root9B Holdings, Inc. (RTNB) Stock Price & Analysis

root9B Holdings, Inc. (RTNB) Technology Profile & Competitive Position

root9B Holdings, Inc. is a Colorado Springs-based technology firm specializing in cybersecurity and business advisory services, including regulatory risk mitigation and anti-money laundering solutions. Established in 2000, the company provides cyber operations assessments, training, forensics, and strategic defense planning, serving clients in the United States and internationally within the evolving information technology services sector.

What Is the Investment Thesis for RTNB?

root9B Holdings, Inc. operates within the critical and expanding sectors of cybersecurity and regulatory compliance, offering specialized services that address growing market demands. The company's focus on threat hunting, incident response, and comprehensive anti-money laundering (AML) solutions positions it to capitalize on the increasing need for expert cybersecurity and regulatory risk mitigation across various industries. However, an investment in RTNB presents significant financial and operational considerations. The company currently reports a market capitalization of $0.00B, indicating a micro-cap status. Financially, root9B exhibits substantial unprofitability, with a profit margin of -292.8% and a Return on Equity (ROE) of -149.5%. Its gross margin stands at a relatively low 10.1%, and the capital structure is highly leveraged, reflected by a Debt-to-Equity ratio of 710.78. As an OTC Other listed company, RTNB carries a higher risk profile due to potentially limited liquidity and less stringent reporting requirements, which necessitates thorough due diligence. Future value drivers hinge on the company's ability to secure and maintain new contracts in its specialized service areas and demonstrate a path towards profitability amidst a competitive landscape.

Based on FMP financials and quantitative analysis

RTNB Key Highlights

Market Capitalization: $0.00B, indicating a micro-cap or non-reporting entity status.

• Profit Margin: -292.8%, reflecting significant operational losses relative to revenue.
• Gross Margin: 10.1%, suggesting a relatively low profitability from core services before operating expenses.
• Return on Equity (ROE): -149.5%, indicating substantial losses relative to shareholder equity.
• Debt-to-Equity (D/E) Ratio: 710.78, highlighting a highly leveraged capital structure.

Who Are RTNB's Competitors?

RTNB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are RTNB's Key Strengths?

Dual focus on cybersecurity and regulatory risk mitigation (AML).

• Specialized services in threat hunting and incident response.
• Comprehensive service offerings including training, consulting, and operational support.
• Established presence since 2000.

What Are RTNB's Weaknesses?

Significant negative profit margin (-292.8%) and ROE (-149.5%).

• High Debt-to-Equity ratio (710.78).
• Low Gross Margin (10.1%).
• OTC Other listing implies higher risk and potentially limited liquidity.

What Are the Key Risks for RTNB?

Financial-distress signal — its Altman Z-Score of -10.11 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 6 reported quarters.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Significant negative profit margin (-292.8%) and Return on Equity (-149.5%), indicating persistent unprofitability.
• High Debt-to-Equity ratio (710.78), suggesting substantial financial leverage and potential solvency concerns.
• Intense competition within the cybersecurity and business advisory markets, potentially pressuring pricing and market share.
• Challenges in securing and maintaining contracts, which is critical for revenue generation given the market cap of $0.00B.
• Risks associated with being an OTC Other listed company, including limited liquidity and transparency.

What Threats Does RTNB Face?

• Intense competition in the cybersecurity and consulting markets.
• Rapid evolution of cyber threats requiring continuous R&D and adaptation.
• Economic downturns impacting corporate spending on advisory services.
• Challenges associated with maintaining and securing new contracts.

What Are RTNB's Competitive Advantages?

• Specialized expertise in threat hunting and incident response, addressing complex cyber threats.
• Comprehensive offering spanning both cybersecurity and regulatory risk mitigation (AML), providing integrated solutions.
• Long operational history since 2000, suggesting established methodologies and client relationships.
• Ability to provide both strategic consulting and hands-on operational support and training.

What Does RTNB Do?

root9B Holdings, Inc., founded in 2000 and headquartered in Colorado Springs, Colorado, is a technology firm specializing in cybersecurity and business advisory services with a particular emphasis on regulatory risk mitigation. The company initially operated as root9B Technologies, Inc., undergoing a name change to its current designation in December 2016. Its operational structure is divided into two distinct segments: Cyber Solutions and Business Advisory Solutions, allowing for a comprehensive approach to client needs in an increasingly complex digital and regulatory landscape. The Cyber Solutions segment is dedicated to bolstering clients' defenses against sophisticated cyber threats. This segment offers a broad spectrum of services, including advanced cybersecurity and technology training programs designed to cultivate skilled professionals. It provides critical operational support and consulting services, guiding organizations through the intricacies of cyber defense. Key offerings also encompass cyber operations assessments, thorough analysis and testing of existing security infrastructures, and specialized cyber training. Furthermore, root9B excels in forensic investigations, exploitation analysis, and the development of strategic defense planning, focusing on proactive threat hunting and rapid incident response to mitigate potential breaches. Complementing its cybersecurity offerings, the Business Advisory Solutions segment addresses the crucial area of regulatory compliance, particularly anti-money laundering (AML). This segment delivers essential AML operational, investigative, and remediation services, assisting financial institutions and other regulated entities in adhering to stringent global standards. Additionally, it provides AML risk advisory and consulting services, helping clients identify vulnerabilities and implement robust compliance frameworks. By integrating both cyber and regulatory expertise, root9B Holdings, Inc. aims to provide holistic solutions that protect assets and ensure compliance for its diverse client base across the United States and internationally, navigating the competitive information technology services industry.

What Products and Services Does RTNB Offer?

• Provide cybersecurity consulting and operational support.
• Offer technology training for cyber professionals.
• Conduct cyber operations assessments and analysis.
• Perform cyber forensics and exploitation services.
• Develop strategic cyber defense plans.
• Deliver anti-money laundering (AML) operational and investigative services.
• Offer AML risk advisory and consulting services.
• Focus on regulatory risk mitigation.

How Does RTNB Make Money?

• Revenue generated from fees for cybersecurity consulting and advisory services.
• Earnings from providing specialized cybersecurity and technology training programs.
• Income derived from operational support contracts for cyber defense.
• Fees from anti-money laundering (AML) operational, investigative, and remediation services.
• Revenue from AML risk advisory and consulting engagements.

What Industry Does RTNB Operate In?

root9B Holdings, Inc. operates within the dynamic Information Technology Services industry, specifically targeting the cybersecurity and regulatory risk mitigation sectors. The broader industry is characterized by rapid technological advancements and an escalating threat landscape, driving consistent demand for specialized expertise. Market trends indicate a continuous increase in cybercrime and more stringent global regulatory frameworks, particularly concerning anti-money laundering (AML). This environment creates a strong underlying need for the company's core offerings, including threat hunting, incident response, and compliance advisory services. The competitive landscape is fragmented, comprising a mix of large, established IT service providers, specialized cybersecurity firms, and boutique consulting agencies. root9B positions itself by offering a dual focus on both cyber defense and regulatory compliance, aiming to provide integrated solutions for clients navigating complex digital and legal challenges.

Who Are RTNB's Key Customers?

• Organizations requiring advanced cybersecurity defenses and incident response.
• Companies seeking regulatory risk mitigation, particularly in financial compliance.
• Entities needing specialized anti-money laundering (AML) operational and advisory support.
• Businesses and government agencies requiring cybersecurity training and operational support.

Company Profile

root9B Holdings, Inc. operates in the Information Technology Services industry within the Technology sector. It is headquartered in Colorado Springs, US. The company is led by CEO Mark S. Elliott. RTNB has traded publicly since 2007.

root9B Holdings, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -10.11 places it in the distress zone, a signal of elevated financial risk.

root9B Holdings, Inc. has missed Wall Street's EPS estimate in 5 of its last 6 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 218.6% below estimates on average.

12 transactions · 2 purchases, 0 sales, 10 other transactions · 4 identified insiders · most recent available transactions. Purchases and sales use the reported transaction category. Other transactions include awards, exercises, gifts, withholding and unclassified activity; an acquisition or disposition alone is not a purchase or sale. These records do not establish intent.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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