TechTarget, Inc. Common Stock (TTGT)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,546 | -6,352 | -10,055 | -10,383 | -10,482 | -2,269 | 14,385 | 32,296 | 50,761 | 61,128 | 60,244 | 48,996 | 41,815 | 34,354 | 28,176 | 27,516 | 22,457 | 22,820 | 22,297 | 22,736 |
| Interest expense (ttm) | US$ in thousands | 9,828 | 14,089 | 12,279 | 15,070 | 11,783 | 8,466 | 8,466 | 5,675 | 3,744 | 1,547 | 23,438 | 23,637 | 23,139 | 23,275 | 2,177 | 2,069 | 1,593 | 1,366 | 678 | 996 |
| Interest coverage | 0.16 | -0.45 | -0.82 | -0.69 | -0.89 | -0.27 | 1.70 | 5.69 | 13.56 | 39.51 | 2.57 | 2.07 | 1.81 | 1.48 | 12.94 | 13.30 | 14.10 | 16.71 | 32.89 | 22.83 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,546K ÷ $9,828K
= 0.16
The interest coverage ratios for TechTarget, Inc. display considerable fluctuation over the period from June 2020 through June 2025. Initially, the company demonstrated robust interest coverage, with ratios exceeding 20 in mid-2020 (22.83 on June 30, 2020, and 32.89 on September 30, 2020), indicating strong capacity to meet interest obligations through earnings before interest and taxes (EBIT). During this period, the ratios suggested a comfortable margin of safety.
However, a notable decline occurred by the end of 2020, with the ratio decreasing to 16.71 in December 2020, and further diminishing throughout 2021, reaching a low of 1.48 in December 2021. This decline suggests a weakening ability to cover interest expenses, approaching marginal coverage levels. Throughout 2022, the ratios gradually recovered, with values such as 2.07 on June 30, 2022, and peaking dramatically at 39.51 by December 2022, indicating an exceptional ability to service interest during that period. The first quarter of 2023 saw a decrease to 13.56, with subsequent quarters continuing to decline, reaching 1.70 by September 2023.
Moving into 2024 and 2025, the interest coverage ratios turned negative, with readings such as -0.27 in December 2023, and further declines to negative territory in March (-0.89), June (-0.69), and September (-0.82) of 2024. These negative figures suggest that earnings before interest and taxes were insufficient to cover interest expenses, indicating potential financial distress or significant earnings deterioration. The ratios remain-negative into 2025, with a slight movement towards positive territory at the end of the period (0.16 in June 2025), implying marginal improvement but ongoing concern about the company’s ability to comfortably meet interest obligations.
Overall, the trend reflects periods of strong financial health interspersed with substantial weakening, culminating in negative interest coverage figures, which raise concerns regarding the company's capacity to satisfy interest commitments in the later years. The sharp fluctuations and negative ratios indicate a changing financial condition that warrants close monitoring of the company's profitability and debt management strategies.
Peer comparison
Jun 30, 2025