Skip to main content

Why is the stock price only increasing by 10% even though revenue is up 40% year-over-year?

Josh avatar
Written by Josh
Updated over a week ago

While revenue growth is strong, stock price is influenced by several other factors:

  • Valuation is based on trailing 12-month revenue, not just the latest growth, and our valuation multiple remains consistent (slightly up from 9.5x to 9.6x revenue).

  • There’s been some dilution due to new shares issued, which affects the per-share value.

  • Enterprise value includes debt, and we've recently raised additional capital through convertible debt, which increases overall valuation without directly impacting the stock price.

  • Different parts of our business (e.g. lending vs. investor platform) are valued differently by the market.

That said, we believe this is a strong entry point given the company’s growth trajectory and profitability improvements.

Did this answer your question?