QDM International Q1 Revenue Jumps 133% but Cash Flow Collapses on Prepaid Referral Fees
QDMI sits 82% above its 52-week low of $2.754 on elevated volume (3.7× avg).
Summary
QDM International reported strong revenue and profit growth for Q1 FY2027, but operating cash flow nearly vanished due to a surge in prepaid referral fees. The company also closed its MCM acquisition.
Key Events · Earnings and Guidance · QDMI
-
Revenue Up 133% to $8.39M
Quarterly revenue rose 133.4% year-over-year to $8.39 million, driven by more insurance products and referral partners.
-
Net Income Up 70% to $3.15M
Net income increased 70.2% to $3.15 million, or $0.36 per share, compared to $1.85 million a year ago.
-
Operating Cash Flow Collapses
Operating cash flow fell to $115,812 from $3.89 million a year ago, primarily due to a $5.5 million increase in prepaid referral fees.
-
Gross Margin Compresses to 50.8%
Gross margin declined from 70.8% to 50.8% as the company shifted to a 50% fixed referral fee rate, up from 15% plus bonuses.
Analysis · QDMI · Finance
QDM International's quarterly revenue surged 133% to $8.39M and net income rose 70% to $3.15M, but operating cash flow fell to just $116K from $3.9M a year ago. The culprit: a $5.5M increase in prepaid referral fees, which now total $9.5M. The company also completed its MCM acquisition for about $280K, adding a second Hong Kong insurance brokerage license. The sharp margin compression—gross margin fell from 70.8% to 50.8%—reflects a shift to a higher fixed referral fee rate of 50%, which may pressure profitability going forward.
At the time of this filing, QDMI was trading at $5.00 on OTC in the Finance sector, with a market capitalization of approximately $43.2M. The 52-week trading range was $2.75 to $189.91. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.