Operating cash flow of -$1.2 million in 2026Q1 highlights a critical disconnect from reported net income, indicating that the firm is currently unable to fund operations through internal cash generation.
| Cash from Operations | 3.68M | 137K | 1.64M | -290K | -9.25M | -2.5M | 736.53K |
| Operating CF Margin % | - | 1.45% | 2.38% | -0.45% | -9.04% | -2.21% | 0.61% |
| Operating CF Growth % | -22.7% | -91.62% | 663.79% | 96.86% | -270.07% | -439.29% | - |
| Net Income | 16.5M | 1.36M | 309K | -3.17M | -9.25M | -6.69M | -1.17M |
| Depreciation & Amortization | 1.05M | 865K | 2.19M | 2.09M | 3.75M | 3.77M | 3.79M |
| Stock-Based Compensation | 0 | 154K | 0 | 0 | 1.08M | 139K | 144.95K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -542K | -905.82K |
| Other Non-Cash Items | -6.5M | -1.33M | -90K | 656K | -3.38M | -54K | 994.44K |
| Working Capital Changes | 580K | -913K | -774K | 135K | -1.45M | 879K | -2.12M |
| Change in Receivables | -692K | 89K | -171K | -1.38M | -415K | -1.63M | -112.96K |
| Change in Inventory | 0 | -80K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 98K | -637K | -1.01M | -237K | 1.48M | 423.52K |
| Cash from Investing | -1.09M | -987K | -2.01M | 0 | -19.49M | 16.82M | -15.08M |
| Capital Expenditures | 0 | -787K | -1.2M | 0 | 0 | -3.06M | -38.72K |
| CapEx % of Revenue | 0% | 8.31% | 1.75% | - | - | 2.71% | 0.03% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -1.06M | 5.76M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -1.09M | -200K | -810K | 0 | -19.49M | -1.8M | -9.32M |
| Cash from Financing | 5.53M | 500K | -1.24M | 2.8M | 5.05M | 916K | 8.44M |
| Debt Issued (Net) | 0 | 500K | -1.24M | 939K | 3.01M | -629.14K | 1.47M |
| Equity Issued (Net) | -200K | 0 | 0 | 1.86M | 0 | 16K | 5.45M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -200K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.73M | 0 | 0 | 0 | 2.04M | 1.53M | 1.53M |
| Net Change in Cash | 1.69M | -350K | -1.61M | 2.38M | -23.79M | 12.68M | -5.81M |
| Free Cash Flow | 3.68M | -850K | 435K | -290K | -9.25M | -15.88M | 697.81K |
| FCF Margin % | 7.09% | -8.98% | 0.63% | -0.45% | -9.04% | -14.03% | 0.58% |
| FCF Growth % | 114.64% | -295.4% | 250% | 96.86% | 41.77% | -2375.86% | - |
| FCF per Share | 1.29 | -0.29 | 3.05 | -2.06 | -74.79 | -136.16 | 6.29 |
| FCF Conversion (FCF/Net Income) | 0.22x | 0.10x | 0.72x | 0.01x | 0.10x | -0.84x | -0.01x |
| Interest Paid | 715.71K | 168K | 1.25M | 1.16M | 1K | 0 | 0 |
| Taxes Paid | 0 | 17K | 5K | 27K | 0 | 0 | 406.69K |
Imminent liquidity and insolvency
As evidenced by the most recent quarterly data, Ambow's operating cash flow of -$1.2 million stands in stark contrast to its reported net income of $424,000, highlighting a significant disconnect between accounting profitability and the actual cash generation capabilities of the underlying business model.
The negative OCF/NI ratio of -2.80 suggests that the company's reported earnings are not translating into tangible liquidity, which is a major red flag for investors. This divergence implies that the net income figure may be heavily influenced by non-cash items or accounting adjustments that do not reflect the reality of the company's cash-burning operations.
Based on historical financial statements, the company's free cash flow has consistently struggled to maintain positive territory, with the most recent quarter showing a FCF margin of -42.5%, indicating that the business is currently unable to fund its operations through internal cash generation alone.
The inability to sustain positive free cash flow, even after accounting for the lack of capital expenditure, suggests that the core business model is fundamentally challenged. Investors should monitor whether this trend is a temporary byproduct of the ongoing restructuring or a permanent feature of the company's current operational scale.
According to the provided multi-period data, the persistent gap between net income and operating cash flow over the last ten quarters suggests that the company's cumulative earnings have failed to provide a reliable indicator of the actual cash available to support its ongoing educational service operations.
The historical volatility in operating cash flow, particularly the extreme negative figures seen in 2022, indicates that the company has faced significant challenges in managing its cash cycle. This long-term divergence warrants further investigation into whether the company's accounting practices are adequately capturing the true economic cost of its business pivot.
As reported in financial filings, the absence of meaningful capital expenditure alongside erratic operating cash flow suggests that the cash flow statement may be masking the true extent of the company's operational distress and its reliance on non-operating activities to maintain a semblance of liquidity.
The lack of transparency regarding the specific drivers of cash flow, such as the impact of deferred revenue or potential asset liquidations, makes it difficult to assess the company's true financial health. Investors should be wary of the potential for further cash depletion given the current lack of clear, sustainable cash-generating activities.
Quick answers to the most common questions about buying AMBO stock.
Ambow Education Holding Ltd. (AMBO) generated $0.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ambow Education Holding Ltd. (AMBO) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
Ambow Education Holding Ltd. (AMBO) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.