📊 FRQN Key Takeaways
Is FRQN a Good Investment? Thesis Analysis
Frequency Holdings exhibits severe financial distress with negative stockholders' equity of -$6.0M, indicating liabilities exceed assets by a significant margin. The company has a critically weak balance sheet with only $30.2K in cash against $5.7M in liabilities, combined with substantial operating losses (-$4.5M) and negative free cash flow (-$440.3K), raising serious going concern questions.
Why Buy FRQN? Key Strengths
- High gross margin of 73.8% suggests underlying product/service value
- Revenue growth of 8.2% YoY demonstrates some market traction
- Positive net income of $9.5M (though likely driven by one-time gains rather than operations)
FRQN Investment Risks to Consider
- Negative stockholders' equity of -$6.0M represents technical insolvency
- Extremely poor liquidity with current ratio of 0.02x and only $30.2K cash vs $5.7M liabilities
- Persistent operating losses (-$4.5M) and negative operating cash flow (-$386.4K) indicate unsustainable business model
- Negative free cash flow of -$440.3K with 27.8% negative FCF margin
- Long-term debt of $1.8M with minimal cash and negative equity to service obligations
- Highly distorted profitability metrics (598.9% net margin, 9267.6% ROA) suggest accounting anomalies rather than operational strength
Key Metrics to Watch
- Stockholders' equity trend and path to positive equity
- Operating cash flow and ability to achieve cash flow positive status
- Cash balance and runway given current burn rate
- Debt covenant compliance and refinancing risk
FRQN Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FRQN Profitability Ratios
FRQN vs Default Sector
How Frequency Holdings, Inc compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FRQN Overvalued or Undervalued?
Based on fundamental analysis, Frequency Holdings, Inc has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FRQN Balance Sheet & Liquidity
FRQN 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Frequency Holdings, Inc's revenue has grown significantly by 8,273% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.07 indicates the company is currently unprofitable.
FRQN Growth Metrics (YoY)
FRQN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6M | $1.6M | $0.00 |
| Q2 2025 | $1.3M | $1.3M | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FRQN Capital Allocation
FRQN SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Frequency Holdings, Inc (CIK: 0001624517)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FRQN
What is the AI rating for FRQN?
Frequency Holdings, Inc (FRQN) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FRQN's key strengths?
Claude: High gross margin of 73.8% suggests underlying product/service value. Revenue growth of 8.2% YoY demonstrates some market traction.
What are the risks of investing in FRQN?
Claude: Negative stockholders' equity of -$6.0M represents technical insolvency. Extremely poor liquidity with current ratio of 0.02x and only $30.2K cash vs $5.7M liabilities.
What is FRQN's revenue and growth?
Frequency Holdings, Inc reported revenue of $1.6M.
Does FRQN pay dividends?
Frequency Holdings, Inc does not currently pay dividends.
Where can I find FRQN SEC filings?
Official SEC filings for Frequency Holdings, Inc (CIK: 0001624517) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FRQN's EPS?
Frequency Holdings, Inc has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FRQN a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Frequency Holdings, Inc has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FRQN stock overvalued or undervalued?
Valuation metrics for FRQN: ROE of N/A (sector avg: 15%), net margin of 598.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FRQN stock in 2026?
Our dual AI analysis gives Frequency Holdings, Inc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FRQN's free cash flow?
Frequency Holdings, Inc's operating cash flow is $-386.4K, with capital expenditures of $53.9K. FCF margin is -27.8%.
How does FRQN compare to other Default stocks?
Vs Default sector averages: Net margin 598.9% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.02 (avg: 1.8).