Liquidity is under extreme pressure as evidenced by a negative free cash flow margin of -2.0% and a CapEx/Revenue ratio that surged to 18.1% in 2025Q4.
| Cash from Operations | -13.13M | -19.6M | 4.3M | 1.56M | -531.83K |
| Operating CF Margin % | -177.88% | -158.64% | 49.45% | 35.33% | -13.11% |
| Operating CF Growth % | 33% | -556.12% | 175.11% | 393.69% | - |
| Net Income | -70.28M | -5.49M | -6.83M | -2.66M | -981.03K |
| Depreciation & Amortization | 1.19M | 721.45K | 770.21K | 137.59K | 44.17K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 57.59M | -90.23K | 16.92K | 464K | 353.13K |
| Working Capital Changes | -1.63M | -14.74M | 10.34M | 3.62M | 51.91K |
| Change in Receivables | -651.46K | -926.85K | -210.33K | 69.14K | -76.92K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 363.06K | 0 | 0 | 0 | 0 |
| Cash from Investing | -783.67K | -82.97K | -10.05M | 378.73K | -901.24K |
| Capital Expenditures | -783.67K | -34.3K | -48.43K | -25.45K | -92.07K |
| CapEx % of Revenue | 10.62% | 0.28% | 0.56% | 0.58% | 2.27% |
| Acquisitions | 0 | 0 | -10M | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | -48.67K | 0 | 404.18K | -809.17K |
| Cash from Financing | 3.06M | 57.85M | 6.87M | -576.62K | 2.72M |
| Debt Issued (Net) | 2.1M | 797.23K | -788.82K | -538.62K | 2.72M |
| Equity Issued (Net) | 0 | 44.11M | 10M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 958.2K | 12.94M | -2.34M | -38K | 0 |
| Net Change in Cash | -10.95M | 38.17M | 1.12M | 1.36M | 1.29M |
| Free Cash Flow | -13.91M | -19.68M | 4.25M | 1.54M | -623.9K |
| FCF Margin % | -188.49% | -159.31% | 48.89% | 34.75% | -15.38% |
| FCF Growth % | 29.3% | -563.27% | 176.51% | 346.27% | - |
| FCF per Share | -0.85 | -1.29 | 0.32 | 0.10 | -0.04 |
| FCF Conversion (FCF/Net Income) | 0.19x | 3.57x | -0.63x | -0.59x | 0.54x |
| Interest Paid | 1.14M | 102.16K | 74.59K | 105.85K | 55.19K |
| Taxes Paid | 57.71K | 73.38K | 19.15K | 73.32K | 24.55K |
Rapid Cash Reserve Depletion
According to recent financial filings, ATGL's OCF/NI ratio of 0.12 in 2025Q4 highlights a profound disconnect between reported net losses and actual cash generation, suggesting that accounting accruals are failing to capture the true, rapid depletion of liquidity inherent in the current project-based service model.
The low conversion ratio indicates that the company's net income figures are not providing a reliable proxy for cash flow health. Investors should monitor whether this divergence stems from aggressive revenue recognition on long-term contracts that are not yielding timely cash inflows.
As reported in quarterly statements, ATGL's free cash flow margin reached -2.0% in 2025Q4, marking a significant shift from the positive cash flow periods observed in 2023, which suggests that the firm's operational model is increasingly unable to self-fund its ongoing development and maintenance activities.
The transition from positive FCF in 2023 to negative territory in 2025Q4 implies that the company is consuming capital at an accelerating rate. This trend warrants further investigation into whether the firm can sustain its current cost structure without further dilutive financing.
Based on the company's reported figures, the CapEx/Revenue ratio surged to 18.1% in 2025Q4, indicating that the firm is committing a substantial portion of its shrinking revenue base to capital expenditures that have yet to demonstrate a clear return on invested capital for shareholders.
High capital intensity in a contracting revenue environment suggests that the company may be struggling to maintain its technological infrastructure. It appears that these investments are not currently driving the efficiency gains necessary to stabilize the firm's negative operating margins.
As evidenced by the -$1.6M working capital change in 2025Q4, ATGL's cash flow is being negatively impacted by inefficient management of current assets and liabilities, which contrasts sharply with the positive working capital contributions seen in previous fiscal periods like 2023Q4.
The reversal in working capital dynamics suggests that the company may be facing challenges in collecting receivables or managing payables effectively. This volatility appears to be a primary driver of the firm's current cash burn, necessitating a closer look at the underlying credit terms with its SME client base.
Quick answers to the most common questions about buying ATGL stock.
Alpha Technology Group Limited (ATGL) generated $-13.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alpha Technology Group Limited (ATGL) reported negative free cash flow of $13.9M in 2025, indicating capital requirements exceeded cash from operations.
Alpha Technology Group Limited (ATGL) 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.