Hello,
Welcome to another Mikro Kap research report. This time, we're diving into a type of company—and a type of setup—that most longtime readers probably wouldn’t expect from me: a currently unprofitable medtech stock.
At least, that’s the impression most investors get at first glance. But dig a little deeper, and there’s a lot to like. This is a company that took revenue from zero to $60M in just five years. And even though the stock is down 35% since its IPO in 2021, gross profit jumped from $2.6M to $45.3M over the same period.
It even reached profitability in Q4 2024—excluding a one-time charge—driven by a near-100% gross margin recurring revenue stream. A stream that now makes up over 40% of total revenue and grew 49% YoY in the Q1 report published earlier this week.
And that’s just scratching the surface. The list of long-term tailwinds, near-term catalysts and other positives is a long one—starting with the fact that its current Chairman delivered 80x to 120x returns to early investors in his previous ventures.
So with that out of the way, here’s why I’ve built a 10% position in what I see as my most compelling new idea this year—a company that I’m convinced will catch many investors off-guard as it becomes significantly more profitable over the next two years.