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Kustom Entertainment Inc Financials

KUST
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Kustom Entertainment Inc (KUST) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI KUST FY2025

Kustom Entertainment’s core business is not covering its overhead, so cash burn persists even after visible balance-sheet repair.

FY2025’s smaller net loss came with interest expense falling to $1.1M from $3.8M, so the headline improvement did not come mainly from the core business. Operating cash outflow was still -$8.4M and operating margin stayed near -79.1%, which means earnings looked cleaner faster than operations actually did.

Gross margin compression from 23.1% in FY2024 to 9.8% in FY2025 mattered more than the modest revenue change. Because selling and administrative expense was still $12.2M against only $13.8M of revenue, the company still carries an overhead structure that leaves little room for normal operating profits; it needs a much thicker gross profit layer before losses narrow materially.

The balance sheet looks repaired on paper, with total liabilities cut to $17.0M from $36.8M. But liquidity remains tight: the current ratio is only 0.9x, so the return to positive equity did not create much day-to-day cash flexibility and keeps working-capital management central to staying current on obligations.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 19 / 100
Financial Profile 19/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Kustom Entertainment Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
0

Kustom Entertainment Inc has an operating margin of -79.1%, meaning the company retains $-79 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -84.2% the prior year.

Growth
0

Kustom Entertainment Inc's revenue grew a modest 1.7% year-over-year to $13.8M. This slow but positive growth earns a score of 0/100.

Leverage
100

Kustom Entertainment Inc carries a low D/E ratio of 0.06, meaning only $0.06 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
12

Kustom Entertainment Inc's current ratio of 0.86 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
0

While Kustom Entertainment Inc generated -$8.4M in operating cash flow, capex of $258K consumed most of it, leaving -$8.7M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Returns
0

Kustom Entertainment Inc generates a -281.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100.

Piotroski F-Score Weak
3/9

Kustom Entertainment Inc passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Low Quality
1.26x

For every $1 of reported earnings, Kustom Entertainment Inc generates $1.26 in operating cash flow (-$8.4M OCF vs -$6.7M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk
-9.9x

Kustom Entertainment Inc earns $-9.9 in operating income for every $1 of interest expense (-$10.9M vs $1.1M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue
$13.8M
YoY+1.7%
5Y CAGR+5.7%
10Y CAGR-2.3%

Kustom Entertainment Inc generated $13.8M in revenue in fiscal year 2025. This represents an increase of 1.7% from the prior year.

EBITDA
-$9.3M
YoY+1.4%

Kustom Entertainment Inc's EBITDA was -$9.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.4% from the prior year.

Net Income
-$6.7M
YoY+66.4%

Kustom Entertainment Inc reported -$6.7M in net income in fiscal year 2025. This represents an increase of 66.4% from the prior year.

EPS (Diluted)
$-17.23
YoY+99.9%

Kustom Entertainment Inc earned $-17.23 per diluted share (EPS) in fiscal year 2025. This represents an increase of 99.9% from the prior year.

Cash & Balance Sheet

Free Cash Flow
-$8.7M
YoY-68.5%

Kustom Entertainment Inc generated -$8.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 68.5% from the prior year.

Cash & Debt
$757K
YoY+245.3%
5Y CAGR+16.1%
10Y CAGR-13.0%

Kustom Entertainment Inc held $757K in cash against $138K in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
N/A

Margins & Returns

Gross Margin
9.8%
YoY-13.3pp
5Y CAGR-21.1pp
10Y CAGR-47.1pp

Kustom Entertainment Inc's gross margin was 9.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 13.3 percentage points from the prior year.

Operating Margin
-79.1%
YoY+5.1pp
5Y CAGR-21.3pp
10Y CAGR-62.6pp

Kustom Entertainment Inc's operating margin was -79.1% in fiscal year 2025, reflecting core business profitability. This is up 5.1 percentage points from the prior year.

Net Margin
-48.5%
YoY+98.3pp
5Y CAGR+47.3pp
10Y CAGR+4.0pp

Kustom Entertainment Inc's net profit margin was -48.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 98.3 percentage points from the prior year.

Return on Equity
-281.5%
10Y CAGR-135.2pp

Kustom Entertainment Inc's ROE was -281.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.

Capital Allocation

R&D Spending
$551K
YoY-58.8%
5Y CAGR-22.8%
10Y CAGR-15.3%

Kustom Entertainment Inc invested $551K in research and development in fiscal year 2025. This represents a decrease of 58.8% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$258K
YoY+796.2%
5Y CAGR+4.8%
10Y CAGR-5.1%

Kustom Entertainment Inc invested $258K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 796.2% from the prior year.

KUST Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue N/A $4.5M-19.4% $5.6M+25.8% $4.5M N/A $4.1M-27.9% $5.6M+1.6% $5.5M
Cost of Revenue N/A $3.2M-49.5% $6.3M+118.0% $2.9M N/A $2.3M-57.0% $5.4M+34.2% $4.0M
Gross Profit N/A $1.4M+316.8% -$633K-139.5% $1.6M N/A $1.7M+617.8% $242K-84.1% $1.5M
R&D Expenses N/A $138K-25.1% $184K+117.7% $84K N/A $211K-61.4% $546K+12.0% $487K
SG&A Expenses N/A $2.5M-28.0% $3.5M+34.4% $2.6M N/A $9.1M+119.5% $4.2M-19.5% $5.2M
Operating Income N/A -$1.1M+72.6% -$4.1M-320.1% -$975K N/A -$7.4M-88.6% -$3.9M-7.6% -$3.6M
Interest Expense N/A $91K+17.4% $77K-90.2% $792K N/A $772K-28.9% $1.1M+67.3% $649K
Income Tax N/A N/A N/A N/A N/A N/A N/A N/A
Net Income N/A -$963K+78.5% -$4.5M-205.2% $4.3M N/A -$5.5M-9.2% -$5.0M-27.5% -$3.9M
EPS (Diluted) N/A $-0.59 $-3.21-327.7% $1.41 N/A $-1817.02+47.8% $-3479.71-12562.7% $-27.48

KUST Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $19.3M-22.9% $25.1M-3.4% $26.0M-14.2% $30.3M+9.1% $27.7M-14.0% $32.3M-25.5% $43.3M-4.1% $45.2M
Current Assets $9.0M-6.6% $9.7M+0.1% $9.7M-31.1% $14.0M+35.6% $10.4M-27.7% $14.3M+0.5% $14.2M-5.5% $15.1M
Cash & Equivalents $757K-4.5% $793K+27.4% $623K-83.4% $3.8M+1615.6% $219K-47.2% $415K-19.7% $517K-44.3% $928K
Inventory $2.3M-11.1% $2.6M+6.3% $2.5M-0.9% $2.5M-3.7% $2.6M+11.2% $2.3M+4.8% $2.2M-29.6% $3.1M
Accounts Receivable $480K-61.8% $1.3M+30.4% $962K-22.9% $1.2M+65.9% $752K-52.8% $1.6M+18.6% $1.3M+11.2% $1.2M
Goodwill N/A N/A N/A N/A N/A N/A N/A N/A
Total Liabilities $17.0M-3.4% $17.6M-1.4% $17.8M-4.7% $18.7M-49.2% $36.8M+5.9% $34.7M-13.8% $40.3M+7.1% $37.6M
Current Liabilities $10.5M+7.6% $9.8M+2.6% $9.6M-10.4% $10.7M-64.2% $29.7M+8.1% $27.5M-0.6% $27.7M+12.1% $24.7M
Long-Term Debt $138K-0.6% $138K-0.6% $139K-0.6% $140K-0.6% $141K-0.6% $142K-97.1% $4.9M+0.5% $4.9M
Total Equity $2.4M-68.5% $7.5M-7.8% $8.2M-29.5% $11.6M+228.4% -$9.0M-268.1% -$2.4M-180.3% $3.1M-59.6% $7.5M
Retained Earnings -$144.2M-3.9% -$138.8M-0.7% -$137.8M-3.4% -$133.2M+3.1% -$137.5M-5.7% -$130.2M-2.7% -$126.7M-4.2% -$121.6M

KUST Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $585K+266.2% -$352K+87.8% -$2.9M+49.8% -$5.8M-459.4% -$1.0M-51.9% -$677K+72.8% -$2.5M-171.1% -$919K
Capital Expenditures -$5K-111.5% $43K-75.9% $178K+318.3% $42K+753.9% $5K+568.8% -$1K-116.5% $6K-65.3% $18K
Free Cash Flow $581K+246.9% -$395K+87.1% -$3.1M+47.1% -$5.8M-460.8% -$1.0M-52.4% -$678K+72.8% -$2.5M-166.4% -$937K
Investing Cash Flow N/A -$36K+84.1% -$228K-166.4% -$85K-1617.9% -$5K-101.4% $356K+386.4% -$124K-177.3% $161K
Financing Cash Flow N/A $559K+2547.1% -$23K-100.2% $9.1M+752.7% $1.1M+781.8% $122K-94.5% $2.2M+119.3% $1.0M
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks N/A N/A N/A N/A N/A N/A N/A N/A

KUST Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin N/A 30.2%+41.5pp -11.2%-47.0pp 35.8% N/A 42.9%+38.6pp 4.3%-23.2pp 27.6%
Operating Margin N/A -24.7%+48.0pp -72.7%-50.9pp -21.8% N/A -182.2%-112.5pp -69.7%-3.9pp -65.8%
Net Margin N/A -21.2%+58.5pp -79.7%-175.1pp 95.3% N/A -135.0%-45.8pp -89.2%-18.1pp -71.1%
Return on Equity N/A -12.8%+42.3pp -55.1%-92.0pp 36.9% N/A N/A -164.3%-112.2pp -52.1%
Return on Assets N/A -3.8%+13.5pp -17.3%-31.4pp 14.1% N/A -17.0%-5.4pp -11.6%-2.9pp -8.7%
Current Ratio 0.86-0.1 0.99-0.0 1.01-0.3 1.32+1.0 0.35-0.2 0.520.0 0.51-0.1 0.61
Debt-to-Equity 0.06+0.0 0.020.0 0.020.0 0.01+0.0 -0.02+0.0 -0.06-1.7 1.61+1.0 0.65
FCF Margin N/A -8.7%+45.7pp -54.5%+75.1pp -129.5% N/A -16.7%+27.7pp -44.5%-27.5pp -17.0%

Note: The current ratio is below 1.0 (0.86), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

Frequently Asked Questions

Kustom Entertainment Inc (KUST) reported $13.8M in total revenue for fiscal year 2025. This represents a 1.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Kustom Entertainment Inc (KUST) revenue grew by 1.7% year-over-year, from $13.5M to $13.8M in fiscal year 2025.

No, Kustom Entertainment Inc (KUST) reported a net income of -$6.7M in fiscal year 2025, with a net profit margin of -48.5%.

Kustom Entertainment Inc (KUST) reported diluted earnings per share of $-17.23 for fiscal year 2025. This represents a 99.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Kustom Entertainment Inc (KUST) had EBITDA of -$9.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Kustom Entertainment Inc (KUST) had $757K in cash and equivalents against $138K in long-term debt.

Kustom Entertainment Inc (KUST) had a gross margin of 9.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Kustom Entertainment Inc (KUST) had an operating margin of -79.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Kustom Entertainment Inc (KUST) had a net profit margin of -48.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Kustom Entertainment Inc (KUST) has a return on equity of -281.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Kustom Entertainment Inc (KUST) generated -$8.7M in free cash flow during fiscal year 2025. This represents a -68.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Kustom Entertainment Inc (KUST) generated -$8.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Kustom Entertainment Inc (KUST) had $19.3M in total assets as of fiscal year 2025, including both current and long-term assets.

Kustom Entertainment Inc (KUST) invested $258K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Kustom Entertainment Inc (KUST) invested $551K in research and development during fiscal year 2025.

Kustom Entertainment Inc (KUST) had a current ratio of 0.86 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

Kustom Entertainment Inc (KUST) had a debt-to-equity ratio of 0.06 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Kustom Entertainment Inc (KUST) had a return on assets of -34.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Based on fiscal year 2025 data, Kustom Entertainment Inc (KUST) had $757K in cash against an annual operating cash burn of $8.4M. This gives an estimated cash runway of approximately 1 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

Kustom Entertainment Inc (KUST) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Kustom Entertainment Inc (KUST) has an earnings quality ratio of 1.26x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Kustom Entertainment Inc (KUST) has an interest coverage ratio of -9.9x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Kustom Entertainment Inc (KUST) scores 19 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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