Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors

You're looking at SeaChange International, Inc. (SEAC) because you see a cheap stock, but you need to understand that the company's financial health is fundamentally different now-it's a post-asset-sale entity. The core business, the video delivery software, was sold to Enghouse, so you can't look at the old revenue streams the same way; for context, the company reported total revenue of $21.4 million in fiscal year 2024, which is now largely gone. As of November 2025, the stock is trading near its 52-week low of $3.01, closing recently at just $3.26, and to be defintely clear, analysts have downgraded it to a Sell Candidate, reflecting the massive change in the underlying business. The remaining entity is now a complex financial puzzle, and your focus needs to shift from operating income to the value of the residual assets and cash, plus the plan for the shell company. That's the real story here.

Revenue Analysis

You're looking at SeaChange International, Inc. (SEAC) right now, and the revenue numbers tell a story of significant transition, which is typical right before an acquisition. The most current trailing twelve months (TTM) revenue, which is the best near-term proxy for 2025 performance, is approximately $32.76 million USD.

But that number hides a recent, sharp decline. We saw the company's fiscal year 2024 total revenue plummet to $21.4 million, a massive year-over-year decrease of 34.6% compared to the $32.7 million reported in fiscal year 2023. That kind of drop is a major red flag, and it's defintely what drove the strategic decision to sell substantially all of the company's assets to Enghouse in 2024.

Breakdown of Primary Revenue Streams

SeaChange International, Inc.'s revenue comes from two main buckets: recurring subscription revenue and a mix of software licenses, support, maintenance, and professional services. The shift in these streams shows where the pain points were in fiscal year 2024, and why the company had to make a change. Here's the quick math on the segment contributions for FY 2024:

• Subscription Revenue: This brought in $12.4 million.
• Software Licenses, Support, and Services: This segment generated $9.0 million.

The biggest hit wasn't the subscription business, which is usually stickier. Subscription revenue only decreased by 8.2% from the prior year. The real challenge was in the non-recurring side: the revenue from software licenses, support, and professional services fell off a cliff, decreasing by a staggering 55.6%, from $20.3 million to $9.0 million. That signals a major slowdown in new customer deployments and large-scale software deals.

Geographical Revenue Concentration

When you look at the TTM revenue of $32.76 million, the company's revenue base is still heavily dependent on the Americas. This concentration presents a risk, but also a clear opportunity if the new owners can stabilize and grow the North American base while executing on the company's Mission Statement, Vision, & Core Values of SeaChange International, Inc. (SEAC).

The geographical breakdown of the TTM revenue shows a heavy reliance on the U.S. market, which accounted for over half of the total revenue:

• United States (U.S.): $18.07 million
• Europe and Middle East: $7.01 million
• Latin America: $5.48 million
• North America Ex-U.S.: $1.53 million

The takeaway here is simple: the health of the U.S. and Latin American markets is paramount to SeaChange International, Inc.'s immediate revenue stability. If those two regions falter, the entire revenue base gets shaky fast.

Profitability Metrics

You need a clear picture of SeaChange International, Inc.'s (SEAC) ability to turn revenue into profit, especially right now. The direct takeaway is this: SeaChange International, Inc. has achieved a solid gross margin, but its operating efficiency is razor-thin, and the company is still losing money at the net level.

For the trailing twelve months (TTM) leading into November 2025, SeaChange International, Inc. reported a Gross Profit Margin of 65.50%. That's a healthy number, telling you the core video delivery software business has good pricing power and manageable direct costs (Cost of Goods Sold). This margin is defintely a key strength, and it's what you want to see from a software-centric business, which typically aims for 70% to 90%.

Here's the quick math on how that high gross profit translates-or fails to translate-to the bottom line, using the TTM revenue of $32.76 million:

• Gross Profit: $21.46 million (Revenue 65.50%)
• Operating Income: $0.38 million (Revenue 1.14%)
• Net Loss: -$9.12 million (Revenue -27.84%)

The gross margin is strong, but the operating margin is weak. That's the whole story.

Operational Efficiency and Margin Trends

The drop-off between the Gross Margin of 65.50% and the Operating Margin of just 1.14% reveals a major challenge in operational efficiency. It means the company is spending nearly all of its gross profit on selling, general, and administrative (SG&A) expenses and research and development (R&D) just to keep the lights on and the product updated. The TTM Operating Income is only $0.38 million.

Looking at the trend, though, there's a clear improvement in efficiency. The Operating Margin has climbed from -26.36% in fiscal year 2022 and -2.20% in fiscal year 2023 to the current 1.14%. This suggests management is making progress in cost management, moving from significant operating losses to near break-even at the operating level.

The Net Profit Margin of -27.84% shows that non-operating items, like interest expense or taxes, are pushing the company back into a substantial net loss of -$9.12 million. This is a critical area for investors to watch, especially when the industry average net profit margin for a typical software company is closer to 8% to 20%.

Profitability Ratios Comparison

To put SeaChange International, Inc.'s TTM performance into perspective, let's compare it to industry benchmarks for the software sector. This comparison highlights where the company is performing well and where it is facing headwinds.

The high Gross Margin is a positive signal for the value of their intellectual property and service offerings, but the near-zero Operating Margin and deep negative Net Margin tell you that the cost structure outside of Cost of Goods Sold is still a major problem. You can explore the drivers behind the stock's movement and investor sentiment further by reading Exploring SeaChange International, Inc. (SEAC) Investor Profile: Who's Buying and Why?

The key action for management is to either aggressively cut SG&A and R&D spending to widen that operating margin or dramatically increase revenue without a proportional increase in those operating expenses. The current path of marginal operating profitability is not sustainable given the large net loss.

Debt vs. Equity Structure

You're looking for a clear picture of how SeaChange International, Inc. (SEAC) funds its operations, and the good news is the balance sheet is defintely conservative. The company relies almost entirely on equity, keeping its debt load remarkably low, which significantly reduces financial risk.

As a seasoned analyst, I see this structure as a clear signal of management's risk aversion, but also a potential constraint on aggressive growth. The company's financial leverage is minimal, a stark contrast to many of its peers in the technology sector.

Current Debt Levels and Composition

The most important number here is the long-term debt: SeaChange International, Inc. reports a $0 long-term debt position, a trend that has held steady. This means the company is not burdened by significant interest payments or principal repayments stretching out over years, which is a major positive for solvency (the ability to meet long-term obligations).

The total debt on the books is minimal, amounting to approximately $1.22 million. This figure is primarily composed of short-term liabilities (like accounts payable or deferred revenue), which are necessary for day-to-day operations. Here's the quick math: SeaChange International, Inc. has a net cash position of $13.98 million, meaning its cash reserves easily cover all outstanding debt. That's a very strong liquidity profile.

• Total Debt (Short-Term): $1.22 million
• Long-Term Debt: $0
• Net Cash Position: $13.98 million

Debt-to-Equity Ratio: A Low-Leverage Strategy

The Debt-to-Equity (D/E) ratio is what tells you how much debt a company uses to finance its assets relative to the value of shareholders' equity (ownership capital). SeaChange International, Inc.'s D/E ratio sits at an exceptionally low 0.04. What this estimate hides is the potential for a larger acquisition or R&D push, but it clearly shows a company built on a foundation of equity.

To be fair, a ratio this low is almost unheard of in the broader market, but it's a deliberate strategy in the software space. Compare SeaChange International, Inc.'s ratio to the industry average for Software-Application and Software-Infrastructure firms, which typically hover around 0.34.

Balancing Debt and Equity Funding

SeaChange International, Inc. clearly favors equity funding. This approach limits financial risk and makes the company highly attractive to investors prioritizing stability over aggressive, debt-fueled expansion. The trade-off is that growth is slower because they aren't using cheap debt to amplify returns (financial leverage).

Their recent activities confirm this bias toward equity. The company announced an equity buyback plan for $6.16 million worth of its shares. This action returns capital to shareholders and reduces the number of outstanding shares, which can boost earnings per share-a pure equity-side move, not a debt issuance. They are using their cash to support their stock, not take on new debt. For a deeper dive into who is buying the stock, you should be Exploring SeaChange International, Inc. (SEAC) Investor Profile: Who's Buying and Why?

The company has no credit ratings to monitor because it has virtually no debt. The clear action here is to recognize that SeaChange International, Inc. is a low-risk, low-leverage play, but watch for any future debt announcements, as that would signal a major shift in their growth strategy.

Liquidity and Solvency

You're looking at SeaChange International, Inc. (SEAC) and wondering if they can cover their near-term bills. The short answer is yes, their balance sheet is defintely strong, but you need to look past the high ratios to the cash flow engine. The company has a substantial cash cushion, but core operations are still burning cash.

As of the latest available data, SeaChange International, Inc.'s short-term liquidity position looks excellent on paper. The company reports a Current Ratio of 3.63 and a Quick Ratio (which excludes inventory, a good measure of immediate cash-like assets) of 3.33. A ratio above 1.0 is generally considered healthy, so these numbers are quite strong. This means SeaChange International, Inc. has more than three times the current assets to cover its current liabilities. It's a very comfortable buffer.

The company's working capital-the difference between current assets and current liabilities-is also robust, standing at $24.46 million. This positive figure confirms they have significant capital available to fund day-to-day operations and manage unexpected short-term needs. This is a clear strength, showing the company is not straining to meet its obligations.

However, the cash flow statement tells a more nuanced story about the underlying business health. Here's the breakdown of the latest trends in millions of USD:

• Operating Cash Flow (OCF): -0.7 million (or -$698,000).
• Investing Cash Flow (ICF): -0.055 million (or -$55,000).
• Financing Cash Flow (FCF): Minimal or positive, due to no significant debt.

The negative Operating Cash Flow of -$698,000 is the key concern. It means the core business activities-selling software and services-are not generating enough cash to cover their own expenses. They are effectively subsidizing operations from their balance sheet reserves. This is a cash burn, not a cash generator. You can't ignore that.

To be fair, the Investing Cash Flow is only a small outflow of -$55,000, mostly for minor capital expenditures, which is typical for a software company that isn't heavily investing in physical assets. The Financing Cash Flow picture is positive because the company is essentially debt-free, which is a huge solvency strength. They aren't diverting cash to service interest or principal payments, and they have a substantial cash reserve of $15.20 million and a net cash position of $13.98 million.

Here's the quick math: the high liquidity ratios are mostly driven by that large cash reserve, not by a profitable operating engine. The risk isn't immediate bankruptcy, but a slow drawdown of that cash reserve if the negative OCF trend continues. Your action here is to monitor quarterly OCF improvements closely. For a deeper dive into who is betting on this cash reserve, you should be Exploring SeaChange International, Inc. (SEAC) Investor Profile: Who's Buying and Why?

Valuation Analysis

Is SeaChange International, Inc. (SEAC) overvalued or undervalued? The short answer is that its valuation metrics suggest it is defintely undervalued on a book value basis, but its lack of profitability complicates the picture, leading to a mixed analyst consensus. You need to look past the surface-level ratios to understand the risk-reward here.

As of November 2025, the stock trades around $3.26 per share. This price point is deeply discounted when you look at the Price-to-Book (P/B) ratio, a key metric for companies with significant assets or those in a turnaround phase. The P/B ratio for SeaChange International, Inc. sits at a remarkably low 0.23x. That's a huge discount, meaning the market values the company at less than a quarter of its net asset value.

Here's the quick math on core valuation ratios:

• Price-to-Earnings (P/E): -1.4x
• Price-to-Book (P/B): 0.23x
• Enterprise Value-to-EBITDA (EV/EBITDA): Not Applicable (N/A)

The negative Price-to-Earnings (P/E) ratio of -1.4x tells you immediately that the company is currently unprofitable, which is why the Enterprise Value-to-EBITDA (EV/EBITDA) is also generally not applicable or meaningful. When a company is losing money, you stop using earnings-based multiples and start focusing on assets (P/B) and cash flow generation, which remains a key risk for SeaChange International, Inc. (SEAC).

Looking at the stock price trends over the last 12 months, the volatility is clear. The stock has seen a significant drop, with a 52-week high of $7.83 and a low of $3.01. The price change over the last year is a steep decline of -53.61%, reflecting the market's concern over its weak operating performance and the overall business transition. The stock has been on a downward trend.

On the income front, you won't find any help here. SeaChange International, Inc. is not a dividend stock; it has a dividend yield of 0.00%. The focus is entirely on capital appreciation from a successful turnaround, not on quarterly income. This is a pure growth-or-bust investment, not a stable income play.

The analyst community is split, which is typical for a deeply discounted, transitioning company. The consensus rating from a group of 7 analysts is a 'Buy', with an aggressive average one-year price target of $20.40. This target implies a massive upside of over 500% from the current price, suggesting analysts believe the turnaround will be highly successful. However, other independent analysis suggests the stock is 'Fairly Priced' given its weak profitability, and some technical indicators have recently led to a 'Sell Candidate' downgrade. You have to weigh the high-upside potential of a successful turnaround against the very real downside risk of continued unprofitability. This is a high-risk, high-reward situation. For a deeper dive into the company's fundamentals, you can check out Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors.

Risk Factors

You need to understand that the risk profile for SeaChange International, Inc. (SEAC) fundamentally changed in 2024. This isn't a traditional operating company anymore; it's a post-asset-sale entity. The old risks of competition in the video delivery space are largely gone, replaced by a new set of existential and capital management risks.

The core business-the IPTV products and services-was sold to Enghouse Systems Limited in May 2024, with net proceeds expected to be between $21 million to $23 million. The company's current value is tied less to future sales and more to how it manages this cash and its strategic pivot. The market cap as of April 2025 was only about $12.9M, which suggests a significant disconnect between the company's expected cash value and its stock price at that time. That's a huge red flag for investors.

The Existential and Capital Management Risk

The biggest near-term risk is an existential one: what is SeaChange International, Inc. now? The company's future hinges entirely on its ability to execute a new business strategy or effectively return capital to shareholders. This is a classic 'shell company' scenario, and there is no defintely clear path forward yet.

• Strategic Vacuum: The core video delivery assets are gone, leaving a company with cash, liabilities, and Net Operating Loss carryforwards (NOLs). Failure to acquire a new, profitable business or to liquidate efficiently destroys shareholder value.
• Cash Mismanagement: The company retains a significant cash pile (expected net proceeds of $21M to $23M) and a substantial amount of NOLs. The risk is that this capital is deployed into a low-return venture or that the NOLs, which are valuable for offsetting future taxable income, expire unused.
• Revenue Collapse: The company's operating revenue is now minimal. For fiscal year 2024, the company's total revenue was already down 34.6% to $21.4 million, and the operating loss was $19.5 million. Post-sale, the revenue from the former core business is zero, making the P/E ratio of -0.711 as of November 2025 (Trailing Twelve Months) a reflection of a business that is no longer a going concern in its previous form.

External and Compliance Risks

Even as a simplified entity, external factors still create risk, especially given the company's global exposure and reduced transparency.

The reliance on foreign markets is a major concern. Approximately 95% of the company's revenues in fiscal year 2025 were attributable to customers in foreign countries, according to its SEC filings. While the core revenue stream is gone, this historical concentration highlights a high exposure to geopolitical and currency volatility in its remaining accounts receivable or any new international ventures. You're trading a technology risk for a geopolitical one.

Also, the company voluntarily deregistered its common stock with the U.S. Securities and Exchange Commission and delisted from the Nasdaq Stock Market LLC in August 2023. This move reduces compliance costs, but it also means:

• Reduced Transparency: Investors receive less frequent and less detailed financial reporting, complicating due diligence.
• Liquidity Constraints: Trading volume is lower, making it harder to buy or sell shares at a favorable price.

What this estimate hides is the true value of the NOLs, which depend entirely on the profitability of any new business the company might acquire or start. If they can't find a profitable target, those tax assets are worthless.

For a deeper dive into the historical performance that led to this sale, you should review our full analysis at Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at SeaChange International, Inc. (SEAC) and asking about future growth, but the answer isn't about a new product line; it's about a radical strategic pivot that fundamentally changed the company in fiscal year 2025. The core business-the video delivery and advertising platforms-is gone. The new growth driver is the cash on the balance sheet.

The company's primary strategic move was the sale of substantially all of its product and services assets to Enghouse Systems Limited in May 2024. This transaction, which occurred early in the company's fiscal year 2025, was for a total purchase price of $39 million. This is a massive shift. The net proceeds to SeaChange International, Inc. upon closing were in excess of $22.5 million, which is now the company's most significant asset. The old business is now part of Enghouse's Asset Management Group.

Future Revenue and Earnings Reality

To be defintely clear, you cannot look at traditional revenue growth projections for SeaChange International, Inc. anymore. We don't have consensus analyst estimates for the new entity's full fiscal year 2025 revenue or earnings per share (EPS); the market simply lists them as N/A.

Here's the quick math on the impact: SeaChange International, Inc. reported total revenue of $21.4 million for the prior fiscal year 2024. The business that Enghouse Systems Limited acquired had expected annual revenues of approximately $18 million. This sale essentially stripped the company of its operating revenue, leaving a shell entity with cash. The future revenue is now dependent on a new business model, not the old one. The old business model was generating an operating loss of $19.5 million in FY2024, so the sale was a necessary move to stop the bleeding.

• FY2024 Total Revenue: $21.4 million
• FY2025 Asset Sale Proceeds: Over $22.5 million in net cash
• New Revenue Base: Effectively near zero, pending a new strategy

Cash-Driven Strategic Initiatives

The growth prospects for SeaChange International, Inc. are now tied entirely to the management's plan for this cash hoard. The competitive advantage has shifted from technology expertise to balance sheet strength. The company's path to maximizing stockholder value now involves a new strategic direction, likely a merger or acquisition of a different operating business, often called a reverse merger.

The new strategic initiatives are not product innovations, but financial restructuring actions:

• Capital Deployment: Using the $22.5 million+ in cash to acquire an established, profitable private company.
• Reverse Merger: Becoming a public vehicle for a private company seeking a faster route to market listing.
• Shareholder Return: Potentially initiating a special dividend or share buyback program with the cash, though this is less common than seeking a new business.

The company's future is now a blank slate with a significant cash reserve. That cash is the opportunity. To understand the foundational values guiding this next move, you should review the Mission Statement, Vision, & Core Values of SeaChange International, Inc. (SEAC).

Near-Term Action

Your action is to watch for the announcement of a definitive agreement for a new business combination. That's the only thing that will drive a new, sustainable valuation for the remaining stock.