Share count
2Mpeak FY2021
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NXTT, Next Technology Holding Inc.
Next Technology Holding Inc. operates under a "SaaS+AI" model, emphasizing customized and entrusted development projects designed in response to specific market demand.
In the third quarter of 2024, we terminated all operations in the PRC to shift our software development services to overseas markets and commenced business strategy of acquiring and holding bitcoin.
As of December 31, 2025, the Company pursue two corporate strategies: (1) providing AI-enabled software development services, and (2) acquiring and holding Bitcoin.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$12M
+545.3% YoY · 13% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $12M 5-yr avg $8M
Revenue $465K
Operating margin −1426.2%
Net income ($106M)
Net margin −22752.7%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
- What moves the needle
- Operating margin has reached 60% at its best but run negative through the cycle (median −47%) on a 59% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 661% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −1%, above 15% in 2 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2020–2025
realized figures from each filing · older years to the left| 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| $6M | $14M | $12M | $3M | $2M | $12M | $12M | RevenueRevenue |
| — | 81% | 17% | 59% | 59% | 15% | 15% | Gross marginGross mgn |
| 30% | 40% | 58% | 101% | 60% | 574% | 607% | SG&A / revenueSG&A/rev |
| $4M | $6M | ($7M) | ($1M) | ($17K) | ($80M) | ($86M) | Operating incomeOp. inc. |
| 59.9% | 41.7% | −58.2% | −47.0% | −0.9% | −690.5% | −743.7% | Operating marginOp. mgn |
| $3M | $5M | ($9M) | ($10M) | $22M | $143M | ($156M) | Net incomeNet inc. |
| 30% | 18% | — | — | 28% | 28% | — | Effective tax rateTax rate |
| Cash flow & returns | |||||||
| $1M | ($4M) | ($38M) | $20M | — | ($3M) | ($3M) | Operating cash flowOp. cash |
| $0 | $23K | $263K | — | — | — | $1M | DepreciationDeprec. |
| ($2M) | ($9M) | ($29M) | $30M | — | ($223M) | $75M | Working capital & otherWC & other |
| $0 | $417K | $694K | — | — | — | $25M | CapexCapex |
| 0.0% | 2.9% | 5.9% | — | — | — | 214.1% | Capex / revenueCapex/rev |
| $1M | ($4M) | ($38M) | — | — | — | ($28M) | Owner earningsOwner earn. |
| 18.5% | −29.0% | −329.8% | — | — | — | −240.6% | Owner earnings marginOE mgn |
| $1M | ($4M) | ($38M) | — | — | — | ($28M) | Free cash flowFCF |
| 18.5% | −29.0% | −329.8% | — | — | — | −240.6% | Free cash flow marginFCF mgn |
| 62% | 35% | -13% | -2% | -0% | -13% | -19% | ROICROIC |
| 30% | 36% | -22% | -22% | 26% | 31% | -31% | Return on equityROE |
| 30% | 36% | −22% | −22% | 26% | 31% | −31% | Retained to equityRetained/eq |
| Balance sheet | |||||||
| $5M | $617K | $23K | $668K | $668K | $6M | $160M | Cash & investmentsCash+inv |
| $3M | $6M | $7M | $1M | $2M | $355K | $370K | ReceivablesReceiv. |
| $8K | $8K | $144K | $800K | $730K | $751K | $2M | Accounts payablePayables |
| $3M | $6M | $7M | $200K | $1M | ($397K) | ($1M) | Operating working capitalOper. WC |
| $10M | $16M | $47M | $49M | $93M | $524M | $551M | Current assetsCur. assets |
| $2M | $3M | $5M | $4M | $3M | $4M | $3M | Current liabilitiesCur. liab. |
| 4.8× | 5.5× | 9.7× | 11.6× | 30.4× | 133.2× | 180.9× | Current ratioCurr. ratio |
| $14M | $19M | $47M | $49M | $93M | $524M | $551M | Total assetsAssets |
| ($5M) | ($617K) | ($23K) | ($668K) | ($668K) | ($6M) | ($160M) | Net debt / (cash)Net debt |
| $9M | $15M | $42M | $45M | $82M | $456M | $511M | Shareholders’ equityEquity |
| Per share | |||||||
| 304M | 305M | 1.2M | 1.5M | 28.9M | 2.3M | 8.9M | Shares out (diluted)Shares |
| $0.02 | $0.05 | $9.66 | $1.71 | $0.06 | $5.01 | $1.30 | Revenue / shareRev/sh |
| $0.01 | $0.02 | $-7.58 | $-6.43 | $0.75 | $61.77 | $-17.49 | EPS (diluted)EPS |
| $0.00 | $-0.01 | $-31.87 | — | — | — | $-3.13 | Owner earnings / shareOE/sh |
| $0.00 | $-0.01 | $-31.87 | — | — | — | $-3.13 | Free cash flow / shareFCF/sh |
| $0.00 | $0.00 | $0.57 | — | — | — | $2.79 | Cap. spending / shareCapex/sh |
| $0.03 | $0.05 | $34.52 | $29.00 | $2.83 | $196.57 | $57.22 | Book value / shareBVPS |
The diluted share count moved ×1/252.85 into 2022 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×18.73 into 2024 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1/12.46 into 2025 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×3.85 into TTM — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 5-yr | 5-yr | |
|---|---|---|
| Revenue / share | +200.0%/yr | +200.0%/yr |
| EPS | +487.9%/yr | +487.9%/yr |
| Book value / share | +482.8%/yr | +482.8%/yr |
The record, charted
FY2020–2025Each measure over its full record; the current point and the worst year marked.
ROIC
−13%low FY2022
Gross margin
15%low FY2025
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($38M)owner earningsvs.($9M)net incomelow FY2022
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2022 the business reported a $9M loss but ($38M) of owner earnings: $29M less than the profit line, taken out by capital spending and the timing of cash.
| FY2022 | FY2021 | FY2020 | |
|---|---|---|---|
| Reported net income | ($9M) | $5M | $3M |
| Depreciation & amortizationnon-cash charge added back | +$263K | +$23K | — |
| Working capital & othertiming of cash in and out, other non-cash items | −$29M | −$9M | −$2M |
| Cash from operations | ($38M) | ($4M) | $1M |
| Capital expenditurecash put back in to keep running and to grow | −$694K | −$417K | — |
| Owner earnings | ($38M) | ($4M) | $1M |
| Owner-earnings marginowner earnings ÷ revenue | -330% | -29% | 19% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- No meaningful interest burdenLittle or no interest expense reported
What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
- Net cash, debt-freeCash $6M − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $6M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 11 + DIO 0 − DPO 28 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)
Is it a good business?
- Not enough dataIndustry peers: median -124%
What this means
The filing data didn't include the inputs for this check.
- Consumes cash through the cycle3-yr median margin, range -330%–19%; latest ($4M) = operating cash ($3M) − maintenance capex $694KIndustry peers: median -500%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -32% of revenue this year, a -29% median across 3 years. Treating stock comp as the real expense it is (less $77M of SBC) leaves ($81M).
- Are earnings backed by cash? -0.02×Thinly cash-backedCash from ops ($3M) ÷ net income $143M
In the filing’s words Read against the cash, reported earnings have run ahead of the operating cash the business generated over the record — about 47% of assets a year, among the widest gaps in the catalogue. For an inventory- or content-heavy grower that can be cash tied up in real assets as it expands; elsewhere it can mean the earnings lean on accounting estimates — the cash-flow statement against the income statement is where to tell which.
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 2.63×ExpandingCapex $694K ÷ depreciation $263K
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 4 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $12M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 133.17×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Earnings stability MissA profit every year (6-yr record) · 2 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.68/share (latest year $1.88), the averaged base the calculator's gate runs on, and book value is $5.97/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2020–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 4 of 6
What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
- Operating margin 14% → −246% (3-yr avg ends)
What this means
Through the cycle the operating margin slipped — about 14% early to −246% lately, median −47% — competition or costs are biting in.
- Worst year 2025 · −690.5% op. margin
What this means
Operations went underwater in 2025, understand why before trusting the good years.
Does AI threaten the moat?
Elevated contestabilityThe product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.
In its own filing Framed as a capability
Despite the structural exposure, the filing positions AI as something it uses, not a threat to its product.
“As of December 31, 2025, the Company pursue two corporate strategies: (1) providing AI-enabled software development services, and (2) acquiring and holding Bitcoin.”
AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$551M
- Cash & short-term investments$160M
- Receivables$370K
- Other current assets$391M
Current liabilities$3M
- Accounts payable$2M
- Other current liabilities$2M
Current ratio180.91×all current assets ÷ what's due · Graham looked for 2×
Quick ratio180.91×stricter: inventory excluded
Cash ratio52.42×strictest: cash alone against what's due
Working capital$548Mthe cushion left after near-term bills
Cash runway5.7 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Current ratio, recent quarters21.2× → 180.9×
Deeper floors
Tangible book value$511Mequity stripped of goodwill & intangibles
Net current asset value$511MGraham's net-net: current assets less all liabilities
Deferred revenue$3Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
From the proxy: how much of the business the people running it own, and how they are paid.
- Stock-based compensation$77M
The slice of the business handed to employees in shares this year, 661% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why Next Technology Holding Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2020–2025.
2 of the 4 tests turned up something to look into; the other 2 came back clean.
- Look hereIs it less profitable than it was?−24.0% vs 50.8%
The operating margin averaged 50.8% early in the record and −24.0% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
- Look hereDid reported profit become cash?-0.18×
Across the record the business reported $132M of net income but generated ($23M) of operating cash, a -0.18-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.
And these came back clean
- Did receivables and inventory outpace sales?
- Are "one-time" charges a yearly habit?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Income taxes, Credit & receivables, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, IT Services & Consulting
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| QXLQuantum X Labs Inc. | $27M | 95% | -9.4% | -2% | 3% |
| QBTSD-Wave Quantum Inc. | $25M | 68% | -724.6% | -1142% | -582% |
| GEGGLGreat Elm Group, Inc. | $16M | 93% | -46.5% | -12% | -3% |
| NXTTNext Technology Holding Inc. | $12M | 59% | -24.0% | -1% | -29% |
| PDYNPalladyne AI Corp. | $5M | 30% | -916.4% | -333% | -500% |
| DJTTrump Media & Technology Group Corp. | $4M | 55% | -3360.9% | -18% | -943% |
| ODYSOdysight.ai Inc. | $3M | 29% | -593.1% | -442% | -584% |
| PHUNPhunware Inc. | $3M | 51% | -175.0% | -124% | -161% |
| Group median | — | 57% | -384.1% | -71% | -330% |
The price
What a price has to assume.
What the price implies
reverse-DCFNext Technology Holding Inc. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
$
The assumptions
Revenue, delivered−12%/yr’20→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−241%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Next Technology Holding Inc. (NXTT), the owner's record," https://ownerscorecard.com/c/NXTT, data as of 2026-07-09.
Manual order: ← NXT its page in the Manual NYT →
Industry order: ← NRDS the IT Services & Consulting chapter OOMA →