Breaking Down Kubient, Inc. (KBNT) Financial Health: Key Insights for Investors

You're looking at Kubient, Inc. (KBNT) because you see the potential of programmatic advertising, but honestly, the numbers tell a story of extreme financial stress that you need to face head-on before making a move. Here's the quick math: the latest trailing twelve months (TTM) data shows the company brought in just $1.17 million in revenue while simultaneously racking up a massive net loss of $12.46 million. That means for every single dollar of sales, the company lost over ten dollars, a staggering negative return on investment (ROI) of -76.23%. Still, the balance sheet shows $11.83 million in cash and cash equivalents, which is a critical, though rapidly depleting, lifeline given the latest quarter's net change in cash was a burn of $2.91 million. We need to dig into how long that cash runway lasts and what the path to profitability-or continued capital raises-actually looks like, because right now, this is a high-stakes bet on a turnaround.

Revenue Analysis

You need to know the direct takeaway here: Kubient, Inc. (KBNT) is in Chapter 7 liquidation as of July 2024, which means the revenue picture is extremely bleak and focused on wind-down, not growth. The most recent trailing twelve months (TTM) revenue is a mere $1.17 million, reflecting a massive decline and a business that is effectively dormant.

Honestly, when a company files for Chapter 7, the focus shifts from revenue generation to asset disposition. Still, for context, let's look at the historical structure and the recent collapse.

Kubient, Inc.'s primary revenue historically came from its digital advertising platform, split mainly between two offerings:

• Audience Marketplace: A platform for real-time trading of digital, programmatic advertising.
• Kubient Artificial Intelligence (KAI): A proprietary, cloud-based fraud detection tool designed to scan ad data.

To be fair, the company's business model was centered on providing a more transparent, fraud-free environment for programmatic advertising, but the financial reality never matched the ambition. You can review the original strategic intent here: Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT).

Year-over-Year Revenue Collapse

The year-over-year revenue trend is a clear red flag that preceded the liquidation. The last reported full annual revenue was $2.40 million in 2022, a -12.21% drop from the prior year. But the real financial deterioration is visible in the more recent figures. Here's the quick math on the near-term decline:

• TTM Revenue Decline: The trailing twelve months revenue of $1.17 million represents a steep -64.28% year-over-year decrease.
• Latest Quarterly Revenue: The most recent quarterly data available shows revenue falling from $0.28 million in a prior quarter to just $0.01 million (or $10,000) in a subsequent quarter, a near-total cessation of sales.

What this estimate hides is the underlying cause. The business model was already struggling, and the company's ability to generate revenue simply evaporated in 2024 and 2025.

The Impact of Fraud on Revenue Quality

The most significant change in Kubient, Inc.'s revenue streams is the discovery that a substantial portion of historical revenue was fraudulent. This isn't just a business segment change; it's a total quality issue. The former CEO was sentenced in March 2025 for securities fraud, having caused the company to improperly recognize over $1.3 million in fraudulent revenue.

This single fraudulent transaction, tied to the KAI product, represented over 94% of the reported 2020 revenue at the time of the IPO. The core takeaway for you is that the historical revenue base was defintely unreliable. The table below shows the stark reality of the reported revenue versus the known fraudulent portion:

The business segments themselves-Audience Marketplace and KAI-are now irrelevant, as the company is in Chapter 7, meaning the assets are being sold to pay creditors. The revenue stream has essentially dried up, and any remaining figures are administrative or related to the wind-down process.

Profitability Metrics

You need to know if Kubient, Inc. (KBNT) is making money or even close to it, and the short answer is no, not yet. The company's profitability metrics for the trailing twelve months (TTM) ending in late 2025 reveal a business model with an exceptionally high gross margin but devastatingly high operating costs. This is a classic early-stage ad-tech profile, but the scale of the losses is a serious red flag.

The TTM revenue for Kubient, Inc. is only about $1.17 million. Here's the quick math on how that revenue translates into profit, or in this case, a significant loss.

• Gross Profit Margin: This margin is nearly 100%. The TTM Gross Profit is approximately $1.17 million, which means the direct cost of providing the service (Cost of Revenue) is negligible. This is defintely a strong technical signal, suggesting the core technology platform (like their fraud detection tool, KAI) is highly scalable.
• Operating Profit Margin: The TTM Operating Income sits at a loss of about -$12.47 million, resulting in a staggering Operating Profit Margin of -1,065.89%. This is where the company's efficiency breaks down-the sales, general, and administrative expenses are simply overwhelming the revenue base.
• Net Profit Margin: The TTM Net Loss is almost identical at -$12.46 million, leading to a Net Profit Margin of -566.69%. This massive negative margin means for every dollar of revenue, the company is losing over five dollars.

Industry Comparison and Efficiency Analysis

When you stack Kubient, Inc.'s figures against the broader sector, the operational challenges become crystal clear. The average 'Advertising Agencies' industry benchmark, which is a good proxy for ad-tech, shows an Average Gross Profit Margin of 51.4% and an Average Net Profit Margin of -1.9% as of November 2025. Kubient, Inc. beats the industry on gross margin, but the operating expenses are far out of line.

The high gross margin is a technical win, but it's entirely overshadowed by the lack of cost management. The core issue is operational efficiency. You can have a perfect product, but if your sales and overhead costs are 10 times your revenue, you're burning cash fast. This is why the company's Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT) needs to be backed by a clear path to expense reduction.

Near-Term Profitability Trends

The near-term trend is concerning. The latest quarterly revenue dropped from $0.28 million in the previous quarter to just $0.01 million. That's a massive revenue compression. While the net loss slightly improved from -$2.51 million to -$2.47 million quarter-over-quarter, this is likely due to cost-cutting, not revenue growth. The company is shrinking its burn rate slightly, but its revenue base is collapsing even faster. The priority action here is to see evidence of a strategic pivot that can either drastically cut operating expenses (OpEx) or, more importantly, quickly scale revenue without a proportional increase in OpEx.

Debt vs. Equity Structure

The conversation about Kubient, Inc.'s (KBNT) debt and equity structure must start with the most critical event: the company filed a voluntary petition for Chapter 7 liquidation on July 25, 2024, in the U.S. Bankruptcy Court for the District of Delaware. This means the company is no longer financing growth; it is winding down operations, and the focus shifts entirely to creditor priority.

As of the bankruptcy filing, Kubient, Inc. reported total liabilities of approximately $2.88 million against assets of $3.34 million. This small margin of just over $400,000 in assets remaining after liabilities, before liquidation costs, is the reality. For investors, this is the near-term risk: equity holders are at the very bottom of the repayment waterfall in a Chapter 7 case.

Debt-to-Equity: The Liquidation Context

Before the bankruptcy process fully took hold, Kubient, Inc.'s reported Debt-to-Equity (D/E) ratio was extremely low at just 0.76% in the latest available quarterly data. This is an odd number for a company on the brink of liquidation, but it reflects a balance sheet where the company's total liabilities were small relative to its shareholder equity (the latter likely inflated by past capital raises, now largely offset by a massive accumulated deficit).

Here's the quick math on the leverage picture:

• Kubient, Inc. D/E Ratio: 0.76%
• Advertising Agencies Industry Average D/E Ratio (2025): 0.79 (or 79%)

On the surface, a D/E of 0.76% looks incredibly safe compared to the industry average of 0.79 (meaning 79 cents of debt for every dollar of equity). But this low ratio is misleading; it's the result of the company's financial structure pre-liquidation, not a sign of financial strength. Honestly, a low D/E ratio doesn't matter when the company is in Chapter 7.

Debt Composition and Financing Activity

The company's debt structure was heavily weighted toward short-term liabilities, with its long-term debt reported as negligible, or $0.00 billion USD. This means the $2.88 million in liabilities at the time of the Chapter 7 filing were almost entirely current obligations-things like accounts payable, accrued expenses, and other short-term debt, which must be paid within one year.

Because of the financial distress and subsequent Chapter 7 filing in 2024, there has been no recent debt issuance, credit rating activity, or refinancing in the 2025 fiscal year. The company's financial strategy shifted from balancing debt financing and equity funding to managing the orderly liquidation of assets. Any previous equity funding, including the over $12.5 million raised in its 2020 IPO and over $20 million in a secondary offering, is now subject to the bankruptcy process.

The key takeaway is that the debt-to-equity balance is now irrelevant for a business that has ceased operations. Your focus as an investor should be on the priority of claims in the Chapter 7 process. You can learn more about the company's original vision before its financial troubles here: Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT).

Liquidity and Solvency

You need to know if Kubient, Inc. (KBNT) has enough short-term cash to cover its immediate bills, and the answer is a qualified 'yes.' The company shows a technically strong liquidity position on paper, but you must look past the high ratios to the underlying cash burn. It's a classic case of strong balance sheet liquidity masking significant operational cash flow challenges.

As of the most recent trailing twelve months (TTM) data, Kubient, Inc.'s Current Ratio sits at a very high 7.11, and the Quick Ratio is nearly as high at 6.93. A Current Ratio above 2.0 is generally considered healthy, so 7.11 is excellent. This tells us the company has $7.11 in current assets for every dollar of current liabilities. The Quick Ratio, which strips out less-liquid assets like inventory, is almost identical, confirming that most of Kubient, Inc.'s current assets-primarily cash-are highly liquid. This is a defintely a strong point.

Working Capital and Cash Flow Overview

The company's Working Capital (Current Assets minus Current Liabilities) is a healthy $10.52 million. This large positive balance reflects the high cash and cash equivalents of $11.83 million on the balance sheet. However, the trend in working capital is crucial. While the absolute number is positive, the company's operating activities are actively depleting this cash reserve.

The cash flow statement overview for the last 12 months reveals the core issue:

• Operating Cash Flow: A negative -$8.46 million. This is the cash burn from the core business, and it is substantial against a TTM revenue of only $1.17 million.
• Investing Cash Flow: Minimal at -$9,029 (or -$0.009 million). This suggests very little capital expenditure (CapEx) or investment in long-term assets, which is typical for a company focused on conserving cash.
• Financing Cash Flow: The latest quarterly figure shows a negative -$0.08 million, indicating a small net outflow, perhaps from debt repayments or other financing activities.

Here's the quick math: The $8.46 million annual cash drain from operations is the single biggest risk. They are burning through their cash reserves to keep the lights on.

Liquidity Concerns and Strengths

The strength is clear: Kubient, Inc. has a significant cash cushion of $11.83 million and a low total debt of only $78,900. This gives them a runway-a period of time before they run out of cash. The high current and quick ratios mean they can easily cover their current liabilities of approximately $1.39 million (derived from the $11.83M cash and $10.52M working capital TTM figures). But the runway is not infinite.

The primary liquidity concern is the rate of cash burn. With an operating cash flow of -$8.46 million over the last year, and a latest quarterly net change in cash of -$2.91 million, the company will need to raise capital again or drastically cut costs to avoid running out of cash in the near-term future. This is a capital preservation play, not a growth story right now. You can dive deeper into the full picture in the Breaking Down Kubient, Inc. (KBNT) Financial Health: Key Insights for Investors post.

Valuation Analysis

You are looking at the valuation of Kubient, Inc. (KBNT), and the direct takeaway is stark: the company's July 25, 2024, voluntary filing for Chapter 7 liquidation fundamentally renders traditional valuation metrics useless for common shareholders. The stock is not simply undervalued or overvalued; for all practical purposes, the common equity is defintely worthless in a Chapter 7 scenario, as any remaining assets are distributed to creditors first.

When you see the valuation ratios for Kubient, Inc. (KBNT) in the 2025 fiscal year, they reflect this distress. The company has negative earnings and negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which is why its Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios are reported as negative or simply n/a. Specifically, the EBITDA was reported at -$10.79M as of early November 2025. You can't divide by a negative number to get a meaningful multiple, so the ratios break down.

The Price-to-Book (P/B) ratio, which compares the stock price to the company's book value per share, is reported near 0.00. This low number suggests the market is assigning little to no value to the net assets, which aligns with the liquidation status. Here's a snapshot of the key metrics as of November 2025:

The stock price trend over the last 12 months is a classic sign of a distressed, low-float stock. While the price has been extremely volatile, showing a massive 29.90 K% increase over the last year, the current price is still only around $0.0003 per share as of November 2025. The 52-week range is from an all-time low of $0.000001 to a high of $0.0100. This kind of extreme fluctuation at the penny-stock level is pure speculation, not fundamental investing.

Kubient, Inc. (KBNT) does not pay a dividend, with a yield of 0.00%, so there is no income stream to factor into your valuation. Analyst consensus is similarly conflicted and often based on technicals rather than fundamentals, especially when a company is in Chapter 7. For example, some technical models show a Buy rating today, but a near-term Sell signal for the one-month outlook. This mixed signal just underscores the high-risk, speculative nature of the trading activity.

The bottom line is that any investment in Kubient, Inc. (KBNT) at its current price is a gamble on an improbable recovery for common shareholders after a Chapter 7 filing. If you are interested in the company's former strategic vision, you can review its Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT).

Your clear action here: treat the stock as a complete loss. Do not confuse low price with high value; this is a situation where the price accurately reflects the near-zero expected return for equity holders.

Risk Factors

You're looking for a clear map of the risks at Kubient, Inc. (KBNT), and the reality is stark: the primary risks are not theoretical; they are realized and terminal. The most critical factor is the company's voluntary petition for liquidation under Chapter 7 bankruptcy, filed in July 2024. This means Kubient, Inc. is dissolving its assets to pay creditors, not continuing operations. For investors, this is the ultimate risk realized.

Honestly, the company's financial story in 2025 is less about future opportunity and more about the fallout from past failures. The stock price as of November 2025 was trading around $0.0003 per share, a clear signal of the liquidation status. The core risks fall into three buckets: terminal operational failure, regulatory fraud, and an intensely competitive market they could defintely not keep up with.

Operational and Financial Collapse

The operational risk is a complete failure to execute, culminating in the Chapter 7 filing. This is not a restructuring (Chapter 11); it is a winding down of the business. The financial state leading up to this was unsustainable, showing a clear inability to generate meaningful revenue and control losses.

• Revenue Decline: In the latest reported quarter, revenue plummeted from $0.28 million in the prior period to a mere $0.01 million.
• Net Loss: The company continued to lose money, with net income in the latest quarter at -$2.47 million, slightly better than the -$2.51 million loss in the previous quarter, but still a massive drain.
• Negative Equity: The Trailing Twelve Months (TTM) Return on Equity (ROE) was a staggering -76.23%, showing that the company was destroying shareholder value at an alarming rate.

Here's the quick math on the balance sheet: as of the latest quarter, total assets were $12.25 million against total liabilities of $1.72 million. While assets technically exceed liabilities, the Chapter 7 process means those assets are sold off, and any remaining value for common shareholders after creditors are paid is typically zero or near-zero.

The Shadow of Accounting Fraud and Regulatory Action

The most damaging internal risk was the accounting fraud scheme, which led to significant regulatory and legal consequences in 2025. This risk is realized and has a direct impact on the integrity of all past financial statements.

• CEO Sentencing: In March 2025, the former CEO was sentenced to prison for an accounting fraud scheme.
• Fraudulent Revenue: The scheme involved improperly recognizing over $1.3 million in fraudulent revenue, which accounted for more than 94% of the reported revenue for 2020 at the time of the IPO.
• Misrepresented Product: The core product, Kubient Artificial Intelligence (KAI), was misrepresented in SEC filings regarding its efficacy in identifying and preventing digital ad fraud.

This fraud fueled the company's Initial Public Offering (IPO) and a secondary public offering, which together raised over $32.5 million from investors. The SEC also brought charges against the CEO, CFO, and Audit Committee Chair, underscoring a complete breakdown of corporate governance and financial controls. When management lies about the core product and revenue, there is no strategic foundation left.

External Market and Mitigation

The external risk is the highly competitive and rapidly evolving programmatic advertising technology (ad-tech) market. Kubient, Inc. was competing against much larger, better-capitalized players like Criteo and Basis Technologies. The failure of their flagship product, KAI, to deliver on its promise meant they had no competitive edge.

The only mitigation strategy currently in place is the Chapter 7 liquidation itself. This is the legal process of winding down the business, selling off all remaining assets, and distributing the proceeds to creditors in order of priority. For common stock investors, this process offers almost no chance of recouping capital. You should view this as a complete loss of investment capital.

For a deeper understanding of the original business concept that failed, you can review the Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT).

Growth Opportunities

You need to understand the stark reality for Kubient, Inc. (KBNT): the company is not a going concern. It filed a voluntary petition for Chapter 7 liquidation in the U.S. Bankruptcy Court for the District of Delaware on July 25, 2024. This means the traditional idea of future growth prospects-new products, expanding markets, higher earnings-is off the table. The company is being dissolved, and its assets are being sold to pay creditors.

Honestly, the only remaining value is in the liquidation of its intellectual property (IP) and technology assets, which is a recovery process, not a growth strategy. The core issue is that the company's collapse was accelerated by a massive breach of trust, as the founder and former CEO pleaded guilty in September 2024 to an accounting fraud scheme involving over $1.3 million in fraudulent revenue.

The Nullified Competitive Advantage

Kubient's historical growth thesis centered on its proprietary technology and a push for transparency in programmatic advertising (programmatic advertising is the automated buying and selling of ad space). Their key growth driver was supposed to be the proprietary, AI-driven fraud prevention tool, KAI (Kubient Artificial Intelligence).

Here's the quick math on why that advantage is now worthless: the former CEO admitted to making material misrepresentations about KAI's efficacy to improperly bolster revenue. A fraud prevention tool that was itself the subject of fraud is defintely a non-starter. The competitive advantages that were supposed to position the company for growth-like its focus on transparency and its cloud-based infrastructure-were completely undermined by the internal malfeasance.

• KAI technology: AI-powered fraud prevention.
• Transparency: Core value proposition for advertisers.
• Cloud-Based: Platform for scalability and flexibility.

Liquidation Context and 2025 Financial Snapshot

Since Kubient is in Chapter 7, there are no meaningful 2025 revenue growth projections or positive earnings estimates. Instead, we look at the last reported financial figures to understand the scale of the dissolution. The latest quarterly reports, as of November 2025, showed a sharp decline in operations.

In the latest quarter reported, the company's revenue had plummeted to just $0.01 million (down from $0.28 million in the preceding quarter). The net income was a loss of -$2.47 million. This is a picture of a company that had already ceased meaningful operations before the official liquidation filing. For a deeper dive into the company's stated goals, you can review its Mission Statement, Vision, & Core Values of Kubient, Inc. (KBNT).

What this estimate hides is the true cost of the liquidation process itself. The focus now shifts from generating revenue to settling the balance sheet, which, in the latest quarter reported, showed total assets of $12.25 million against total liabilities of $1.72 million. The Chapter 7 process will determine the final recovery value for creditors and shareholders, if any.

Strategic Initiatives: From M&A to Dissolution

Historically, the company had a strategic initiative to pursue mergers and acquisitions (M&A) to quickly build out its Audience Cloud marketplace, even engaging Lake Street Capital Markets, LLC for M&A services back in 2021. But the only 'strategic initiative' now is the court-supervised liquidation process. Any partnerships or product innovations are moot; the company's technology stack is now an asset for sale, not a platform for future growth.

Your action is simple: if you are a shareholder, monitor the Chapter 7 proceedings for any potential distribution from the liquidation of assets. Don't look for a turnaround; there isn't one.