Every cloud has a silver lining, and for Cyngn Inc (NASDAQ:CYN), the current leverage situation offers both challenges and potential opportunities. The company’s financials reveal a complex picture: with total revenue of just $368.1K and a significant loss of -$189.3M in retained earnings, Cyngn is navigating a tough environment. Its net interest income stands at -$1.1M, and EBITDA is deeply negative at -$22.8M, highlighting ongoing operational hurdles. However, the company’s market value sits at approximately $16.33M, and recent cash flow improvements—reflected in a $20M change in cash—could signal some positive momentum. With a net debt of -$23.3M and an issuance of capital stock totaling $29.2M, Cyngn’s leverage profile is intricate, but the possible upside price of around $36.04 suggests investors are eyeing a potential breakout if the company can turn its fortunes around. Cyngn Inc. is experiencing higher-than-usual trading volume right now. Its Days of Payables Outstanding remain steady compared to the past year, indicating stable supplier relationships. As of June 28, 2025, the company's effective tax rate is expected to rise slightly to around 0.01, while its market capitalization could decrease by approximately $1 billion. Although many investors are jumping into the software sector aggressively, Cyngn might not be the top pick for everyone. The key question now is whether the stock is fairly valued as we approach July.
Cyngn financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cyngn, including all of Cyngn's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cyngn assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Cyngn debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Cyngn Total Debt
Cyngn Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cyngn Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cyngn balance sheet include debt obligations and money owed to different Cyngn vendors, workers, and loan providers. Below is the chart of Cyngn main long-term debt accounts currently reported on its balance sheet.
You can use Cyngn Inc
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Cyngn's Liquidity
Cyngn
financial leverage refers to using borrowed capital as a funding source to finance Cyngn Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cyngn financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cyngn's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cyngn's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Cyngn's total debt and its cash.
Details
Cyngn Inc reported the last year's revenue of 368.14
K. Reported Net Loss for the year was (29.25
M) with loss before taxes, overhead, and interest of (23.97
K).
Asset Breakdown
4.7 M
Non Current Assets Total
18.6 M
Total Current Assets
17.9 M
Net Tangible Assets
| Total Assets | 20.54 Million |
| Net Tangible Assets | 17.93 Million |
| Non Current Assets Total | 4.74 Million |
| Non Currrent Assets Other | (0.94) |
| Other Current Assets | 942,718 |
| Total Current Assets | 18.63 Million |
| Intangible Assets | 1.99 Million |
| Other Assets | 0.8 |
A rising tide lifts all boats, but Cyngn (NASDAQ:CYN) faces significant leverage challenges that could impact its breakout potential.
The company’s total debt stands at just 317.34K, yet its operating losses of 22.8M and negative return on assets of -0.81 raise concerns about financial stability. With cash and short-term investments totaling 23.6M, Cyngn has some cushion, but its high market risk-adjusted performance of 1.18 and a beta of -0.77 suggest volatility that investors should watch closely. While the company’s valuation appears modest at 7.61M, its high coefficient of variation at 790.8 indicates considerable risk, making leverage a critical factor in its July outlook..
Can Cyngn build up on the recent roll up?
With the standard deviation dropping to 21.81, Cyngn Inc. indicates its stock may be experiencing less price fluctuation, suggesting a potential slowdown in volatility. This could mean the recent momentum from its roll-up strategy is stabilizing, offering a clearer view of its growth path. If this stability continues, it might pave the way for steady gains without the risk of sudden swings. Currently, Cyngn shows above-average volatility over the observed period, which can be useful for investors trying to time their moves. Monitoring volatility helps gauge the stock’s risk relative to market trends, especially during downturns when increased volatility can lead to sharp declines.
Such periods often prompt investors to rebalance their portfolios, adjusting holdings as share prices fluctuate.Investing in Cyngn Inc. (CYN) presents a compelling opportunity, especially given its current valuation and analyst outlook. With a market value of approximately
16.33 and a possible upside of up to 36.04%, there's potential for significant gains if the company continues to execute well. The analyst consensus leans strongly in favor of a buy, with a target price around 12 and a high confidence level. However, it's important to keep an eye on the downside risk, which is estimated at just 0.16, indicating limited downside but still worth cautious monitoring. Overall, CYN looks poised for a notable move, but as always, balancing optimism with careful risk assessment is key before jumping in..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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