BTBDW - BT Brands, Inc. Stock Analysis | Stock Taper
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BT Brands, Inc.

BTBDW

BT Brands, Inc. NASDAQ
$0.13 0.08% (+0.00)

Market Cap $800114
52w High $0.27
52w Low $0.13
P/E 0.94
Volume 300
Outstanding Shares 6.15M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $3.85M $178.39K $914.98K 23.74% $0.15 $643.82K
Q2-2025 $3.78M $1.23M $55.03K 1.46% $0.01 $219.31K
Q1-2025 $3.23M $1.11M $-329.85K -10.21% $-0.05 $-151.9K
Q4-2024 $3.17M $1.42M $-1.58M -49.66% $-0.25 $-929.33K
Q3-2024 $4.35M $2.11M $-219.48K -5.05% $-0.04 $-69.4K

What's going well?

The company swung to a strong profit by cutting overhead costs dramatically. Operating income and net income both improved sharply, and earnings per share jumped. Cost discipline is clearly paying off.

What's concerning?

Gross margins dropped sharply, meaning product costs are rising faster than sales. The big profit boost relied on 'other' income and deep cost cuts, which may not be sustainable if gross margins keep shrinking.

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $4.74M $11.94M $4.21M $7.72M
Q2-2025 $3.53M $11.22M $4.43M $6.78M
Q1-2025 $3.82M $11M $4.34M $6.67M
Q4-2024 $4.27M $12M $5.03M $6.97M
Q3-2024 $5.06M $13.68M $5.18M $8.5M

What's financially strong about this company?

The company has a huge cash cushion, very little short-term debt, and more equity than liabilities. Its assets are mostly real and tangible, and liquidity is excellent.

What are the financial risks or weaknesses?

Total debt jumped this quarter, and the company has a history of losses (negative retained earnings). The sharp drop in payables may also reduce flexibility.

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $914.98K $325.18K $443.93K $-51.44K $717.67K $261.78K
Q2-2025 $55.03K $384.36K $-847.34K $-47.05K $-510.03K $384.36K
Q1-2025 $-329.85K $-306.74K $-527.71K $-46.87K $-881.31K $-431.1K
Q4-2024 $-1.58M $-526.4K $-515.97K $-91.55K $-1.13M $-800.43K
Q3-2024 $-219.48K $129.27K $-712.32K $-66.91K $-649.97K $50.44K

What's strong about this company's cash flow?

The company increased its cash balance by over $700,000 this quarter and continues to generate positive free cash flow. Debt is being paid down, and there is no reliance on outside funding.

What are the cash flow concerns?

Operating and free cash flow are both down sharply from last quarter, and working capital changes are now draining cash instead of helping. Most reported profit is not turning into real cash, which raises questions about earnings quality.

5-Year Trend Analysis

A comprehensive look at BT Brands, Inc.'s financial evolution and strategic trajectory over the past five years.

+ Strengths

The company has demonstrated an ability to grow revenue and assemble a portfolio of assets, supported by past capital raises that significantly strengthened the balance sheet. Even after recent deterioration, it retains some liquidity and a meaningful asset base. The planned merger with Aero Velocity provides a clear strategic direction shift into a market with higher growth prospects, supported by technical capabilities in drones, AI, and data services that are more scalable than traditional restaurant operations.

! Risks

At the same time, the current financial profile is challenging: profitability has deteriorated from modest profits to sizable, recurring losses; cash flows from operations are negative; and cash reserves have fallen sharply. Equity is being eroded by ongoing losses, leverage is edging higher, and retained earnings are deeply negative. The strategic pivot adds further risk through integration complexity, potential dilution, regulatory and competitive pressures in the drone industry, and uncertainty about how quickly the new model can reach sustainable profitability and positive cash flow.

Outlook

Near‑term, the company appears likely to remain under financial pressure as the restaurant operations continue to struggle and the transition to a drone‑focused business unfolds. The medium‑ to long‑term outlook becomes highly dependent on Aero Velocity’s execution: winning and retaining contracts, scaling its drones‑as‑a‑service platform, and converting technology into stable, recurring revenue and cash generation. The range of possible outcomes is wide—spanning from continued financial strain to a successful repositioning as a niche technology and services provider—so uncertainty around the future path is high.