Ovation Science Inc. specializes in the production and sale of cannabis and hemp products, utilizing its patented skin delivery technology, Invisicare. While the company boasts a high gross margin of 99.9%, it faces significant concerns with a low market cap of $1.15M, negative EBITDA and net margins, and extremely low liquidity ratios (current ratio of 0.03). The substantial increase in stock price today (+50.00%) is notable, yet the financial health score of 27/100 raises red flags about its sustainability and operational viability.
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Revenue fell 36.5% year-over-year from $102K to $65K. The decline has persisted for multiple quarters.
Company posted a loss of $-459K over the last year, representing 710.1% of revenue.
Debt of $276K is 49.7x the company's cash position of $6K.
Gross margin expanded by 93.4 percentage points, indicating improved pricing power or cost efficiency.
Operating margin expanded by 23.5pp, demonstrating strong operational leverage.
Both gross margin (+93.4pp) and operating margin (+23.5pp) are expanding simultaneously, indicating the company is scaling profitably.
Exceptional gross margin of 90.1% indicates strong pricing power and competitive moat.
Strong free cash flow margin of 10.9% provides substantial resources for dividends, buybacks, or reinvestment.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2025-Q2 (June 30, 2025)