📊 KARX Key Takeaways
Is Karbon-X Corp. (KARX) a Good Investment?
Karbon-X is in severe financial distress with negative stockholders' equity (-$2.4M), indicating technical insolvency on a balance sheet basis. The company is burning cash with negative operating cash flow (-$3.5M) and operating losses (-$3.2M), while maintaining an unsustainably low gross margin of 4.1% that suggests fundamental operational or market competitiveness issues. With liabilities exceeding assets and no path to profitability evident, the company faces imminent solvency risk.
Fundamentals are weak: razor-thin 4.1% gross margin, negative operating income and free cash flow, and negative shareholders’ equity point to structurally poor unit economics and solvency risk. Liquidity is only modest (current ratio ~1.15x) with negative interest coverage, implying limited capacity to service obligations without external funding. Without clear, sustained margin expansion and a return to positive operating cash flow, downside risk remains high.
Karbon-X Corp. Key Strengths (KARX)
- Maintains $6.5M in cash and equivalents, providing short-term liquidity runway
- Generates $56.5M in annual revenue, indicating some operational presence and customer base
- Zero capital expenditure suggests minimal need for reinvestment in current business model
- Meaningful revenue base (~$56.5M) with positive gross profit
- Asset-light model with minimal capex needs
- Cash balance (~$6.5M) offers short-term liquidity cushion
KARX Stock Risks: Karbon-X Corp. Investment Risks
- Negative stockholders' equity of -$2.4M indicates technical insolvency and potential bankruptcy risk
- Negative operating cash flow and free cash flow of -$3.5M indicates the business is burning cash unsustainably
- Critically low gross margin of 4.1% (vs. 40-60%+ industry norm) suggests severe cost structure, pricing, or product-market fit problems
- Operating losses with negative interest coverage ratio (-320.6x) render the company unable to service debt obligations from operations
- Liabilities ($20.8M) exceed total assets ($18.4M), creating structural insolvency
- Negative shareholders’ equity and solvency risk
- Very low gross margin indicating weak pricing/persistent COGS pressure
- Sustained operating and FCF losses with negative interest coverage
Key Metrics to Watch
- Stockholders' equity trend and path to positive equity restoration
- Gross margin improvement - any recovery from 4.1% would be critical signal
- Operating cash flow - must return to positive to avoid insolvency
- Cash burn rate and months of remaining liquidity at current burn rate
- Gross margin (%)
- Operating cash flow (OCF)
Karbon-X Corp. (KARX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Karbon-X Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KARX Profit Margin, ROE & Profitability Analysis
KARX vs Consumer Sector: How Karbon-X Corp. Compares
How Karbon-X Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Karbon-X Corp. Stock Overvalued? KARX Valuation Analysis 2026
Based on fundamental analysis, Karbon-X Corp. has mixed fundamental signals relative to the Consumer 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.
Karbon-X Corp. Balance Sheet: KARX Debt, Cash & Liquidity
KARX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Karbon-X Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline.
KARX Revenue Growth, EPS Growth & YoY Performance
KARX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $238.5K | -$1.2M | $-0.02 |
| Q2 2026 | $1.2M | -$1.2M | $-0.01 |
| Q1 2026 | $127.4K | -$804.8K | $-0.01 |
| Q3 2025 | $238.5K | -$350.0K | N/A |
| Q2 2025 | $36.1K | -$350.0K | N/A |
| Q1 2025 | $3.8K | N/A | N/A |
| Q3 2024 | $7.8K | -$371.8K | N/A |
| Q1 2024 | N/A | -$195.9K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Karbon-X Corp. Dividends, Buybacks & Capital Allocation
KARX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Karbon-X Corp. (CIK: 0001729637)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KARX
What is the AI rating for KARX?
Karbon-X Corp. (KARX) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KARX's key strengths?
Claude: Maintains $6.5M in cash and equivalents, providing short-term liquidity runway. Generates $56.5M in annual revenue, indicating some operational presence and customer base. ChatGPT: Meaningful revenue base (~$56.5M) with positive gross profit. Asset-light model with minimal capex needs.
What are the risks of investing in KARX?
Claude: Negative stockholders' equity of -$2.4M indicates technical insolvency and potential bankruptcy risk. Negative operating cash flow and free cash flow of -$3.5M indicates the business is burning cash unsustainably. ChatGPT: Negative shareholders’ equity and solvency risk. Very low gross margin indicating weak pricing/persistent COGS pressure.
What is KARX's revenue and growth?
Karbon-X Corp. reported revenue of $56.5M.
Does KARX pay dividends?
Karbon-X Corp. does not currently pay dividends.
Where can I find KARX SEC filings?
Official SEC filings for Karbon-X Corp. (CIK: 0001729637) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KARX's EPS?
Karbon-X Corp. has a diluted EPS of $-0.05.
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 grade reflects both perspectives for balanced insights.
What is KARX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Karbon-X Corp. has a D grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KARX stock overvalued or undervalued?
Valuation metrics for KARX: ROE of N/A (sector avg: 18%), net margin of -7.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is KARX's AI grade for 2026?
Our dual AI analysis gives Karbon-X Corp. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KARX's free cash flow?
Karbon-X Corp.'s operating cash flow is $-3.5M, with capital expenditures of $0.0. FCF margin is -6.2%.
How does KARX compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -7.2% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.15 (avg: 1.5).