Investment Thesis
Air T Inc exhibits severe financial distress with negative stockholders' equity of -1.2M, indicating the company is technically insolvent. The company is burning cash with negative operating cash flow of -25.0M and negative free cash flow of -26.2M, while generating minimal profitability with only 0.1% net margin on $206.2M revenue. With an interest coverage ratio of 0.3x and current ratio of 0.96x, the company lacks the financial capacity to service its $194.2M long-term debt and maintain operations.
AIRTP Strengths
- Maintains $37.4M in cash reserves providing near-term liquidity buffer
- Generates positive operating income of $2.6M despite revenue challenges
- Established market position in air courier services sector
AIRTP Risks
- Negative stockholders' equity indicates technical insolvency and structural balance sheet failure
- Negative operating cash flow of -25.0M demonstrates inability to fund operations from core business
- Debt service unsustainable with interest coverage ratio of only 0.3x against $194.2M long-term debt
- Negative free cash flow of -26.2M accelerates depletion of cash reserves at current burn rate
- Extremely thin net margin of 0.1% provides no cushion for operational disruptions
- Current ratio of 0.96x indicates imminent liquidity crisis within 12 months
Key Metrics to Watch
- Operating cash flow trend - critical to assess if cash burn reverses
- Stockholders equity trajectory - monitor if negative equity continues deteriorating
- Cash reserves depletion rate - assess runway given -25.0M annual OCF burn
- Debt restructuring announcements - likely necessity given inability to service debt
- Revenue stability - determine if $206.2M baseline can be maintained
AIRTP Financial Metrics
AIRTP Profitability Ratios
AIRTP Balance Sheet & Liquidity
AIRTP 5-Year Financial Trend
5-Year Trend Summary: AIR T INC's revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.42 indicates the company is currently unprofitable.
AIRTP Growth Metrics (YoY)
AIRTP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $66.4M | -$335.0K | $-0.12 |
| Q3 2025 | $71.1M | $268.0K | $0.10 |
| Q2 2025 | $64.2M | -$1.6M | $-0.57 |
| Q1 2022 | $37.0M | $289.0K | $0.10 |
| Q3 2020 | $55.5M | -$430.0K | $-0.14 |
| Q2 2020 | $35.6M | -$1.3M | $-1.01 |
| Q1 2020 | $55.7M | -$841.0K | $-0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AIRTP Capital Allocation
AIRTP SEC Filings
Access official SEC EDGAR filings for AIR T INC (CIK: 0000353184)