MeritValue

Fusemachines Inc.

FUSEdata completeness 100%2 fiscal years on file
The thesis, from the filings

Fusemachines Inc. earns about -144% on invested capital, but has diluted owners by 66% over 2 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025
Revenue$8.81M1$7.71M1
Net income−$15.4M2−$928,0002
Operating cash flow−$2.2M3−$5.53M3
Capital expenditure$15,0004$53,0004
Free cash flow (derived)−$2.22M3−$5.58M3
Total debt$33.3M5$942,0006
Cash & equivalents$500,0007$4.22M7
Diluted shares7.0M11.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$12.65
your share of equity
Profit it earned you last year
−$0.81
Free cash flow it threw off
−$4.84
Debt you’d be carrying
$0.82

10 shares is a claim on −$12.65 of net worth that earned you −$0.81 and generated −$4.84 of cash last year, against $0.82 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-144% avg · 2y
FY24 -144%FY25 —

It earned an average -144% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+66% shares · 2y

Share count is up 66% over 2 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 97% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (Revenues)
  2. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (NetIncomeLoss)
  3. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (LongTermDebtNoncurrent)
  6. 10-K · period ending 2025-12-31 · accession 0001493152-26-013285 (LongTermDebtCurrent)
  7. 10-K · period ending 2024-12-31 · accession 0001493152-26-013285 (CashAndCashEquivalentsAtCarryingValue)