Free cash flow remains highly erratic, swinging from a peak of $50.1M in 2024Q2 to a marginal $351.2K in 2026Q2, reflecting the company's sensitivity to project-based collection cycles.
| Cash from Operations | -21.77M | 1.67M | 56.69M | 54.43M | 29.76M | 3.13M | -11.83M |
| Operating CF Margin % | - | 3.72% | 97.44% | 22.48% | 6.72% | 6.21% | -30.29% |
| Operating CF Growth % | -331.33% | -97.06% | 4.17% | 82.88% | 851.88% | 126.43% | - |
| Net Income | -24.56M | -68.32M | -65.51M | 21.89M | 88.29M | 20.4M | 5.15M |
| Depreciation & Amortization | 54.98M | 45.34M | 56.31M | 38.41M | 16.47M | 1.52M | 1.03M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 88.22M | 24.97M | 163.75K | -145.18K | -101.42K | -12.97M | 27.48M |
| Working Capital Changes | -76.2M | -319.54K | 65.73M | -5.73M | -74.9M | -5.83M | -45.48M |
| Change in Receivables | -374.08K | -13.29M | 72.03M | -3.81M | -70.31M | 19.82M | -45.49M |
| Change in Inventory | -26M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -44.69M | 8.54M | -6.18M | 10.05M | -1.81M | 0 | 0 |
| Cash from Investing | -14.6M | 101.1K | -28.91M | -97.12M | -136.62M | -24.99M | -11.92M |
| Capital Expenditures | 0 | 0 | -30M | -72.38M | -134.02M | 0 | -6.72M |
| CapEx % of Revenue | 0% | 0% | 51.56% | 29.89% | 30.25% | 0% | 17.21% |
| Acquisitions | 55.26K | 101.1K | -262.5K | 1.3K | -8M | -18.26M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -14.66M | 0 | 1.36M | -24.73M | -72.6M | -6.72M | -5.2M |
| Cash from Financing | 5.74M | -126.35K | -49.53M | 44.83M | 126.92M | 23.37M | 30.14M |
| Debt Issued (Net) | 0 | 0 | -132K | -132K | -121K | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 23.3M | 137.04M | 24.55M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.74M | -126.35K | -49.4M | 21.66M | -10M | -1.18M | 30.14M |
| Net Change in Cash | 5.23M | 2.86M | -21.47M | 3.28M | 20.07M | 1.51M | 6.6M |
| Free Cash Flow | -21.77M | 1.67M | 26.69M | -17.96M | -104.26M | 3.13M | -18.55M |
| FCF Margin % | -20.29% | 3.72% | 45.88% | -7.42% | -23.53% | 6.21% | -47.5% |
| FCF Growth % | -151.46% | -93.75% | 248.64% | 82.77% | -3434.66% | 116.85% | - |
| FCF per Share | -12.33 | 0.95 | 15.15 | -12.24 | -156.39 | 1.79 | - |
| FCF Conversion (FCF/Net Income) | 0.89x | -0.10x | -1.04x | 2.11x | 0.41x | 0.17x | -2.30x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Project-based revenue volatility
As reported in financial statements, ARBB's operating cash flow frequently decouples from net income, with the most recent 2026Q2 period showing an OCF/NI ratio of -0.10, suggesting that reported losses are not fully capturing the underlying cash burn inherent in the company's current project-based business model.
The extreme variance in the OCF/NI ratio across the last ten quarters indicates that accrual-based accounting for long-term IoT installations may be masking the true cash-generating capacity of the firm. Investors should monitor whether the persistent gap between net income and operating cash flow reflects aggressive revenue recognition or simply the timing mismatch of milestone-based payments.
Based on the provided cash flow data, ARBB's free cash flow trajectory remains highly erratic, swinging from a peak of $50.1M in 2024Q2 to a recent $351.2K in 2026Q2, which highlights the company's inability to maintain consistent cash generation amidst its ongoing revenue contraction.
The lack of a stable FCF margin suggests that the company is currently unable to scale its operations profitably. The reliance on sporadic cash inflows to offset operational losses warrants further investigation into whether the company can sustain its current cash position without further capital injections.
According to historical cash flow filings, ARBB's working capital changes have been the primary driver of liquidity, with a massive $87.3M inflow in 2024Q2 followed by significant outflows in other periods, suggesting that the company's cash position is highly sensitive to project-specific collection cycles.
The volatility in working capital changes appears to be a direct consequence of the company's reliance on large, lumpy construction-related contracts. This pattern suggests that the firm's liquidity is vulnerable to delays in project completion or client payment cycles, which could lead to sudden cash crunches.
As indicated by the provided financial data, ARBB has refrained from dividends or share repurchases, instead prioritizing the preservation of its cash reserves, which appears to be a defensive response to the persistent operational losses and the absence of a clear, scalable growth path.
Management's decision to avoid capital returns suggests a focus on maintaining a liquidity buffer to survive the current downturn. However, the lack of investment in growth-oriented acquisitions or internal R&D may indicate that the company is struggling to identify viable opportunities to pivot its business model.
Quick answers to the most common questions about buying ARBB stock.
ARB IOT Group Limited (ARBB) generated $1.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ARB IOT Group Limited (ARBB) generated $1.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ARB IOT Group Limited (ARBB) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.