Cash flow remains highly volatile and dependent on working capital swings, as evidenced by the shift from a $61.5 million inflow in 2022Q4 to a $51.0 million outflow in 2023Q4.
| Cash from Operations | -45.23M | -441.04M | -41.83M | 52.82M | -2.04M |
| Operating CF Margin % | - | -200.45% | -32.6% | 36.33% | -2.48% |
| Operating CF Growth % | -282.09% | -954.49% | -179.19% | 2684.1% | - |
| Net Income | -34.74M | -221.02M | -113.64K | 241K | -3.3M |
| Depreciation & Amortization | 8.44M | 13.58M | 8.26M | 3.12M | 836K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 17.75M | 34.65M | -49.73M | 0 | 0 |
| Working Capital Changes | -37.47M | -268.25M | -246.71K | 49.46M | 416K |
| Change in Receivables | -13.2M | -188.15M | -95.87K | 8.37M | 4.65M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -25.98M | 51.89M | -179.81K | 24.5M | 2.21M |
| Cash from Investing | -17.46M | -95.25M | -20.15M | -6.43M | -2.84M |
| Capital Expenditures | -21.88M | -95.25M | -144.94K | -7.46M | -2.94M |
| CapEx % of Revenue | 8.56% | 43.29% | 0.11% | 5.13% | 3.57% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 4.42M | 0 | -20M | 1.03M | 100.92K |
| Cash from Financing | 36.94M | 659.62M | 56.45M | -2.24M | -2.17M |
| Debt Issued (Net) | 184.77K | 12.3M | -5.26M | -2.24M | -2.17M |
| Equity Issued (Net) | 0 | 1000K | 1000K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 36.75M | -68.12M | -171.89M | 0 | 0 |
| Net Change in Cash | -28.7M | 88.68M | -5.53M | 44.15M | -7.05M |
| Free Cash Flow | -66.57M | -536.29M | -61.97M | 53.8M | -5.06M |
| FCF Margin % | -26.06% | -243.74% | -48.3% | 37% | -6.14% |
| FCF Growth % | - | -765.37% | -215.18% | 1163.83% | - |
| FCF per Share | -53.53 | -431.27 | -49.84 | 43.27 | -4.07 |
| FCF Conversion (FCF/Net Income) | 1.92x | 2.00x | 2.65x | 219.17x | 0.62x |
| Interest Paid | 0 | 493K | 1.72M | 0 | 87K |
| Taxes Paid | 0 | 0 | 6.51M | 0 | 2.83M |
Unsustainable Operating Margin Burn
Based on the provided financial data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from 111.24 in 2022Q4 to -0.96 in 2023Q2, indicating that reported earnings provide little insight into the company's actual cash-generating capabilities.
The extreme variance in the OCF/NI ratio suggests that the company's accrual-based accounting is heavily influenced by non-cash items or timing differences in revenue recognition. Investors should interpret this instability as a sign that the firm's core business model has yet to achieve a predictable conversion of accounting profit into tangible liquidity.
As reported in financial statements, the company's free cash flow trajectory has been highly inconsistent, plummeting to a negative $75.2 million in 2023Q4, which stands in stark contrast to the positive cash flow figures observed in earlier periods like 2022Q4.
The sharp decline in FCF margins suggests that the company's aggressive expansion efforts are consuming cash at a rate that far exceeds its current operational output. This volatility warrants further investigation into whether the firm can sustain its growth trajectory without recurring to external financing or depleting its existing cash reserves.
According to recent SEC filings, working capital changes have been the primary driver of cash flow fluctuations, with a massive $61.5 million inflow in 2022Q4 followed by a $51.0 million outflow in 2023Q4, highlighting the company's extreme sensitivity to timing in receivables and payables.
These dramatic swings in working capital suggest that the company's cash position is highly dependent on the timing of project-based contracts and potential delays in collections. Such reliance on working capital management to bridge the gap between revenue and cash flow indicates a lack of structural cash generation from core operations.
Based on the reported figures, the cash flow statement appears to mask the underlying operational burn, as the company's reliance on working capital adjustments obscures the fact that core business activities are not yet self-funding, as evidenced by the significant negative net income figures.
The lack of clarity regarding capitalized costs and the potential for aggressive revenue recognition in the VTuber segment suggests that the cash flow statement may be providing a misleading picture of the company's true financial health. Analysts should monitor whether these adjustments are merely deferring the recognition of operational losses to future periods.
Quick answers to the most common questions about buying BLMZ stock.
Harrison Global Holdings Inc. (BLMZ) generated $-441.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Harrison Global Holdings Inc. (BLMZ) reported negative free cash flow of $536.3M in 2024, indicating capital requirements exceeded cash from operations.
Harrison Global Holdings Inc. (BLMZ) spent $95.3M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.