MSP Recovery (MSPR) AI Stock Analysis

• Market Cap: $8.41M
• Dividend Yield: N/A
• Average Volume (3M): 388.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• Revenue Growth: 34.74%
• EPS Growth: -53.67%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): N/A
• Shares Outstanding: 4,920,520
• 10 Day Avg. Volume: 1,054,665
• 30 Day Avg. Volume: 388,957
• PEG Ratio: 133.37
• Price to Book (P/B): 916.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.18K
• Enterprise Value/Market Cap: 11.79K
• Enterprise Value/Revenue: 2.00K
• Enterprise Value/Gross Profit: 790.23
• Enterprise Value/Ebitda: -20.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.50 ▲(38.89%Upside)

MSP Recovery's stock score is primarily driven by its poor financial performance, indicated by negative financial metrics and high leverage. Technical analysis suggests bearish trends, while valuation concerns are highlighted by a negative P/E ratio. The recent corporate event of lowering the SEPA floor price adds to the financial instability, making it a risky investment.

MSP Recovery Business Overview & Revenue Model

Company Description

MSP Recovery, Inc. operates as a healthcare recoveries and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides Chase to pay service to assist its healthcare provider clients to identify in the first instance the proper primary insurer at the point of care and thereby avoid making a wrongful payment; and LifeWallet, a platform designed to locate and organize users' medical records. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.

How the Company Makes Money

MSP Recovery makes money primarily by identifying and recovering improperly paid insurance claims on behalf of its clients, which include healthcare providers and insurers. The company operates on a contingency fee basis, meaning it earns a percentage of the funds recovered from these claims. MSP Recovery uses sophisticated data mining and analytical tools to detect discrepancies in payments and negotiate settlements, thereby securing revenue through successful recoveries. Additionally, partnerships with healthcare organizations and insurers enhance its ability to access claim data and expand its recovery operations.

MSP Recovery Financial Statement Overview

Summary

MSP Recovery faces severe financial challenges, including negative income and cash flows, high leverage, and instability in revenue generation. The negative stockholders' equity and inability to maintain positive cash flow are critical concerns for financial health.

Income Statement

MSP Recovery's income statement reveals significant challenges, with negative net income and gross profit margins. The TTM revenue shows a decline compared to previous periods, indicating instability in revenue generation. Additionally, negative EBIT and EBITDA margins highlight ongoing operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet presents a highly leveraged position with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, which is a critical concern. Despite a reasonable amount of cash and short-term investments, the company's total liabilities exceed its total assets, further underscoring potential financial distress.

Cash Flow

The cash flow statement highlights negative free cash flow and operating cash flow, suggesting cash management challenges. The company's inability to generate positive free cash flow consistently indicates potential difficulties in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.09M	18.25M	7.71M	23.42M	14.63M	13.89M
Gross Profit	125.42M	8.64M	5.56M	21.37M	14.44M	13.71M
EBITDA	-2.72B	-1.98B	-69.22M	-13.54M	-5.52M	-2.97M
Net Income	-463.22M	-360.50M	-56.35M	-7.42M	-33.09M	-24.25M
Balance Sheet
Total Assets	1.80B	1.92B	3.16B	3.42B	104.01M	17.84M
Cash, Cash Equivalents and Short-Term Investments	9.07M	12.33M	11.63M	3.66M	1.66M	11.88M
Total Debt	695.97M	664.33M	679.33M	324.25M	106.81M	24.04M
Total Liabilities	2.16B	2.05B	1.74B	1.23B	255.41M	133.69M
Stockholders Equity	-60.82M	100.58M	272.39M	109.69M	-155.76M	-120.18M
Cash Flow
Free Cash Flow	-21.71M	-16.65M	-42.47M	-86.32M	1.62M	-344.00K
Operating Cash Flow	-21.17M	-16.12M	-40.02M	-80.64M	2.25M	-14.00K
Investing Cash Flow	-2.75M	-2.73M	7.56M	-5.68M	-2.01M	986.00K
Financing Cash Flow	21.01M	19.54M	29.02M	99.73M	-10.46M	9.61M

MSP Recovery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSPR, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.56, and below the 200-day MA of 2.20, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSPR.

MSP Recovery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	65 Neutral	$17.08M	―	-25.29%	―	26.67%	44.02%
Sector *	60 Neutral	HK$15.58B	5.65	-7.43%	4.32%	11.60%	-21.06%
IMRN	49 Neutral	$9.83M	―	-52.79%	―	82.77%	-87.95%
MSPR	39 Underperform	$8.41M	―	-458.99%	―	34.74%	-53.67%
PMCB		$7.82M	1.50	45.44%	―	―	―
NEUP		$13.20M	―	-59.91%	―	―	―
TSBX	34 Underperform	$8.33M	―	-126.03%	―	-100.00%	-27.44%

MSP Recovery Corporate Events

MSP Recovery Amends Promissory Note with Nomura

On June 26, 2025, MSP Recovery, Inc. amended its promissory note with Nomura Securities International, increasing the principal to approximately $33.6 million and waiving Nomura’s entitlement to $3 million from the Yorkville SEPA. Additionally, the company has been engaging with Yorkville under a Standby Equity Purchase Agreement, allowing it to sell up to $250 million in shares. This includes issuing convertible promissory notes, with the latest being a $0.8 million note on June 26, 2025, which Yorkville can convert into shares, impacting the company’s financial strategy and shareholder dynamics.

MSP Recovery Lowers Floor Price in Yorkville SEPA

On June 5, 2025, MSP Recovery and Yorkville agreed to lower the Floor Price under the Yorkville SEPA from $3.75 to $1.00. Hazel and Virage expressed willingness to negotiate additional working-capital funding to support the company’s ongoing claim servicing, which could impact MSP Recovery’s financial operations and stakeholder interests.