We are not all that worried about the tariffs, even if these do provide temporary headwinds. More worrying is the cash flow. We think shares only become interesting when there is solid prospect of that downward trend reversing.
That is quite within the realm of possibility though as management still insists on the company producing positive adjusted EBITDA for the year. As the company doesn't have debt and isn't capital intensive, positive adjusted EBITDA should really produce only moderate cash outflows.
Q4 operational cash flow was positive last year, and it should be positive this year. One wonders whether the company can maintain this heady growth, especially the same-store part of it.
Source: seekingalpha.com/art...ittle-love-investors