Interesting story ?

Motio has a rather simple business to understand : they place digital billboard in 4 kinds of places : medical centers, indoor sports venues, cafe and bars/pubs.
80 %+ of their revenues come from the ads that they put on their displays.

The group has been created through 4 acquisitions since 2019.

Since 2024, the group has shown a significant improvement of their sales and EBITDA margin.
They generate 75 %+ gross margin, with a relatively fixed cost basis.
So the revenue growth (+ 11 %e in FY 25, after + 27 % in FY 24) has enabled to largely improve its cash EBITDA which increased from 0.5 m$ in FY 24 to 1.9 m$ in FY 25 (according to June guidance).

The EBITDA has also been turned into a high level of free cash flow for H1 25 : 1 m$ of EBITDA generated 1.7 m$ of cash flow from operation and 1.32 m$ of free cash flow after lease, which corresponds to 2.6 m$ annualised (for an EV of 12.1 m$, with a share price of 4.9 c) and a free cash flow yield of 20 %+.
However, it is difficult to say if such a level of free cash flow is sustainable, as a significant part seems to come from working capital improvement (cf gap between EBITDA and cash flow from operation), while this free cash flow also does not take into account the share based payment (0.6 m$ in FY 24 and probably around 0.5 m$ in FY 25).

One of the key elements for MXO is to assess its ability to further increase its revenue (on an organic basis), on a regular basis (not obvious for a company depending on advertising). This growth depends on their ability to grow the revenue/display, as well as their number of screens (1,600 digital screens).
For now, the company still has a limited return as it costs them 4,000 $ to place a display, while they generate 5,200 $+ of gross profit per display (ad revenue of 7,000 $ and gross margin of around 75 %).