Revenue volatility remains a primary concern, with the firm reporting a 30.7% year-over-year decline in recent periods alongside an operating margin of -88% in the most recent quarter.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 29.56M | 42.66M | 50M | 9.49M | 11.8K | 87.79K | 8.64M | 26.91M | 21.35M | 16.22M | 15.05M | 15.62M | 14.24M | 16.16M | 15.54M | 12.96M | 10.77M | 10.24M | 6.63M | 6.92M | 6.58M |
| Revenue Growth % | -30.7% | -14.69% | 426.84% | 80331.87% | -86.56% | -98.98% | -67.89% | 26.05% | 31.61% | 7.77% | -3.6% | 9.69% | -11.92% | 4.05% | 19.88% | 20.35% | 5.17% | 54.34% | -4.19% | 5.19% | - |
| Cost of Goods Sold | 24.52M | 41.91M | 45.91M | 7.94M | 0 | 0 | 7.13M | 22.32M | 16.7M | 13.55M | 12.57M | 12.6M | 10.94M | 11.1M | 10.46M | 9.05M | 7.97M | 6.92M | 4.76M | 5.35M | 4.79M |
| COGS % of Revenue | 82.93% | 98.24% | 91.82% | 83.67% | - | - | 82.51% | 82.91% | 78.21% | 83.54% | 83.51% | 80.7% | 76.87% | 68.69% | 67.35% | 69.84% | 74.02% | 67.59% | 71.78% | 77.31% | 72.84% |
| Gross Profit | 5.05M | 750K | 4.09M | 1.55M | 11.8K | 87.79K | 1.51M | 4.6M | 4.65M | 2.67M | 2.48M | 3.01M | 3.29M | 5.06M | 5.07M | 3.91M | 2.8M | 3.32M | 1.87M | 1.57M | 1.79M |
| Gross Margin % | 17.07% | 1.76% | 8.18% | 16.33% | 100% | 100% | 17.49% | 17.09% | 21.79% | 16.46% | 16.49% | 19.3% | 23.13% | 31.31% | 32.65% | 30.15% | 25.98% | 32.41% | 28.22% | 22.69% | 27.16% |
| Gross Profit Growth % | 572.93% | -81.65% | 163.75% | 13035.23% | -86.56% | -94.19% | -67.14% | -1.15% | 74.22% | 7.55% | -17.63% | -8.48% | -34.91% | -0.25% | 29.82% | 39.71% | -15.71% | 77.22% | 19.18% | -12.13% | - |
| Operating Expenses | 31.27M | 78.47M | 84.52M | 5.72M | 842.18K | 528.87K | 1.34M | 4.23M | 3.98M | 3.62M | 3.84M | 4.14M | 4.19M | 4.03M | 3.42M | 2.53M | 2.77M | 2.5M | 2.31M | 3.3M | 1.61M |
| OpEx % of Revenue | 105.78% | 183.97% | 169.04% | 60.24% | 7137.09% | 602.43% | 15.47% | 15.71% | 18.63% | 22.29% | 25.49% | 26.5% | 29.43% | 24.92% | 22% | 19.51% | 25.69% | 24.45% | 34.77% | 47.62% | 24.52% |
| Selling, General & Admin | 24.77M | 40.34M | 48.55M | 3.28M | 348.42K | 228.77K | 1.02M | 3.54M | 3.28M | 2.92M | 3.01M | 3.3M | 3.34M | 3.09M | 2.62M | 1.98M | 2.25M | 1.98M | 1.88M | 2.88M | 1.34M |
| SG&A % of Revenue | 83.8% | 94.57% | 97.09% | 34.58% | 2952.74% | 260.59% | 11.76% | 13.15% | 15.37% | 17.98% | 20.01% | 21.13% | 23.47% | 19.14% | 16.85% | 15.31% | 20.87% | 19.32% | 28.35% | 41.64% | 20.33% |
| Research & Development | 2M | 5.89M | 5.57M | 1.86M | 441.89K | 254.5K | 183.89K | 689.19K | 694.23K | 699.06K | 824.67K | 838.06K | 849.49K | 934.27K | 800.31K | 543.85K | 518.94K | 525.2K | 426.17K | 414.41K | 275.85K |
| R&D % of Revenue | 6.77% | 13.8% | 11.15% | 19.63% | 3744.86% | 289.9% | 2.13% | 2.56% | 3.25% | 4.31% | 5.48% | 5.37% | 5.97% | 5.78% | 5.15% | 4.2% | 4.82% | 5.13% | 6.42% | 5.99% | 4.19% |
| Other Operating Expenses | 4.49M | 32.25M | 30.4M | 572.68K | 51.86K | 45.6K | 135.98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -26.22M | -77.72M | -80.43M | -4.17M | -830.38K | -441.08K | 174.69K | 371.42K | 675.22K | -946.41K | -1.35M | -1.12M | -896.94K | 1.03M | 1.66M | 1.38M | 30.43K | 815.07K | -434.25K | -1.73M | 174.08K |
| Operating Margin % | -88.71% | -182.21% | -160.85% | -43.91% | -7037.09% | -502.43% | 2.02% | 1.38% | 3.16% | -5.83% | -9% | -7.19% | -6.3% | 6.39% | 10.65% | 10.64% | 0.28% | 7.96% | -6.55% | -24.93% | 2.64% |
| Operating Income Growth % | 66.26% | 3.36% | -1829.79% | -401.92% | -88.26% | -352.5% | -52.97% | -44.99% | 171.35% | 30.14% | -20.62% | -25.22% | -186.86% | -37.62% | 19.99% | 4433.75% | -96.27% | 287.7% | 74.85% | -1091.8% | - |
| EBITDA | -23.84M | -70.09M | -72.64M | -3.57M | 478.71K | -428.97K | 219.18K | 528.5K | 809.37K | -793.52K | -1.23M | -981.02K | -746.8K | 1.21M | 1.82M | 1.52M | 163.58K | 950.63K | -317.1K | -1.54M | 307.54K |
| EBITDA Margin % | -80.66% | -164.31% | -145.27% | -37.64% | 4056.89% | -488.64% | 2.54% | 1.96% | 3.79% | -4.89% | -8.16% | -6.28% | -5.25% | 7.49% | 11.72% | 11.71% | 1.52% | 9.29% | -4.78% | -22.29% | 4.67% |
| EBITDA Growth % | 65.98% | 3.51% | -1933.38% | -846.24% | 211.6% | -295.72% | -58.53% | -34.7% | 202% | 35.44% | -25.3% | -31.36% | -161.69% | -33.53% | 19.99% | 827.98% | -82.79% | 399.78% | 79.45% | -601.77% | - |
| D&A (Non-Cash Add-back) | 2.38M | 7.64M | 7.79M | 595.49K | 1.31M | 12.11K | 44.49K | 157.08K | 134.16K | 152.89K | 125.52K | 142.12K | 150.14K | 178.02K | 166.12K | 138.51K | 133.15K | 135.56K | 117.15K | 183.37K | 133.46K |
| EBIT | -24.68M | -77.6M | -80.11M | -4.23M | 1.13M | -440.21K | 218.49K | 371.42K | 675.22K | -946.41K | -1.35M | -1.12M | -896.94K | 1.03M | 1.66M | 1.38M | 30.43K | 815.07K | -434.25K | -1.73M | 245.05K |
| Net Interest Income | -11.65M | -6.98M | -1.25M | -205.25K | 0 | -190.01K | -208.88K | -127.61K | -21.62K | -61.51K | -80.79K | -21.89K | 34.23K | 5.59K | -4.02K | 8.66K | 42.15K | -28.47K | -61.27K | -48.57K | -69.41K |
| Interest Income | 548K | 213K | 450K | 4.64K | 4.04K | 0 | 0 | 0 | 28.66K | 5.66K | 559 | 13.02K | 34.49K | 6.99K | 4.29K | 22.15K | 73.14K | 0 | 449 | 0 | 0 |
| Interest Expense | 12.2M | 7.19M | 1.7M | 209.9K | 4.04K | 190.01K | 208.88K | 127.61K | 50.28K | 67.18K | 81.35K | 34.91K | 259 | 1.4K | 8.3K | 13.49K | 30.98K | 28.47K | 61.72K | 48.57K | 69.41K |
| Other Income/Expense | -10.37M | -6.71M | -915K | -93.52K | -26.71K | -12.11K | -63.73K | -21.41K | -157.6K | -142.08K | -71.28K | 150.99K | 137.43K | -395.45K | -252.39K | -20.11K | -280.82K | -348.51K | -106.82K | 47.23K | 1.56K |
| Pretax Income | -36.59M | -84.44M | -81.34M | -4.26M | -857.08K | -453.19K | 110.96K | 350.02K | 517.61K | -1.09M | -1.43M | -972.15K | -759.51K | 637.19K | 1.4M | 1.36M | -250.4K | 466.55K | -541.07K | -1.68M | 175.64K |
| Pretax Margin % | -123.77% | -197.94% | -162.68% | -44.9% | -7263.42% | -516.23% | 1.28% | 1.3% | 2.42% | -6.71% | -9.47% | -6.23% | -5.33% | 3.94% | 9.03% | 10.49% | -2.33% | 4.56% | -8.16% | -24.25% | 2.67% |
| Income Tax | 557K | 171K | -776K | 84.2K | 0 | 0 | 25.17K | 29.47K | 27.61K | 96K | 109.86K | 136.31K | 13.22K | 248.45K | 281.86K | 43.28K | 120.87K | 28.72K | 199.51K | 267.14K | 171.4K |
| Effective Tax Rate % | -1.52% | -0.2% | 0.95% | -1.98% | 0% | 0% | 22.69% | 8.42% | 5.33% | -8.82% | -7.7% | -14.02% | -1.74% | 38.99% | 20.09% | 3.18% | -48.27% | 6.16% | -36.87% | -15.91% | 97.59% |
| Net Income | -39.76M | -87.45M | -81.59M | -4.19M | -857.08K | -453.19K | 41.9K | 272.45K | 368.87K | -1.22M | -1.52M | -1.2M | -832.63K | 317.76K | 1.07M | 1.32M | -388.01K | 336.59K | -811.5K | -2.01M | 632.03K |
| Net Margin % | -134.49% | -205% | -163.18% | -44.12% | -7263.42% | -516.23% | 0.48% | 1.01% | 1.73% | -7.53% | -10.12% | -7.66% | -5.85% | 1.97% | 6.91% | 10.16% | -3.6% | 3.29% | -12.23% | -29.08% | 9.6% |
| Net Income Growth % | 54.54% | -7.17% | -1848.57% | -388.57% | -89.12% | -1181.53% | -84.62% | -26.14% | 130.18% | 19.8% | -27.37% | -43.71% | -362.03% | -70.39% | -18.47% | 439.18% | -215.28% | 141.48% | 59.7% | -418.6% | - |
| Net Income (Continuing) | -37.15M | -84.61M | -80.57M | -4.35M | -857.08K | -453.19K | 85.78K | 320.55K | 490K | -1.18M | -1.54M | -1.11M | -772.73K | 388.75K | 1.12M | 1.32M | -371.27K | 437.83K | -740.58K | -1.95M | 4.24K |
| Discontinued Operations | -1.89M | -2.03M | 569K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 757.46K |
| Minority Interest | -30K | 2.78M | 2.4M | 318.48K | 0 | 345.93K | 937.98K | 837.35K | 719.73K | 597.52K | 562.77K | 647.94K | 506.82K | 716.57K | 664.41K | 441.92K | 433.15K | 417.25K | 366.7K | 291.28K | 273.15K |
| EPS (Diluted) | -11271.00 | -67710.00 | -71751.00 | -12794.00 | 4111.80 | -100.90 | 746.21 | 1167.10 | 1640.38 | -6674.07 | -8878.32 | -8241.95 | -5404.67 | 2106.90 | 7485.56 | 9484.52 | -2764.69 | 2518.33 | -6634.77 | -21608.00 | 1353.00 |
| EPS Growth % | 83.35% | 5.63% | -460.82% | -411.15% | 4175.12% | -113.52% | -36.06% | -28.85% | 124.58% | 24.83% | -7.72% | -52.5% | -356.52% | -71.85% | -21.08% | 443.06% | -209.78% | 137.96% | 69.29% | -1697.04% | - |
| EPS (Basic) | -11271.00 | -67710.00 | -71751.00 | -12794.00 | 4246.14 | -100.90 | 793.65 | 1253.55 | 1741.64 | -6674.07 | -8878.32 | -8241.95 | -5404.67 | 2148.21 | 7921.23 | 9672.71 | -2764.69 | 2518.33 | -6634.77 | -21608.00 | 1353.00 |
| Diluted Shares Outstanding | 3.53K | 1.29K | 1.14K | 1.03K | 288 | 250 | 205 | 234 | 225 | 183 | 171 | 145 | 154 | 149 | 144 | 139 | 136 | 128 | 117 | 93 | 467 |
| Basic Shares Outstanding | 3.53K | 1.29K | 1.14K | 1.03K | 279 | 250 | 193 | 217 | 212 | 183 | 171 | 145 | 154 | 146 | 136 | 136 | 136 | 128 | 117 | 93 | 467 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 35.18% | 38.5% | 9.67% | - | - | - | - | - |
Liquidity and solvency constraints
As indicated by the company's historical financial filings, HUBC has experienced extreme revenue volatility, with a 30.7% year-over-year decline in recent periods, suggesting that the firm struggles to maintain consistent market traction or successfully transition its specialized security offerings into a scalable, recurring revenue model.
The erratic revenue trajectory appears to reflect a business model that remains heavily reliant on lumpy, project-based contracts rather than predictable software subscriptions. Investors should monitor whether the recent 16% growth in 2024Q4 represents a sustainable recovery or merely a temporary fluctuation in government-related procurement cycles.
Based on reported figures, HUBC maintains a gross margin profile averaging approximately 17%, which is uncharacteristically low for an infrastructure software firm and suggests that the company's cost structure is burdened by significant hardware manufacturing or labor-intensive implementation requirements rather than high-margin, scalable software licensing.
This thin margin profile implies a lack of pricing power and suggests that the company is operating more as a hardware integrator than a pure-play software provider. The inability to achieve software-like margins may indicate that the firm's secure enclave technology requires costly, bespoke deployments that limit profitability.
According to recent SEC filings, HUBC's operating expenses consistently dwarf its gross profit, resulting in an operating margin of -88% in the most recent quarter, which highlights a fundamental misalignment between the company's fixed cost base and its current ability to generate top-line revenue.
The company appears to be struggling with significant overhead, likely driven by specialized engineering talent in a high-cost labor market. Without a substantial increase in revenue scale, the current operating structure suggests that the firm will continue to face severe pressure on its bottom-line performance.
As reported in financial statements, the company's $3 million cash position against persistent, multi-million dollar quarterly operating losses suggests a high probability of future dilutive financing, which warrants further investigation into the firm's ability to sustain its current R&D-heavy business model without compromising shareholder value.
Short-sellers would likely focus on the disconnect between the company's technical claims and its inability to convert those claims into positive cash flow. The reliance on external capital to fund ongoing operations in a high-rate environment may create a cycle of dilution that permanently impairs long-term equity returns.
Quick answers to the most common questions about buying HUBC stock.
For fiscal year 2024, HUB Cyber Security Ltd. (HUBC) reported total revenue of $29.6M. This represents a 349.1% increase compared to $6.6M in 2004.
HUB Cyber Security Ltd. (HUBC) reported a net loss of $39.8M for the fiscal year ending 2024.
HUB Cyber Security Ltd. (HUBC) reported an operating income of $-26.2M, resulting in an operating profit margin of -88.7%. This margin reflects the operational efficiency of the business before interest and taxes.
HUB Cyber Security Ltd. (HUBC) generated $5.0M in gross profit for the year, representing a gross profit margin of 17.1%. This demonstrates the company's core pricing power and production efficiency.