Investment Thesis
While Ameresco demonstrates exceptional revenue growth of 2621.7% YoY, the company is operationally challenged with negative free cash flow of -$37.7M and deteriorating profitability metrics including declining EPS. The massive leverage position (1.63x debt-to-equity) combined with negative operating cash flow raises sustainability concerns despite strong topline expansion.
AMRC Strengths
- Exceptional revenue growth of 2621.7% YoY indicating strong market demand and successful business expansion
- Adequate liquidity position with current ratio of 1.51x and quick ratio of 1.50x to meet short-term obligations
- Positive operating income of $83.8M demonstrates core business profitability before leverage effects
AMRC Risks
- Negative free cash flow of -$37.7M indicates the company is burning cash despite revenue growth, raising sustainability concerns
- High leverage with debt-to-equity ratio of 1.63x and $1.7B long-term debt against only $1.1B stockholders' equity creates financial stress
- Declining EPS of -8.5% YoY despite flat net income growth suggests share dilution and deteriorating per-share returns
- Margins are compressed with net margin of only 1.9% despite massive revenue growth, indicating operational inefficiency or unfavorable contract mix
- Interest coverage of 3.1x is relatively weak for a leveraged company, leaving limited buffer for earnings volatility
Key Metrics to Watch
- Operating cash flow trend - critical to confirm if negative FCF is temporary due to working capital timing or structural issue
- Debt reduction progress and deleveraging trajectory given the 1.63x debt-to-equity ratio
- Net margin expansion - whether margins can improve as company matures or if they remain compressed at 1.9%
- EPS trajectory - whether the -8.5% decline stabilizes or continues deteriorating
AMRC Financial Metrics
AMRC Profitability Ratios
AMRC Balance Sheet & Liquidity
AMRC 5-Year Financial Trend
5-Year Trend Summary: Ameresco, Inc.'s revenue has grown significantly by 77% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.78 reflects profitable operations.
AMRC Growth Metrics (YoY)
AMRC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $500.9M | $17.6M | $0.33 |
| Q2 2025 | $438.0M | $2.1M | $0.04 |
| Q1 2025 | $298.4M | -$2.9M | $-0.06 |
| Q3 2024 | $335.1M | $17.6M | $0.33 |
| Q2 2024 | $327.1M | $2.1M | $0.04 |
| Q1 2024 | $271.0M | $1.1M | $0.02 |
| Q3 2023 | $335.1M | $21.3M | $0.40 |
| Q2 2023 | $327.1M | $6.4M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMRC Capital Allocation
AMRC SEC Filings
Access official SEC EDGAR filings for Ameresco, Inc. (CIK: 0001488139)