Stifel note"Good cost control shows torque potential. We note FIRE generated a strong gross margin (excl. D&A and impairment) at 58.5%, up from 47.4% in Q4FY20, demonstrating impressive scale benefits as revenue ramped up meaningfully and cost optimisations from H2FY20 bore fruit. In addition, management had strong cost control on SG&A, which remained stable QoQ. While we expect the company to invest further in supporting its product launches and improving fulfillment rates, we note FIRE"s relatively lean profile could result in positive operating leverage being triggered with relatively small increments in absolute sales growth."
That being said, they haven't reflected that sentiment in their estimates. Expecting $13.5m in revenue in Q2 and EBITDA flat.