Sonic Foundry Financials
Sonic Foundry (SOFO) reported $22.1M in revenue for fiscal year 2023, down 19.5% from the prior fiscal year. This page shows its 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).
Sonic Foundry’s revenue contraction exposed operating-cost rigidity, sharply weakening margins and increasing reliance on financing for cash needs.
Revenue contracted37.1% from FY2021 to FY2023 while gross margin also compressed, showing the downturn reduced both scale and dollars available to support overhead. Operating margin shifted from2.3% to-78.7% , so the remaining gross profit no longer absorbed the operating cost base.
FY2023 cash conversion produced operating cash flow of
Financing supplied
Financial Health Signals
Sonic Foundry does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.
Sonic Foundry scores -30.71, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1K) relative to total liabilities ($26.0M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Sonic Foundry passes 2 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Sonic Foundry reported a net loss of $19.3M while operations used $11.3M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Sonic Foundry reported an operating loss of $17.4M against $1.8M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
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 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.
Cash & Balance Sheet
Sonic Foundry recorded an outflow of $11.9M in free cash flow in fiscal year 2023, representing a cash shortfall after capex. This represents a decrease of 45.6% from the prior year.
Sonic Foundry held $840K in cash as of fiscal year 2023; long-term debt is not reported for that period.
Not reported for fiscal year 2023.
Margins & Returns
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.
Not reported for fiscal year 2023.
Capital Allocation
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.
Not reported for fiscal year 2023.
SOFO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 | Q3'22 | Q2'22 | Q1'22 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $5.6M-3.6% | $5.8M+0.8% | $5.7M+14.4% | $5.0M-22.9% | $6.5M+0.6% | $6.5M-10.7% | $7.2M-0.1% | $7.3M |
| Cost of Revenue | $2.3M-5.1% | $2.5M+0.5% | $2.5M+25.0% | $2.0M-23.1% | $2.6M+34.3% | $1.9M-8.3% | $2.1M-1.2% | $2.1M |
| Gross Profit | $3.2M-2.4% | $3.3M+0.9% | $3.3M+7.6% | $3.0M-22.8% | $3.9M-13.5% | $4.6M-11.7% | $5.2M+0.3% | $5.1M |
| R&D Expenses | $2.8M-8.5% | $3.1M+28.6% | $2.4M-14.7% | $2.8M+45.0% | $1.9M-0.1% | $1.9M+0.3% | $1.9M+8.1% | $1.8M |
| SG&A Expenses | $1.2M+12.7% | $1.1M+8.7% | $1.0M-37.2% | $1.6M+13.4% | $1.4M-0.8% | $1.4M+13.5% | $1.3M-29.5% | $1.8M |
| Operating Income | -$3.1M+57.2% | -$7.2M-160.1% | -$2.8M+35.2% | -$4.3M-72.9% | -$2.5M-48.7% | -$1.7M-33.1% | -$1.3M+17.2% | -$1.5M |
| Interest Expense | -$637K-29.2% | -$493K+0.2% | -$494K-238.4% | -$146K-758.8% | -$17K-88.9% | -$9K+10.0% | -$10K-300.0% | $5K |
| Income Tax | $3K+115.0% | -$20K-117.9% | $112K-18.2% | $137K+179.6% | $49K+114.5% | -$337K-724.1% | $54K+5500.0% | -$1K |
| Net Income | -$3.7M+52.8% | -$7.9M-132.8% | -$3.4M+23.0% | -$4.4M-61.6% | -$2.7M-80.7% | -$1.5M-12.5% | -$1.3M+12.6% | -$1.5M |
| EPS (Diluted) | -$0.31+52.3% | -$0.65-132.1% | -$0.28+26.3% | -$0.38-46.2% | -$0.26-85.7% | -$0.14+6.7% | -$0.15+11.8% | -$0.17 |
SOFO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 | Q3'22 | Q2'22 | Q1'22 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $12.3M-25.9% | $16.5M-24.7% | $22.0M-11.0% | $24.7M+23.9% | $19.9M-6.3% | $21.2M+10.7% | $19.2M-12.2% | $21.8M |
| Current Assets | $8.1M-30.6% | $11.7M-11.3% | $13.2M-16.1% | $15.7M+41.3% | $11.1M-10.8% | $12.5M+6.8% | $11.7M-18.3% | $14.3M |
| Cash & Equivalents | $840K-60.8% | $2.1M-20.7% | $2.7M-66.1% | $8.0M+141.9% | $3.3M-25.7% | $4.4M+0.7% | $4.4M-32.4% | $6.5M |
| Inventory | $1.9M-26.6% | $2.5M-10.2% | $2.8M+10.4% | $2.5M+74.4% | $1.5M+37.3% | $1.1M-5.3% | $1.1M+56.9% | $717K |
| Accounts Receivable | $4.0M-21.0% | $5.1M-9.9% | $5.6M+63.5% | $3.4M-30.2% | $4.9M-4.7% | $5.2M+16.5% | $4.4M-16.4% | $5.3M |
| Total Liabilities | $26.0M-2.3% | $26.6M+9.4% | $24.3M+2.4% | $23.7M+45.4% | $16.3M+8.4% | $15.1M-3.2% | $15.6M-8.4% | $17.0M |
| Current Liabilities | $20.9M+21.5% | $17.2M+7.9% | $15.9M+5.0% | $15.2M+10.3% | $13.7M+12.0% | $12.3M+2.8% | $11.9M-8.2% | $13.0M |
| Long-Term Debt | N/A | $605K-12.1% | $688K+80.6% | $381K+7.0% | $356K+21.1% | $294K-45.7% | $541K-2.3% | $554K |
| Total Equity | -$13.7M-36.6% | -$10.1M-328.7% | -$2.3M-354.6% | $922K-74.2% | $3.6M-42.1% | $6.2M+70.0% | $3.6M-25.3% | $4.9M |
| Retained Earnings | -$232.9M-1.6% | -$229.2M-3.6% | -$221.3M-1.6% | -$217.9M-2.1% | -$213.5M-1.3% | -$210.8M-0.7% | -$209.3M-0.6% | -$208.0M |
Not reported in any period shown, so not listed: Goodwill.
SOFO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 | Q3'22 | Q2'22 | Q1'22 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.1M+39.0% | -$1.8M+60.2% | -$4.5M-14.2% | -$3.9M-739.9% | -$469K+70.6% | -$1.6M-72.2% | -$927K+63.9% | -$2.6M |
| Capital Expenditures | $181K+46.0% | $124K+202.4% | $41K-79.9% | $204K-21.2% | $259K-80.4% | $1.3M+229.2% | $401K-34.9% | $616K |
| Free Cash Flow | -$1.3M+33.5% | -$1.9M+57.8% | -$4.5M-9.6% | -$4.1M-469.1% | -$728K+75.0% | -$2.9M-119.6% | -$1.3M+58.3% | -$3.2M |
| Investing Cash Flow | -$181K-46.0% | -$124K+84.1% | -$780K+18.7% | -$959K+6.3% | -$1.0M+50.0% | -$2.0M-99.3% | -$1.0M-8.8% | -$944K |
| Financing Cash Flow | -$2K-100.1% | $1.5M+9043.8% | $16K-99.8% | $9.5M+1955.2% | $462K-88.2% | $3.9M+8221.3% | $47K+34.3% | $35K |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
SOFO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 | Q3'22 | Q2'22 | Q1'22 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.9%+0.7pp | 57.2%+0.1pp | 57.1%-3.6pp | 60.7%+0.1pp | 60.6%-9.9pp | 70.5%-0.8pp | 71.3%+0.3pp | 71.0% |
| Operating Margin | -55.5% | -125.2% | -48.5%+37.1pp | -85.6%-47.4pp | -38.2%-12.3pp | -25.8%-8.5pp | -17.3%+3.6pp | -20.9% |
| Net Margin | -66.6% | -136.0% | -58.9%+28.6pp | -87.5%-45.8pp | -41.8%-18.5pp | -23.3%-4.8pp | -18.4%+2.6pp | -21.1% |
| Return on Equity | N/A | N/A | N/A | -475.9%-400.0pp | -75.9%-51.6pp | -24.3%+12.4pp | -36.8%-5.4pp | -31.4% |
| Return on Assets | -30.3%+17.2pp | -47.5%-32.1pp | -15.4%+2.4pp | -17.8%-4.1pp | -13.7%-6.6pp | -7.1%-0.1pp | -7.0%0.0pp | -7.0% |
| Current Ratio | 0.39-0.3x | 0.68-0.1x | 0.83-0.2x | 1.04+0.2x | 0.81-0.2x | 1.020.0x | 0.98-0.1x | 1.10 |
| Debt-to-Equity | N/A | N/A | N/A | 0.41+0.3x | 0.10+0.1x | 0.05-0.1x | 0.150.0x | 0.11 |
| FCF Margin | -22.9%+10.3pp | -33.1%+46.0pp | -79.1%+3.5pp | -82.6%-71.4pp | -11.2%+33.9pp | -45.1%-26.8pp | -18.3%+25.5pp | -43.9% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin.
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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Where Sonic Foundry Ranks
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 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) recorded an outflow of $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) recorded an outflow of $11.3M in operating cash flow during fiscal year 2023, representing cash used by 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.
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 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.
How does Sonic Foundry's liquidity compare with its operating cash outflow?
At the end of fiscal year 2023, Sonic Foundry (SOFO) held $840K in cash, cash equivalents and investments, and reported an operating cash outflow of $11.3M over that year. Dividing the one by the other, the reported balance equals about 1 month of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
Why is Sonic Foundry's debt-to-equity ratio negative or not reported?
Sonic Foundry (SOFO) has negative shareholder equity of -$13.7M as of fiscal year 2023, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. 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 Altman Z-Score?
Sonic Foundry (SOFO) has an Altman Z-Score of -30.71, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Sonic Foundry's Piotroski F-Score?
Sonic Foundry (SOFO) has a Piotroski F-Score of 2 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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) reported a net loss of $19.3M while operations used $11.3M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $17.4M against $1.8M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.