SEGG experienced a catastrophic business collapse with revenue plummeting 90% while burning through nearly all cash reserves.
The company appears to be in severe financial distress with revenue dropping from $68.5M to $6.8M and cash reserves depleting from $62.6M to just $103K. The dramatic deterioration across all financial metrics suggests potential going concern issues and possible bankruptcy risk.
SEGG's financial performance collapsed across every major metric, with revenue declining 90% from $68.5M to $6.8M and gross profit falling 95% to just $2.5M, indicating a fundamental breakdown in the business model. The company burned through virtually all its cash reserves (99.8% decline to $103K) while generating massive negative operating cash flow of $31.3M, transforming from an operationally profitable company to one posting a $55.8M operating loss. This comprehensive financial deterioration, combined with the near-complete depletion of liquid assets, signals an existential crisis requiring immediate attention from investors and creditors.
Interest expense surged 1519.5% — significant debt increase or rising rates materially impacting earnings.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Operating cash flow fell 486% — earnings quality concerns; investigate working capital changes and non-cash items.
Net income declined 440.9% — review whether driven by operations, interest costs, or non-recurring items.
Capital expenditure jumped 351.8% — major investment cycle underway; assess returns on deployment.
Cash declined 99.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.
Receivables declined — improved collection efficiency or conservative revenue recognition.
Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.
Revenue declined 90.1% — significant demand weakness or market share loss warrants investigation.
Current assets declined 79.2% — monitor working capital adequacy and short-term liquidity.
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