The9 Ltd Financials

NCTY

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2024 Currency USD FYE December

Financial Health Signals

Financial Profile 29/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

The9 Ltd has an operating margin of -52.6%, meaning the company retains $-53 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -177.5% the prior year.

Growth

The9 Ltd's revenue declined 39.3% year-over-year, from $25.2M to $15.3M. This contraction results in a growth score of 0/100.

Leverage

The9 Ltd carries a low D/E ratio of 0.62, meaning only $0.62 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 88/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

The9 Ltd's current ratio of 1.19 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 27/100, which could limit financial flexibility.

Piotroski F-Score Weak

2/9

The9 Ltd passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Low Quality

0.60x

For every $1 of reported earnings, The9 Ltd generates $0.60 in operating cash flow (-$6.1M OCF vs -$10.1M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-1.7x

The9 Ltd earns $-1.7 in operating income for every $1 of interest expense (-$8.1M vs $4.7M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

This page shows The9 Ltd (NCTY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

$15.3M

YoY-39.3%

5Y CAGR+215.4%

10Y CAGR+3.9%

The9 Ltd generated $15.3M in revenue in fiscal year 2024. This represents a decrease of 39.3% from the prior year.

EBITDA

N/A

Free Cash Flow

N/A

Net Income

-$10.1M

YoY-457.0%

The9 Ltd reported -$10.1M in net income in fiscal year 2024. This represents a decrease of 457.0% from the prior year.

EPS (Diluted)

$-0.01

YoY+50.0%

The9 Ltd earned $-0.01 per diluted share (EPS) in fiscal year 2024. This represents an increase of 50.0% from the prior year.

Cash & Debt

$1.5M

YoY-76.5%

5Y CAGR-0.7%

10Y CAGR-25.4%

The9 Ltd held $1.5M in cash against $0 in long-term debt as of fiscal year 2024.

Dividends Per Share

N/A

Shares Outstanding

N/A

Gross Margin

-1.4%

YoY+16.9pp

5Y CAGR+291.6pp

10Y CAGR+31.7pp

The9 Ltd's gross margin was -1.4% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 16.9 percentage points from the prior year.

Operating Margin

-52.6%

YoY+124.9pp

5Y CAGR+47888.3pp

10Y CAGR+195.5pp

The9 Ltd's operating margin was -52.6% in fiscal year 2024, reflecting core business profitability. This is up 124.9 percentage points from the prior year.

Net Margin

-65.7%

YoY-76.9pp

5Y CAGR+51997.7pp

10Y CAGR+100.4pp

The9 Ltd's net profit margin was -65.7% in fiscal year 2024, showing the share of revenue converted to profit. This is down 76.9 percentage points from the prior year.

Return on Equity

N/A

R&D Spending

$117K

YoY-57.8%

5Y CAGR-42.6%

10Y CAGR-41.6%

The9 Ltd invested $117K in research and development in fiscal year 2024. This represents a decrease of 57.8% from the prior year.

Share Buybacks

N/A

Capital Expenditures

N/A

NCTY Income Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$15.3M-39.3%	$25.2M+61.0%	$15.7M-26.4%	$21.3M+22093.7%	$96K+95.4%	$49K
Cost of Revenue	$15.5M-48.0%	$29.8M+11.5%	$26.8M+93.8%	$13.8M+10971.8%	$125K-35.3%	$193K
Gross Profit	-$219K+95.3%	-$4.6M+51.5%	-$9.5M-227.0%	$7.5M+26065.8%	-$29K+79.9%	-$144K
R&D Expenses	$117K-57.8%	$278K-21.3%	$353K+17.2%	$301K-19.5%	$374K-80.1%	$1.9M
SG&A Expenses	$21.6M-24.4%	$28.6M-47.6%	$54.6M+18.6%	$46.0M+176.0%	$16.7M+1.9%	$16.4M
Operating Income	-$8.1M+82.0%	-$44.8M+53.3%	-$95.9M-98.7%	-$48.3M-193.6%	$51.6M+319.4%	-$23.5M
Interest Expense	$4.7M+6.1%	$4.4M+31.3%	$3.4M-82.0%	$18.7M+2898.0%	$624K-87.4%	$5.0M
Income Tax	$0	$0	N/A	$0-100.0%	$1.1M	$0
Net Income	-$10.1M-457.0%	$2.8M+102.0%	-$141.3M-119.0%	-$64.5M-205.8%	$61.0M+338.8%	-$25.5M
EPS (Diluted)	$-0.01+50.0%	$-0.02+90.0%	$-0.20-53.8%	$-0.13	N/A	N/A

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q2'21	Q4'20	Q4'19	Q4'18
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

NCTY Balance Sheet

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$87.2M+70.3%	$51.2M-41.0%	$86.9M-57.8%	$205.6M+2669.6%	$7.4M-71.5%	$26.1M
Current Assets	$33.4M+6.4%	$31.4M-45.6%	$57.7M-65.0%	$164.8M+2442.0%	$6.5M-70.8%	$22.2M
Cash & Equivalents	$1.5M-76.5%	$6.4M-24.3%	$8.4M-87.5%	$67.2M+1251.6%	$5.0M+220.9%	$1.5M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	$8K-64.0%	$22K-96.2%	$578K+126339.8%	$457-97.1%	$16K
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$28.7M+11.5%	$25.7M-69.0%	$82.9M-3.4%	$85.8M+66.6%	$51.5M-66.3%	$152.9M
Current Liabilities	$28.2M+22.8%	$22.9M-72.0%	$81.8M-4.2%	$85.4M+53.0%	$55.8M-63.3%	$152.0M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$46.4M+59.7%	$29.1M+342.3%	$6.6M-94.6%	$121.8M+376.3%	-$44.1M+63.4%	-$120.5M
Retained Earnings	-$606.9M+1.1%	-$613.6M+3.3%	-$634.8M-18.9%	-$534.1M-16.5%	-$458.6M+6.4%	-$489.9M

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q2'21	Q4'20	Q4'19	Q4'18
Total Assets	$87.2M+70.3%	$51.2M-41.0%	$86.9M-57.8%	$205.6M+1.5%	$202.5M+2627.9%	$7.4M-71.5%	$26.1M+8.8%	$24.0M
Current Assets	$33.4M+6.4%	$31.4M-45.6%	$57.7M-65.0%	$164.8M-2.8%	$169.5M+2514.2%	$6.5M-70.8%	$22.2M+362.1%	$4.8M
Cash & Equivalents	$1.5M-76.5%	$6.4M-24.3%	$8.4M-87.5%	$67.2M-48.3%	$130.0M+2513.2%	$5.0M+220.9%	$1.5M+153.5%	$611K
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	$8K-64.0%	$22K-96.2%	$578K+124971.4%	$462+1.1%	$457-97.1%	$16K-81.6%	$86K
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$0
Total Liabilities	$28.7M+11.5%	$25.7M-69.0%	$82.9M-3.4%	$85.8M+23.1%	$69.7M+35.3%	$51.5M-66.3%	$152.9M+15.7%	$132.1M
Current Liabilities	$28.2M+22.8%	$22.9M-72.0%	$81.8M-4.2%	$85.4M+22.5%	$69.7M+24.8%	$55.8M-63.3%	$152.0M+15.0%	$132.1M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$46.4M+59.7%	$29.1M+342.3%	$6.6M-94.6%	$121.8M-9.4%	$134.5M+405.0%	-$44.1M+63.4%	-$120.5M-16.4%	-$103.5M
Retained Earnings	-$606.9M+1.1%	-$613.6M+3.3%	-$634.8M-18.9%	-$534.1M-10.6%	-$482.9M-5.3%	-$458.6M+6.4%	-$489.9M-4.2%	-$470.2M

NCTY Cash Flow Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	-$6.1M+7.2%	-$6.5M+70.9%	-$22.4M+79.2%	-$107.9M-562.7%	-$16.3M-109.3%	-$7.8M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$7.8M-1272.0%	$666K+101.8%	-$36.1M-62.9%	-$22.1M-133.0%	$67.2M+668.1%	$8.7M
Financing Cash Flow	$9.6M+110.8%	$4.5M-5.3%	$4.8M-97.5%	$192.5M+504.3%	-$47.6M-910.0%	$5.9M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q2'21	Q4'20	Q4'19	Q4'18
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

NCTY Financial Ratios

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	-1.4%+16.9pp	-18.4%+42.5pp	-60.8%-96.1pp	35.3%+65.5pp	-30.2%+262.9pp	-293.1%
Operating Margin	-52.6%+124.9pp	-177.5%+434.7pp	-612.2%-385.3pp	-226.9%-54058.4pp	53831.4%+101772.3pp	-47940.8%
Net Margin	-65.7%-76.9pp	11.2%+913.4pp	-902.2%-598.9pp	-303.3%-63915.1pp	63611.8%+115675.3pp	-52063.4%
Return on Equity	N/A	9.7%	N/A	N/A	N/A	N/A
Return on Assets	-11.5%-17.0pp	5.5%+168.2pp	-162.7%-131.3pp	-31.4%-852.8pp	821.4%+919.4pp	-98.0%
Current Ratio	1.19-0.2	1.37+0.7	0.70-1.2	1.93+1.8	0.12-0.0	0.15
Debt-to-Equity	0.62-0.3	0.88-11.7	12.61+11.9	0.70+1.9	-1.17+0.1	-1.27
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q2'21	Q4'20	Q4'19	Q4'18
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	1.19-0.2	1.37+0.7	0.70-1.2	1.93-0.5	2.43+2.3	0.12-0.0	0.15+0.1	0.04
Debt-to-Equity	0.62-0.3	0.88-11.7	12.61+11.9	0.70+0.2	0.52+1.7	-1.17+0.1	-1.270.0	-1.28
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is The9 Ltd's annual revenue?

The9 Ltd (NCTY) reported $15.3M in total revenue for fiscal year 2024. This represents a -39.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is The9 Ltd's revenue growing?

The9 Ltd (NCTY) revenue declined by 39.3% year-over-year, from $25.2M to $15.3M in fiscal year 2024.

Is The9 Ltd profitable?

No, The9 Ltd (NCTY) reported a net income of -$10.1M in fiscal year 2024, with a net profit margin of -65.7%.

What is The9 Ltd's earnings per share (EPS)?

The9 Ltd (NCTY) reported diluted earnings per share of $-0.01 for fiscal year 2024. This represents a 50.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is The9 Ltd's gross margin?

The9 Ltd (NCTY) had a gross margin of -1.4% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is The9 Ltd's operating margin?

The9 Ltd (NCTY) had an operating margin of -52.6% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is The9 Ltd's net profit margin?

The9 Ltd (NCTY) had a net profit margin of -65.7% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is The9 Ltd's operating cash flow?

The9 Ltd (NCTY) generated -$6.1M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are The9 Ltd's total assets?

The9 Ltd (NCTY) had $87.2M in total assets as of fiscal year 2024, including both current and long-term assets.

How much does The9 Ltd spend on research and development?

The9 Ltd (NCTY) invested $117K in research and development during fiscal year 2024.

What is The9 Ltd's current ratio?

The9 Ltd (NCTY) had a current ratio of 1.19 as of fiscal year 2024, which is considered adequate.

What is The9 Ltd's debt-to-equity ratio?

The9 Ltd (NCTY) had a debt-to-equity ratio of 0.62 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is The9 Ltd's return on assets (ROA)?

The9 Ltd (NCTY) had a return on assets of -11.5% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is The9 Ltd's cash runway?

Based on fiscal year 2024 data, The9 Ltd (NCTY) had $1.5M in cash against an annual operating cash burn of $6.1M. This gives an estimated cash runway of approximately 3 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is The9 Ltd's Piotroski F-Score?

The9 Ltd (NCTY) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are The9 Ltd's earnings high quality?

The9 Ltd (NCTY) has an earnings quality ratio of 0.60x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can The9 Ltd cover its interest payments?

The9 Ltd (NCTY) has an interest coverage ratio of -1.7x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is The9 Ltd?

The9 Ltd (NCTY) scores 29 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.