Sonic Foundry Financials
This page shows Sonic Foundry (SOFO) 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).
Financial Health Signals
Based on FY2023 annual data. Scores normalized against common benchmarks. How we calculate these scores
Sonic Foundry has an operating margin of -78.7%, meaning the company retains $-79 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 down from -25.2% the prior year.
Sonic Foundry's revenue declined 19.5% year-over-year, from $27.5M to $22.1M. This contraction results in a growth score of 0/100.
Sonic Foundry's current ratio of 0.39 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 0/100, which could limit financial flexibility.
While Sonic Foundry generated -$11.3M in operating cash flow, capex of $550K consumed most of it, leaving -$11.9M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Sonic Foundry passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Sonic Foundry generates $0.59 in operating cash flow (-$11.3M OCF vs -$19.3M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Sonic Foundry earns $-9.8 in operating income for every $1 of interest expense (-$17.4M vs $1.8M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Sonic Foundry generated $22.1M in revenue in fiscal year 2023. This represents a decrease of 19.5% from the prior year.
Sonic Foundry's EBITDA was -$15.1M in fiscal year 2023, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 169.5% from the prior year.
Sonic Foundry generated -$11.9M in free cash flow in fiscal year 2023, representing cash available after capex. This represents a decrease of 45.6% from the prior year.
Sonic Foundry reported -$19.3M in net income in fiscal year 2023. This represents a decrease of 173.2% from the prior year.
Sonic Foundry earned $-1.62 per diluted share (EPS) in fiscal year 2023. This represents a decrease of 125.0% from the prior year.
Sonic Foundry held $840K in cash against $0 in long-term debt as of fiscal year 2023.
Sonic Foundry had 12M shares outstanding in fiscal year 2023. This represents an increase of 11.4% from the prior year.
Sonic Foundry's gross margin was 58.1% in fiscal year 2023, indicating the percentage of revenue retained after direct costs. This is down 10.4 percentage points from the prior year.
Sonic Foundry's operating margin was -78.7% in fiscal year 2023, reflecting core business profitability. This is down 53.5 percentage points from the prior year.
Sonic Foundry's net profit margin was -87.5% in fiscal year 2023, showing the share of revenue converted to profit. This is down 61.7 percentage points from the prior year.
Sonic Foundry invested $11.0M in research and development in fiscal year 2023. This represents an increase of 46.2% from the prior year.
Sonic Foundry invested $550K in capex in fiscal year 2023, funding long-term assets and infrastructure. This represents a decrease of 78.8% from the prior year.
SOFO Income Statement
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q3'21 | Q2'22 | Q1'22 | Q3'20 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $5.8M+0.8% | $5.7M+14.4% | $5.0M-42.1% | $8.7M+9.4% | $7.9M-9.1% | $8.7M-5.0% | $9.2M | N/A |
| Cost of Revenue | $2.5M+0.5% | $2.5M+25.0% | $2.0M-24.9% | $2.6M+20.8% | $2.2M-15.7% | $2.6M+6.8% | $2.4M | N/A |
| Gross Profit | $3.3M+0.9% | $3.3M+7.6% | $3.0M-49.6% | $6.0M+5.1% | $5.7M-6.3% | $6.1M-9.2% | $6.8M | N/A |
| R&D Expenses | $3.1M+28.6% | $2.4M-14.7% | $2.8M+48.1% | $1.9M+24.6% | $1.5M-12.7% | $1.7M-0.6% | $1.7M | N/A |
| SG&A Expenses | $1.1M+8.7% | $1.0M-37.2% | $1.6M+46.9% | $1.1M+7.1% | $1.0M-2.4% | $1.1M-11.9% | $1.2M | N/A |
| Operating Income | -$7.2M-160.1% | -$2.8M+35.2% | -$4.3M-2323.8% | $193K-14.6% | $226K-50.3% | $455K-43.5% | $805K | N/A |
| Interest Expense | -$493K+0.2% | -$494K-238.4% | -$146K-1560.0% | $10K+107.1% | -$140K-508.7% | -$23K+20.7% | -$29K | N/A |
| Income Tax | -$20K-117.9% | $112K-18.2% | $137K+238.4% | -$99K+22.0% | -$127K-192.7% | $137K-11.6% | $155K | N/A |
| Net Income | -$7.9M-132.8% | -$3.4M+23.0% | -$4.4M-265.8% | $2.6M+2372.9% | $107K-58.4% | $257K-59.3% | $632K | N/A |
| EPS (Diluted) | $-0.65-132.1% | $-0.28+26.3% | $-0.38-222.6% | $0.31+3000.0% | $0.01-66.7% | $0.03-62.5% | $0.08 | N/A |
SOFO Balance Sheet
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q3'21 | Q2'22 | Q1'22 | Q3'20 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $12.3M-44.2% | $22.0M-11.0% | $24.7M+23.9% | $19.9M-17.1% | $24.0M+31.4% | $18.3M-6.9% | $19.6M-13.3% | $22.6M |
| Current Assets | $8.1M-38.4% | $13.2M-16.1% | $15.7M+41.3% | $11.1M-36.0% | $17.4M+31.6% | $13.2M-5.2% | $14.0M-17.0% | $16.8M |
| Cash & Equivalents | $840K-68.9% | $2.7M-66.1% | $8.0M+141.9% | $3.3M-67.0% | $10.0M+84.1% | $5.4M-7.2% | $5.8M-23.3% | $7.6M |
| Inventory | $1.9M-34.1% | $2.8M+10.4% | $2.5M+74.4% | $1.5M+230.8% | $442K-59.4% | $1.1M-10.2% | $1.2M+4.0% | $1.2M |
| Accounts Receivable | $4.0M-28.8% | $5.6M+63.5% | $3.4M-30.2% | $4.9M-4.7% | $5.2M+1.1% | $5.1M-2.9% | $5.3M-15.8% | $6.3M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $26.0M+7.0% | $24.3M+2.4% | $23.7M+45.4% | $16.3M-8.7% | $17.9M-1.0% | $18.1M-8.3% | $19.7M-16.8% | $23.7M |
| Current Liabilities | $20.9M+31.0% | $15.9M+5.0% | $15.2M+10.3% | $13.7M-1.9% | $14.0M+2.7% | $13.7M-8.6% | $14.9M-19.6% | $18.6M |
| Long-Term Debt | $605K-12.1% | $688K+80.6% | $381K+7.0% | $356K-36.0% | $556K-73.4% | $2.1M-12.9% | $2.4M-10.3% | $2.7M |
| Total Equity | -$13.7M-485.4% | -$2.3M-354.6% | $922K-74.2% | $3.6M-41.7% | $6.1M+2742.6% | $216K+422.4% | -$67K+93.6% | -$1.0M |
| Retained Earnings | -$232.9M-5.2% | -$221.3M-1.6% | -$217.9M-2.1% | -$213.5M-3.4% | -$206.4M+1.0% | -$208.6M+0.1% | -$208.9M+0.3% | -$209.5M |
SOFO Cash Flow Statement
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q3'21 | Q2'22 | Q1'22 | Q3'20 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.1M+75.7% | -$4.5M-14.2% | -$3.9M-739.9% | -$469K-123.0% | $2.0M+102250.0% | -$2K+99.8% | -$1.3M-158.2% | $2.2M |
| Capital Expenditures | $181K+341.5% | $41K-79.9% | $204K-21.2% | $259K-70.0% | $863K+436.0% | $161K-43.9% | $287K-72.7% | $1.1M |
| Free Cash Flow | -$1.3M+71.9% | -$4.5M-9.6% | -$4.1M-469.1% | -$728K-161.7% | $1.2M+823.9% | -$163K+89.5% | -$1.6M-238.1% | $1.1M |
| Investing Cash Flow | -$181K+76.8% | -$780K+18.7% | -$959K+6.3% | -$1.0M-18.5% | -$863K-436.0% | -$161K+43.9% | -$287K+72.7% | -$1.1M |
| Financing Cash Flow | -$2K-112.5% | $16K-99.8% | $9.5M+1955.2% | $462K-86.5% | $3.4M+1749.5% | -$208K+22.1% | -$267K-1583.3% | $18K |
| 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 |
SOFO Financial Ratios
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q3'21 | Q2'22 | Q1'22 | Q3'20 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.2%+0.1pp | 57.1%-3.6pp | 60.7%-9.0pp | 69.7%-2.9pp | 72.6%+2.1pp | 70.4%-3.2pp | 73.7% | N/A |
| Operating Margin | -125.2%-76.7pp | -48.5%+37.1pp | -85.6%-87.8pp | 2.2%-0.6pp | 2.9%-2.4pp | 5.2%-3.6pp | 8.8% | N/A |
| Net Margin | -136.0%-77.1pp | -58.9%+28.6pp | -87.5%-118.1pp | 30.6%+29.2pp | 1.4%-1.6pp | 2.9%-4.0pp | 6.9% | N/A |
| Return on Equity | N/A | N/A | N/A | 87.1% | N/A | 119.0% | N/A | N/A |
| Return on Assets | -47.5%-32.1pp | -15.4%+2.4pp | -17.8%-31.3pp | 13.5%+12.9pp | 0.6%-0.8pp | 1.4%-1.8pp | 3.2% | N/A |
| Current Ratio | 0.39-0.4 | 0.83-0.2 | 1.04+0.2 | 0.81-0.4 | 1.24+0.3 | 0.97+0.0 | 0.93+0.0 | 0.91 |
| Debt-to-Equity | -1.89-1.6 | -0.29-0.7 | 0.41+0.3 | 0.100.0 | 0.09-9.6 | 9.67+45.5 | -35.81-33.3 | -2.55 |
| FCF Margin | -33.1%+46.0pp | -79.1%+3.5pp | -82.6%-86.1pp | 3.5%+4.5pp | -1.1%+0.8pp | -1.9%+15.1pp | -17.0% | N/A |
Note: Shareholder equity is negative (-$13.7M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.39), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Sonic Foundry's annual revenue?
Sonic Foundry (SOFO) reported $22.1M in total revenue for fiscal year 2023. This represents a -19.5% 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 Sonic Foundry's revenue growing?
Sonic Foundry (SOFO) revenue declined by 19.5% year-over-year, from $27.5M to $22.1M in fiscal year 2023.
Is Sonic Foundry profitable?
No, Sonic Foundry (SOFO) reported a net income of -$19.3M in fiscal year 2023, with a net profit margin of -87.5%.
What is Sonic Foundry's earnings per share (EPS)?
Sonic Foundry (SOFO) reported diluted earnings per share of $-1.62 for fiscal year 2023. This represents a -125.0% 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 Sonic Foundry's EBITDA?
Sonic Foundry (SOFO) had EBITDA of -$15.1M in fiscal year 2023, measuring earnings before interest, taxes, depreciation, and amortization.
What is Sonic Foundry's gross margin?
Sonic Foundry (SOFO) had a gross margin of 58.1% in fiscal year 2023, indicating the percentage of revenue retained after direct costs of goods sold.
What is Sonic Foundry's operating margin?
Sonic Foundry (SOFO) had an operating margin of -78.7% in fiscal year 2023, reflecting the profitability of core business operations before interest and taxes.
What is Sonic Foundry's net profit margin?
Sonic Foundry (SOFO) had a net profit margin of -87.5% in fiscal year 2023, representing the share of revenue converted into profit after all expenses.
What is Sonic Foundry's free cash flow?
Sonic Foundry (SOFO) generated -$11.9M in free cash flow during fiscal year 2023. This represents a -45.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Sonic Foundry's operating cash flow?
Sonic Foundry (SOFO) generated -$11.3M in operating cash flow during fiscal year 2023, representing cash generated from core business activities.
What are Sonic Foundry's total assets?
Sonic Foundry (SOFO) had $12.3M in total assets as of fiscal year 2023, including both current and long-term assets.
What are Sonic Foundry's capital expenditures?
Sonic Foundry (SOFO) invested $550K in capital expenditures during fiscal year 2023, funding long-term assets and infrastructure.
How much does Sonic Foundry spend on research and development?
Sonic Foundry (SOFO) invested $11.0M in research and development during fiscal year 2023.
How many shares does Sonic Foundry have outstanding?
Sonic Foundry (SOFO) had 12M shares outstanding as of fiscal year 2023.
What is Sonic Foundry's current ratio?
Sonic Foundry (SOFO) had a current ratio of 0.39 as of fiscal year 2023, which is below 1.0, which may suggest potential liquidity concerns.
What is Sonic Foundry's debt-to-equity ratio?
Sonic Foundry (SOFO) had a debt-to-equity ratio of -1.89 as of fiscal year 2023, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Sonic Foundry's return on assets (ROA)?
Sonic Foundry (SOFO) had a return on assets of -157.8% for fiscal year 2023, measuring how efficiently the company uses its assets to generate profit.
What is Sonic Foundry's cash runway?
Based on fiscal year 2023 data, Sonic Foundry (SOFO) had $840K in cash against an annual operating cash burn of $11.3M. This gives an estimated cash runway of approximately 1 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.
Why is Sonic Foundry's debt-to-equity ratio negative or unusual?
Sonic Foundry (SOFO) has negative shareholder equity of -$13.7M as of fiscal year 2023, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Sonic Foundry's Piotroski F-Score?
Sonic Foundry (SOFO) has a Piotroski F-Score of 3 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 Sonic Foundry's earnings high quality?
Sonic Foundry (SOFO) has an earnings quality ratio of 0.59x, 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 Sonic Foundry cover its interest payments?
Sonic Foundry (SOFO) has an interest coverage ratio of -9.8x, 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 Sonic Foundry?
Sonic Foundry (SOFO) scores 0 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.