KNeoMedia Limited (KNM) AI Stock Analysis

• Market Cap: $3.07M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.70
• Revenue Growth: -12.61%
• EPS Growth: 70.00%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 3,551,430,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.06
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 15.65
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: AU$0.01 ▲(0.00% Upside)

KNeoMedia Limited's overall stock score is significantly impacted by its poor financial performance, with declining revenues and persistent losses. Technical analysis indicates a lack of momentum and overbought conditions, while valuation metrics highlight unattractive investment prospects due to negative earnings and no dividend yield.

Positive Factors

Leverage Management

Improved leverage management indicates better financial discipline, potentially reducing financial risk and enhancing long-term stability.

Revenue Model

A diversified revenue model with subscriptions and licensing provides stable cash flow and opportunities for scalable growth in the education sector.

Gross Profit Margin

A high gross profit margin suggests strong pricing power and cost management, which can support profitability as revenue scales.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies, which may require strategic changes to achieve sustainable growth.

Cash Flow Issues

Negative operating cash flow suggests liquidity challenges, which could limit the company's ability to invest in growth and innovation.

KNeoMedia Limited Business Overview & Revenue Model

Company Description

KNeoMedia Limited, a SaaS education publishing company, offers education assessment and story-based learning products to educational markets in Australia and internationally. It provides digital learning programs and assessment tools. The company operates KNeoWorld portal, a story-based, education games, and analytical learning that offers various ways for students to practice key concepts and skills. It publishes and markets games on a license basis through the KneoWorld.com, education departments, and distribution agreements. The company was formerly known as Entellect Limited and changed its name to KNeoMedia Limited in May 2015. KNeoMedia Limited was incorporated in 1987 and is based in Melbourne, Australia.

How the Company Makes Money

KNeoMedia Limited generates revenue through multiple streams, primarily by selling subscriptions to its digital learning platforms and educational content. The company offers tiered subscription models that provide access to a range of educational tools and resources, allowing schools and educational organizations to choose packages that best fit their needs. Additionally, KNM may earn revenue through licensing agreements with educational institutions and partnerships with other technology providers to integrate their software into existing educational frameworks. The company also explores opportunities for grants and funding from educational initiatives that align with their mission to enhance learning through technology.

KNeoMedia Limited Financial Statement Overview

Summary

KNeoMedia Limited is experiencing strong revenue growth, which is a positive sign for future prospects. However, the company is still struggling with negative profitability and high leverage. The financial health is hindered by high costs and expenses outpacing revenue, resulting in negative margins and returns. The reliance on debt could pose risk if revenue growth does not translate into improved cash flows and profitability. Overall, while there are signs of improvement in cash flows, significant challenges remain in achieving a sustainable financial footing.

Income Statement

KNeoMedia Limited has shown a strong revenue growth of 50.9% from the previous year, which is a positive indicator of demand for its products. However, the company still faces significant challenges with negative net profit margins of -103.8% and negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies and high costs relative to its revenue.

Balance Sheet

The company has a high debt-to-equity ratio of 1.32, suggesting heavy reliance on debt financing, which could pose risks if cash flows do not improve. Additionally, the return on equity is negative at -131.0%, reflecting poor profitability. The equity ratio is 92.2%, indicating a substantial portion of assets funded by equity despite the high leverage.

Cash Flow

There is a significant improvement in free cash flow, which has turned positive, although it remains low. The operating cash flow to net income ratio is -0.11, indicating that while operational cash flow has improved, it is still insufficient to cover the negative net income. The free cash flow to net income ratio is also negative, at 0.11, suggesting challenges in converting sales into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.69M	1.56M	1.78M	1.18M	344.35K	234.01K
Gross Profit	819.29K	962.70K	804.35K	225.20K	-547.00K	-784.00K
EBITDA	-610.00K	-1.11M	-735.00K	-1.45M	-3.10M	-2.47M
Net Income	-1.60M	-1.11M	-1.81M	-2.28M	-3.17M	-2.80M
Balance Sheet
Total Assets	2.96M	1.94M	1.53M	1.74M	1.46M	952.23K
Cash, Cash Equivalents and Short-Term Investments	615.35K	42.90K	33.18K	54.47K	553.00K	6.58K
Total Debt	1.89M	2.08M	1.86M	1.41M	780.00K	0.00
Total Liabilities	4.38M	4.03M	4.40M	3.00M	2.01M	1.30M
Stockholders Equity	3.04M	2.50M	1.41M	2.68M	2.92M	2.44M
Cash Flow
Free Cash Flow	-100.29K	-219.47K	209.23K	-2.89M	-3.40M	-2.11M
Operating Cash Flow	-820.90K	-216.75K	212.36K	-1.94M	-2.47M	-1.41M
Investing Cash Flow	-1.41M	-1.24M	-1.46M	-964.11K	-934.60K	-701.47K
Financing Cash Flow	2.37M	1.48M	1.18M	2.45M	3.98M	1.00M

KNeoMedia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OLL	46 Neutral	AU$21.91M	-5.97	―	―	12.77%	53.47%
ICE	44 Neutral	AU$29.25M	-6.25	-135.50%	―	-48.98%	-12.82%
PFM	42 Neutral	AU$1.80M	-5.25	-29.77%	―	36.72%	20.00%
SIS	39 Underperform	AU$5.39M	―	―	―	-26.58%	―
KNM	37 Underperform	$3.07M	-36.67	-56.16%	―	-12.61%	70.00%
1TT	37 Underperform	AU$1.22M	-0.17	―	―	―	―

KNeoMedia Limited Corporate Events

KNeoMedia Addresses Administrative Oversight with Director’s Interest Notice

KNeoMedia Limited has issued an Appendix 3Y for directors James Kellett and Jeff Bennett, following an administrative oversight regarding the lapse of options held by them. The company has acknowledged its disclosure obligations under ASX Listing Rules and has reviewed its reporting practices to ensure compliance. This announcement highlights the company’s commitment to maintaining transparency and adherence to regulatory requirements, which is crucial for its stakeholders and market positioning.