KRM22 (KRM) AI Stock Analysis

• Market Cap: $15.91M
• Dividend Yield: N/A
• Average Volume (3M): 2.74K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.59
• Revenue Growth: 15.59%
• EPS Growth: 54.47%
• Country: UK
• Employees: 50
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.04
• Shares Outstanding: 36,156,990
• 10 Day Avg. Volume: 5,399
• 30 Day Avg. Volume: 2,738
• PEG Ratio: 0.11
• Price to Book (P/B): -4.41
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 36.75
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: -33.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: 41.00p ▼(-6.82% Downside)

The overall stock score is primarily impacted by significant financial challenges, including ongoing net losses and high leverage, which pose risks to financial stability. Technical analysis shows mixed signals with short-term positive momentum but potential medium-term resistance. Valuation is poor due to negative earnings and lack of dividends, further impacting the score.

KRM22 Business Overview & Revenue Model

Company Description

KRM22 Plc, together with its subsidiaries, develops and sells risk management software to the financial services industry in the United Kingdom, Europe, the United States, and internationally. The company offers Risk Cockpit, which shows enterprise risk profile in real time; Regulatory Navigator that brings out-the-box regulatory functionality covering market abuse, SM&CR, and financial crime; and Market Surveillance that offers analytics and contextual market surveillance tools to help capital markets firms identify and manage the potential risks of market abuse, fraud, and operational breaches. It also provides Individual Accountability Regime, which allows financial institutions to manage accountability throughout the firm; Digital Client Onboarding that provides capital market firms with the tools to make client onboarding; and Regulatory Reporting that enables capital market firms to comply with its regulatory reporting obligations across multiple jurisdictions. In addition, the company offers Enhanced Due Diligence, which enables firms to understand online reputational risks and evidence compliance; Regulatory training that helps regulated firms address their mandatory training requirements; Post-Trade Risk – Stress, which scales the type and amount of risk calculations performed against various limits and risk slides; and Post-Trade Risk – VaR that provides the unique view of multiple VaR calculations across the whole portfolio in a single place. Further, it provides At-Trade Risk, which offers P&L and exchange margin for clearing houses and members, traders, brokers, and other financial institutions that make decisions based on the management of risk; and Pre-Trade Risk, which helps combat time consuming and error prone processes by maintaining pre-trade limits in one centralized application. The company was founded in 2017 and is headquartered in London, the United Kingdom.

How the Company Makes Money

KRM22 generates revenue through a subscription-based model for its software solutions, where clients pay for access to its risk management platforms and analytics tools. Key revenue streams include recurring subscriptions from institutional clients, one-time setup fees for new customers, and consulting services that provide tailored risk management strategies. Additionally, KRM has formed strategic partnerships with financial institutions and technology providers, enhancing its service offerings and expanding its market reach, which significantly contributes to its earnings.

KRM22 Financial Statement Overview

Summary

KRM22 faces significant financial challenges with ongoing net losses and high leverage, risking financial stability. Despite revenue growth, profitability remains elusive due to high costs. Positive cash flow from operations is a bright spot, yet overall cash management needs improvement. Immediate actions to improve profitability and reduce leverage are essential for long-term viability.

Income Statement

The company has shown a positive revenue growth trajectory with revenue increasing from the previous year. However, it continues to operate at a net loss, with negative net profit and EBIT margins. The gross profit margin is strong, indicating efficiency in managing production costs, but the negative EBITDA and EBIT margins suggest challenges in overall cost management and profitability.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to negative stockholders' equity, indicating high leverage and financial instability. The equity ratio is negative, highlighting the company's liabilities exceed its assets. This presents a risk of insolvency if not addressed. Total assets have decreased, further stressing financial health.

Cash Flow

Positive operating cash flow indicates improved cash management, yet the free cash flow remains low due to significant capital expenditures. The free cash flow growth rate shows improvement from the previous year, but the ratio of operating cash flow to net income indicates inefficiencies in converting income to cash, given the consistent net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.12M	6.77M	5.27M	4.27M	4.13M	4.59M
Gross Profit	5.70M	5.60M	4.12M	3.32M	3.45M	4.15M
EBITDA	-497.83K	350.00K	-3.22M	-989.00K	-1.29M	-3.72M
Net Income	-1.65M	-1.29M	-4.62M	-3.10M	-3.33M	-5.88M
Balance Sheet
Total Assets	8.13M	7.40M	7.81M	11.15M	14.20M	12.59M
Cash, Cash Equivalents and Short-Term Investments	1.36M	1.03M	886.00K	1.90M	5.36M	1.97M
Total Debt	5.31M	5.06M	4.65M	3.59M	3.66M	3.77M
Total Liabilities	10.33M	9.63M	8.91M	7.97M	7.49M	7.64M
Stockholders Equity	-2.20M	-2.23M	-1.10M	3.18M	6.71M	4.95M
Cash Flow
Free Cash Flow	1.80M	268.00K	-2.00M	-2.97M	-802.00K	-1.90M
Operating Cash Flow	1.80M	1.42M	-879.00K	-2.12M	-47.00K	-942.00K
Investing Cash Flow	-1.06M	-1.16M	-1.16M	-848.00K	-755.00K	-961.00K
Financing Cash Flow	-3.00K	-122.00K	1.04M	-535.00K	4.19M	2.84M

KRM22 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KRM, the sentiment is Positive. The current price of 44 is above the 20-day moving average (MA) of 42.79, above the 50-day MA of 42.65, and above the 200-day MA of 34.47, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KRM.

KRM22 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INV	63 Neutral	―	-82.05	-0.97%	―	-87.43%	-107.41%
KRM	45 Neutral	$15.91M	-9.61	―	―	15.59%	54.47%
WCW	42 Neutral	£3.19M	―	-12.64%	―	-0.73%	-790.70%

KRM22 Corporate Events

KRM22 Raises £9.2 Million to Enhance Risk Management Focus

KRM22 has successfully raised approximately £9.2 million through a placing and subscription of shares at a slight discount to market price. The funds will support the company’s focus on risk management in capital markets. A General Meeting is scheduled for shareholder approval, with the new shares expected to commence trading on AIM in early November. Major shareholders, Kestrel Investment Partners and Canaccord Genuity, participated in the fundraising, highlighting confidence in KRM22’s strategic direction.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.

KRM22 Announces £9.2 Million Fundraising to Expand Risk Management Solutions

KRM22 plc has announced a proposed placing and subscription to raise £9.2 million by issuing new ordinary shares at 40 pence each. The funds will be used to expand its risk management applications beyond the ETD space, repay a £5.7 million debt facility with Trading Technologies, and support sales and marketing efforts to boost Annual Recurring Revenue (ARR). The company has shown growth in ARR and revenue in the first half of 2025, indicating a positive trajectory in its financial performance. The fundraising is expected to enhance KRM22’s market positioning by broadening its multi-asset risk management solutions, benefiting stakeholders through increased operational capabilities and financial flexibility.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.

KRM22 Reports Strong Growth in H1 2025 with Increased ARR and Revenue

KRM22 plc announced its unaudited interim results for the first half of 2025, reporting a 20% growth in Annualised Recurring Revenue (ARR) to £7.2 million and a 10.6% increase in total revenue to £3.6 million. The company achieved an adjusted EBITDA profit of £0.4 million, despite a pre-tax loss of £1.6 million. The growth was driven by strong demand for its Risk Manager and Limits Manager applications, with significant cross-selling to existing clients. KRM22’s strategic focus on integrating these applications has been validated by the increased adoption among Futures Commissions Merchants. The company’s proactive response to market volatility and disciplined cost control have positioned it for continued growth and profitability.

The most recent analyst rating on (GB:KRM) stock is a Hold with a £44.00 price target. To see the full list of analyst forecasts on KRM22 stock, see the GB:KRM Stock Forecast page.

KRM22 Reports Strong First Half 2025 Performance with Increased ARR

KRM22 plc has reported a positive trading update for the first half of 2025, with an increase in Annual Recurring Revenue (ARR) from £6.6m to £7.2m, driven by cross-sales and price increases. Despite some customer churn, the company maintains a strong sales pipeline and expects to meet market expectations by year-end. The cash balance improved to £1.4m, and KRM22 continues to focus on careful cash management while aiming to become a cash-generative and profitable business.