Persistent negative free cash flow, evidenced by a $250,300 burn in 2025Q3, highlights a structural inability to fund operations internally despite prior capital allocation toward $2.6 million in share repurchases.
| Cash from Operations | -1M | -1.37M | -113.57K | -324.87K |
| Operating CF Margin % | - | -56.86% | -3.16% | - |
| Operating CF Growth % | 9.88% | -1103.45% | 65.04% | - |
| Net Income | -2.11M | -2.4M | -582.06K | -119.63K |
| Depreciation & Amortization | 0 | 903.44K | 898.63K | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 69.59K | -63.4K | -35.54K | -16.02K |
| Working Capital Changes | 1.04M | 191.79K | -394.6K | -189.22K |
| Change in Receivables | 0 | -29.88K | 98.95K | 0 |
| Change in Inventory | 0 | 26.23K | 221.54K | 0 |
| Change in Payables | 0 | 46.34K | -8.61K | 0 |
| Cash from Investing | 28.77M | -1.71M | -288.29K | -116.72M |
| Capital Expenditures | 0 | -221.32K | -274.47K | 0 |
| CapEx % of Revenue | - | 9.21% | 7.64% | - |
| Acquisitions | 0 | -1.49M | -674 | 0 |
| Investments | - | - | - | - |
| Other Investing | 26.89M | 0 | -13.15K | 0 |
| Cash from Financing | -27.3M | 3.28M | 212.92K | 117.86M |
| Debt Issued (Net) | 1.81M | -425.36K | -345.22K | 0 |
| Equity Issued (Net) | -29.51M | 2.3M | 0 | 117.86M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -29.51M | 0 | 0 | 0 |
| Other Financing | 397.21K | 1.41M | 558.14K | 0 |
| Net Change in Cash | 464.61K | 198.65K | -213.1K | 812.23K |
| Free Cash Flow | -1M | -1.59M | -388.04K | -324.87K |
| FCF Margin % | - | -66.07% | -10.79% | - |
| FCF Growth % | -102.24% | -309.26% | -19.44% | - |
| FCF per Share | -0.28 | -0.26 | -0.01 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.47x | 0.59x | 0.16x | 2.72x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Critical Liquidity Shortfall
According to recent financial disclosures, ALPS exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly and failing to demonstrate a consistent conversion of accounting profits into actual liquidity, which suggests significant underlying volatility in the company's core operations.
The erratic relationship between net income and operating cash flow indicates that reported earnings are not reflective of the company's ability to generate cash. Investors should monitor this divergence closely, as it suggests that the business model may be reliant on non-cash accounting adjustments rather than sustainable operational inflows.
As reported in financial statements, ALPS has consistently burned cash, with free cash flow remaining negative across the observed periods, highlighting a structural inability to fund its high-fixed-cost clinical operations through internal revenue generation, which warrants extreme caution regarding the company's long-term financial viability.
The persistent negative free cash flow trajectory suggests that the company is currently unable to achieve self-sustainability. Without a fundamental shift in revenue generation or a drastic reduction in overhead, the current cash burn rate appears to be an existential threat to the firm's ongoing operations.
Based on ALPS's reported figures, working capital changes have frequently acted as a temporary buffer against operating losses, yet these fluctuations appear insufficient to offset the broader cash burn, suggesting that the company's liquidity position is highly sensitive to the timing of receivables and payables management.
The reliance on working capital adjustments to mitigate cash outflows may indicate inefficiencies in the collection cycle or aggressive management of payables. This pattern suggests that the company's cash position is precarious and potentially vulnerable to any disruption in its transactional revenue streams.
As indicated by recent filings, ALPS has directed significant capital toward share repurchases despite generating negative free cash flow, a strategy that appears disconnected from the company's underlying operational performance and may have further constrained the liquidity available for essential clinical and laboratory infrastructure investments.
The decision to prioritize share buybacks while the business is burning cash suggests a misalignment between capital allocation and operational necessity. This approach may have accelerated the depletion of the company's cash reserves, leaving it with limited flexibility to navigate the current period of revenue contraction.
Based on the provided data, the cash flow statement appears to obscure the true extent of the company's financial distress by failing to clearly delineate the impact of capitalized costs or potential off-balance-sheet obligations, which makes assessing the true cash burn rate a complex analytical challenge.
The lack of transparency regarding specific cash adjustments suggests that the reported figures may not fully capture the company's total liquidity risk. Investors should investigate whether there are hidden liabilities or deferred costs that could further exacerbate the current cash shortfall.
Quick answers to the most common questions about buying ALPS stock.
Alps Group Inc (ALPS) generated $-1.4M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Alps Group Inc (ALPS) reported negative free cash flow of $1.6M in 2023, indicating capital requirements exceeded cash from operations.
Alps Group Inc (ALPS) spent $0.2M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.