Operational cash flow remains deeply negative, with a -30.3% FCF margin in 2024Q2, indicating that the business is currently unable to sustain its operations through internal cash generation.
| Cash from Operations | -15.04M | -10.48M | -5.5M | -4.99M |
| Operating CF Margin % | - | -71.6% | -27.24% | -52.99% |
| Operating CF Growth % | -7279.75% | -90.53% | -10.25% | - |
| Net Income | -83.37M | -74.73M | -7.89M | -60.11M |
| Depreciation & Amortization | 2.99M | 2.6M | 2.82M | 3.58M |
| Stock-Based Compensation | 2.98M | 2.53M | 687.89K | 277.64K |
| Deferred Taxes | 0 | 0 | -1.51M | 0 |
| Other Non-Cash Items | 34.35M | 34.25M | 9.73M | 43.73M |
| Working Capital Changes | 25.48M | 24.86M | -9.33M | 7.54M |
| Change in Receivables | -13.31M | -5.87M | 4.69M | 3.45M |
| Change in Inventory | 1.24M | 602.7K | -3.32M | -1.23M |
| Change in Payables | 0 | 0 | -1.66M | 0 |
| Cash from Investing | 305.91K | 297.91K | -1.1M | 5.2M |
| Capital Expenditures | -204.9K | -191.22K | 0 | -181.41K |
| CapEx % of Revenue | 0.68% | 1.31% | - | 1.93% |
| Acquisitions | 0 | 0 | -1.42M | 0 |
| Investments | - | - | - | - |
| Other Investing | 510.8K | 489.13K | 234.92M | 5.38M |
| Cash from Financing | 15.13M | 10.51M | 6.6M | -125.11K |
| Debt Issued (Net) | 1.52M | 1.52M | 6.78M | -7.94M |
| Equity Issued (Net) | 0 | 0 | -1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.74M | 0 |
| Other Financing | 13.61M | 8.99M | 1.56M | 7.82M |
| Net Change in Cash | 181.04K | 280.09K | -42.72K | 64.53K |
| Free Cash Flow | -15.24M | -10.67M | -5.5M | -5.17M |
| FCF Margin % | -50.89% | -72.9% | -27.24% | -54.91% |
| FCF Growth % | - | -94.01% | -6.38% | - |
| FCF per Share | -0.53 | -0.36 | -0.20 | -0.18 |
| FCF Conversion (FCF/Net Income) | 0.18x | 0.14x | 0.93x | 0.08x |
| Interest Paid | 1.55M | 1.55M | 0 | 1.04M |
| Taxes Paid | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
As reported in financial statements, the persistent gap between net income and operating cash flow, highlighted by an OCF/NI ratio of 0.51 in 2024Q2, suggests that reported earnings are not translating into tangible liquidity, raising significant concerns regarding the quality of the company's underlying operational performance.
The wide variance between accounting profits and cash generation indicates that accruals and non-cash adjustments are heavily influencing the bottom line. Investors should monitor whether this disconnect stems from aggressive revenue recognition or simply the high working capital requirements inherent in custom architectural glass projects.
Based on recent SEC filings, Captivision's free cash flow remains consistently negative, with a -30.3% FCF margin in 2024Q2, indicating that the company is currently unable to fund its operations through internal cash generation and remains reliant on external financing to sustain its ongoing business activities.
The inability to achieve positive free cash flow suggests that the current business model is not yet self-sustaining at its current scale. This trajectory implies that without a significant shift in project economics or a reduction in overhead, the company will continue to deplete its limited cash reserves.
According to the cash flow data, working capital changes have been highly erratic, swinging from a $33.4 million inflow in 2023Q4 to a $257.9 thousand outflow in 2024Q2, which suggests that the company's cash position is highly sensitive to the timing of large-scale project payments and inventory management.
Such extreme fluctuations in working capital often point to lumpy revenue recognition and potential delays in collecting receivables from major construction clients. This volatility makes it difficult to forecast short-term liquidity needs and suggests that the company's cash flow is at the mercy of project-specific payment cycles.
As indicated by the provided financial data, stock-based compensation of $442.6 thousand in 2024Q2 serves as a significant non-cash expense that masks the true extent of the company's cash burn, effectively diluting shareholders while the core business continues to consume cash at an unsustainable rate.
The reliance on stock-based compensation to manage cash outflows warrants further investigation into management's long-term incentive alignment. This practice obscures the actual cost of talent acquisition and retention, which is particularly concerning given the company's precarious liquidity position and the need for more efficient capital allocation.
Quick answers to the most common questions about buying CAPT stock.
Captivision Inc. (CAPT) generated $-10.5M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Captivision Inc. (CAPT) reported negative free cash flow of $10.7M in 2023, indicating capital requirements exceeded cash from operations.
Captivision Inc. (CAPT) spent $0.2M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.