Executive Summary

Q3 revenue rose 176% year over year to $1.05M as Direct Solar scaled; gross profit improved to $525.9K, and the quarter turned to a modest net income ($0.62M) primarily due to a $1.98M non‑cash gain on the derivative liability .
Management highlighted strong momentum in solar and hemp: Direct Solar “continues to exceed revenue growth targets,” and the company launched 1606 hemp cigarettes with initial orders shipped; they “anticipate a big fourth quarter” but provided no formal numerical guidance .
Operating loss persisted at $(0.65)M, and liquidity remains constrained (cash $0.29M; negative working capital ~$(6.0)M; stockholders’ deficit ~$(5.1)M), raising going‑concern risk and reliance on convertible debt financing .
No Wall Street consensus estimates were available on S&P Global for SING; therefore, no beat/miss analysis vs. estimates is possible (consensus unavailable on S&P Global).

What Went Well and What Went Wrong

What Went Well
- Revenue acceleration and gross profit expansion: Q3 revenue of $1.05M (+176% YoY) and gross profit of $525.9K (vs. $75.4K LY) reflect Direct Solar’s contribution and mix shift to higher‑margin activities .
- Non‑cash tailwind: A $1.98M gain from the change in fair value of the derivative liability swung net income to $0.62M, offsetting operating losses .
- Management momentum and product launches: “We are establishing solid financials and we anticipate a big fourth quarter… We believe SinglePoint’s revenues will continue to grow as our subsidiary Direct Solar expanded into new markets” (CEO Greg Lambrecht). “Initial response to the ‘Pure American Hemp Cigarette’ has been overwhelming… launching ‘ORIGINAL 1606 HEMP’” (VP Sales Don Smith) .
What Went Wrong
- Core profitability still negative: Q3 loss from operations was $(0.65)M despite higher gross profit, underscoring ongoing operating inefficiency and investment needs .
- Liquidity and going‑concern risks: Cash was $0.29M; management disclosed negative working capital of ~$(6.0)M and total stockholders’ deficit of ~~$(5.1)M, requiring additional capital within the next 12 months (~~$2.5M cash need) .
- Capital structure pressure and dilution: Convertible notes payable (net) increased to $1.88M and derivative liability stood at $3.84M; share issuance for services and conversions continued during 2019 .

Financial Results

Quarterly results (oldest → newest):

Metric	Q1 2019	Q2 2019	Q3 2019
Revenue ($)	$262,890	$856,859	$1,050,374
Cost of Revenue ($)	$187,261	$440,946	$524,483
Gross Profit ($)	$75,629	$415,913	$525,891
Loss from Operations ($)	$(503,120)	$(3,733,662)	$(653,697)
Net Income (Loss) Attrib. to SING ($)	$(1,267,353)	$(7,418,493)	$619,756
Basic EPS ($)	$(0.00)	$(0.01)	$0.00

Year-over-year (Q3 2019 vs Q3 2018):

Metric	Q3 2018	Q3 2019	YoY Comment
Revenue ($)	$381,037	$1,050,374	Up 176%
Gross Profit ($)	$75,353	$525,891	Significant expansion
Loss from Operations ($)	$(1,147,014)	$(653,697)	Operating loss narrowed
Net Income (Loss) Attrib. to SING ($)	$(1,337,583)	$619,756	Swing to profit (non‑cash derivative gain)

Revenue mix (YTD through Q3):

Revenue Class	9M 2018 ($)	9M 2019 ($)
Retail	$136,317	$124,067
Distribution	—	$475,776
Services	$744,840	$1,570,280
Total	$881,157	$2,170,123

Balance sheet and financing KPIs:

KPI	Q1 2019	Q2 2019	Q3 2019
Cash and Equivalents ($)	$383,249	$85,714	$294,062
Convertible Notes Payable, net ($)	$1,280,747	$1,529,384	$1,875,318
Derivative Liability ($)	$2,149,878	$5,183,457	$3,836,085
Shares Outstanding (reference date)	1,299,350,272 (as of 5/15/19)	1,621,090,921 (as of 8/14/19)	1,672,584,058 (as of 11/12/19)

Notes:

No S&P Global consensus estimates were available for SING in Q3 2019; as a result, no vs. estimates table is provided (consensus unavailable on S&P Global).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2019/near‑term	None	Management “anticipate a big fourth quarter” (qualitative)	Qualitative positive
Solar (Direct Solar)	Ongoing	None	“Continues to exceed revenue growth targets”	Positive
Hemp (1606)	Ongoing	None	Launch of “ORIGINAL 1606 HEMP” with initial orders shipped	Positive
Formal numeric guidance	Any	None	None	No change

No formal ranges for revenue, margins, OpEx, tax, OI&E, or dividends were provided in Q3 materials .

Earnings Call Themes & Trends

No Q3 2019 earnings call transcript was found or furnished; the company did not provide a transcript in filings during the period [Search returned none]. Thematic trajectory from filings and press release:

Topic	Prior Mentions (Q1 2019, Q2 2019)	Current Period (Q3 2019)	Trend
Solar (Direct Solar)	Acquisition closed 5/14; early contribution noted; Q2: revenue boost from integration	Direct Solar “exceeds revenue growth targets,” key to growth; $951,430 revenue from acquisition date through 9/30/19 in SDS	Strengthening
Hemp products	Q2: ~$447K hemp sale to a distributor in June	Launch of “Pure American Hemp Cigarette” and “ORIGINAL 1606 HEMP”; initial orders shipped	Expanding
Capital structure/derivatives	Q1: derivative loss $(0.62)M; Q2: derivative loss $(2.98)M	Derivative gain $1.98M materially aided net income	Volatile, Q3 favorable
Liquidity/going concern	Q1: cash $0.38M; need ~$0.5M; Q2: cash $0.09M; need ~$2.0M	Cash $0.29M; need ~$2.5M over next 12 months; negative WC ~$(6.0)M	Funding need rising

Management Commentary

Strategic focus and outlook: “We are establishing solid financials and we anticipate a big fourth quarter… We believe SinglePoint’s revenues will continue to grow as our subsidiary Direct Solar expanded into new markets” — Gregory Lambrecht, CEO .
Product expansion: “Initial response to the ‘Pure American Hemp Cigarette’ has been overwhelming… launching our newest smokable hemp‑based product — ‘ORIGINAL 1606 HEMP’… we will continue to expand our product line, strengthen our manufacturing capacity and grow our global distribution channels” — Don Smith, VP of Sales .
Operating drivers per MD&A: Q3 revenue increase “due primarily to the integration of SDS acquired on May 14, 2019”; other income uplift driven by the $1.98M gain on the derivative liability .

Q&A Highlights

No Q3 2019 earnings call transcript was filed or located; therefore, no Q&A highlights or guidance clarifications were available from a call [Search returned none].

Estimates Context

S&P Global consensus estimates for Q3 2019 (EPS and revenue) were unavailable for SING; as a result, there is no beat/miss comparison to Wall Street consensus for the quarter (consensus unavailable on S&P Global).

Key Takeaways for Investors

Execution: Revenue and gross profit inflected positively, with Direct Solar the main catalyst; service mix is driving more durable gross profit versus prior periods .
Quality of earnings: Q3 profitability was largely driven by a non‑cash, mark‑to‑market derivative liability gain ($1.98M); core operations remain loss‑making (operating loss $(0.65)M) .
Liquidity risk: Negative working capital (~$(6.0)M) and a stated ~$2.5M 12‑month cash need imply near‑term financing dependence (likely via convertible notes or equity), with dilution risk .
Growth vectors: Direct Solar expansion and the 1606 hemp cigarette launch/initial orders create revenue catalysts into Q4 and 2020, albeit from a small base and with execution/manufacturing/distribution risks .
Capital structure volatility: Large, fluctuating derivative liability and growing convertible debt introduce earnings volatility and shareholder dilution dynamics; monitor further note issuances/conversions and fair‑value impacts .
Reporting cadence: Lack of consensus coverage and absence of a call transcript reduces external validation and visibility; investors may rely more heavily on 10‑Q/8‑K disclosures for near‑term signals .
Near‑term trading setup: Potential headlines around Direct Solar deals, 1606 distribution wins, or financing updates could drive outsized moves given micro‑cap liquidity; quality of cash generation versus non‑cash gains will be key to reaction .

Citations:

Q3 2019 press release and 8‑K (11/13/2019):
Q3 2019 10‑Q (11/12/2019):
Q2 2019 10‑Q (8/15/2019):
Q1 2019 10‑Q (5/15/2019):

Estimates: Consensus estimates for SING were unavailable on S&P Global (no CIQ mapping found).

SinglePoint Inc. (SING)·Q3 2019 Earnings Summary