📊 NXT Key Takeaways
Is Nextpower Inc. (NXT) a Good Investment?
Nextpower demonstrates fortress-like financial health with zero debt, $1.1B cash, and exceptional liquidity (2.45x current ratio), coupled with strong profitability metrics (16.5% net margin, 25.1% ROE) and impressive free cash flow generation of $513.6M. However, net income growth of 0% despite 20.3% revenue growth signals operating leverage headwinds or margin compression that require monitoring to confirm sustainability of earnings quality.
Nextpower combines double‑digit revenue growth, high operating profitability, and a debt‑free, cash‑rich balance sheet that supports resilience and continued investment. Flat net income despite strong sales suggests near‑term margin or mix pressure, so execution on cost discipline and cash conversion will be key.
Nextpower Inc. Key Strengths (NXT)
- Exceptional balance sheet with zero long-term debt and $1.1B cash providing financial flexibility
- Strong profitability with 16.5% net margin, 19.6% operating margin, and 32.6% gross margin in capital-intensive semiconductor sector
- Robust free cash flow generation of $513.6M (14.4% FCF margin) demonstrating cash conversion efficiency and capital allocation capacity
- Revenue growth of 20.3% YoY reflects solid market demand in semiconductor sector
- Outstanding liquidity metrics (2.45x current ratio, 2.22x quick ratio) and high returns on capital (25.1% ROE, 14.4% ROA)
- Debt‑free balance sheet with ~$953M cash and strong liquidity (current 2.36x, quick 2.11x)
- Robust profitability: 32% gross margin, 20% operating margin, 16% net margin with 20% ROE
- Asset‑light model with modest capex and solid FCF (13.4% margin)
NXT Stock Risks: Nextpower Inc. Investment Risks
- Net income stagnation (0% YoY growth) despite 20.3% revenue growth indicates potential operating expense inflation outpacing revenue expansion or margin compression
- Semiconductor sector exposure creates cyclicality and competitive pricing pressure risk that could further compress margins
- Operating leverage working negatively suggests cost structure may not be scaling efficiently with revenue growth, requiring operational restructuring or revenue mix shift
- Flat net income vs. +18% revenue indicates margin compression or higher operating costs
- Semiconductor cyclicality and potential inventory/demand normalization
- Working capital needs weighing on cash conversion (OCF below net income)
Key Metrics to Watch
- Operating margin trend and operating expense growth rate relative to revenue growth in subsequent quarters
- Free cash flow sustainability and growth trajectory amid flat net income
- Gross margin trajectory in light of competitive semiconductor market dynamics and input cost inflation
- Gross and operating margin trajectory
- Operating cash flow to net income (cash conversion)
Nextpower Inc. (NXT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.45x current ratio provides a solid financial cushion.
NXT Profit Margin, ROE & Profitability Analysis
NXT vs Technology Sector: How Nextpower Inc. Compares
How Nextpower Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nextpower Inc. Stock Overvalued? NXT Valuation Analysis 2026
Based on fundamental analysis, Nextpower Inc. has mixed fundamental signals relative to the Technology 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.
Nextpower Inc. Balance Sheet: NXT Debt, Cash & Liquidity
NXT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nextpower Inc.'s revenue has grown significantly by 87% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.37 reflects profitable operations.
NXT Revenue Growth, EPS Growth & YoY Performance
NXT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $679.4M | $115.3M | $0.79 |
| Q2 2026 | $635.6M | $115.4M | $0.79 |
| Q1 2026 | $719.9M | $121.7M | $0.84 |
| Q3 2025 | $679.4M | $41.4M | $0.79 |
| Q2 2025 | $573.4M | $39.3M | $0.55 |
| Q1 2025 | $479.5M | $20.4M | $0.43 |
| Q3 2024 | $513.4M | N/A | $0.87 |
| Q2 2024 | $467.1M | N/A | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nextpower Inc. Dividends, Buybacks & Capital Allocation
NXT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nextpower Inc. (CIK: 0001852131)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NXT
What is the AI rating for NXT?
Nextpower Inc. (NXT) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NXT's key strengths?
Claude: Exceptional balance sheet with zero long-term debt and $1.1B cash providing financial flexibility. Strong profitability with 16.5% net margin, 19.6% operating margin, and 32.6% gross margin in capital-intensive semiconductor sector. ChatGPT: Debt‑free balance sheet with ~$953M cash and strong liquidity (current 2.36x, quick 2.11x). Robust profitability: 32% gross margin, 20% operating margin, 16% net margin with 20% ROE.
What are the risks of investing in NXT?
Claude: Net income stagnation (0% YoY growth) despite 20.3% revenue growth indicates potential operating expense inflation outpacing revenue expansion or margin compression. Semiconductor sector exposure creates cyclicality and competitive pricing pressure risk that could further compress margins. ChatGPT: Flat net income vs. +18% revenue indicates margin compression or higher operating costs. Semiconductor cyclicality and potential inventory/demand normalization.
What is NXT's revenue and growth?
Nextpower Inc. reported revenue of $3.6B.
Does NXT pay dividends?
Nextpower Inc. does not currently pay dividends.
Where can I find NXT SEC filings?
Official SEC filings for Nextpower Inc. (CIK: 0001852131) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NXT's EPS?
Nextpower Inc. has a diluted EPS of $3.84.
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 NXT's fundamental grade?
Based on our AI fundamental analysis in May 2026, Nextpower Inc. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NXT stock overvalued or undervalued?
Valuation metrics for NXT: ROE of 25.1% (sector avg: 22%), net margin of 16.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is NXT's AI grade for 2026?
Our dual AI analysis gives Nextpower Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NXT's free cash flow?
Nextpower Inc.'s operating cash flow is $562.9M, with capital expenditures of $49.3M. FCF margin is 14.4%.
How does NXT compare to other Technology stocks?
Vs Technology sector averages: Net margin 16.5% (avg: 18%), ROE 25.1% (avg: 22%), current ratio 2.45 (avg: 2.5).
Why is NXT's return on equity (ROE) so high?
Nextpower Inc. has a return on equity of 25.1%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 16.5% net margin.