📊 AERA Key Takeaways
Is AI Era Corp. (AERA) a Good Investment?
AI Era Corp exhibits severe fundamental deterioration masked by accounting inconsistencies and unsustainable capital allocation. The company reports positive net income despite negative gross margins and faces imminent liquidity crisis with only $11.8K cash against $50M capex spending, creating a fundamentally broken business model.
AI Era Corp.'s fundamentals show severe stress despite reported profitability: revenue grew sharply, but gross margin is deeply negative and free cash flow is massively negative, indicating weak underlying earnings quality. The balance sheet is especially concerning because cash is minimal and liquidity ratios are critically low, suggesting the company may struggle to meet near-term obligations without external financing or asset sales.
Why Buy AI Era Corp. Stock? AERA Key Strengths
- Revenue growth of 439.6% YoY demonstrates strong top-line expansion
- Operating margin of 26.1% shows operational efficiency at gross profit level
- Interest coverage ratio of 20.5x indicates ability to service debt obligations
- Revenue growth was very strong year over year, indicating some top-line expansion
- Reported operating and net income were positive, with solid operating and net margins on the surface
- Leverage appears modest based on debt-to-equity and long-term debt levels
AERA Stock Risks: AI Era Corp. Investment Risks
- Negative gross margin of -102.5% indicates core business model is unprofitable and losing money on every unit sold
- Critical liquidity crisis with current ratio of 0.04x and only $11.8K cash versus $50M capex spending
- Free cash flow of -$49.2M with FCF margin of -3232.2% reveals unsustainable capital spending exceeding operational cash generation
- Inconsistent profitability: negative gross profit of -$1.6M yet positive net income of $362.9K suggests accounting irregularities or non-operating gains masking operational losses
- Patent owner/licensor model with minimal tangible assets ($6.2M total) creates valuation and litigation risks
- Gross margin of -102.5% suggests the core business is not economically viable at the gross profit level
- Current and quick ratios of 0.04x with only $11.77K in cash indicate extreme liquidity risk
- Free cash flow of -$49.23M versus a $6.20M asset base raises major concerns about capital intensity, cash burn, or data quality distortion
Key Metrics to Watch
- Gross margin trajectory and path to profitability at cost of goods sold level
- Cash position and burn rate given $50M capex commitment against $11.8K cash reserves
- Operating cash flow sustainability and capex spending rationalization
- Net income composition to identify whether profits derive from operations or one-time gains
- Liquidity improvement, especially cash balance and current ratio
- Whether operating cash flow and gross margin remain sustainable without outsized capital spending
AI Era Corp. (AERA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AERA Profit Margin, ROE & Profitability Analysis
AERA vs Market Sector: How AI Era Corp. Compares
How AI Era Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is AI Era Corp. Stock Overvalued? AERA Valuation Analysis 2026
Based on fundamental analysis, AI Era Corp. appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
AI Era Corp. Balance Sheet: AERA Debt, Cash & Liquidity
AERA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: AI Era Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.00 indicates the company is currently unprofitable.
AERA Revenue Growth, EPS Growth & YoY Performance
AERA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $283.0K | -$50.0K | $-0.04 |
| Q3 2025 | $553.0K | $39.7K | $0.00 |
| Q2 2025 | $559.8K | $164.9K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AI Era Corp. Dividends, Buybacks & Capital Allocation
AERA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for AI Era Corp. (CIK: 0001605331)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AERA
What is the AI rating for AERA?
AI Era Corp. (AERA) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AERA's key strengths?
Claude: Revenue growth of 439.6% YoY demonstrates strong top-line expansion. Operating margin of 26.1% shows operational efficiency at gross profit level. ChatGPT: Revenue growth was very strong year over year, indicating some top-line expansion. Reported operating and net income were positive, with solid operating and net margins on the surface.
What are the risks of investing in AERA?
Claude: Negative gross margin of -102.5% indicates core business model is unprofitable and losing money on every unit sold. Critical liquidity crisis with current ratio of 0.04x and only $11.8K cash versus $50M capex spending. ChatGPT: Gross margin of -102.5% suggests the core business is not economically viable at the gross profit level. Current and quick ratios of 0.04x with only $11.77K in cash indicate extreme liquidity risk.
What is AERA's revenue and growth?
AI Era Corp. reported revenue of $1.5M.
Does AERA pay dividends?
AI Era Corp. does not currently pay dividends.
Where can I find AERA SEC filings?
Official SEC filings for AI Era Corp. (CIK: 0001605331) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AERA's EPS?
AI Era Corp. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AERA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, AI Era Corp. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AERA stock overvalued or undervalued?
Valuation metrics for AERA: ROE of 10.5% (sector avg: 15%), net margin of 23.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AERA stock in 2026?
Our dual AI analysis gives AI Era Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AERA's free cash flow?
AI Era Corp.'s operating cash flow is $769.8K, with capital expenditures of $50.0M. FCF margin is -3,232.2%.
How does AERA compare to other Market stocks?
Vs Default sector averages: Net margin 23.8% (avg: 12%), ROE 10.5% (avg: 15%), current ratio 0.04 (avg: 1.8).