NTRPHIGH SIGNALFINANCIAL10-K

NTRP shows severe operational deterioration with gross profit collapsing 95% and revenue declining 39%, despite significant equity dilution that increased stockholders' equity by 136%.

The company appears to have raised substantial capital (evidenced by the dramatic increase in outstanding shares from 1.4M to 7.7M and stockholders' equity growth), but this dilution coincided with catastrophic operational performance. The near-complete erosion of gross profit margin suggests fundamental business model challenges that fresh capital alone may not resolve.

Comparing 2025-05-29 vs 2024-09-04View on EDGAR →
FINANCIAL ANALYSIS

NTRP experienced a tale of two extremes - balance sheet strength improved dramatically with cash increasing 228% and total assets nearly doubling, clearly indicating a significant capital raise through massive share dilution (450% increase in share count). However, operational performance collapsed with gross profit falling 95% and revenue declining 39%, while net losses widened to $10.1M. The juxtaposition of abundant fresh capital against deteriorating core business metrics suggests the company bought time but has not yet solved its fundamental profitability challenges.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+228.1%
$324K$1.1M

Cash position surged 228.1% — strong cash generation or capital raise providing significant financial cushion.

Capital Expenditure
Cash Flow
+216%
$3K$9K

Capital expenditure jumped 216% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
+135.5%
$3.1M$7.4M

Equity base grew 135.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+95.3%
$5.1M$9.9M

Asset base grew 95.3% — expansion through organic growth, acquisitions, or capital deployment.

Gross Profit
P&L
-94.6%
$61K$3K

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Current Assets
Balance Sheet
+45.1%
$1.7M$2.5M

Current assets grew 45.1% — improving short-term liquidity or inventory/receivables build.

Revenue
P&L
-39.4%
$641K$389K

Revenue declined 39.4% — significant demand weakness or market share loss warrants investigation.

Net Income
P&L
-38%
-$7.3M-$10.1M

Net income declined 38% — review whether driven by operations, interest costs, or non-recurring items.

Interest Expense
P&L
-34.8%
$11K$7K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Inventory
Balance Sheet
+33.9%
$710K$951K

Inventory surged 33.9% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

LANGUAGE CHANGES
NEW — 2025-05-29
PRIOR — 2024-09-04
ADDED
Based on the closing price of the registrant s common stock as reported on the Nasdaq Capital Market, the aggregate market value of the Registrant s common stock held by non-affiliates on August 31, 2024 (the last business day of the registrant s most recently completed second fiscal quarter) was approximately $ 3,817,106 .
The number of outstanding shares of the registrant s common stock as of May 28, 2025 was 7,653,525 .
(the Company, NextTrip, we, us and our ) is an early-stage, technology-driven travel company developing an integrated travel booking and media platform designed to connect leisure, group and business travelers to the world.
Our travel booking platform is powered by our proprietary NXT2.0 booking engine, which offers extensive inventory, supporting both travelers and distributors with a platform for curating personalized experiences and efficient trip planning and booking.
We market our travel services through several core brands including NextTrip Vacations (direct-to-consumer leisure travel), Five Star Alliance (luxury and cruise bookings) and NextTrip Business (small-to-mid-sized corporate travel) and differentiate our platform through specialty features, including specialized widgets for groups (the Groups Platform ) and travel agents (the Travel Agent Platform ) and PayDlay, a delayed payment booking option.
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REMOVED
Based on the closing price of the registrant s common stock as reported on The NASDAQ Capital Market, the aggregate market value of the Registrant s common stock held by non-affiliates on June 30, 2023 (the last business day of the registrant s most recently completed second fiscal quarter) was approximately $ 3,725,594 .
The number of outstanding shares of the registrant s common stock as of August 31, 2024 was 1,388,641 .
(the Company, NextTrip, we, us and our ) is an innovative technology company that is building next generation solutions to power the travel industry.
NextTrip, through its subsidiaries, provides travel technology solutions with sales originating in the United States, leisure travel, business travel, groups travel, media and tech.
We connect people to new places and discoveries by utilizing digital media engagement, seasoned planning expertise, and unique inventory to curate custom vacations and business travel across the globe.
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