TSND saw net revenue increase 26% in Q4 from to $86M from $49M. Net loss did however widen for the quarter at $(41.8M), compared with a loss of $(2.0M) in the year-prior. TSND achieved its first full year of positive cash flow from continuing operations and positive free cash flow in the company’s history. On a full year basis, gross profit margins increase 9% from 2022 levels to 50%. Net margins albeit still highly negative did improve significantly since 2022. The large Q4 net loss was driven by $57.7M of non-cash impairment charges. There is some positive momentum here and full-year results were positive as TSND was able to generate positive cash flows for the first time. Additionally, revenues have been growing at decently high rate as well. Debt is of course quite high and we would like to see it come down more, but we think it is a decent name in the sector that had a solid year in 2023.
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