Revenue volatility remains a primary concern, with the company reporting a 2026Q1 operating margin of -161.6% and inconsistent gross margins that have swung as low as 23.6% in recent periods.
| Sales/Revenue | 6M | 5.55M | 7.4M | 5.43M | 7.27M | 28.79M |
| Revenue Growth % | -4.8% | -25.01% | 36.32% | -25.29% | -74.75% | - |
| Cost of Goods Sold | 3.21M | 2.64M | 2.58M | 2.3M | 4.96M | 10.28M |
| COGS % of Revenue | - | 47.52% | 34.88% | 42.3% | 68.3% | 35.72% |
| Gross Profit | 2.78M | 2.91M | 4.82M | 3.13M | 2.3M | 18.5M |
| Gross Margin % | 46.39% | 52.48% | 65.12% | 57.7% | 31.7% | 64.28% |
| Gross Profit Growth % | - | -39.56% | 53.85% | 35.98% | -87.55% | - |
| Operating Expenses | 12.28M | 14.45M | 23.7M | 24.61M | 14.32M | 14.44M |
| OpEx % of Revenue | - | 260.24% | 320.2% | 453.22% | 197.06% | 50.16% |
| Selling, General & Admin | 11.27M | 13.15M | 19.04M | 22.11M | 13.61M | 14.12M |
| SG&A % of Revenue | - | 236.84% | 257.19% | 407.09% | 187.2% | 49.05% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 1.01M | 1.3M | 4.66M | 2.5M | 716K | 318K |
| Operating Income | -9.5M | -11.53M | -18.88M | -21.48M | -12.02M | 4.07M |
| Operating Margin % | -158.48% | -207.76% | -255.08% | -395.52% | -165.36% | 14.12% |
| Operating Income Growth % | - | 38.92% | 12.09% | -78.71% | -395.57% | - |
| EBITDA | -8.13M | -10.23M | -17.74M | -20.61M | -11.46M | 4.38M |
| EBITDA Margin % | -135.61% | -184.36% | -239.68% | -379.47% | -157.64% | 15.23% |
| EBITDA Growth % | 58.91% | 42.31% | 13.9% | -79.85% | -361.34% | - |
| D&A (Non-Cash Add-back) | 1.37M | 1.3M | 1.14M | 872K | 561K | 318K |
| EBIT | -9.51M | -11.53M | -21.9M | -21.97M | -11.97M | 3.75M |
| Net Interest Income | 228K | 77K | -1.62M | -94K | -115K | -315K |
| Interest Income | 228K | 77K | -1.55M | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 63K | 94K | 115K | 315K |
| Other Income/Expense | -254K | -212K | -3.08M | -583K | -67K | -635K |
| Pretax Income | -9.76M | -11.74M | -21.96M | -22.06M | -12.09M | 3.43M |
| Pretax Margin % | -162.72% | -211.58% | -296.68% | -406.26% | -166.28% | 11.92% |
| Income Tax | -7K | -32K | -465K | 208K | 1.21M | 1.12M |
| Effective Tax Rate % | 0.07% | 0.27% | 2.12% | -0.94% | -9.97% | 32.59% |
| Net Income | -9.75M | -11.71M | -21.5M | -22.27M | -13.29M | 2.31M |
| Net Margin % | -162.6% | -211.01% | -290.39% | -410.09% | -182.86% | 8.04% |
| Net Income Growth % | 55.71% | 45.51% | 3.47% | -67.55% | -674.58% | - |
| Net Income (Continuing) | -9.75M | -11.71M | -21.5M | -22.27M | -13.29M | 2.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.84 | -12.40 | -42.80 | -142.40 | -44.40 | 7.60 |
| EPS Growth % | 79.74% | 71.03% | 69.94% | -220.72% | -684.21% | - |
| EPS (Basic) | - | -12.40 | -42.80 | -142.40 | -44.40 | 7.60 |
| Diluted Shares Outstanding | 2.01M | 933.72K | 502.98K | 156.44K | 298.92K | 298.92K |
| Basic Shares Outstanding | 2.01M | 933.72K | 502.98K | 156.44K | 298.92K | 298.92K |
| Dividend Payout Ratio | - | - | - | - | - | 2.29% |
High cash burn rate
As evidenced by the quarterly financial data, MSAI has experienced significant revenue inconsistency, with recent periods showing a marked inability to sustain growth, culminating in a 25.01% year-over-year contraction that highlights the challenges of transitioning from a hardware-centric model to a recurring software-based revenue stream.
The erratic revenue performance suggests that the company's reliance on project-based hardware sales creates a lumpy and unpredictable top-line profile. Investors should monitor whether the current contraction reflects a strategic pivot away from low-margin legacy products or a fundamental erosion of the firm's competitive position in the industrial IoT market.
According to the reported income statements, MSAI's gross margins have fluctuated wildly between 23.6% and 75.6%, suggesting that the company lacks the pricing power or cost consistency required to maintain a stable margin profile in its specialized thermographic hardware and software-integrated sensing business.
This extreme variability in gross profitability implies that the product mix is highly sensitive to individual contract terms or potential inventory write-downs. Such instability makes it difficult to forecast long-term profitability and suggests that the company's value proposition may not yet be sufficiently differentiated to command premium, consistent pricing.
Based on the provided financial figures, MSAI's operating margin of -207.76% indicates that the company is currently unable to achieve the necessary scale to cover its fixed corporate overhead, resulting in a persistent disconnect between gross profit generation and the high costs of operating as a public entity.
The substantial SG&A expenses relative to revenue suggest that the company is over-investing in its sales and administrative infrastructure relative to its current market penetration. Without a significant increase in revenue volume or a drastic reduction in operating expenses, the firm appears to be trapped in a cycle of high cash burn that threatens its long-term viability.
As reported in recent filings, the company's net income is consistently negative, with significant quarterly losses that are exacerbated by non-operating items and stock-based compensation, which complicates the assessment of the underlying operational health of the business for potential investors.
The presence of substantial stock-based compensation in earlier periods suggests that reported losses may be partially driven by non-cash accounting charges related to the company's transition to a public entity. Analysts should focus on stripping out these non-recurring items to determine the true cash-burn rate and the sustainability of the current business model.
While management may view the current revenue decline as a strategic transition, the data suggests a more concerning trend where the company's high fixed-cost structure is not being supported by a growing, recurring revenue base, leaving the firm exposed to significant liquidity risks in the near term.
Short-sellers would likely focus on the widening gap between the company's cash reserves and its ongoing operating losses, which may necessitate dilutive financing. The lack of a clear path to profitability suggests that the market's current valuation may be overly optimistic regarding the company's ability to successfully pivot to a software-first model.
Quick answers to the most common questions about buying MSAI stock.
For fiscal year 2025, MultiSensor AI Holdings, Inc. (MSAI) reported total revenue of $5.6M. This represents a 80.7% decline compared to $28.8M in 2021.
MultiSensor AI Holdings, Inc. (MSAI) reported a net loss of $11.7M for the fiscal year ending 2025.
MultiSensor AI Holdings, Inc. (MSAI) reported an operating income of $-11.5M, resulting in an operating profit margin of -207.8%. This margin reflects the operational efficiency of the business before interest and taxes.
MultiSensor AI Holdings, Inc. (MSAI) generated $2.9M in gross profit for the year, representing a gross profit margin of 52.5%. This demonstrates the company's core pricing power and production efficiency.