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Fitell Corporation (FTEL)
NASDAQ:FTEL
US Market

Fitell Corporation (FTEL) AI Stock Analysis

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FTEL

Fitell Corporation

(NASDAQ:FTEL)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
Fitell Corporation's stock is currently rated low due to significant financial performance challenges, including declining revenues and profitability, negative returns, and cash flow issues. Technical analysis indicates a strong bearish trend with oversold conditions, while valuation metrics show a negative P/E ratio, suggesting poor earnings potential. These factors contribute to an overall unfavorable investment outlook.
Positive Factors
Market Position
Being a global leader in the fitness industry provides Fitell with a strong market position and brand recognition, which can drive long-term growth and resilience against competitors.
Revenue Growth
A revenue growth rate of 29% indicates strong demand and effective market strategies, suggesting potential for sustained business expansion and increased market share.
Equity Ratio
A high equity ratio of 78.5% indicates a solid financial structure with less reliance on debt, providing stability and flexibility for future investments and growth.
Negative Factors
Profitability Challenges
A negative net profit margin of -208.5% reflects severe profitability issues, which could hinder the company's ability to reinvest in growth and innovation, impacting long-term viability.
Cash Flow Issues
Negative free cash flow growth indicates inefficiencies in cash generation, potentially limiting the company's ability to fund operations and strategic initiatives without external financing.
Declining Gross Profit Margin
A decline in gross profit margin from 45.3% to 35.5% suggests worsening cost management, which could erode competitive pricing power and profitability over time.

Fitell Corporation (FTEL) vs. SPDR S&P 500 ETF (SPY)

Fitell Corporation Business Overview & Revenue Model

Company DescriptionFitell Corporation, through its subsidiary, GD Wellness Pty Ltd, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company markets and sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, Harison, and FleetX brands. It is also involved in the boutique fitness clubs licensing business. The company sells its products online through its website and offline, such as by phone, email, and showroom. Fitell Corporation was founded in 2005 and is headquartered in Taren Point, Australia.
How the Company Makes MoneyFitell Corporation generates revenue through the sale of its diverse range of fitness equipment and accessories. The company's key revenue streams include direct sales to consumers via its e-commerce platform and partnerships with retail chains for broader market distribution. Additionally, Fitell collaborates with commercial gyms and fitness centers to supply professional-grade equipment, offering leasing options and maintenance services which provide recurring revenue. Strategic partnerships with wellness-focused organizations and brand collaborations further enhance Fitell's market presence and contribute to its earnings.

Fitell Corporation Financial Statement Overview

Summary
Fitell Corporation is facing financial difficulties, with declining revenues and profitability, significant operational losses, and cash flow challenges. While the company's balance sheet shows a healthy equity ratio, the overall financial health is undermined by negative returns and cash flow inefficiencies.
Income Statement
Fitell Corporation has experienced significant revenue decrease from 2023 to 2024. The gross profit margin has declined to 35.5% in 2024, down from 45.3% in 2023, indicating decreased efficiency in cost management. The net profit margin is negative, at -208.5% in 2024, which is a deterioration from -33.2% in 2023, due to a significant net loss. EBIT and EBITDA margins are also negative, reflecting challenges in controlling operational costs.
Balance Sheet
The debt-to-equity ratio improved to 0.06 from 0.11, indicating lower financial leverage. However, the return on equity (ROE) is negative at -103.4%, showing inefficiency in generating returns on shareholders' investments. The equity ratio stands at a strong 78.5%, suggesting a solid equity base relative to total assets.
Cash Flow
Fitell Corporation's cash flow statements show severe issues, with a negative free cash flow growth rate. Operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash. The company is relying heavily on financing activities to sustain operations.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.20M5.20M4.47M4.80M8.16M6.95M
Gross Profit532.85K2.04M1.59M2.17M3.64M2.75M
EBITDA78.12K78.11K-7.98M-1.61M474.10K1.38M
Net Income-682.72K-682.72K-9.31M-1.59M12.60K849.21K
Balance Sheet
Total Assets11.40M11.40M11.48M9.04M5.43M6.31M
Cash, Cash Equivalents and Short-Term Investments2.89M2.89M1.06M731.10K1.74M1.29M
Total Debt298.56K298.56K580.35K685.08K1.03M1.22M
Total Liabilities2.21M2.21M2.47M2.62M2.99M3.82M
Stockholders Equity9.19M9.19M9.01M6.42M2.44M2.49M
Cash Flow
Free Cash Flow-1.02M-1.02M-12.25M-373.10K-183.52K1.55M
Operating Cash Flow-1.02M-1.02M-12.25M-373.10K-131.78K1.55M
Investing Cash Flow175.64K175.64K-2.50M0.00-465.30K-775.79K
Financing Cash Flow2.79M2.79M15.47M-79.06K93.92K-737.04K

Fitell Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.26
Price Trends
50DMA
6.61
Negative
100DMA
24.92
Negative
200DMA
44.45
Negative
Market Momentum
MACD
-1.27
Negative
RSI
32.65
Neutral
STOCH
12.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEL, the sentiment is Negative. The current price of 3.26 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 6.61, and below the 200-day MA of 44.45, indicating a bearish trend. The MACD of -1.27 indicates Negative momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEL.

Fitell Corporation Risk Analysis

Fitell Corporation disclosed 78 risk factors in its most recent earnings report. Fitell Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our Ordinary Shares may be delisted if we are unable to comply with Nasdaq continued listing requirements. Q2, 2025
2.
Our dual-class voting structure will limit or preclude your ability to influence corporate matters, including the election of directors, amendments of our organizational documents, and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transactions requiring shareholder approval, and that may adversely affect the trading price of our Ordinary Shares. Q2, 2025
3.
Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance ("ESG") policies could have uncertain impacts on our business, impose additional reporting obligations on us, and increase our costs. Q2, 2025

Fitell Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
$4.67M-0.85-16.89%31.24%
46
Neutral
$2.58M-0.02-13.78%38.67%
44
Neutral
$24.25M0.1412.11%570.49%
42
Neutral
$4.29M-0.71-7.50%16.42%93.67%
40
Underperform
$3.22M-0.11-373.22%-39.99%-26.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTEL
Fitell Corporation
3.26
-884.90
-99.63%
NAAS
NaaS Technology
3.14
-22.62
-87.81%
WNW
Meiwu Technology Company Limited
1.60
-17.40
-91.58%
JWEL
Jowell Global
2.15
-0.86
-28.57%
JFBR
Jeffs' Brands Ltd.
0.68
-40.46
-98.36%
WBUY
Webuy Global
1.30
1.18
983.33%

Fitell Corporation Corporate Events

Fitell Confirms Interim Dividend, Launches Loyalty Payments and Expands Dual-Class Structure
Dec 23, 2025

On December 23, 2025, Fitell Corporation announced that its board has confirmed an interim dividend of $0.10 per ordinary share, payable on January 13, 2026 to shareholders of record as of the close of business on December 30, 2025, and clarified that December 30, 2025 is also the ex-dividend date, with no action required from shareholders to receive the payment. In addition, the board approved a one-time loyalty payment program of up to $0.15 per share, payable in three tranches over 30, 60 and 90 days to investors who move their holdings into direct registration with the company’s transfer agent by December 29, 2025 and hold continuously, while Fitell also reported that on December 17, 2025 it completed the repurchase of 402,500 Class A ordinary shares from SKMA Capital and Investment Ltd. and issued new Class B shares in return, further entrenching its dual-class structure, which has been validated by Cayman counsel Ogier as compliant with Cayman law and disclosed to Nasdaq under home-country corporate governance exemptions.

Fitell Corporation Launches AI-Driven Robot Chef Amid Share Repurchase Program
Dec 15, 2025

On December 15, 2025, Fitell Corporation announced the launch of 2FCulinaryAI, an AI-driven personal robot chef developed by its joint venture, 2F Robotics. This innovative product is designed to deliver personalized and nutrition-customizable meals, targeting fitness and wellness-conscious consumers. The launch signifies Fitell’s expansion into AI-driven solutions, with potential applications in homes, restaurants, and healthcare facilities. Additionally, Fitell has initiated a $3.0 million share repurchase program, set to begin on December 15, 2025, reflecting confidence in its market position and future prospects.

Fitell Corporation’s Shareholder Resolutions Passed at Extraordinary Meeting
Dec 12, 2025

Fitell Corporation, a Cayman Islands company, held an extraordinary general meeting on December 12, 2025, in Guangzhou, China, where shareholders voted on resolutions with a quorum present. All proposed resolutions were passed, granting the board authority to set a Share Consolidation ratio and amend the company’s memorandum accordingly within a year.

Fitell Corporation Announces Dividend and Loyalty Program to Boost Shareholder Value
Dec 2, 2025

On December 14, 2025, Fitell Corporation announced an interim dividend of $0.10 per share, payable on January 13, 2026, reflecting its improved financial position and commitment to shareholder value. Additionally, the company introduced a one-time shareholder loyalty program offering up to $0.15 per share for those who register their shares with the company’s transfer agent and maintain ownership for specified periods, aiming to enhance long-term investor alignment with its growth strategy.

Fitell Corporation Launches $3 Million Share Repurchase Program
Dec 1, 2025

On November 27, 2025, Fitell Corporation’s board of directors approved a share repurchase program allowing the company to buy back up to $3 million of its Class A ordinary shares over the next 24 months. This initiative aims to enhance shareholder value and reflects the company’s positive growth outlook and strengthened balance sheet. The program is flexible, allowing for modifications or termination based on market conditions, and will be executed through open market purchases and other means, with Rodman & Renshaw LLC appointed as the broker.

Fitell Corporation Announces EGM to Discuss Major Corporate Changes
Nov 28, 2025

Fitell Corporation, a Cayman Islands exempted company, has announced an extraordinary general meeting (EGM) scheduled for December 12, 2025, in Guangzhou, China. The meeting will address several key proposals, including an increase in the company’s authorized share capital, amendments to the memorandum of association, share repurchase and issuance agreements, and a share consolidation plan. Additionally, there is a proposal for the company to transfer its registration from the Cayman Islands to the British Virgin Islands. These changes aim to enhance the company’s operational flexibility and strategic positioning, potentially impacting shareholder control and corporate governance.

Fitell Corporation Reports Strong FY2025 Results and Strategic Initiatives
Nov 17, 2025

On November 17, 2025, Fitell Corporation announced its fiscal year 2025 financial results, highlighting a 16.4% increase in revenue to $5.20 million, driven by higher merchandise sales. The company reported a significant improvement in profitability metrics, with a 28.8% rise in gross profit and a reduction in operating expenses by 61.6%. Despite a loss from operations of $1.64 million, Fitell’s net loss improved by 92.7% year over year. The company also initiated new corporate strategies in digital assets and AI robotics, securing $50 million in stablecoin-linked financing and forming 2F Robotics to explore new growth opportunities.

Fitell Corporation Secures $50 Million for AI Robotics Venture
Nov 6, 2025

On November 6, 2025, Fitell Corporation announced a $50 million convertible note financing agreement with a U.S.-based institutional investor. The funds will support the launch of 2F Robotics, a joint venture focused on AI-driven robotic technologies for consumer and industrial applications. The financing will be converted to stablecoin assets, providing capital flexibility and enabling Fitell to diversify its corporate treasury. The venture will partner with GZ Fukonn Vanguard Intelligent Technology, and Fitell will maintain majority ownership and intellectual property rights, leveraging its distribution infrastructure across Australia and the U.S.

Fitell Corporation Regains Nasdaq Compliance
Oct 16, 2025

On October 16, 2025, Fitell Corporation announced that it has regained compliance with the Nasdaq minimum bid price rule. The company maintained a closing bid price of at least $1.00 per share for 16 consecutive business days, from September 23 to October 14, 2025, thereby resolving the compliance issue. This achievement is significant for Fitell as it ensures continued listing on the Nasdaq, which is crucial for maintaining investor confidence and market presence.

Fitell Corporation Completes Second Closing of Securities Purchase Agreement
Oct 8, 2025

On October 8, 2025, Fitell Corporation completed the second closing under its Securities Purchase Agreement with an institutional investor, issuing a $4 million Series A Note. The company plans to use the proceeds for working capital and cryptocurrency purchases. The notes are convertible into ordinary shares and secured by the company’s assets, with interest payable monthly. This move strengthens Fitell’s financial position and provides flexibility for future capital raising.

Fitell Corporation Granted 180-Day Extension by Nasdaq
Oct 3, 2025

On October 3, 2025, Fitell Corporation announced it received an additional 180-day period from Nasdaq to regain compliance with the minimum bid price requirement, extending the deadline to March 30, 2026. This extension follows a strategic 1-for-16 share consolidation effective September 23, 2025, aimed at stabilizing the stock price and maintaining its Nasdaq listing, which is crucial for the company’s operations and investor appeal.

Fitell Corporation Acquires 216.8 Million PUMP Tokens in Strategic Move
Oct 2, 2025

On October 2, 2025, Fitell Corporation announced the purchase of 216.8 million Pump.fun (PUMP) tokens for $1.5 million, marking its first direct acquisition of these tokens. This move is part of Fitell’s strategic expansion within the Solana ecosystem and aims to diversify its digital asset treasury, positioning the company to capture long-term growth opportunities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 20, 2025