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root9B Holdings

RTNB
6
Information Technology Services · Technology
Price
$0.00
+0.00 (+0.00%)
Market Cap
$610
Winston Score
6
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+489.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 937K (2012) → 5.5M (2016)

root9B Holdings is a small cybersecurity company that helps organizations detect and stop hackers before they cause damage. Its main service is hunting for threats inside computer networks — a practice called adversarial pursuit — and it sells these services mostly to government agencies, defense contractors, and some private-sector businesses. The company also offers cybersecurity training and workforce development programs.

root9B makes money by charging clients for managed security services, consulting engagements, and training courses. It operates primarily in the United States and is a very small player in a crowded cybersecurity market dominated by much larger firms. The company's extremely thin gross margin of about 4% and deep operating losses signal that it spends far more than it earns, making its path to profitability the central challenge investors watch closely.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-62.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-19.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$927,000/ year

9.1% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

1.9%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~1 months

$1M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

root9B Holdings has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
10.2%
Thin — 10.2% gross margin
Operating Margin
-153.6%
Losing money on operations — -153.6%
ROCE
-48.5%
Weak — -48.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-59.7%
Shrinking sales (-59.7% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-116.7%
Burning cash (-116.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
7.11
Heavy debt load (7.11)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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