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BRLSW Stock Analysis - Borealis Foods Inc. AI Rating

BRLSW Nasdaq Food and Kindred Products E9 CIK: 0001852973
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
95% Confidence

📊 BRLSW Key Takeaways

Revenue: $21.1M
Net Margin: -59.5%
Free Cash Flow: $-3.8M
Current Ratio: 0.15x
Debt/Equity: N/A
EPS: $-0.59
AI Rating: STRONG SELL with 95% confidence

Investment Thesis

Borealis Foods is in severe financial distress with negative stockholders equity of -$12.9M, indicating the company is technically insolvent. The company is burning cash with negative operating cash flow of -$3.8M and a critically weak current ratio of 0.15x, while generating substantial operating losses (-$38.8% margin) despite modest revenue base of $21.1M.

BRLSW Strengths

  • + Gross margin of 11.6% provides minimal operational viability in food sector
  • + Revenue base of $21.1M establishes market presence in food and kindred products
  • + Capital expenditure discipline with only $16.2K capex despite operational challenges

BRLSW Risks

  • ! Negative stockholders equity of -$12.9M indicates technical insolvency and high bankruptcy risk
  • ! Critically low liquidity with current ratio of 0.15x and only $128.9K cash against $69.2M liabilities
  • ! Severe operational losses with -$59.5% net margin and -$3.8M negative operating cash flow indicating unsustainable business model
  • ! Deteriorating revenue trend with -4.9% YoY decline combined with expanding operating losses
  • ! Negative interest coverage of -1.9x demonstrates inability to service debt obligations

Key Metrics to Watch

BRLSW Financial Metrics

Revenue
$21.1M
Net Income
$-12.6M
EPS (Diluted)
$-0.59
Free Cash Flow
$-3.8M
Total Assets
$56.3M
Cash Position
$128.9K

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

BRLSW Profitability Ratios

Gross Margin 11.6%
Operating Margin -38.8%
Net Margin -59.5%
ROE N/A
ROA -22.3%
FCF Margin -17.9%

BRLSW vs Consumer Sector

How Borealis Foods Inc. compares to Consumer sector averages

Net Margin
BRLSW -59.5%
vs
Sector Avg 8.0%
BRLSW Sector
ROE
BRLSW 0.0%
vs
Sector Avg 18.0%
BRLSW Sector
Current Ratio
BRLSW 0.1x
vs
Sector Avg 1.5x
BRLSW Sector
Debt/Equity
BRLSW 0.0x
vs
Sector Avg 0.8x
BRLSW Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BRLSW Balance Sheet & Liquidity

Current Ratio
0.15x
Quick Ratio
0.05x
Debt/Equity
N/A
Debt/Assets
123.0%
Interest Coverage
-1.89x
Long-term Debt
N/A

BRLSW 5-Year Financial Trend

BRLSW 5-year financial data: Year 2024: Revenue $31.4M, Net Income -$27.5M, EPS $-2.56.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Borealis Foods Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-2.56 indicates the company is currently unprofitable.

BRLSW Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-17.9%
Free cash flow / Revenue

BRLSW Quarterly Performance

Quarterly financial performance data for Borealis Foods Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2024 $8.1M -$4.8M $-0.23
Q2 2024 $5.5M -$5.9M $-0.29

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BRLSW Capital Allocation

Operating Cash Flow
-$3.8M
Cash generated from operations
Stock Buybacks
$159.5M
Shares repurchased (TTM)
Capital Expenditures
$16.2K
Investment in assets
Dividends
None
No dividend program

BRLSW SEC Filings

Access official SEC EDGAR filings for Borealis Foods Inc. (CIK: 0001852973)

📋 Recent SEC Filings

Date Form Document Action
Mar 6, 2026 8-K ea0280295-8k_borealis.htm View →
Feb 23, 2026 8-K ea0277887-8k_borealis.htm View →
Feb 6, 2026 8-K ea0275816-8k_borealis.htm View →
Jan 29, 2026 8-K ea0274689-8k_borealis.htm View →
Jan 16, 2026 8-K ea0273122-8k_borealis.htm View →

Frequently Asked Questions about BRLSW

What is the AI rating for BRLSW?

Borealis Foods Inc. (BRLSW) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BRLSW's key strengths?

Gross margin of 11.6% provides minimal operational viability in food sector. Revenue base of $21.1M establishes market presence in food and kindred products.

What are the risks of investing in BRLSW?

Negative stockholders equity of -$12.9M indicates technical insolvency and high bankruptcy risk. Critically low liquidity with current ratio of 0.15x and only $128.9K cash against $69.2M liabilities.

What is BRLSW's revenue and growth?

Borealis Foods Inc. reported revenue of $21.1M.

Does BRLSW pay dividends?

Borealis Foods Inc. does not currently pay dividends.

Where can I find BRLSW SEC filings?

Official SEC filings for Borealis Foods Inc. (CIK: 0001852973) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BRLSW's EPS?

Borealis Foods Inc. has a diluted EPS of $-0.59.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-09-30 | Powered by Claude AI