tiprankstipranks
Trending News
More News >
Remark Holdings (MARK)
OTHER OTC:MARK

Remark Holdings (MARK) AI Stock Analysis

Compare
1,410 Followers

Top Page

MA

Remark Holdings

(OTC:MARK)

Rating:28Underperform
Price Target:
Remark Holdings faces significant financial challenges with negative net income, high leverage, and cash flow issues. Technical indicators show a bearish trend, with some potential for reversal. Valuation metrics further highlight its unattractiveness due to ongoing losses and no dividend yield. Immediate strategic interventions are required to address these financial and operational issues.

Remark Holdings (MARK) vs. SPDR S&P 500 ETF (SPY)

Remark Holdings Business Overview & Revenue Model

Company DescriptionRemark Holdings, Inc. primarily focuses on the development and deployment of artificial intelligence-based solutions for businesses and software developers. It operates a data and AI software platform under the Remark AI name in the United States and the KanKan AI name in the Asia Pacific region that offers AI-based computer vision products, computing devices, and software-as-a-service solutions for the retail, urban life cycle, workplace and food safety, railway safety, and biosafety industries. The company also provides Thermal kits, which includes a thermal imaging camera, calibrating device, computer to monitor the video feed, supporting equipment, and AI software to scan crowds and areas of high foot traffic for indications that certain persons with elevated temperatures may require secondary screening; and rPad thermal imaging devices, a single-post stand to scan individuals on a one-by-one basis for authorized entry. In addition, it owns and operates Sharecare, a web-based platform that facilitates search for health and wellness information; and Bikini.com, an e-commerce website that sells swimwear and accessories in the latest styles, as well as offers advertising services. The company was formerly known as Remark Media, Inc. and changed its name to Remark Holdings, Inc. in April 2017. Remark Holdings, Inc. was incorporated in 2006 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyRemark Holdings generates revenue through the sale and licensing of its AI-powered software solutions and platforms. These solutions are designed to enhance decision-making and operational efficiencies for businesses across various industries. The company also earns income through service contracts for the implementation, customization, and ongoing support of their software products. Additionally, Remark Holdings may engage in strategic partnerships and collaborations to expand its market reach and drive additional revenue streams. However, specific details on any significant partnerships or revenue breakdowns are not available.

Remark Holdings Earnings Call Summary

Earnings Call Date:May 19, 2025
(Q2-2024)
|
% Change Since: -33.33%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Remark Holdings showcased significant progress in expanding its U.S. business, with notable contract wins and strategic partnerships. However, the company still faces financial challenges, including a net loss and cash flow concerns.
Q2-2024 Updates
Positive Updates
Successful Transition to U.S. Market
Remark Holdings secured a significant contract with Clark County School District, valued at $45 million over 9 years, marking a successful transition of revenue base from Asia to the U.S.
AI Product Expansion
Introduction of the Remark Fast AI Training Platform, a SaaS product that provides AI training infrastructures and advanced analytics capabilities.
Strategic Partnerships
Remark AI completed migration to Microsoft Azure platform, preparing for a potential $400 million business capture over the next 5 years with Microsoft.
Showcase at New York City Smart City Expo
Remark AI showcased its AI solutions in conjunction with Oracle and NVIDIA, leading to additional POCs for transforming top 100 U.S. cities into Smart Cities.
Operating Loss Reduction
Operating loss reduced by $0.8 million, from $4 million in Q2 2023 to $3.2 million in Q2 2024.
Negative Updates
Net Loss
Remark Holdings reported a net loss of $5.3 million or $0.12 per diluted share, compared to a net loss of $5.9 million or $0.42 per diluted share in Q2 2023.
Cash Flow Concerns
Cash balance at June 30, 2024, was $0.4 million, with $6.1 million used in operating activities during Q2 2024.
Debt Restructuring
Resolved outstanding events of default with Mudrick Capital Management by exchanging nonconvertible notes for convertible debentures.
Company Guidance
During Remark Holdings' Q2 2024 earnings call, significant guidance was provided, highlighting key financial metrics and strategic developments. The company successfully completed a project with the Clark County School District, generating $3.7 million in revenue for the quarter. Despite an operating loss of $3.2 million, this marked an improvement from a $4 million loss in Q2 2023. Net loss also decreased to $5.3 million, or $0.12 per diluted share, compared to $5.9 million, or $0.42 per diluted share, in the previous year. Remark Holdings resolved default issues with Mudrick Capital by exchanging nonconvertible notes for convertible debentures. The company emphasized its strategic shift from Asia to the U.S. market, exemplified by its partnership with the Clark County School District and ongoing collaborations with Microsoft Azure and Oracle, aiming to capture $400 million in business over the next five years.

Remark Holdings Financial Statement Overview

Summary
Remark Holdings is facing significant financial difficulties across all major financial statements. The income statement reveals persistent losses and negative margins, while the balance sheet reflects high leverage and negative equity. Cash flow issues further complicate the financial picture, with the company struggling to generate positive operational cash flow. Immediate strategic actions are needed to stabilize and improve the company's financial health.
Income Statement
15
Very Negative
Remark Holdings' income statement reveals significant challenges, highlighted by negative net income and EBIT over multiple periods. Despite a modest revenue increase in TTM, profitability remains weak as indicated by negative margins across the board. The company faces difficulties in achieving positive net profit margins, suggesting a need for cost management and revenue enhancement strategies.
Balance Sheet
10
Very Negative
The balance sheet for Remark Holdings shows a precarious financial position with negative stockholders' equity and high leverage, as reflected by a concerning debt-to-equity scenario. The negative equity ratio indicates that liabilities exceed assets, presenting a risk to financial stability. These factors underscore the need for balance sheet restructuring to improve financial health.
Cash Flow
20
Very Negative
Cash flow analysis indicates persistent issues, with negative operating and free cash flows suggesting liquidity concerns. Although there is a slight improvement in free cash flow in the TTM, the operating cash flow to net income ratio remains unfavorable. This highlights ongoing operational inefficiencies and cash management challenges that require attention.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue4.63M4.40M11.67M15.99M10.14M5.02M
Gross Profit1.15M1.08M335.00K4.54M3.72M1.51M
EBITDA-23.95M-24.57M-61.38M-14.21M-13.16M-19.25M
Net Income-36.60M-29.15M-55.48M27.47M-14.96M-27.85M
Balance Sheet
Total Assets2.61M10.24M14.44M75.50M11.31M14.83M
Cash, Cash Equivalents and Short-Term Investments21.00K145.00K52.00K56.54M854.00K272.00K
Total Debt19.87M17.04M16.55M27.84M3.50M19.68M
Total Liabilities58.23M49.83M34.86M44.47M20.40M42.55M
Stockholders Equity-55.62M-39.59M-20.43M31.03M-9.09M-27.73M
Cash Flow
Free Cash Flow-8.99M-10.51M-18.13M-20.40M-18.34M-19.92M
Operating Cash Flow-8.41M-10.46M-16.62M-20.17M-18.05M-19.79M
Investing Cash Flow-588.00K-51.00K4.82M2.10M-290.00K11.47M
Financing Cash Flow8.74M10.60M-2.34M31.41M18.92M-16.96M

Remark Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.05
Negative
100DMA
0.05
Negative
200DMA
0.08
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
32.73
Neutral
STOCH
27.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MARK, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MARK.

Remark Holdings Risk Analysis

Remark Holdings disclosed 30 risk factors in its most recent earnings report. Remark Holdings 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 0 New Risks

Remark Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
56
Neutral
$3.99M0.44-12.71%-5.08%93.27%
41
Neutral
$10.37M-309.32%-23.82%56.13%
40
Underperform
$3.96M-445.39%12.93%97.06%
34
Underperform
$3.10M470.97%-8852.46%
28
Underperform
$2.53M65.81%-20.21%51.45%
$39.20M-215.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MARK
Remark Holdings
0.04
-0.07
-63.64%
TAOP
Taoping
4.48
-16.22
-78.36%
CETX
Cemtrex
1.23
-470.22
-99.74%
RVYL
Ryvyl
0.65
-1.09
-62.64%
ATCH
AtlasClear Holdings
0.20
-61.60
-99.68%
CISO
Cerberus Cyber Sentinel Corp
1.20
0.63
110.53%
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: Jan 16, 2025