KUST KUSTOM ENTERTAINMENT, INC.

Overview and Growth

Fiscal 2025 results for KUSTOM ENTERTAINMENT, INC. combined $13.75M of revenue with net loss of $6.67M and an operating cash outflow of $8.41M. Revenue of $13.75M sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 1.7% from $13.52M in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of -$17.23, adding a shareholder-level measure to the absolute income figures considered below. At period end, total assets were $19.33M, framing the scale of the company’s operating and financing commitments. Asset turnover was 0.71x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $1.35M as gross profit before recognizing operating expenses and other items. Gross margin was 9.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced a $10.88M operating loss before non-operating and tax effects. An operating margin of -79.1% reflected costs exceeding revenue-level gross profit by 79.1% of sales. After all below-operating-line items, the company recorded a net loss of $6.67M for the fiscal year. Measured against revenue, the bottom-line deficit represented 48.5% after all recognized items. EBITDA was negative $9.34M, showing a deficit before interest, taxes, depreciation, and amortization. The pretax result was a loss of $5.96M, establishing the deficit before tax effects. Measured against revenue, the pretax deficit represented 43.3%. Relative to period-end equity, the net loss represented 281.5%. The loss-to-assets relationship was 34.5%, placing the bottom-line deficit against the company’s resource base. The bottom-line deficit decreased from $19.84M in fiscal 2024 to $6.67M.

Liquidity and Capital Structure

The company held $19.33M of assets against $16.96M of liabilities and $2.37M of equity, revealing how the asset base was financed. At period end, current assets of $9.04M compared with current liabilities of $10.54M, defining the company’s short-term resource position. Current assets covered only 0.86x of current liabilities, so current liabilities exceeded current assets at period end. The company held $757.37K in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 7.2% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $845.37K, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.36x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 4.4% of total assets, placing borrowing in the context of the company’s full resource base. Book equity represented 12.3% of total assets, quantifying the balance-sheet share supported by shareholder capital. Liabilities represented 87.7% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 3.9%, comparing reported cash and equivalents with the full positive asset balance. Compared with $27.74M in fiscal 2024, the current asset base moved 30.3% and finished lower. Cash and equivalents were 66.7% higher than fiscal 2024 cash of $454.31K, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $8.41M, showing that operations absorbed cash during the period. Capital expenditures used $258.05K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Operating cash flow and capital spending combined to leave a $8.67M cash deficit after capital spending. Relative to revenue, the post-investment cash deficit represented 63.0%. Relative to total assets, the post-investment cash deficit measured 44.9%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.