Mobix Labs, Inc. (MOBX) | Investment Case

1. Company Snapshot

1.a. Company Description

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications.Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products.The company was incorporated in 2020 and is based in Irvine, California.

Mobix Labs, Inc.operates as a subsidiary of YDENS HOLDINGS, LLC.

Show Full description

1.b. Last Insights on MOBX

Mobix Labs' recent performance was driven by strong operational momentum, particularly in the defense sector. The company reported record adjusted gross margin of 60.6% and strong adjusted gross profit growth of 32.7% quarter-over-quarter. Additionally, Mobix Labs secured significant design wins, including a production contract with the US Navy to deliver custom EMI filter modules. The company's proposed acquisition of Peraso, Inc. also highlights its growth strategy. Furthermore, Mobix Labs' exercise of warrants for $4.5 million in gross proceeds demonstrates investor confidence.

1.c. Company Highlights

Last Price	0.55
Change Percentage	1.46%
Open	0.56
Previous Close	0.54
Market Cap ( Millions)	33
Volume	448972
Year High	2.47
Year Low	0.4
M A 50	0.71
M A 200	0.83

FCF Yield	-28.21%
Dividend Yield	0.00%
ROE	-5149.05%
Debt / Equity	1335.29%
Net Debt / EBIDTA	-14.28%
Price To Book	63.12
Price Earnings Ratio	-0.64
Price To FCF	-3.54
Price To sales	2.98
EV / EBITDA	-1.0

2. Mobix Labs Q1 2025 Earnings Analysis

Mobix Labs kicked off its Q1 2025 earnings report with strong financial performance, signaling continued momentum in its aerospace and defense segments. Revenue reached $3.17 million, up 7.3% sequentially and a staggering 11x year-over-year growth, reflecting the company's rapid expansion. Gross margin improved to 54.1%, though the adjusted operating loss widened to $2.5 million, underscoring the challenges of scaling operations. Mobix Labs' ability to deliver consistent growth despite these pressures highlights its strategic execution. Keyvan Samini, CFO, emphasized the company's focus on enhancing margins to 60% and operating margins to 30%, signaling confidence in future profitability. The stock currently trades at a price-to-sales ratio of 4.13, suggesting investors are pricing in future growth opportunities.

Publication Date: Mar -09

                                    📋 Highlights
                                    Revenue Growth Exceeds Expectations:
                                                - Mobix Labs achieved $3.17 million in Q1 2025 revenue, surpassing prior guidance and marking the fifth consecutive quarter of growth.
Strategic Acquisitions Strengthen Market Position:
                                                - The company acquired Spacecraft Components Corp and SCP Manufacturing to bolster its presence in the aerospace and defense sector.
Product Traction in Aerospace and Defense:
                                                - EMI Interconnect Solutions, including filtered ARINC connectors, gained momentum with deployments in military helicopters, signaling strong demand.
Financial Health Improves:
                                                - Gross margin reached 54.1%, and the adjusted operating loss improved by 28.9% to $2.5 million, with cash reserves growing to $405,000.
Focus on Margin Expansion and Operational Scaling:
                                                - Mobix Labs aims to enhance gross margin to 60% and operating margin to 30%, while integrating acquisitions and scaling operations for long-term shareholder value.

                                

Financial Performance and Margin Expansion

Mobix Labs' Q1 2025 results demonstrate a strong start to the year, with revenue growth outpacing expectations. The 7.3% sequential increase in revenue underscores the company's ability to capitalize on its growing aerospace and defense footprint. Gross margin improved to 54.1%, up from 50.5% in the previous quarter, reflecting operational efficiency gains. However, the adjusted operating loss of $2.5 million highlights the costs associated with scaling the business and integrating recent acquisitions. Management's goal to achieve a 60% gross margin and a 30% operating margin by the end of the year indicates a clear roadmap for margin expansion.

Strategic Acquisitions and Product Development

The acquisition of Spacecraft Components Corp and SCP Manufacturing marks a significant step in Mobix Labs' strategy to strengthen its position in the aerospace and defense markets. These deals not only expand the company's product portfolio but also enhance its ability to serve a broader range of customers. Additionally, the success of EMI Interconnect Solutions, with bookings for filtered ARINC connectors and deployments in military helicopters, underscores the company's technological edge. On the wireless front, RaGE Systems' Phase 1 SBIR grant for satellite communication technology and strong demand for millimeter wave imaging products further diversify Mobix Labs' revenue streams.

Financial Health and Valuation Context

Mobix Labs' financial health continues to improve, with cash reserves growing to $405,000, providing a strong foundation for future investments. The company's focus on improving gross and operating margins reflects its commitment to long-term profitability. While the stock's price-to-sales ratio of 4.13 suggests投资者对未来的增长持乐观态度, the negative P/B and P/E ratios indicate that the market is pricing in the risks associated with the company's early-stage growth. As Mobix Labs continues to execute its strategic initiatives, the ability to deliver on its margin expansion goals will be critical to driving sustained value creation for shareholders.

3. NewsRoom

Contrasting Nova (NASDAQ:NVMI) and Mobix Labs (NASDAQ:MOBX)

Nov -23

Source: defenseworld.net

Mobix Labs Expands Into High-Growth AI Infrastructure With Strategic Investment in TalkingHeads Wireless

Nov -19

Source: globenewswire.com

Mobix Labs and Peraso Enter Cooperative Discussions Toward a Potential Acquisition

Nov -03

Source: globenewswire.com

Mobix Labs Granted 180-Day Extension by Nasdaq to Regain Compliance with Minimum Bid Price Requirement

Oct -30

Source: globenewswire.com

Mobix Labs Wins Multi-Year U.S. Navy Follow-On Contract as Company Accelerates Growth in Defense and High-Tech Markets

Oct -22

Source: globenewswire.com

Mobix Labs Moves Decisively with All-Cash $1.30 Per Share Offer for Peraso — a 53% Premium That Signals New Phase of Growth

Oct -06

Source: globenewswire.com

Mobix Labs Goes on Offense: Launches Aggressive Acquisition Strategy with Access to $100 Million+

Oct -03

Source: globenewswire.com

Mobix Labs Delivers Breakout Year With Over 50% Revenue Growth in Fiscal 2025

Oct -02

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.30%)

6. Segments

Disruptive Wireless and Connectivity Solutions

Expected Growth: 12.3%

Growing demand for high-frequency RF components and antennas in 5G, Wi-Fi, and IoT applications drives the market growth, fueled by increasing need for faster data transfer and low latency.

License Revenue

Expected Growth: 12.5%

Growing demand for 5G and IoT technologies drives the need for innovative intellectual property, fueling the growth of license revenue from Mobix Labs, Inc. The increasing adoption of wireless connectivity and the rising importance of patent protection also contribute to this growth.

7. Detailed Products

MobixWare

A comprehensive suite of software development tools and platforms for building, testing, and deploying IoT and AI-enabled devices.

MobixAI

A cutting-edge AI platform that enables the development of intelligent devices and systems with advanced machine learning and computer vision capabilities.

MobixConnect

A secure and scalable IoT connectivity platform that enables seamless communication between devices and the cloud.

MobixSecure

A comprehensive cybersecurity platform that provides advanced threat detection and protection for IoT devices and systems.

MobixInsights

A data analytics platform that provides real-time insights and visualization of IoT device data, enabling data-driven decision making.

8. Mobix Labs, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mobix Labs, Inc. has a moderate threat of substitutes due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

Mobix Labs, Inc. has a high bargaining power of customers due to the concentration of buyers in the market and the availability of alternative products.

Bargaining Power Of Suppliers

Mobix Labs, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

Mobix Labs, Inc. has a moderate threat of new entrants due to the presence of barriers to entry and the company's established brand reputation.

Intensity Of Rivalry

Mobix Labs, Inc. has a high intensity of rivalry due to the presence of several competitors in the market and the company's aggressive marketing strategies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	191.65%
Debt Cost	3.95%
Equity Weight	-91.65%
Equity Cost	0.18%
WACC	7.40%
Leverage	-209.11%

11. Quality Control: Mobix Labs, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Amtech Systems

A-Score: 4.4/10

Value: 7.1

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

nLIGHT

A-Score: 4.1/10

Value: 6.4

Growth: 2.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

indie Semiconductor

A-Score: 3.9/10

Value: 7.0

Growth: 4.8

Quality: 4.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.0

1-Year Total Return ->

AXT

A-Score: 3.9/10

Value: 8.0

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

Atomera

A-Score: 3.6/10

Value: 6.4

Growth: 3.4

Quality: 3.3

Yield: 0.0

Momentum: 7.5

Volatility: 0.7

1-Year Total Return ->

Mobix Labs

A-Score: 3.4/10

Value: 6.6

Growth: 6.9

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.40%

Mobix Labs, Inc. - US60743G1004

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MOBX

1.c. Company Highlights

Lower Quality

More Volatile

Average Yield

Fairly Valued

Average Growth

Average Quality

Cheaper

Stable Momentum

2. Mobix Labs Q1 2025 Earnings Analysis

Financial Performance and Margin Expansion

Strategic Acquisitions and Product Development

Financial Health and Valuation Context

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.30%)

6. Segments

Disruptive Wireless and Connectivity Solutions

Expected Growth: 12.3%

License Revenue

Expected Growth: 12.5%

7. Detailed Products

MobixWare

MobixAI

MobixConnect

MobixSecure

MobixInsights

8. Mobix Labs, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Mobix Labs, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.55$

Current Price

0.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA