BZAI

Blaize is a pre-scale edge-AI chip company that came public via the January 2025 BurTech reverse merger, and the FY2025 numbers show why it isn't investable yet. The eye-catching +2,386% revenue growth to $38.6M is largely an illusion of quality: the 10-K states a substantial portion of revenue came from reselling third-party hardware (mostly servers) that 'generally carry lower gross margins,' and the financials confirm it — gross profit was just $6.19M for a 16.0% gross margin. That is not a semiconductor margin profile; it's a systems-integrator pass-through. Against that thin gross profit sits $42.5M of R&D and a -$104M operating loss (-268.8% operating margin), producing a -$207M net loss and a cumulative deficit of -$636M.

The balance sheet is the binding constraint. Operating cash flow was -$73.8M for FY2025 while cash stood at just $45.8M — well under a year of runway at the current burn. Management is visibly plugging the gap with dilutive financings: the November 2025 Polar private placement sold stock at $3.20 with $5.00 warrants, yet shares now trade at $1.34, meaning those buyers are deep underwater and the warrants are far out-of-the-money — a poor setup for raising the next round the company will clearly need. Share count already grew 20.7% to 123M, and the $33.1M of 'repurchases' reflects SPAC redemption mechanics, not shareholder-friendly capital return.