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CVAT Stock Analysis - Cavitation Technologies, Inc. AI Rating

CVAT OTC Agricultural Services CIK: 0001376793
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
95% Confidence

📊 CVAT Key Takeaways

Revenue: $3.0K
Net Margin: -24,466.7%
Free Cash Flow: $-401.0K
Current Ratio: 0.29x
Debt/Equity: N/A
EPS: $0.00
AI Rating: STRONG SELL with 95% confidence

Investment Thesis

Cavitation Technologies exhibits terminal financial distress with revenue collapsing 85% YoY to $3K, negative stockholders' equity of -$248K, and chronic operating losses of -$723K. The company burns cash at an unsustainable rate (-$401K operating cash flow) while holding minimal liquid assets ($31K) against $303K in liabilities, indicating imminent solvency risk.

CVAT Strengths

  • + Maintains positive gross margin at 100% on minimal revenue base
  • + Retains $31K in cash reserves providing short-term liquidity buffer
  • + Agricultural services sector has long-term demand fundamentals

CVAT Risks

  • ! Negative stockholders' equity of -$248K indicates technical insolvency
  • ! Revenue near zero ($3K) with 85% YoY decline suggests business model failure
  • ! Operating cash burn of -$401K annually unsustainable given $31K cash position
  • ! Current ratio of 0.29x and quick ratio of 0.22x indicate critical liquidity crisis
  • ! $150K long-term debt obligations exceed total assets of $55K
  • ! Negative operating and net margins exceeding -24,000% reflect structural unprofitability

Key Metrics to Watch

CVAT Financial Metrics

Revenue
$3.0K
Net Income
$-734.0K
EPS (Diluted)
$0.00
Free Cash Flow
$-401.0K
Total Assets
$55.0K
Cash Position
$31.0K

💡 AI Analyst Insight

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

CVAT Profitability Ratios

Gross Margin 100.0%
Operating Margin -24,100.0%
Net Margin -24,466.7%
ROE N/A
ROA -1,334.5%
FCF Margin -13,366.7%

CVAT vs Default Sector

How Cavitation Technologies, Inc. compares to Default sector averages

Net Margin
CVAT -24,466.7%
vs
Sector Avg 12.0%
CVAT Sector
ROE
CVAT 0.0%
vs
Sector Avg 15.0%
CVAT Sector
Current Ratio
CVAT 0.3x
vs
Sector Avg 1.8x
CVAT Sector
Debt/Equity
CVAT 0.0x
vs
Sector Avg 0.7x
CVAT Sector

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

CVAT Balance Sheet & Liquidity

Current Ratio
0.29x
Quick Ratio
0.22x
Debt/Equity
N/A
Debt/Assets
550.9%
Interest Coverage
-65.73x
Long-term Debt
$150.0K

CVAT 5-Year Financial Trend

CVAT 5-year financial data: Year 2022: Revenue $1.6M, Net Income -$649.0K, EPS $0.00. Year 2023: Revenue $1.6M, Net Income -$619.0K, EPS $0.00. Year 2024: Revenue $865.0K, Net Income -$2.0M, EPS $-0.01.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Cavitation Technologies, Inc.'s revenue has declined by 47% over the 5-year period, indicating business contraction. The most recent EPS of $0.00 indicates the company is currently unprofitable.

CVAT 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
-13,366.7%
Free cash flow / Revenue

CVAT Quarterly Performance

Quarterly financial performance data for Cavitation Technologies, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2026 N/A $352.0K $0.00
Q1 2026 N/A -$227.0K $0.00
Q3 2025 $122.0K $64.0K $0.00
Q2 2025 $76.0K -$16.0K $0.00
Q1 2025 N/A -$227.0K $0.00
Q3 2024 $61.0K $64.0K $0.00
Q2 2024 $58.0K -$16.0K $0.00
Q1 2024 N/A -$73.0K $0.00

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

CVAT Capital Allocation

Operating Cash Flow
-$401.0K
Cash generated from operations
Dividends
None
No dividend program

CVAT SEC Filings

Access official SEC EDGAR filings for Cavitation Technologies, Inc. (CIK: 0001376793)

📋 Recent SEC Filings

Date Form Document Action
Feb 17, 2026 10-Q cavitation_i10q-123125.htm View →
Nov 13, 2025 10-Q cavitation_i10q-093025.htm View →
Sep 29, 2025 10-K cavitation_i10k-063025.htm View →
May 15, 2025 10-Q cavitation_i10q-033125.htm View →
Feb 14, 2025 10-Q cavitation_i10q-123124.htm View →

Frequently Asked Questions about CVAT

What is the AI rating for CVAT?

Cavitation Technologies, Inc. (CVAT) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CVAT's key strengths?

Maintains positive gross margin at 100% on minimal revenue base. Retains $31K in cash reserves providing short-term liquidity buffer.

What are the risks of investing in CVAT?

Negative stockholders' equity of -$248K indicates technical insolvency. Revenue near zero ($3K) with 85% YoY decline suggests business model failure.

What is CVAT's revenue and growth?

Cavitation Technologies, Inc. reported revenue of $3.0K.

Does CVAT pay dividends?

Cavitation Technologies, Inc. does not currently pay dividends.

Where can I find CVAT SEC filings?

Official SEC filings for Cavitation Technologies, Inc. (CIK: 0001376793) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CVAT's EPS?

Cavitation Technologies, Inc. has a diluted EPS of $0.00.

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 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI