trading history.
Growth & Income
The company experienced a revenue growth of 65.4% year-over-year, while earnings growth is N/A due to the absence of positive net income in the reporting period. Since earnings are negative, it is impossible to compare the rate of earnings growth to revenue growth in a traditional sense, but the revenue expansion suggests that top-line business is increasing even as the bottom line remains deeply in the red. The company does not pay a dividend, as indicated by a dividend yield of N/A and a payout ratio of 0.0%, which means the firm retains all of its limited earnings (or in this case, absorbs all of its losses) rather than distributing cash to shareholders. Consequently, the company reinvests its available resources, primarily cash on hand, into its operations and product development to attempt to achieve profitability in the future. The overall growth and income profile is characterized by strong top-line expansion offset by significant operating losses and a lack of current income generation or shareholder returns.