Cash conversion efficiency is highly unstable, with OCF/NI ratios ranging from -3.16 in 2023Q4 to 18.58 in 2025Q4, indicating poor alignment between reported earnings and actual liquidity.
| Cash from Operations | 4.63M | 5.15M | -617K | 2.55M | 5.36M | 2.53M | 2.14M |
| Operating CF Margin % | - | 2.83% | -0.38% | 1.6% | 3.11% | 1.51% | 1.94% |
| Operating CF Growth % | 342.59% | 934.85% | -124.17% | -52.38% | 112.23% | 17.82% | - |
| Net Income | 3.17M | 2.31M | -4.56M | 571K | 911K | 2.79M | -3.39M |
| Depreciation & Amortization | 655K | 697K | 1.02M | 1.1M | 1.52M | 1.64M | 2.22M |
| Stock-Based Compensation | 333K | 725K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -872K | -907K | 607K | 993K | 573K | -1.23M | 580.3K |
| Other Non-Cash Items | 1.56M | 779K | 2M | 1.8M | 2.03M | 465.94K | 2.43M |
| Working Capital Changes | -220K | 1.55M | 314K | -1.91M | 321K | -1.14M | 312K |
| Change in Receivables | -1.66M | -1.4M | -1.04M | 26K | 2.58M | -3.61M | 1.45M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.19M | 3.81M | 1.82M | -241K | 670K | 2.2M | -259.82K |
| Cash from Investing | -64K | -61K | -85K | -80K | -327K | -4.99M | -1M |
| Capital Expenditures | -64K | -61K | -85K | -80K | -327K | -422.88K | -563.27K |
| CapEx % of Revenue | 0.04% | 0.03% | 0.05% | 0.05% | 0.19% | 0.25% | 0.51% |
| Acquisitions | 0 | - | - | - | - | - | - |
| Investments | 0 | 0 | 0 | 400K | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -2.87M | -2.86M | 1.57M | -2.7M | -4.51M | 3.1M | 925.67K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 15.9M | -165K | 0 | 350.93K | 599.16K |
| Dividends Paid | -835K | -830K | -632K | -200K | 0 | -2.23M | -1.13M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -8.19M | 0 | -2.23M | 0 | -1.03M |
| Net Change in Cash | 1.71M | 2.23M | 865K | -228K | 7.01M | 634.53K | 2.07M |
| Free Cash Flow | 4.57M | 5.09M | -702K | 2.47M | 5.03M | 2.1M | 1.58M |
| FCF Margin % | 2.5% | 2.8% | -0.43% | 1.55% | 2.92% | 1.26% | 1.43% |
| FCF Growth % | 30.97% | 825.07% | -128.39% | -50.87% | 139.35% | 33.05% | - |
| FCF per Share | 0.27 | 0.30 | -0.04 | 0.15 | 0.31 | 0.13 | 0.10 |
| FCF Conversion (FCF/Net Income) | 1.44x | 2.23x | 0.12x | 4.47x | 5.88x | 0.91x | -0.63x |
| Interest Paid | 662K | 1.61M | 2.63M | 3.98M | 0 | 2.07M | 2.14M |
| Taxes Paid | 0 | 469K | 271K | 0 | 0 | 0 | 3.83K |
High operating cash volatility
As reported in quarterly financial filings, the relationship between net income and operating cash flow for BCG is highly erratic, with OCF/NI ratios swinging from -3.16 in 2023Q4 to 18.58 in 2025Q4, suggesting that reported earnings are currently poor proxies for actual cash generation.
The extreme divergence between net income and operating cash flow indicates that non-cash items and working capital swings are dominating the bottom line. Investors should monitor this disconnect, as it suggests that the firm's accounting profitability is not yet translating into a reliable stream of internal liquidity.
Based on the provided cash flow statements, BCG's free cash flow margins have fluctuated wildly between -7.9% and 6.8% over the last ten quarters, indicating that the firm has yet to establish a predictable or sustainable trajectory for converting revenue into free cash flow.
The volatility in FCF margins reflects the underlying instability of the aggregator business model, where small changes in revenue or advisor payouts lead to outsized impacts on cash. This inconsistency makes it difficult to forecast the firm's ability to self-fund future growth initiatives or debt obligations.
According to historical cash flow data, working capital changes have been the primary driver of cash flow volatility, with shifts ranging from a $3.7 million outflow in 2023Q4 to a $3.2 million inflow in 2025Q4, highlighting the firm's sensitivity to timing differences in client settlements.
The reliance on working capital fluctuations to generate positive operating cash flow suggests that the firm's core operations are not consistently self-sustaining. This pattern warrants further investigation into the firm's collection cycles and the potential for liquidity crunches during periods of market-driven settlement delays.
As indicated by the company's reported figures, BCG has consistently paid dividends despite periods of negative free cash flow, such as the $204,000 dividend payout in 2025Q1, which appears to prioritize shareholder returns over the preservation of capital during volatile operating cycles.
The decision to maintain dividend payments while operating cash flow remains inconsistent suggests a management focus on capital return that may be premature given the firm's thin margins. This strategy may limit the capital available for necessary technology investments or the scaling of the advisory platform.
Quick answers to the most common questions about buying BCG stock.
Binah Capital Group, Inc. (BCG) generated $5.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Binah Capital Group, Inc. (BCG) generated $5.1M 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.
Binah Capital Group, Inc. (BCG) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Binah Capital Group, Inc. (BCG) returned $0.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.