Growth investors will probably appreciate Hylete (HYLT)’s revenue growth of 33%. Additionally, the company’s gross profit margin of 53% is also very impressive.
That said, the company does not report positive FCF and will use the proceeds from the IPO to reduce its debt, which is not ideal. Value investors will not appreciate it. Besides, the underwriters believe that the company’s enterprise value should be worth more than $50 million. In our opinion, after the IPO the total valuation will most likely be lower.
Source: Prospectus
Source: Prospectus
Business
Founded in 2012, Hylete,