Operational liquidity is under extreme pressure, evidenced by a negative free cash flow margin of -27.5% and a persistent disconnect between net income and operating cash flow.
| Cash from Operations | 2.12M | 7.11M | -1.69M | -17.34M | -1.87M | -1.65M | -196.39K | -2.83M | 6.56M | 1.61M | -6.71K |
| Operating CF Margin % | - | 22.19% | -1.82% | -8.54% | -5.11% | -3099.19% | -27.68% | -55.42% | 52.34% | 23.43% | - |
| Operating CF Growth % | 1085.25% | 520.34% | 90.25% | -825.2% | -13.46% | -741.18% | 93.07% | -143.17% | 307.04% | 24131.37% | - |
| Net Income | 15.24M | 3.41M | -7.44M | 11.48M | 3.53M | -1.1M | -1.56M | -1.79M | 3.9M | 1.67M | -150.62K |
| Depreciation & Amortization | 20.68K | 19.3K | 473.72K | 57.36K | 101.71K | 33.44K | 57.63K | 382.68K | 246.53K | 25.98K | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 772.61K | -2.58M | -7.06M | -129.03K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 34.29M | 46.26M | 9.67M | 27.71M | 106.92K | -644.68K | -33.68K | -249.56K | 35K | 110.79K | 12.51K |
| Working Capital Changes | -47.43M | -43.35M | -1.81M | -49.52M | -5.49M | 56.37K | 1.34M | -1.18M | 2.38M | -189.84K | 143.91K |
| Change in Receivables | -33.78M | -9.27M | 107.54M | -119.01M | -2.61M | 0 | -67.07K | 580.01K | 1.33M | -1.51M | 0 |
| Change in Inventory | -9.69M | -27.17M | -89.73M | 41.01M | -22.43M | 0 | 1.42M | 0 | 0 | 1.19M | -3.39K |
| Change in Payables | 0 | -7M | -42.68M | 50.07M | 15.41M | 1.76K | -76.38K | 66.69K | -159.49K | 9.66K | 0 |
| Cash from Investing | 115.85K | 115.85K | -10.71K | -332.31K | -339.66K | -1.2K | -5.01M | -435.46K | -1.4M | -1.79M | 0 |
| Capital Expenditures | 0 | 0 | -10.71K | -332.31K | -339.66K | -810 | -34.66K | -57.51K | -1.4M | -1.79M | 0 |
| CapEx % of Revenue | 0% | 0% | 0.01% | 0.16% | 0.93% | 1.52% | 4.88% | 1.12% | 11.19% | 25.96% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -5.34M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 115.85K | 115.85K | 0 | 0 | 0 | -385 | -4.94M | -377.95K | -1.36M | -1.73M | 0 |
| Cash from Financing | -2.97M | -7.24M | 1.32M | 7.01M | 19.56M | 111.88K | -526.33K | 6.06M | -1.62M | 4.4M | 16.09K |
| Debt Issued (Net) | 0 | -8.02M | -3.16M | 7.01M | 1.57M | 383.43K | 0 | 334.24K | -2.67M | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 17.64M | 667.9K | 0 | 5.73M | 1.17M | 830K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.97M | 780K | 4.48M | 0 | 350.23K | -939.45K | -526.33K | 0 | -127.19K | 3.57M | 16.09K |
| Net Change in Cash | 0 | -423K | -2.47M | -14.35M | 17.74M | -1.41M | -5.79M | 3.24M | 3.47M | 4.22M | 8.79K |
| Free Cash Flow | 2.12M | 7.11M | -1.7M | -17.67M | -2.21M | -1.65M | -231.05K | -2.89M | 5.16M | -174.34K | -6.71K |
| FCF Margin % | 4.38% | 22.19% | -1.83% | -8.7% | -6.03% | -3100.71% | -32.56% | -56.54% | 41.14% | -2.53% | - |
| FCF Growth % | 279.84% | 517.7% | 90.37% | -698.28% | -33.96% | -615.36% | 92.01% | -156.02% | 3059.58% | -2498.27% | - |
| FCF per Share | 1.55 | 14.66 | -3.51 | -36.43 | -5.15 | -3.79 | -0.54 | -6.90 | 12.05 | -0.41 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.14x | 2.28x | 0.23x | -1.51x | -0.53x | 1.51x | 0.13x | 0.34x | 1.68x | 0.69x | 0.04x |
| Interest Paid | 0 | 0 | 0 | 6.94K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 709 | 156.84K | 218.12K | 0 | 0 | 6.4K | 0 | 0 | 0 | 0 |
Liquidity and operational insolvency
According to the provided financial statements, AGMH exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio reaching 1.99 in recent periods, suggesting that reported profits are not translating into actual liquidity and may be heavily influenced by non-cash accounting adjustments.
The wide variance between net income and operating cash flow indicates that the company's earnings quality is poor, as accruals appear to dominate the bottom line. Investors should be wary of this divergence, as it often precedes significant downward revisions in reported profitability when cash reality eventually forces an accounting adjustment.
As reported in recent quarterly filings, AGMH's free cash flow trajectory remains deeply negative, with FCF margins consistently hovering around -27.5% in the most recent periods, highlighting a structural inability to generate self-sustaining cash from its current hardware-centric business model.
The consistent failure to generate positive free cash flow suggests that the company is consuming its limited capital base to fund operations rather than growing the business. This trend implies that the firm may be forced to seek external financing or dilute shareholders if the current cash burn rate persists.
Based on the reported figures, working capital changes have become a primary source of cash volatility, with a significant $5.5 million outflow in recent quarters, indicating that the company is struggling to manage its inventory and receivables effectively amidst a sharp revenue contraction.
The erratic swings in working capital suggest that the company's cash conversion cycle is highly inefficient, likely due to difficulties in collecting payments or managing obsolete hardware inventory. This instability in working capital management appears to be a major contributor to the company's current liquidity constraints.
As indicated by the financial data, AGMH has reported near-zero capital expenditures in recent periods, which suggests that the company is not investing in the necessary infrastructure or R&D to maintain its competitive position in the volatile ASIC hardware and fintech software markets.
While the lack of capex preserves cash in the short term, it likely signals a lack of long-term strategic investment, potentially leaving the company vulnerable to technological obsolescence. This strategy appears to prioritize immediate survival over the development of a sustainable, high-margin product pipeline.
Quick answers to the most common questions about buying AGMH stock.
AGM Group Holdings Inc. (AGMH) generated $7.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
AGM Group Holdings Inc. (AGMH) generated $7.1M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AGM Group Holdings Inc. (AGMH) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.