OpenWorld (NASDAQ:OPNW) Issues Quarterly Earnings Results, Misses Estimates By $1.13 EPS

OpenWorld (NASDAQ:OPNW) posted its quarterly earnings results on Thursday. The company reported ($0.93) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($1.13), FiscalAI reports. OpenWorld had a negative return on equity of 17.16% and a negative net margin of 47.08%. The company had revenue of $7.43 million during the quarter, compared to the consensus estimate of $3.52 million.

Here are the key takeaways from OpenWorld’s conference call:

• RWA revenue drove the quarter: The business generated $7.4 million in total revenue, including $6.4 million from real-world asset (RWA) services; gross margin was 84%, and adjusted EBITDA was $2.2 million.
• Reported results included a substantial net loss: OpenWorld recorded a $10.2 million net loss, while total revenue was down sharply from $20 million a year earlier, when digital asset and capital markets revenue included one-time token launch activity. Management attributed most of quarterly G&A to $6 million in merger/listing fees and $6.4 million in non-cash stock compensation.
• Large RWA opportunities remain in execution: The company said its Meridian Powerwall project, announced at up to $1 billion, and a tokenized industrial IP initiative are moving through definitive agreements and capital formation. These opportunities have not yet been described as closed, and the Powerwall project is expected to be funded in tranches.
• Management sees a year of liquidity: OpenWorld reported $4.5 million in cash at quarter-end and raised about $3.5 million gross in a subsequent offering. It said cash, expected collections, and financing proceeds should cover operating obligations for at least 12 months; $21.2 million of RWA transaction price remained tied to outstanding performance obligations.

OpenWorld Trading Up 0.4%

OpenWorld stock traded up $0.00 during trading hours on Thursday, reaching $0.54. 522,028 shares of the stock were exchanged, compared to its average volume of 244,062. The stock has a 50 day moving average of $8.58 and a two-hundred day moving average of $8.11. OpenWorld has a twelve month low of $0.40 and a twelve month high of $19.50.

OpenWorld Dividend Announcement

The company also recently disclosed a special dividend, which was paid on Friday, October 2nd. Shareholders of record on Tuesday, September 29th were paid a dividend of $0.15 per share. The ex-dividend date was Tuesday, September 29th.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of OpenWorld in a report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, OpenWorld has an average rating of “Hold” and a consensus price target of $15.00.

About OpenWorld

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