KRM22 (KRM) AI Stock Analysis

• Market Cap: £22.24M
• Dividend Yield: N/A
• Average Volume (3M): 2.74K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.68
• Revenue Growth: 15.59%
• EPS Growth: 54.47%
• Country: UK
• Employees: 50
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.04
• Shares Outstanding: 59,316,220
• 10 Day Avg. Volume: 5,399
• 30 Day Avg. Volume: 2,738
• PEG Ratio: 0.11
• Price to Book (P/B): -4.41
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 36.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 48 Neutral
• Price Target: 39.00p ▲(5.41% Upside)

KRM22's overall stock score is primarily impacted by its financial instability and ongoing losses, reflected in a low financial performance score. The technical analysis suggests a bearish trend, although the oversold RSI indicates potential for a rebound. The recent fundraising is a positive corporate event, providing financial flexibility and strategic growth opportunities. However, the negative valuation metrics and lack of earnings call data limit the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for KRM22's risk management solutions, suggesting a robust market position and potential for future expansion.

Cash Flow Management

Positive operating cash flow reflects effective cash management, providing the company with the liquidity needed to invest in growth and manage obligations.

Gross Profit Margin

A strong gross profit margin suggests effective cost control in production, which can support long-term profitability as the company scales.

Negative Factors

Net Losses

Ongoing net losses highlight challenges in achieving profitability, which could hinder long-term sustainability and investor confidence.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Equity Ratio

A negative equity ratio indicates financial instability, posing a risk of insolvency if not addressed, which could affect long-term operations.

KRM22 Business Overview & Revenue Model

Company Description

KRM22 Plc, together with its subsidiaries, develops and sells risk management software to the financial services industry in the United Kingdom, Europe, the United States, and internationally. The company offers Risk Cockpit, which shows enterprise risk profile in real time; Regulatory Navigator that brings out-the-box regulatory functionality covering market abuse, SM&CR, and financial crime; and Market Surveillance that offers analytics and contextual market surveillance tools to help capital markets firms identify and manage the potential risks of market abuse, fraud, and operational breaches. It also provides Individual Accountability Regime, which allows financial institutions to manage accountability throughout the firm; Digital Client Onboarding that provides capital market firms with the tools to make client onboarding; and Regulatory Reporting that enables capital market firms to comply with its regulatory reporting obligations across multiple jurisdictions. In addition, the company offers Enhanced Due Diligence, which enables firms to understand online reputational risks and evidence compliance; Regulatory training that helps regulated firms address their mandatory training requirements; Post-Trade Risk – Stress, which scales the type and amount of risk calculations performed against various limits and risk slides; and Post-Trade Risk – VaR that provides the unique view of multiple VaR calculations across the whole portfolio in a single place. Further, it provides At-Trade Risk, which offers P&L and exchange margin for clearing houses and members, traders, brokers, and other financial institutions that make decisions based on the management of risk; and Pre-Trade Risk, which helps combat time consuming and error prone processes by maintaining pre-trade limits in one centralized application. The company was founded in 2017 and is headquartered in London, the United Kingdom.

How the Company Makes Money

KRM22 generates revenue primarily through subscription-based models for its risk management software and analytics tools. Clients pay recurring fees for access to the platform, which can vary based on the tier of service and the scale of usage. Additionally, KRM may earn revenue from consulting services related to the implementation of its software solutions and ongoing support. Strategic partnerships with financial institutions and regulatory bodies enhance its offerings and contribute to its revenue by expanding its market reach and credibility. The company's ability to innovate and adapt its solutions to meet evolving regulatory demands also plays a crucial role in attracting and retaining clients.

KRM22 Financial Statement Overview

Summary

KRM22 faces significant financial challenges with ongoing net losses and high leverage, risking financial stability. Despite revenue growth, profitability remains elusive due to high costs. Positive cash flow from operations is a bright spot, yet overall cash management needs improvement. Immediate actions to improve profitability and reduce leverage are essential for long-term viability.

Income Statement

The company has shown a positive revenue growth trajectory with revenue increasing from the previous year. However, it continues to operate at a net loss, with negative net profit and EBIT margins. The gross profit margin is strong, indicating efficiency in managing production costs, but the negative EBITDA and EBIT margins suggest challenges in overall cost management and profitability.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to negative stockholders' equity, indicating high leverage and financial instability. The equity ratio is negative, highlighting the company's liabilities exceed its assets. This presents a risk of insolvency if not addressed. Total assets have decreased, further stressing financial health.

Cash Flow

Positive operating cash flow indicates improved cash management, yet the free cash flow remains low due to significant capital expenditures. The free cash flow growth rate shows improvement from the previous year, but the ratio of operating cash flow to net income indicates inefficiencies in converting income to cash, given the consistent net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.12M	6.77M	5.27M	4.27M	4.13M	4.59M
Gross Profit	5.70M	5.60M	4.12M	3.32M	3.45M	4.15M
EBITDA	-497.83K	350.00K	-3.22M	-989.00K	-1.29M	-3.72M
Net Income	-1.65M	-1.29M	-4.62M	-3.10M	-3.33M	-5.88M
Balance Sheet
Total Assets	8.13M	7.40M	7.81M	11.15M	14.20M	12.59M
Cash, Cash Equivalents and Short-Term Investments	1.36M	1.03M	886.00K	1.90M	5.36M	1.97M
Total Debt	5.31M	5.06M	4.65M	3.59M	3.66M	3.77M
Total Liabilities	10.33M	9.63M	8.91M	7.97M	7.49M	7.64M
Stockholders Equity	-2.20M	-2.23M	-1.10M	3.18M	6.71M	4.95M
Cash Flow
Free Cash Flow	1.80M	268.00K	-2.00M	-2.97M	-802.00K	-1.90M
Operating Cash Flow	1.80M	1.42M	-879.00K	-2.12M	-47.00K	-942.00K
Investing Cash Flow	-1.06M	-1.16M	-1.16M	-848.00K	-755.00K	-961.00K
Financing Cash Flow	-3.00K	-122.00K	1.04M	-535.00K	4.19M	2.84M

KRM22 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KRM, the sentiment is Neutral. The current price of 37 is below the 20-day moving average (MA) of 37.33, below the 50-day MA of 38.87, and below the 200-day MA of 38.48, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 36.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:KRM.

KRM22 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLE	76 Outperform	£55.84M	13.14	11.39%	―	9.90%	37.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EMVC	52 Neutral	£15.52M	-5.79	-14.80%	―	30.40%	23.48%
KRM	48 Neutral	£22.24M	-8.19	―	―	15.59%	54.47%
RNEW	44 Neutral	$29.69M	-0.88	-47.36%	3.45%	―	―

KRM22 Corporate Events

KRM22 Boosts ARR and Strengthens Balance Sheet After £9.2m Fundraise

KRM22 reported that for the year to 31 December 2025 it achieved annual recurring revenue of £7.6m, up 19% at constant exchange rates, driven largely by £1.6m of new contracted ARR from cross-sales and price increases across its Risk Manager, Limits Manager and Market Surveillance applications, partially offset by modest churn linked to product switching by two institutional clients. Total revenue rose 11% to about £7.5m, while adjusted EBITDA slipped to £0.7m, but the group’s balance sheet was transformed by a £9.2m equity raise in November that left it debt-free and with £5.2m of year-end cash, positioning management to pursue its growth strategy, invest in sales, marketing and product development, and expand its risk management suite into multi-asset solutions for capital markets clients without the constraints of heavy leverage or restrictive covenants.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £38.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.

KRM22 Strengthens Board with Appointment of Fintech Veteran Justin Llewellyn-Jones

KRM22 has appointed seasoned fintech executive Justin Llewellyn-Jones as a Non-Executive Director, effective 7 January 2026, adding more than 30 years of experience across multi-asset trading, product development and operational strategy in futures, options, FX, fixed income and compliance technology. Currently CEO of Trading Technologies and formerly a senior leader at Broadridge, ION and Fidessa, Llewellyn-Jones is expected to bolster KRM22’s push to expand its suite of risk management applications into multi-asset solutions for the capital markets industry, supporting the company’s next phase of growth and strengthening its board-level industry expertise.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £39.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.

KRM22 Issues New Shares to Settle Acquisition Payment

KRM22 plc has issued 46,729 new ordinary shares to partially satisfy deferred consideration for its acquisition of Object+. This move aims to conserve cash within the company while maintaining its financial commitments. The new shares, representing 0.1% of the issued share capital, are expected to commence trading on AIM on 14 November 2025. This strategic decision reflects KRM22’s ongoing efforts to manage its resources effectively and maintain its market position in the risk management sector.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £41.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.