Net income

NMLS 910457.

In today's video, we'll discuss how a CFO evaluates net loss versus cash burn.

Because from what I've seen, CFOs don't lose sleep over accounting losses, but CFOs will lose sleep over running out of cash.

So why are we covering this topic today? Well, we'll discuss how to differentiate between net loss and cash burn, and that will help us learn when to sound the alarm in terms of running out of cash.

And we'll also talk about strategies to fund the business from different multiple sources.

So if this sounds good to you, let's dive right in.

You can find my free lectures here on YouTube, but if you wanted to go in depth and take your career to the next level, you can find my courses on the Controller Academy website.

I'll leave a link to that down below.

Revenue was up just shy of 5% quarter over quarter from Q2 and basically flat from Q3 of 2025 at 1.99 billion.

Net income did have a nice sequential increase though, up 10% quarter over quarter and 1%.

over 50% year over year as some of their past investments start to pay off.

Free cash flow though was negative because of the elevated capex.

That's why Nvidia is making some commitments to help Amcor be able to expand in South Korea and Arizona.

And as a result, the free cash flow is a little bit all over the board, negative the last three quarters after posting a big, healthy 212 million free cash flow at Q4 2025.

But if you want to smooth those results out, you can use gap net income, again, which was almost 191 million this quarter, up 10% sequentially and up 50% year over year.

So not bad.

So that's coming in the second half of this episode, but just kind of like high level.

At the time, your business was basically at a negative 8.2% net profit.

So after all expenses were accounted for in the business, including payroll, the business itself was in a negative net position.

I just want to make sure that I'm interpreting that correctly as the business was in a negative net position.

And we're going to talk about how she did that because I think that is also very unique in the process and the personalized way that you did that, Hamilton.

And then by June 23rd, which is basically about... six weeks from when you first made this decision, you had already relaunched Virtual Cornerstone as it exists today.

And then what's really exciting is one full month after being in operation under the new structure, your net profit will I should say the business's net profit had already increased from that negative 8% to 20.1%.

So that is huge, huge movement to happen all in the span of really conclusively from beginning to end about two months.

Now, they did have strong bookings, but they missed expectations on earnings.

Profit took a hit in terms of adjusted earnings for sure.

It came in at 254. the street was looking for 260 so that was weaker than expected revenue coming in at a touch above 17.8 billion close to hitting the mark on revenue she was looking for 17.91 and some were saying that the number was going to be around what we saw so some would call that in line with expectations in terms of the outlook from here united expecting fourth quarter adjusted earnings of 50 to $1.50 a share.

That's below what analysts were expecting.

And this is why I didn't talk about cash, but planning, planning what it looks like so you can be proactive in making a change.

And the reason I added some of these things on here, and I really hope that you go and pull this up on YouTube, because you'll see when the net income becomes a loss and you have a loss, it's going to be in rent.

So even if you were to go through this on your own as a CEO, that red number is going to jump out to anyone and be like, oh, my gosh, I'm losing money.

So what is your first instinct when you see a red number? Oh, no.

It's a flag system.

So you're thinking, oh, no, what happened? Why am I negative? So, you know, you want to make sure like in the forecast, like it was only thirty nine thousand dollars that we were supposed to make, say, January.

If you're watching it, if you're not, it's thirty nine thousand dollars of forecasted net income from January.

What really happened was negative one hundred thousand.

Hey, it's Brad, and welcome back to another episode of Plantscape Business School Podcast.

This week, I am wrapping up this series called Eliminate the Waste and Elevate the Profit.

I got into a couple of episodes talking about this idea of doing your business without systems is probably the biggest form or type of waste.

So I wanted to finish up the series with 10 system secrets to really positively impact your business.