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@Fierce__beast

Fierce_beast on X

$EVLV i'm getting something like -.2/sh of real earnigns right now, and something in that ball park for next year as a base case. The downside is significant PT <3/sh if they are unable to grow into their margins, or face continuous pressure from opengate. If they succeed (let's say 25% growth and margin improvement), i also see limited upside: Here's how i get my Earnings number: Adj. EBITDA: +$15M Stock comp: -$23M Fleet wear (D&A + retired units): -$29M Interest, growth capex, net one-offs: -$3M earnings of about -$40M, or -$0.20/sh Current management missed 3 of 4 gross margin guides, and the promised shift toward subscription reversed twice. Recent trends: Revenue +34%, but ARR only +20% (was 34% five quarters ago). Backlog (RPO) up only mid-teens Gross margin 58% → 50% in two years New ARR per unit added: ~$17K in 2024 → ~$10K now Here's how i get limited upside in the bull case: revenue grow 25% a year to about $557M in 2031 adj. EBITDA margin rises from 8.5% to 25% by 2031, then 27% by terminal year 2040 or so. SBC falls to 5–7% of revenue and fleet wear to 10–12%; Assuming a 9% required return, i am getting around 4.5/sh which is the current stock price. Are they subscale? Don't they have like 9k units deployed? That's subscale? What exactly are the "scale" advantages for this type of company? How good is their product vs opengate as a total cost of ownership? doesn't look good for evolv. Says Evolv is 5x the price over 4 years but little differentiation in terms of throughput and accuracy. Why would anyone buy evolv. The school contracts covered by the FTC settlement date from April 2022 through June 2023, and on 4-year terms they renew in 2026–27. We will just see what happens thousands of units are up for renewal or if there is some switching that happens.

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Deep Dive: Inter & Co

Inter & Co, Brazil’s second-largest neobank, grew over 20% with controlled delinquencies and 15% book-value compounding while trading at…

INTR $3B
Capitalist Letters 7 clicks

You Understand Now, Why You Came This Way

Brazil’s October 25 runoff puts Bolsonaro’s likely victory at the center of a bullish regional-stock case; Golar LNG (GLNG) also reports…

GLNG $4.7B
WHAT ARE WE DOING? “Contrarians At The Gate” 3 clicks

Quick Value #322 - FuboTV (FUBO)

Fubo's Hulu Live merger leaves Disney with 70% ownership and resets its 2028 EBITDA target to $300 million; at $10, it trades at 4.2 times…

FUBO $902M
Value Don't Lie

What Amazon Can't Buy

Betterware de Mexico sells locally designed home organizers through direct sellers in informal neighborhoods, generating 67% gross margins;…

BWMX $645M
Phynvesting 1 click

Matan on Stitch Fix

Stitch Fix’s rushed Freestyle pivot cannibalized its profitable Fix business, driving active clients below 3.4 million, quarterly revenue…

SFIX $343M
MBI Deep Dives 2 clicks

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