TISI

Team, Inc. is a structurally distressed industrial-services business whose equity sits on the wrong side of a heavy capital structure. Despite respectable top-line resilience — revenue grew 5.2% to $896M in FY2025 and operating income actually rose 38.8% to $14.1M — the company lost $49.2M net and posted diluted EPS of -$11.70. That gap between modest operating profit (1.6% operating margin) and a deep net loss is the whole story: interest and financing costs (including PIK interest and a non-cash loss on debt extinguishment per the MD&A) on $297M of total debt swamp the operating engine. Four of the last five years were net-loss years; the lone profit (FY2022, +$70M) looks like an anomaly against an accumulated deficit that has ballooned to -$465M.

The balance sheet is the disqualifier. Stockholders' equity is -$24.5M — the company is technically insolvent on a book basis, so the 'liabilities/equity' and P/S 0.1 figures are not 'cheap,' they're artifacts of a near-wiped-out equity layer. Liquidity is thin and deteriorating: unrestricted cash fell to $14.1M, and FY2025 operating cash flow swung to -$11.3M from +$22.8M a year earlier, a $34M reversal the MD&A attributes to a $31.3M working-capital drain. Management touts $66.8M of total liquidity (as of March 2026) plus a $30M Series B delayed-draw line through 2027, but that liquidity exists because the company keeps raising rescue capital — the September 2025 Series B Transactions, new warrants, and a March 2025 refinancing — each of which dilutes or subordinates the common.