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PSQ Holdings (PSQH)
NYSE:PSQH
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PSQ Holdings
(NYSE:PSQH)
54Neutral
Positive Factors
Capital and Financial Stability
The company has sufficient capital to fund operations and growth going forward following a $36.2M capital raise.
FinTech Expansion
The launch of payments services, part of the FinTech segment, has been well-received by merchants, which represents nearly half of total revenue.
Revenue Growth
Revenue of $7.2M was up 162% year-over-year, showing strong growth compared to the previous year.
Negative Factors
Advertising Revenue Decline
Revenue in the Marketplace (advertising) segment declined 53.4% year-over-year, attributed to a change in its go-to-market strategy.
Market Perception
The market underestimates the depth of PSQH's authentic connection with its audience and the transformational impact of its fintech shift.
PSQ Holdings (PSQH) vs. S&P 500 (SPY)
Market Cap
$100.42M
Dividend YieldN/A
Average Volume (3M)734.82K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth385.52%
EPS Growth-33.32%
CountryUS
Employees85
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.88
Shares Outstanding39,700,680
10 Day Avg. Volume571,515
30 Day Avg. Volume734,821
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.92
Price to Cash Flow (P/CF)-4.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside156.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
PSQ Holdings Business Overview & Revenue Model
Company DescriptionPSQ Holdings, Inc. operates an app and website that connects Americans to businesses that share values online and in local communities. The platform has over 70,000 businesses from different industries and 1.6 million consumer members. The company leverages data and insights from the platform to assess its members' needs and provide products, such as EveryLife diapers and wipes. The company is based in West Palm Beach, Florida.
How the Company Makes MoneyPSQ Holdings generates revenue through a subscription-based model, where customers pay monthly or annual fees to access its suite of privacy and security software solutions. The company offers tiered service packages that provide varying levels of functionality and support, allowing it to cater to both individual consumers and enterprise clients. Key revenue streams include licensing fees for businesses implementing PSQH's technology in their operations, as well as partnership agreements with other technology firms seeking to integrate enhanced privacy features. Additionally, PSQ Holdings may engage in strategic partnerships with hardware manufacturers to bundle its software with devices, further expanding its market reach.
PSQ Holdings Financial Statement Overview
Summary
PSQ Holdings shows strong revenue growth, which is a positive indicator for future potential. However, persistent losses and negative cash flows highlight the need for improved operational efficiency and financial management. The balance sheet is relatively stable, with low leverage, but the company needs to focus on turning revenue growth into profitability.Income Statement
The company has shown significant revenue growth over the years, particularly with a major jump from 2023 to 2024. However, the net profit margin is negative, indicating consistent losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, while revenue growth is promising, profitability remains a concern.50
Neutral
Balance Sheet
The balance sheet shows improvement in stockholders' equity, indicating potential investor confidence. The debt-to-equity ratio is low, suggesting manageable leverage. However, the equity ratio remains moderate, implying that liabilities are a significant portion of total assets. The company appears to be on a stable financial footing but should monitor liabilities closely.60
Neutral
Cash Flow
Operating cash flow is consistently negative, raising concerns about the company's ability to generate cash from operations. The free cash flow is also negative, indicating the company relies on external financing. While financing cash flow is positive, reliance on it could pose risks if external funding becomes less accessible.45
Neutral
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 23.20M | 5.69M | 475.18K | 0.00 | Gross Profit |
| 20.78M | 1.89M | -240.93K | 0.00 | EBIT |
| -55.71M | -39.35M | -7.10M | -852.18K | EBITDA |
| -56.73M | -30.06M | -6.20M | 3.73M | Net Income Common Stockholders |
| -57.69M | -53.33M | -6.98M | 3.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 36.32M | 16.45M | 2.33M | 399.40K | Total Assets |
| 74.89M | 25.25M | 4.22M | 1.02M | Total Debt |
| 4.06M | 327.37K | 299.04K | 0.00 | Net Debt |
| -32.26M | -16.12M | -2.03M | -399.40K | Total Liabilities |
| 48.04M | 14.81M | 814.25K | 155.81K | Stockholders Equity |
| 26.85M | 10.43M | 3.40M | 860.50K |
| Cash Flow | Free Cash Flow | ||
| -34.13M | -29.26M | -7.59M | -973.48K | Operating Cash Flow |
| -34.13M | -25.76M | -6.03M | -973.48K | Investing Cash Flow |
| -3.02M | -3.32M | -1.55M | -172.50M | Financing Cash Flow |
| 57.29M | 43.20M | 9.52M | 174.31M |
PSQ Holdings Technical Analysis
Negative
2.34
Price Trends
3.27
Negative
3.41
Negative
3.16
Negative
Market Momentum
-0.19
Negative
33.82
Neutral
22.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSQH, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.60, below the 50-day MA of 3.27, and below the 200-day MA of 3.16, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSQH.
PSQ Holdings Risk Analysis
PSQ Holdings disclosed 99 risk factors in its most recent earnings report. PSQ Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PSQ Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $167.44B | 55.97 | 17.43% | 0.65% | 13.73% | 9.93% | |
76 Outperform | $122.40B | 31.38 | 83.72% | 1.91% | 7.09% | 11.51% | |
74 Outperform | $64.45B | 16.30 | 20.00% | ― | 7.10% | 4.45% | |
73 Outperform | $34.28B | 12.16 | 14.50% | ― | 10.06% | 38060.98% | |
73 Outperform | $23.98B | 15.83 | 6.94% | 1.02% | 4.68% | 63.39% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% | |
54 Neutral | $100.42M | ― | -309.46% | ― | 385.52% | -33.32% |
* Technology Sector Average
Performance Comparison
PSQH
PSQ Holdings
2.34
-2.57
-52.34%
ADP
Automatic Data Processing
300.83
60.68
25.27%
GPN
Global Payments
97.52
-31.36
-24.33%
INTU
Intuit
598.92
-37.02
-5.82%
PYPL
PayPal Holdings
65.15
0.12
0.18%
XYZ
Block
55.33
-26.13
-32.08%
PSQ Holdings Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -0.85% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call for PSQ Holdings, Inc. was largely positive, highlighting significant revenue growth, an expanded gross margin, and strategic acquisitions and product launches. The company demonstrated strong performance across its fintech, marketplace, and brand divisions and has laid a solid foundation for future growth. However, challenges remain in achieving cash flow breakeven and the dependency on the fintech segment for future growth. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.Highlights
Significant Revenue Growth
PSQ Holdings, Inc. increased its net revenue by 308% to $23.2 million in 2024 compared to 2023. The fintech segment alone contributed $10.1 million, with marketplace and brands also showing strong performance.
Expanded Gross Margin
The company's gross margin increased from 33% in 2023 to 61% in 2024, showcasing improved operational efficiency and profitability.
Successful Acquisition of Cordova
The acquisition of Cordova in March 2024 was a pivotal move, allowing the company to integrate consumer finance products and launch a payments platform by late 2024.
Growth in EveryLife Brand
EveryLife, the company's life-affirming baby care brand, experienced 276% year-over-year revenue growth and achieved its first month of positive EBITDA in 2024.
Reduction in Delinquencies and Charge-offs
Despite a credit-challenged year, the company reduced year-over-year delinquencies by 29% and charge-offs by 27% in its buy now, pay later business.
Strong Pipeline for 2025
The company already has over $2.5 billion in signed payments GMV for 2025, more than doubling its position from the end of 2024.
Strategic Partnerships and Product Launches
The launch of ACH processing and automated onboarding functionality signifies the company's strategic growth in its fintech division.
Lowlights
Challenges in Achieving Cash Flow Breakeven
PSQ Holdings, Inc. has not yet achieved free cash flow breakeven, with management indicating a focus on growth over immediate profitability.
Dependency on Fintech Segment
The company's future growth heavily relies on the fintech segment, which may pose a risk if expected revenue from signed GMV does not materialize as planned.
Company Guidance
During the fourth quarter and year-end 2024 earnings call for PSQ Holdings, Inc., the company provided robust guidance with several key metrics indicating significant growth and strategic achievements. The company reported a fourfold increase in revenue compared to the previous year, with gross margins expanding from 33% to 61%. The acquisition of Cordova in March 2024 was highlighted as a strategic move, integral to launching their payments platform, contributing to secured contracts potentially resulting in over $1 billion in annualized Gross Merchandise Volume (GMV). Notably, PSQ Holdings reduced delinquencies by 29% and charge-offs by 27% in their buy now, pay later division. The average order value was reported at $1,194, surpassing competitors. Additionally, the EveryLife brand saw 276% revenue growth, driven by a 76% increase in subscribers and a 160% expansion of the ambassador program. Looking forward to 2025, the company expects to more than double its revenue, increase GMV significantly, and continue leveraging AI for enhanced credit risk management. The company ended 2024 with $36.3 million in cash and cash equivalents, and a strong financial position following strategic financing events.PSQ Holdings Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
PSQ Holdings Reports Strong 2024 Financial Results
Positive
Mar 13, 2025
On March 13, 2025, PSQ Holdings announced its financial results for the fourth quarter and full year 2024, highlighting significant revenue growth and improved gross margins. The company reported a 167% increase in net revenue for Q4 2024 compared to the same period in 2023, and a 308% increase for the full year 2024. PublicSquare also signed a letter of intent for a new asset-backed lending facility and a working capital line of credit, expected to reduce its cost of capital by 50%. Looking ahead, the company anticipates more than doubling its revenue in 2025 while decreasing operating expenses, reflecting the impact of strategic investments and organizational changes made in 2024.
Executive/Board Changes
PSQ Holdings Board Member Kelly Loeffler Steps Down
Positive
Feb 21, 2025
On February 19, 2025, Kelly Loeffler, a board member of PSQ Holdings, was confirmed as the Administrator of the Small Business Administration by the United States Senate. Following her confirmation, she resigned from the board in accordance with the company’s Corporate Governance Principles. In a press release on February 21, 2025, PSQ Holdings congratulated Loeffler, highlighting her strengths and expressing confidence in her leadership to support small businesses. The company, which focuses on empowering liberty-minded small businesses, believes Loeffler’s experience will benefit the Trump administration’s efforts to advocate for small businesses and everyday Americans.
Executive/Board Changes
PSQ Holdings CFO Brad Searle Announces Resignation
Neutral
Jan 29, 2025
On January 26, 2025, Brad Searle announced his intention to resign as Chief Financial Officer of PSQ Holdings, Inc., effective upon the appointment of his successor. He will continue with the company as Senior Vice President of Finance and Accounting at EveryLife. His resignation is not due to any disagreements with the company. The company has initiated a search for a new CFO.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.