The company exhibits severe margin instability, evidenced by a 2025Q3 operating margin of -625.0% and a 94.6% year-over-year decline in quarterly revenue.
| Sales/Revenue | 9.81M | 18.25M | 7.71M | 23.42M | 14.63M | 13.89M |
| Revenue Growth % | -8.57% | 136.85% | -67.1% | 60.13% | 5.32% | - |
| Cost of Goods Sold | 7.23M | 9.61M | 2.15M | 2.05M | 190K | 172K |
| COGS % of Revenue | - | 52.64% | 27.84% | 8.77% | 1.3% | 1.24% |
| Gross Profit | 2.58M | 8.64M | 5.56M | 21.37M | 14.09M | 13.71M |
| Gross Margin % | 26.33% | 47.36% | 72.16% | 91.23% | 96.36% | 98.76% |
| Gross Profit Growth % | - | 55.43% | -73.98% | 51.61% | 2.76% | - |
| Operating Expenses | 1.26B | 1.28B | 565.43M | 352.84M | 21.61M | 17.04M |
| OpEx % of Revenue | - | 7030.14% | 7338.48% | 1506.59% | 147.72% | 122.73% |
| Selling, General & Admin | 27.3M | 45.88M | 83.67M | 85.49M | 21.26M | 16.81M |
| SG&A % of Revenue | - | 251.42% | 1085.98% | 365.03% | 145.38% | 121.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.24B | 481.75M | 267.35M | 343K | 360K |
| Operating Income | -1.25B | -1.27B | -559.87M | -331.48M | -7.17M | -3.33M |
| Operating Margin % | -12785.83% | -6982.79% | -7266.32% | -1415.36% | -49.02% | -23.97% |
| Operating Income Growth % | - | -127.6% | -68.9% | -4523.12% | -115.38% | - |
| EBITDA | -658.77M | -789.94M | -559.61M | -331.05M | -6.66M | -3.09M |
| EBITDA Margin % | -6712.54% | -4328.65% | -7262.91% | -1413.55% | -45.56% | -22.28% |
| EBITDA Growth % | -1064.28% | -41.16% | -69.04% | -4868.54% | -115.35% | - |
| D&A (Non-Cash Add-back) | 596.03M | 484.35M | 263K | 424K | 507K | 235K |
| EBIT | -1.21B | -1.14B | -545.98M | -280.89M | -6.03M | -3.38M |
| Net Interest Income | -487.44M | -420.03M | -289.17M | -121.01M | -27.05M | -20.89M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 487.44M | 420.03M | 289.17M | 121.01M | 27.05M | 20.89M |
| Other Income/Expense | -446.48M | -282.56M | -275.27M | -70.43M | -25.91M | -20.97M |
| Pretax Income | -1.7B | -1.56B | -835.14M | -401.9M | -33.08M | -24.3M |
| Pretax Margin % | -17335.28% | -8531.13% | -10839% | -1716.08% | -226.15% | -174.98% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | -51K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0.21% |
| Net Income | -719.22M | -360.5M | -56.35M | -7.42M | -33.09M | -24.25M |
| Net Margin % | -7328.48% | -1975.45% | -731.32% | -31.67% | -226.26% | -174.61% |
| Net Income Growth % | -639.01% | -539.77% | -659.71% | 77.59% | -36.48% | - |
| Net Income (Continuing) | -1.7B | -1.56B | -835.14M | -401.9M | -33.08M | -24.25M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -280.55M | -228.99M | 1.15B | 2.08B | 4.35M | 0 |
| EPS (Diluted) | -0.57 | -359.95 | -158.02 | -75.00 | -6.90 | -1739.58 |
| EPS Growth % | -221.35% | -127.79% | -110.69% | -986.96% | 99.6% | - |
| EPS (Basic) | - | -359.95 | -158.02 | -75.00 | -2374.13 | -1739.58 |
| Diluted Shares Outstanding | 1.26B | 1M | 356.59K | 98.92K | 121.17K | 8.71M |
| Basic Shares Outstanding | 1.26B | 1M | 356.59K | 98.89K | 23.65M | 21.83M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Liquidity and litigation uncertainty
As evidenced by the company's quarterly financial filings, revenue growth remains highly volatile, with the most recent period showing a 94.6% year-over-year decline, reflecting the inherent unpredictability of legal settlement timing and the lack of a consistent, recurring revenue stream within the current business model.
The extreme fluctuations in quarterly revenue suggest that the company's core business is not yet generating a predictable cadence of cash inflows. Investors should monitor whether the LifeWallet platform can eventually provide a more stable, SaaS-like revenue base to offset the lumpy nature of claims recovery.
Based on reported income statements, gross margins have fluctuated wildly between -30.5% and 85.2% over the last ten quarters, indicating that the company lacks the pricing power or cost predictability typically associated with stable healthcare information services providers in the current competitive landscape.
The significant volatility in gross margins implies that the cost of servicing claims is not well-aligned with the timing of revenue recognition. This inconsistency suggests that the underlying economics of the claims recovery process are highly sensitive to case-specific outcomes rather than operational efficiency.
According to the provided financial data, the company's operating margin reached a staggering -625.0% in 2025Q3, demonstrating that overhead and litigation-related expenses continue to dwarf gross profit, leaving no evidence of the operating leverage required to achieve long-term profitability under the current cost structure.
The persistent gap between gross profit and operating income suggests that the company's fixed-cost base is disproportionately high relative to its current scale. This structure indicates that significant revenue growth would be required just to reach an operating break-even point, which appears unlikely in the near term.
As reported in recent financial statements, the company's SG&A expenses consistently exceed revenue, with quarterly figures often reaching into the double-digit millions, highlighting a cost structure that appears disconnected from the actual cash-generating capacity of the firm's current legal and data-parsing operations.
The inability to contain SG&A costs while revenue remains low suggests that management is prioritizing aggressive litigation and data infrastructure investment over near-term expense discipline. This strategy warrants further investigation into whether these expenditures are creating tangible, long-term value or merely sustaining a high-burn operational model.
Financial data indicates that the company's net losses have remained substantial, with a net margin of -847.5% in 2025Q3, raising significant questions about the viability of the current business model if the company cannot bridge the gap between legal spend and realized cash recoveries.
Short-sellers would likely focus on the widening disconnect between operational activity and cash generation, which may indicate a potential liquidity crisis. The reliance on future, uncertain legal settlements to fund ongoing operations creates a high-risk profile that may not be fully captured by traditional valuation metrics.
Quick answers to the most common questions about buying MSPR stock.
For fiscal year 2024, MSP Recovery, Inc. (MSPR) reported total revenue of $18.2M. This represents a 31.4% increase compared to $13.9M in 2020.
MSP Recovery, Inc. (MSPR) reported a net loss of $360.5M for the fiscal year ending 2024.
MSP Recovery, Inc. (MSPR) reported an operating income of $-1274.3M, resulting in an operating profit margin of -6982.8%. This margin reflects the operational efficiency of the business before interest and taxes.
MSP Recovery, Inc. (MSPR) generated $8.6M in gross profit for the year, representing a gross profit margin of 47.4%. This demonstrates the company's core pricing power and production efficiency.