Thu, May 15, 1:02 PM (39 days ago)
**Cemtrex, Inc. (CETX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue surged to $27.3M, up 58% YoY, driven by a significant $10.4M sale in the Security segment. Six-month revenue reached $41M, a 20% YoY increase. - **Gross Profit Margin:** Improved to 45% in Q1 2025 from 40% in Q1 2024, with both segments showing enhanced margins. - **Operating Income:** Q1 2025 saw an operating income of $4.6M, a stark contrast to a $1M loss in Q1 2024. Six-month operating income was $2.3M, reversing a $1.8M loss in the prior year. - **Net Income:** Q1 2025 net income was $8.4M, compared to a $1.5M loss in Q1 2024. Six-month net income was -$20.4M, reflecting a $15.8M loss in warrant liabilities. - **Cash Flow:** Operating cash flow was positive at $1.6M for the six months ended March 2025, a significant improvement from a -$2.8M outflow in the prior year. **Profit Margins & Cash Flow:** - **Gross Profit Margin:** Increased to 45% in Q1 2025 from 40% in Q1 2024. - **Operating Margin:** Improved to 17% in Q1 2025 from -6% in Q1 2024. - **Net Margin:** Q1 2025 net margin was 31%, compared to -9% in Q1 2024. - **Cash Flow from Operations:** Positive $1.6M for the six months ended March 2025, up from -$2.8M in the prior year. **Earnings Changes & Trends:** - **Earnings per Share (EPS):** Basic and diluted EPS for continuing operations was $4.10 in Q1 2025, compared to -$3.05 in Q1 2024. - **Trends:** Revenue growth was driven by increased demand and a large sale in the Security segment. Operating expenses were managed effectively, contributing to improved profitability. **Uncertainties & Future Operations:** - **Going Concern:** The company faces substantial doubt regarding its ability to continue as a going concern, with working capital of $5M and long-term debt of $9.5M. - **Liquidity:** The company has $6.1M in cash and cash equivalents, with a line of credit available for its Vicon brand. - **Future Operations:** The company plans to increase marketing, sales, and strategic acquisitions to drive growth, but these initiatives require sufficient cash. **Summary:** Cemtrex, Inc. showed significant improvement in Q1 2025, with substantial revenue growth and improved profitability. However, the company faces liquidity challenges and uncertainties about its ability to continue as a going concern. Strategic initiatives are planned to drive future growth, but their success depends on securing adequate funding.