Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors

You are looking at Amesite Inc. (AMST) because the headline numbers on their AI-driven platform, NurseMagicTM, are defintely grabbing attention, but the underlying financial health demands a closer look before you commit capital. The company is showing real traction in its core business, with Q4 2025 revenue hitting $55,759-a 100.3% jump year-over-year-and that momentum continued with a reported 69% quarter-over-quarter revenue increase into Q2 2026, which is substantial growth in the AI-in-healthcare space. Still, for the full fiscal year 2025, the net loss was $3.6 million, and the firm is still operating at a loss, which matters for cash runway. Here's the quick math: while the loss narrowed to $923,986 in Q4 2025, the bigger, more immediate risk is the Nasdaq deficiency notice received in October 2025 for failing the $2.5 million stockholders' equity standard, which introduces a material delisting risk you simply cannot ignore. We need to map this growth against the capital structure.

Revenue Analysis

You need to look past the annual numbers for Amesite Inc. (AMST) because the story is all about the recent pivot and quarterly momentum. While the company's annual revenue for the fiscal year ending June 30, 2025, was only $110.46 thousand, representing a 33.81% decrease year-over-year, the near-term trend shows a clear turnaround driven by their flagship product, NurseMagic™. That's the key signal to watch.

The primary revenue stream for Amesite Inc. has decisively shifted from a broader education-centric model to a specialized, AI-powered healthcare focus. This pivot, completed in fiscal year 2025, centers entirely on the NurseMagic™ platform, which streamlines documentation for nurses and caregivers in the post-acute care market. This is not a slow shift; it's a full re-anchoring to a large, complex sector. The platform's ability to cut documentation time from 20 minutes to just 20 seconds is the core value proposition driving sales.

Here's the quick math on the recent acceleration:

• Q3 2025 saw a 2.4x revenue increase over Q2 2025.
• Q4 2025 revenue reached $55,759, a 100.3% year-over-year jump.
• The most recent quarter reported a 69% quarter-over-quarter (QoQ) revenue increase, even as the company reduced spending.

This kind of sequential growth, even from a small base, is what you want to see following a major strategic shift. The revenue base is still tiny, defintely, but the velocity is high.

Amesite Inc. has managed to balance its sales channels, which is a good sign for stability. Revenues are currently evenly distributed between B2B (business-to-business) and B2C (direct-to-practitioner) sales. This dual-channel approach mitigates risk and allows for different growth strategies. The B2B segment got a significant boost in July 2025 with the introduction of the NurseMagic™ Enterprise tier, which includes features like electronic medical record (EMR) integration and census-based pricing for larger-scale customers.

The contribution of their business segments to overall revenue is straightforward, as the company is now a single-product story in two distinct sales channels. This focus is a significant change from prior years. The launch of the Enterprise tier has already shown traction, with the NurseMagic™ Enterprise platform reporting 63% revenue growth in September 2025. This suggests the B2B side, which often yields higher contract values, is starting to meaningfully contribute to the overall revenue mix.

For a deeper dive into the company's valuation and strategic frameworks, you should check out the full post: Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking for a clear picture of Amesite Inc. (AMST)'s financial health, and honestly, the profitability metrics tell a story of a high-potential, early-stage Software-as-a-Service (SaaS) company still deep in its investment phase. The direct takeaway is that Amesite Inc. is currently operating at a significant net loss, but its gross margin is exceptionally strong, which is the exact profile you want to see for a company prioritizing growth and operational efficiency.

For the fiscal year ended June 30, 2025, Amesite Inc. reported a net loss of approximately $3,617,000. This is a critical number to ground your analysis. The loss is not due to poor product economics, but rather the heavy investment in scaling the core product, NurseMagic™, and expanding its market reach into the healthcare sector. They're spending to grow.

Gross, Operating, and Net Margins

The profitability ratios clearly show a company with a highly scalable product, but one that is still burning cash to acquire customers and build out its platform. Here's the quick math on the trailing twelve months (TTM) margins, which give us the most current view:

• Gross Profit Margin: The TTM Gross Margin is an impressive 100.00%. This indicates that the Cost of Goods Sold (COGS)-the direct costs of delivering the AI-powered learning platform-is negligible relative to revenue, a hallmark of a pure, highly scalable software model.
• Operating Profit Margin (EBIT Margin): The TTM EBIT (Earnings Before Interest and Taxes) margin is a deeply negative -6,570.5%. This massive negative number shows where the money is going: Sales, General & Administrative (SG&A) expenses, and Research & Development (R&D) are currently dwarfing the small revenue base.
• Net Profit Margin: The TTM Net Profit Margin is also significantly negative, reported at -3,274.60%. This confirms the company is far from net profitability, which is expected for a small, high-growth technology firm focused on market penetration.

Operational Efficiency and Profitability Trends

The trend in profitability, not the absolute loss, is the key indicator here. Amesite Inc. is making clear strides in operational efficiency, even as it scales. In the third quarter of fiscal year 2025 (Q3/2025), the company managed to reduce its operating expenses while simultaneously achieving a 2.4x revenue increase compared to the prior quarter. This is defintely a positive signal for cost management and a path toward breakeven. The revenue growth is driven largely by the success of NurseMagic™, which now has a balanced distribution between B2B and B2C sales.

The core challenge remains translating that perfect gross margin into a positive operating margin. You can read more about the strategic vision driving this growth in their Mission Statement, Vision, & Core Values of Amesite Inc. (AMST).

Industry Comparison: A Realist's View

To be fair, you can't compare Amesite Inc.'s net margin to a mature company. You must compare it to the SaaS industry, where the focus is on achieving scale first. Amesite Inc.'s 100.00% Gross Margin is exceptional, even for the SaaS sector, which typically sees a median gross margin between 75% and 85%. This high margin is a huge competitive advantage once they reach scale.

However, the operating and net margins are a stark contrast to the industry median. The table below maps the reality:

The massive negative operating margin simply shows that the fixed costs-salaries, R&D, and marketing-are very high relative to the current revenue of $193.5k (TTM ending September 30, 2025). This is not a sustainable model long-term, but for a company that just launched a flagship product (NurseMagic™) and is showing a 2.4x quarterly revenue jump, the focus remains on customer acquisition and market share, not immediate profitability. Your action item is clear: track the quarterly revenue growth and operating expense reduction very closely. If the revenue continues to accelerate faster than the operating loss, the margin gap will close quickly.

Debt vs. Equity Structure

You're looking at Amesite Inc. (AMST) and wondering how they fund their operations-it's a crucial question, especially for a growth-stage technology company. The direct takeaway here is that Amesite Inc. is essentially debt-free, which is a significant positive for risk, but this low-leverage model means they rely almost entirely on equity financing, leading to a different set of risks, namely shareholder dilution.

As of the fiscal year ended June 30, 2025, Amesite Inc. had a total debt figure of approximately $0.0, effectively making the company debt-free on its balance sheet. While one minor data point showed a tiny amount of debt at $19.4K, for all practical purposes, this is a company that carries no long-term or short-term debt.

This zero-debt position is why their debt-to-equity (D/E) ratio sits at a clean 0%. To put that in perspective, the industry average for Software - Application companies is around 0.32, meaning the typical peer has 32 cents of debt for every dollar of equity. Amesite Inc. is defintely an outlier, operating with no financial leverage risk. That's a great sign for solvency, but it tells you the company must fund its net losses and growth solely through shareholder capital.

Here's the quick math on their capital structure, based on the June 30, 2025, annual report data:

The company's funding strategy is a clear preference for equity. For example, in January 2025, Amesite Inc. closed a public offering of common stock, which brought in approximately $3.08 million in net cash proceeds to fund general corporate activities and working capital. This reliance on equity, while avoiding interest payments, is the primary driver of shareholder dilution.

What this estimate hides is the challenge of maintaining that equity base. In late October 2025, Amesite Inc. received a deficiency notice from Nasdaq because its stockholders' equity had fallen below the minimum $2,500,000 requirement for continued listing. This is a critical near-term risk. They must either raise more equity or generate sufficient net income quickly to meet the compliance standards.

My advice is simple: monitor the equity raises and the Nasdaq compliance plan. The next move is to understand who is buying those shares and why, which you can explore further in Exploring Amesite Inc. (AMST) Investor Profile: Who's Buying and Why?

• Track future equity offerings for dilution impact.
• Watch the Nasdaq compliance deadline closely.
• Confirm the plan to boost stockholders' equity.

Liquidity and Solvency

You need to know if Amesite Inc. (AMST) can cover its short-term bills, and the answer is a clear 'yes' for now, but the cash flow story is more complex. The company's liquidity ratios are exceptionally strong, but this strength is fundamentally reliant on capital raises, not operating cash flow.

For the fiscal year 2025 (FY 2025), Amesite Inc.'s liquidity position looks stellar on paper. The Current Ratio, which measures current assets against current liabilities, stood at a robust 6.79. This means for every dollar of short-term debt, the company had $6.79 in assets that could be converted to cash within a year. The Quick Ratio (or acid-test ratio), which strips out less-liquid assets like inventory, was similarly high at 6.53. Frankly, a ratio this high is unusual and suggests a large cash balance relative to payables, which is defintely a strength, but also signals a potential inefficiency in asset deployment.

Here's the quick math on working capital: as of March 31, 2025, the company reported current assets of approximately $3.14 million and current liabilities of about $211,000. That leaves a positive working capital of roughly $2.93 million. This trend of high working capital is a clear liquidity strength, ensuring they won't struggle to pay vendors or meet near-term obligations. However, the true story lies in where that cash comes from.

• Current Ratio (FY 2025): 6.79
• Quick Ratio (FY 2025): 6.53
• Working Capital (Q3 2025): $2.93 million

Cash Flow: The Funding Engine

When we look at the Cash Flow Statement for FY 2025, we see the classic profile of a high-growth, pre-profit technology company. Cash Flow from Operating Activities (CFOA) was a negative $2.46 million for the fiscal year ended June 30, 2025. This is the critical point: the core business is still burning cash to fund operations, which means the company is not yet self-sustaining.

Cash Flow from Investing Activities was a modest outflow of $0.38 million in FY 2025, primarily for property and equipment, which is normal for a company investing in its infrastructure. The real driver of the strong balance sheet is the Cash Flow from Financing Activities (CFFA). For the nine months ended March 31, 2025, the company brought in $3.10 million in net cash from financing activities. This capital infusion, often from stock issuance, is what keeps the liquidity ratios high and working capital positive. It's a necessary step for growth, but it comes at the cost of shareholder dilution.

Near-Term Risks and Opportunities

The main liquidity strength is the large cash buffer, which provides a runway for operations despite the negative operating cash flow. This is the opportunity: the cash allows management to execute its strategy, like pushing the NurseMagic™ app, without immediate panic about funding. The risk, however, is that the company is still dependent on the capital markets to fund its burn rate. If the market sentiment shifts, that financing spigot could tighten, and the high liquidity ratios would start to drop quickly. Your action as an investor should be to monitor the rate of cash burn against the remaining cash on the balance sheet, and look for a clear path to positive operating cash flow in the next few quarters. You can find a more in-depth discussion on the company's strategic position in Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors.

Valuation Analysis

Is Amesite Inc. (AMST) overvalued or undervalued? Honestly, the stock's valuation is a classic growth-stage puzzle: it looks expensive on traditional metrics but trades on the promise of its AI-driven revenue growth, particularly from its NurseMagic app. The market is pricing in a significant future success that is not yet reflected in current earnings.

The near-term risk is clear, but so is the potential reward if the growth thesis holds. The stock's current price around $2.59 (as of November 17, 2025) sits near the lower end of its 52-week trading range of $2.00 to $6.27, reflecting recent pressure, including a -22.69% decline over the last ten days. That's a defintely high-volatility ride.

Key Valuation Multiples (FY 2025)

When you look at the fundamentals for the fiscal year ending June 30, 2025, Amesite Inc.'s valuation ratios tell a story of a company prioritizing revenue growth over immediate profit, which is typical for a small-cap technology play. Here's the quick math on the core metrics:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is a negative -3.02 (Trailing Twelve Months, or TTM). A negative P/E means the company is not profitable, reporting a loss per share of approximately -$0.84 (TTM). You can't use this for traditional valuation, so we move to other metrics.
• Price-to-Book (P/B) Ratio: The P/B ratio for FY 2025 was 4.49. This is high, especially when compared to the broader US Consumer Services industry average of around 2x. On a book-value basis, the stock is trading at a premium, suggesting investors are paying a lot for the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): Since the company is not profitable, this metric is either negative or extremely high and not a practical tool for comparison right now. Instead, its Enterprise Value (EV) for FY 2025 was approximately $9 million, and the TTM EV/Sales ratio is a high 53.40, again pointing to a valuation driven by sales potential, not current cash flow.

The high P/B and EV/Sales ratios suggest the stock is priced for perfection, meaning any stumble in the reported 2.4x quarterly revenue increase from Q2/2025 to Q3/2025 could trigger a sharp correction.

Analyst Consensus and Forward View

The Street's view on Amesite Inc. is fragmented, which adds to the uncertainty. You have to look past the noise and focus on the risk assessment.

The most conservative assessment from a Wall Street analyst in the last 12 months is a consensus Sell rating. This single-analyst consensus often comes with a highly cautious price target, in this case, a predicted downside of -100.00% and a target of $0.00. This is a red flag you can't ignore, as it signals a deep skepticism about the company's path to profitability and capital structure.

However, other less conventional forecasts are wildly optimistic, projecting an average price of $17.50 in 2025. This massive variance-from $0.00 to $17.50-is a textbook sign of a high-risk, high-reward micro-cap stock. It's not a buy-and-hold for the faint of heart.

Your action here is to decide if you believe the company's AI-driven growth, especially with products like NurseMagic, can justify a P/B of 4.49 and overcome the bearish analyst sentiment. If you are looking for a deeper dive into the operational side, you can read the full post here: Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors

Risk Factors

You're looking at Amesite Inc. (AMST) and seeing a company with an exciting AI-driven product, NurseMagic™, and a massive revenue jump of 2.4x in Q3 2025, but you need to know the true financial foundation. Honestly, the biggest risk is simple: cash burn and the path to profitability. The company has a history of losses and, for the fiscal year ending June 30, 2025, reported an annual loss of $3.6 million.

While the latest balance sheet shows robust cash reserves of $2,858,963, which is a great liquidity buffer, the operational losses are stark. The Q3 2025 earnings report showed a total profit margin of negative 4,693.33% and an EBIT (Earnings Before Interest and Taxes) margin of negative 6,570.5%. Here's the quick math: they are spending far more to generate revenue-which was only $166,881 in Q3 2025-than they are bringing in. That cash reserve buys them time, but it doesn't solve the core business model challenge yet.

This financial strain creates a domino effect of internal and external risks that you need to watch closely. The company's filings explicitly highlight a need for substantial additional funding to continue as a 'going concern,' which is a serious red flag for any growth-stage company.

• Operational and Financial Risks:
• Funding Dependency: Amesite Inc. will need to raise more capital, likely through stock issuance, which can dilute existing shareholder value.
• Talent Retention: The ability to attract and keep key management and technical personnel is difficult when cash is tight and the focus is on cutting operating expenses, which could starve critical product development.
• Platform Reliance: They rely heavily on third-party designers, suppliers, and partners to maintain their AI platform, which introduces a single point of failure and cost volatility.

The external risks center on the hyper-competitive EdTech and Healthcare AI markets, plus the inherent volatility of a small-cap stock. The stock's rapid movements, like the 61.58% jump seen on a single day in September 2025, are driven by speculative trading and sentiment around their AI advancements, not just fundamentals. This volatility is a risk in itself. Also, the company received a Nasdaq deficiency letter for non-compliance in October 2025, which adds regulatory pressure and market uncertainty.

To be fair, management is aware of the situation and has clear mitigation strategies. The pivot to the healthcare sector with NurseMagic™ is a strategic move into a massive, high-growth market, and the company is aggressively focusing on operational efficiencies and cost reductions. They have a strong current ratio of 14.9, meaning their immediate liquidity is excellent, giving them flexibility. Still, the long-term success hinges on whether the NurseMagic™ B2B and B2C sales can scale fast enough to turn that negative margin positive before the cash runs out.

A deeper dive into the company's full financial picture is available in our complete analysis: Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear path through the noise for Amesite Inc. (AMST), and the picture is one of a small, high-growth AI firm still in the early, cash-intensive stage. The direct takeaway is this: near-term financial health is weak, but the growth trajectory of its flagship product, NurseMagic, is compelling and points to a significant market opportunity in healthcare software.

The company's growth is defintely not about large-scale revenue yet; the annual revenue for the fiscal year ending June 30, 2025, was only $110.46K, showing a year-over-year decline of 33.81%. But, the trailing twelve months (TTM) revenue, as of September 30, 2025, jumped to $193.51K, an increase of 68.56% year-over-year. This signals a clear inflection point driven by their new product focus.

Key Growth Drivers: AI and Enterprise Adoption

The core growth driver is the AI-powered solution, NurseMagic, which targets the massive $330 billion home and healthcare segments. This product is a classic example of a high-leverage software-as-a-service (SaaS) model. It addresses a critical pain point for healthcare professionals: documentation. NurseMagic is engineered to reduce charting time by a staggering 95%, cutting a 20-minute task down to just 20 seconds. That's a huge operational efficiency win for any organization.

This product innovation is fueling a rapid acceleration in user and revenue growth, especially in the business-to-business (B2B) space. In Q3 2025 alone, NurseMagic revenue saw a 2.4x increase from the prior quarter, and user growth surged by 1340% following the launch of paid subscriptions. This is what a successful product-market fit looks like. The company currently maintains a strong gross margin of 60.3%, suggesting that once the operational costs stabilize, the path to profitability could improve significantly.

• Reduce charting time by 95% (20 minutes to 20 seconds).
• NurseMagic revenue grew 2.4x from Q2 to Q3 2025.
• User growth jumped 1340% after paid subscription launch.

Strategic Initiatives and Partnerships

Amesite Inc. is making smart, targeted moves to capture the enterprise market. The launch of the higher-priced B2B tier, Teams Plus+, in Q2 2025 is a key strategic initiative. This tier offers advanced analytics and increased capacity, directly catering to larger organizations like skilled nursing, home health, and hospice providers. Also, the company's commitment to compliance is a competitive moat; they expanded their platform's HIPAA compliance to cover both individual and enterprise users, which is a non-negotiable trust-builder in the healthcare sector.

The company is also using partnerships to drive market expansion. For example, a partnership with National Industry Results Inc. in May 2025 was a notable event that boosted market interest. These moves are about establishing a foothold in a market that demands reliability and scale. Here's the quick math: the net loss for the fiscal year 2025 was -$3.6M, so every enterprise contract they close is a critical step toward covering that burn rate and leveraging that high gross margin.

Competitive Advantages and Near-Term Risks

Amesite Inc.'s competitive edge is built on three pillars: technology, compliance, and domestic operations. The core technology, an AI trained on industry-specific data, delivers a level of efficiency that is hard to match quickly. Plus, the company is U.S.-owned with a fully remote, U.S.-based workforce and cloud-native infrastructure, which insulates it from the trade uncertainties and tariffs that affect hardware-reliant competitors. This is a minor but real structural advantage in an increasingly complex global supply chain environment.

However, the risk is clear: this is a nascent revenue business. The Q4 2025 earnings per share (EPS) was -$0.14, and the company is still in the heavy investment phase. The ability to convert that massive user growth into sustainable, high-value enterprise contracts via the Teams Plus+ offering is the single most important action to watch. For a deeper dive into the company's financial structure, you should read Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors.