A Microcap At Its Earnings Inflection (With Free Defense Optionality)
Profitable, insider-aligned, debt-free, and quietly compounding a recurring revenue tail behind every device sold.
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Most hardware microcaps look the same on a screener.
Lumpy quarters. Thin margins. A P&L that never quite compounds.
Every once in a while, one of them has been quietly building a second business behind the first - a recurring revenue line under every unit that ships, growing patiently for years.
Then the recurring line covers the entire cost base. Every next sale drops through at high margin. The whole business is a different animal to what it was two quarters ago.
That is what just happened here.
Last month I initiated a 2.5% position in the Schwar Capital portfolio.
Today’s company is…