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    Kunal Madhukar

    Research Analyst at Water Tower Research

    Kunal Madhukar is Managing Director and CFA at Water Tower Research, specializing in technology sector research with a focus on internet, telecom, and media companies. He covers firms such as SurgePays and other small- to mid-cap technology names, leveraging over 20 years of sell-side experience and a track record as lead analyst at UBS. Madhukar joined Water Tower Research in December 2024 after serving as Senior Internet Analyst at UBS, where he built a reputation for in-depth sector coverage and high-caliber equity research. He holds the CFA charter and is recognized for his extensive expertise and leadership in technology equity research.

    Kunal Madhukar's questions to SurgePays (SURG) leadership

    Kunal Madhukar's questions to SurgePays (SURG) leadership • Q1 2025

    Question

    Asked for details on the MVNE opportunity, including revenue timeline and economics; the distribution strategy for the large inventory of SIM cards; the path to reaching 100,000 retail locations; and progress on the Lifeline business in higher-revenue states.

    Answer

    The company expects MVNE revenue to begin in Q2, with a target margin of 20-30% per subscriber, though modeling is difficult due to partner variability. SIM cards will be distributed across all business lines (retail, wholesale, government) to fuel growth. The goal of 100,000 locations by the end of 2026 is based on a strong sales pipeline with distributors like HT Hackney. The company is moving 'full steam ahead' on Lifeline, targeting high-revenue states first and anticipating a potential government enhancement to the program.

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    Kunal Madhukar's questions to SurgePays (SURG) leadership • Q1 2025

    Question

    Kunal Madhukar of Water Tower Research asked about the revenue timeline and economics for the new MVNE business, the distribution strategy for its large SIM card inventory, the path to achieving the 100,000 retail location goal, and progress in high-revenue Lifeline states.

    Answer

    President and CEO Brian Cox explained that MVNE revenue should appear in Q2, featuring a high-margin, recurring model. He detailed that the SIM inventory is being strategically distributed across all business lines, including government-subsidized programs, LinkUp retail, the 'Phone in a Box' concept, and new MVNE partners. Cox affirmed the 100,000 store goal is based on a strong pipeline with partners like HT Hackney and that the company is moving 'full steam ahead' on Lifeline expansion into high-revenue states, supported by recent financing.

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    Kunal Madhukar's questions to ThredUp (TDUP) leadership

    Kunal Madhukar's questions to ThredUp (TDUP) leadership • Q1 2025

    Question

    Kunal Madhukar asked about trends on the seller side of the business, particularly in light of eroding consumer confidence and potential tariffs. He also followed up on the 5% decline in average revenue per order, questioning if it was due to pricing pressure or other factors.

    Answer

    CEO James Reinhart reported continued good momentum on the seller side, which is crucial for supporting buyer growth. He highlighted growth in the premium consignment offering and the rapid adoption of a new feature allowing sellers to include items with their returns. Regarding the average revenue per order, he clarified that the decline was not due to pricing pressure but was a direct result of the mix shift from the explosive growth in new buyers, who receive a promotional discount on their first order.

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    Kunal Madhukar's questions to ThredUp (TDUP) leadership • Q4 2024

    Question

    Kunal Madhukar asked about the potential impact of new tariffs on advertising costs and ThredUp's strategy for balancing growth investment versus margin improvement, and followed up on the flexibility of their pricing algorithm.

    Answer

    CEO James Reinhart identified potential tariffs as a net positive. He explained that lower ad costs (CPCs) would be a tailwind, allowing for more investment to drive buyer growth. He also noted that rising costs for new apparel would make secondhand more attractive. Reinhart confirmed ThredUp's pricing algorithms are dynamic and can adjust in real-time to capitalize on market price changes.

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    Kunal Madhukar's questions to TheRealReal (REAL) leadership

    Kunal Madhukar's questions to TheRealReal (REAL) leadership • Q4 2024

    Question

    Kunal Madhukar from Water Tower Research inquired about the contribution of direct revenue to the 2025 growth forecast and questioned the size of the fixed G&A cost base, asking about potential leverage opportunities.

    Answer

    CFO Ajay Gopal stated that direct revenue has been rightsized to about 10-15% of total revenue and is expected to remain stable with gross margins around 15%. Regarding G&A, he clarified that the fixed cost base includes corporate functions and public company costs. He emphasized that this infrastructure is now built and will be a significant source of operating leverage as the business scales without requiring major new investment.

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