Telkonet Financials
This page shows Telkonet (TKOI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 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 FY2022 annual data. Scores normalized against common benchmarks. How we calculate these scores
Telkonet has an operating margin of -14.8%, meaning the company retains $-15 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 -35.4% the prior year.
Telkonet's revenue surged 34.6% year-over-year to $8.4M, reflecting rapid business expansion. This strong growth earns a score of 91/100.
Telkonet carries a low D/E ratio of 0.71, meaning only $0.71 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 87/100, indicating a strong balance sheet with room for future borrowing.
Telkonet's current ratio of 2.74 indicates adequate short-term liquidity, earning a score of 52/100. The company can meet its near-term obligations, though with limited headroom.
While Telkonet generated -$3.6M in operating cash flow, capex of $88K consumed most of it, leaving -$3.7M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Telkonet generates a -28.0% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -45.3% the prior year.
Telkonet passes 2 of 9 financial strength tests. No profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Telkonet generates $2.80 in operating cash flow (-$3.6M OCF vs -$1.3M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Telkonet earns $-52.9 in operating income for every $1 of interest expense (-$1.2M vs $24K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Telkonet generated $8.4M in revenue in fiscal year 2022. This represents an increase of 34.6% from the prior year.
Telkonet's EBITDA was -$1.2M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 44.8% from the prior year.
Telkonet reported -$1.3M in net income in fiscal year 2022. This represents a decrease of 211.4% from the prior year.
Cash & Balance Sheet
Telkonet generated -$3.7M in free cash flow in fiscal year 2022, representing cash available after capex. This represents a decrease of 116.9% from the prior year.
Telkonet held $3.2M in cash against $0 in long-term debt as of fiscal year 2022.
Telkonet had 299M shares outstanding in fiscal year 2022. This represents an increase of 119.5% from the prior year.
Margins & Returns
Telkonet's gross margin was 49.8% in fiscal year 2022, indicating the percentage of revenue retained after direct costs. This is down 1.9 percentage points from the prior year.
Telkonet's operating margin was -14.8% in fiscal year 2022, reflecting core business profitability. This is up 20.6 percentage points from the prior year.
Telkonet's net profit margin was -15.2% in fiscal year 2022, showing the share of revenue converted to profit. This is down 8.6 percentage points from the prior year.
Telkonet's ROE was -28.0% in fiscal year 2022, measuring profit generated per dollar of shareholder equity. This is up 17.3 percentage points from the prior year.
Capital Allocation
Telkonet invested $1.1M in research and development in fiscal year 2022. This represents a decrease of 5.3% from the prior year.
Telkonet invested $88K in capex in fiscal year 2022, funding long-term assets and infrastructure.
TKOI Income Statement
| Metric | Q4'22 | Q3'22 | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q1'21 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.3M+16.1% | $2.0M+4.1% | $1.9M-9.9% | $2.2M+28.7% | $1.7M+14.9% | $1.5M-21.6% | $1.9M+43.4% | $1.3M |
| Cost of Revenue | $1.1M-21.5% | $1.4M+144.6% | $574K-50.7% | $1.2M+40.3% | $830K-4.1% | $866K+15.8% | $747K+26.9% | $589K |
| Gross Profit | $1.2M+102.2% | $613K-55.1% | $1.4M+38.4% | $986K+17.3% | $840K+42.8% | $589K-46.9% | $1.1M+57.1% | $705K |
| R&D Expenses | $272K-0.2% | $272K+5.7% | $258K-4.3% | $269K+6.3% | $253K-5.9% | $269K-9.3% | $296K-4.8% | $311K |
| SG&A Expenses | $1.0M-0.1% | $1.0M-4.2% | $1.1M-11.7% | $1.2M+30.8% | $927K-22.8% | $1.2M+26.2% | $951K-21.5% | $1.2M |
| Operating Income | -$69K+90.0% | -$694K-3192.5% | $22K+104.4% | -$505K-44.6% | -$349K+60.8% | -$891K-495.8% | -$150K+82.0% | -$830K |
| Interest Expense | -$2K+41.4% | -$3K+60.1% | -$7K+44.6% | -$12K-593.8% | -$2K+76.5% | -$8K-98.1% | -$4K+51.4% | -$8K |
| Income Tax | $8K+693.7% | $968-84.8% | $6K | $0-100.0% | $6K | $0-100.0% | $2K+1028.9% | -$235 |
| Net Income | -$79K+88.7% | -$698K-8075.9% | $9K+101.7% | -$518K-45.0% | -$357K-2171.7% | $17K+111.1% | -$156K-288.1% | $83K |
| EPS (Diluted) | N/A | $0.00 | $0.00 | $0.00 | N/A | $0.00 | $0.00 | $0.00 |
TKOI Balance Sheet
| Metric | Q4'22 | Q3'22 | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q1'21 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $7.9M-1.9% | $8.0M-15.8% | $9.5M-5.9% | $10.1M+72.9% | $5.9M+0.4% | $5.8M-16.2% | $7.0M+16.6% | $6.0M |
| Current Assets | $7.3M-1.5% | $7.4M-16.5% | $8.9M-6.6% | $9.5M+83.0% | $5.2M+1.4% | $5.1M-17.3% | $6.2M+20.2% | $5.2M |
| Cash & Equivalents | $3.2M-12.8% | $3.7M-25.0% | $5.0M-15.6% | $5.9M+149.0% | $2.4M-9.6% | $2.6M-19.7% | $3.3M+21.5% | $2.7M |
| Inventory | $1.3M-7.3% | $1.4M+20.8% | $1.2M+8.5% | $1.1M+30.2% | $826K-3.4% | $855K-2.5% | $876K-24.8% | $1.2M |
| Accounts Receivable | $2.0M+1.0% | $1.9M+2.3% | $1.9M-3.6% | $2.0M+94.5% | $1.0M+17.7% | $858K-23.8% | $1.1M+11.8% | $1.0M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $3.3M-2.0% | $3.4M-19.4% | $4.2M-12.7% | $4.8M-3.7% | $4.9M+8.2% | $4.6M-20.0% | $5.7M+25.1% | $4.6M |
| Current Liabilities | $2.7M+1.5% | $2.6M-21.3% | $3.3M-13.3% | $3.8M-3.6% | $4.0M+13.0% | $3.5M-23.0% | $4.6M+36.2% | $3.4M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $4.6M-1.8% | $4.7M-12.9% | $5.4M+0.2% | $5.4M+488.5% | $912K-28.0% | $1.3M+1.5% | $1.2M-11.0% | $1.4M |
| Retained Earnings | -$130.0M-0.1% | -$129.9M-0.5% | -$129.2M0.0% | -$129.2M-0.4% | -$128.7M-0.3% | -$128.3M0.0% | -$128.3M-0.1% | -$128.2M |
TKOI Cash Flow Statement
| Metric | Q4'22 | Q3'22 | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q1'21 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$477K+22.2% | -$612K+38.5% | -$994K+34.4% | -$1.5M-289.7% | -$389K+30.3% | -$558K-464.6% | -$99K+84.9% | -$654K |
| Capital Expenditures | $920-78.4% | $4K | N/A | N/A | $0 | $0 | N/A | N/A |
| Free Cash Flow | -$477K+22.5% | -$616K | N/A | N/A | -$389K+30.3% | -$558K | N/A | N/A |
| Investing Cash Flow | -$920 | N/A | N/A | N/A | $0 | N/A | N/A | N/A |
| Financing Cash Flow | $0+100.0% | -$546K-781.8% | $80K-98.4% | $5.0M+3579.2% | $137K+263.4% | -$84K-112.4% | $675K+110.7% | $321K |
| 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 |
TKOI Financial Ratios
| Metric | Q4'22 | Q3'22 | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q1'21 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.9%+22.5pp | 30.4%-40.0pp | 70.4%+24.5pp | 45.9%-4.5pp | 50.3%+9.8pp | 40.5%-19.3pp | 59.7%+5.2pp | 54.5% |
| Operating Margin | -3.0%+31.4pp | -34.4%-35.5pp | 1.2%+24.7pp | -23.5%-2.6pp | -20.9%+40.4pp | -61.3%-53.2pp | -8.1%+56.1pp | -64.1% |
| Net Margin | -3.4%+31.2pp | -34.6%-35.0pp | 0.4%+24.5pp | -24.1%-2.7pp | -21.4%-22.6pp | 1.2%+9.6pp | -8.4%-14.8pp | 6.4% |
| Return on Equity | -1.7%+13.2pp | -14.9%-15.1pp | 0.2%+9.8pp | -9.7%+29.5pp | -39.2%-40.5pp | 1.4%+13.8pp | -12.5%-18.4pp | 5.9% |
| Return on Assets | -1.0%+7.7pp | -8.7%-8.8pp | 0.1%+5.2pp | -5.1%+1.0pp | -6.1%-6.4pp | 0.3%+2.5pp | -2.2%-3.6pp | 1.4% |
| Current Ratio | 2.74-0.1 | 2.83+0.2 | 2.66+0.2 | 2.47+1.2 | 1.30-0.1 | 1.45+0.1 | 1.35-0.2 | 1.53 |
| Debt-to-Equity | 0.710.0 | 0.72-0.1 | 0.77-0.1 | 0.89-4.5 | 5.43+1.8 | 3.61-1.0 | 4.58+1.3 | 3.26 |
| FCF Margin | -20.4%+10.2pp | -30.6% | N/A | N/A | -23.3%+15.1pp | -38.4% | N/A | N/A |
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Frequently Asked Questions
What is Telkonet's annual revenue?
Telkonet (TKOI) reported $8.4M in total revenue for fiscal year 2022. This represents a 34.6% 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 Telkonet's revenue growing?
Telkonet (TKOI) revenue grew by 34.6% year-over-year, from $6.3M to $8.4M in fiscal year 2022.
Is Telkonet profitable?
No, Telkonet (TKOI) reported a net income of -$1.3M in fiscal year 2022, with a net profit margin of -15.2%.
What is Telkonet's EBITDA?
Telkonet (TKOI) had EBITDA of -$1.2M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization.
What is Telkonet's gross margin?
Telkonet (TKOI) had a gross margin of 49.8% in fiscal year 2022, indicating the percentage of revenue retained after direct costs of goods sold.
What is Telkonet's operating margin?
Telkonet (TKOI) had an operating margin of -14.8% in fiscal year 2022, reflecting the profitability of core business operations before interest and taxes.
What is Telkonet's net profit margin?
Telkonet (TKOI) had a net profit margin of -15.2% in fiscal year 2022, representing the share of revenue converted into profit after all expenses.
What is Telkonet's return on equity (ROE)?
Telkonet (TKOI) has a return on equity of -28.0% for fiscal year 2022, measuring how efficiently the company generates profit from shareholder equity.
What is Telkonet's free cash flow?
Telkonet (TKOI) generated -$3.7M in free cash flow during fiscal year 2022. This represents a -116.9% 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 Telkonet's operating cash flow?
Telkonet (TKOI) generated -$3.6M in operating cash flow during fiscal year 2022, representing cash generated from core business activities.
What are Telkonet's total assets?
Telkonet (TKOI) had $7.9M in total assets as of fiscal year 2022, including both current and long-term assets.
What are Telkonet's capital expenditures?
Telkonet (TKOI) invested $88K in capital expenditures during fiscal year 2022, funding long-term assets and infrastructure.
How much does Telkonet spend on research and development?
Telkonet (TKOI) invested $1.1M in research and development during fiscal year 2022.
What is Telkonet's current ratio?
Telkonet (TKOI) had a current ratio of 2.74 as of fiscal year 2022, which is generally considered healthy.
What is Telkonet's debt-to-equity ratio?
Telkonet (TKOI) had a debt-to-equity ratio of 0.71 as of fiscal year 2022, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Telkonet's return on assets (ROA)?
Telkonet (TKOI) had a return on assets of -16.3% for fiscal year 2022, measuring how efficiently the company uses its assets to generate profit.
What is Telkonet's cash runway?
Based on fiscal year 2022 data, Telkonet (TKOI) had $3.2M in cash against an annual operating cash burn of $3.6M. This gives an estimated cash runway of approximately 11 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 Telkonet's Piotroski F-Score?
Telkonet (TKOI) 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 Telkonet's earnings high quality?
Telkonet (TKOI) has an earnings quality ratio of 2.80x, 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 Telkonet cover its interest payments?
Telkonet (TKOI) has an interest coverage ratio of -52.9x, 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 Telkonet?
Telkonet (TKOI) scores 38 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.