Revenue volatility remains high with a 21.9% sequential increase in 2024Q2, yet the company continues to struggle with structural profitability, evidenced by a -49.3% operating margin.
| Sales/Revenue | 29.95M | 14.64M | 20.19M | 9.41M |
| Revenue Growth % | - | -27.51% | 114.47% | - |
| Cost of Goods Sold | 19.4M | 12.6M | 13.91M | 10.54M |
| COGS % of Revenue | - | 86.07% | 68.89% | 111.9% |
| Gross Profit | 10.55M | 2.04M | 6.28M | -1.12M |
| Gross Margin % | 35.22% | 13.93% | 31.11% | -11.9% |
| Gross Profit Growth % | - | -67.54% | 660.8% | - |
| Operating Expenses | 32.96M | 15.32M | 8.83M | 39.95K |
| OpEx % of Revenue | - | 104.65% | 43.72% | 0.42% |
| Selling, General & Admin | 29.61M | 12.41M | 6.17M | 7.72M |
| SG&A % of Revenue | - | 84.78% | 30.58% | 82.04% |
| Research & Development | 859.8K | 750.31K | 300.49K | 927.21K |
| R&D % of Revenue | - | 5.13% | 1.49% | 9.85% |
| Other Operating Expenses | 2.31M | 2.16M | 2.35M | -8.61M |
| Operating Income | -22.41M | -13.28M | -2.55M | -27.48M |
| Operating Margin % | -74.81% | -90.72% | -12.61% | -291.92% |
| Operating Income Growth % | - | -421.55% | 90.74% | - |
| EBITDA | -19.84M | -11M | -54.24K | -23.91M |
| EBITDA Margin % | -66.25% | -75.19% | -0.27% | -253.9% |
| EBITDA Growth % | - | -20187.27% | 99.77% | - |
| D&A (Non-Cash Add-back) | 2.56M | 2.27M | 2.49M | 3.58M |
| EBIT | -20.3M | -13.29M | -8.03M | -35.67M |
| Net Interest Income | -2.45M | -2.45M | -879.48K | -1.67M |
| Interest Income | 0 | 0 | 39.97K | 202.43K |
| Interest Expense | 2.45M | 2.45M | 919.45K | 1.88M |
| Other Income/Expense | -60.6M | -60.85M | -6.86M | -36.5M |
| Pretax Income | -83.01M | -74.12M | -9.4M | -63.99M |
| Pretax Margin % | -277.14% | -506.43% | -46.57% | -679.63% |
| Income Tax | 2.86M | 2.86M | -1.51M | -3.6M |
| Effective Tax Rate % | -3.45% | -3.86% | 16.08% | 5.63% |
| Net Income | -83.37M | -74.73M | -5.89M | -60.12M |
| Net Margin % | -278.33% | -510.54% | -29.18% | -638.5% |
| Net Income Growth % | - | -1168.28% | 90.2% | - |
| Net Income (Continuing) | -85.87M | -76.99M | -7.89M | -60.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | -2.82M | -2.38M | -60.58K | 3.61K |
| EPS (Diluted) | -2.88 | -4.05 | -0.20 | -2.09 |
| EPS Growth % | - | -1925% | 90.43% | - |
| EPS (Basic) | - | -4.05 | -0.20 | -2.09 |
| Diluted Shares Outstanding | 29M | 29.83M | 27.71M | 28.82M |
| Basic Shares Outstanding | 29M | 29.83M | 28.82M | 28.82M |
| Dividend Payout Ratio | - | - | - | - |
Imminent liquidity shortfall
As reported in recent financial filings, Captivision's revenue trajectory remains highly erratic, with a 21.9% sequential increase in 2024Q2 following periods of zero reported revenue, highlighting the inherent instability of a project-based business model that lacks a consistent, recurring revenue stream for long-term growth durability.
The company's reliance on large-scale architectural installations creates significant lumpiness in revenue recognition, making it difficult to discern a sustainable growth trend. Investors should monitor whether the recent revenue uptick represents a genuine market adoption of G-Glass or merely the timing of specific, non-repeatable project completions.
Based on the company's reported figures, gross margins have fluctuated wildly from a negative 2.0% in 2023Q4 to 55.6% in 2024Q2, suggesting that the manufacturing process for embedded micro-LED glass has yet to achieve the yield consistency required for stable, predictable industrial profitability.
The extreme variance in gross margins implies that the company is struggling with high fixed-cost absorption and potential inefficiencies in its specialized lamination process. Without a shift toward standardized product sizes, these margin swings will likely continue to obscure the underlying economic viability of the core technology.
According to the income statement data, Captivision's operating expenses, particularly SG&A, frequently exceed gross profit, resulting in deep operating losses that indicate a failure to scale the business effectively despite the company's attempts to expand its global footprint into new commercial real estate markets.
The persistent negative operating margins suggest that the current overhead structure is disproportionate to the company's revenue-generating capacity. Management appears unable to leverage its existing infrastructure, which warrants further investigation into whether the current cost base is sustainable without significant, potentially dilutive, external capital injections.
As indicated by the financial statements, the company's net income is heavily impacted by non-operating items and significant stock-based compensation, which reached $2.1 million in 2023Q4, further complicating the assessment of true operational performance and the underlying quality of reported earnings for public shareholders.
The disconnect between net income and cash flow, combined with the reliance on equity-based incentives during periods of heavy losses, suggests that reported EPS figures may not accurately reflect the company's economic reality. Investors should be cautious of accounting nuances that may be masking the true extent of value destruction.
Based on the reported cash balance of $476,715, the company faces a precarious liquidity position that may force management to prioritize survival over long-term strategic growth, a reality that short-sellers would likely focus on given the company's history of significant net losses and high cash burn.
The current cash-to-burn ratio suggests that the company may be approaching a critical liquidity event, which could necessitate immediate and dilutive financing. This financial vulnerability undermines the narrative of a high-tech innovator and suggests that the market may be underpricing the risk of a total capital shortfall.
Quick answers to the most common questions about buying CAPT stock.
For fiscal year 2023, Captivision Inc. (CAPT) reported total revenue of $14.6M. This represents a 55.5% increase compared to $9.4M in 2021.
Captivision Inc. (CAPT) reported a net loss of $74.7M for the fiscal year ending 2023.
Captivision Inc. (CAPT) reported an operating income of $-13.3M, resulting in an operating profit margin of -90.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Captivision Inc. (CAPT) generated $2.0M in gross profit for the year, representing a gross profit margin of 13.9%. This demonstrates the company's core pricing power and production efficiency.