Liquidity is under severe pressure as evidenced by the decline in cash reserves to $363.1K in 2026Q2 and a negative free cash flow margin of -89.3% recorded in 2024Q4.
| Cash from Operations | -3.88M | -1.02M | -2.53M | 441.86K | 375.31K | 2.23M | 3.78M |
| Operating CF Margin % | - | -5.77% | -17.14% | 14.4% | 10.75% | 9.85% | 16.94% |
| Operating CF Growth % | -4562.6% | 59.73% | -672.24% | 17.73% | -83.14% | -41.03% | - |
| Net Income | -3.24M | -1.41M | -1.3M | 281.7K | 294.07K | 2.43M | 2.47M |
| Depreciation & Amortization | 859.11K | 758.02K | 747.84K | 95.38K | 84.92K | 518.25K | 383.99K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -92.04K | -270.5K | -249.89K | 6.61K | -2.3K | 13.14K | 0 |
| Other Non-Cash Items | 1.14M | 82.65K | 207.06K | 95.26K | 232.19K | 1.28M | -2.08M |
| Working Capital Changes | -2.58M | -177.86K | -1.94M | 82.08K | -34.31K | -1M | 3M |
| Change in Receivables | -874.63K | 267.03K | -64K | 74.83K | 36.82K | -493.12K | 1.16M |
| Change in Inventory | -277.79K | 130.29K | -12.94K | 258.84K | -163.49K | -705.23K | 1.75M |
| Change in Payables | 59.85K | -359.76K | 71.98K | -262.08K | 97.26K | 909.13K | 0 |
| Cash from Investing | -4.51M | -890.49K | -3.83M | -26.39K | -22.82K | -23.14K | -21.26K |
| Capital Expenditures | -4.62M | -847.7K | -3.8M | -27.78K | -48.4K | -23.14K | -9.78K |
| CapEx % of Revenue | 17.79% | 4.81% | 25.74% | 0.91% | 1.39% | 0.1% | 0.04% |
| Acquisitions | 0 | 0 | 0 | 1.39K | 25.58K | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 105.84K | -42.79K | -29.48K | -53.47K | 199.15K | -1.29K | -11.48K |
| Cash from Financing | 5.02M | -5.92K | 4.63M | -96.01K | -20.22K | -3.48M | -2.23M |
| Debt Issued (Net) | -5.95K | -5.92K | -44.17K | -156.17K | -160.61K | 316.9K | -58.41K |
| Equity Issued (Net) | 0 | 0 | 4.67M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -3.37M | -2.05M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.03M | 0 | 86 | -596.45K | 140.39K | -433.69K | -119.84K |
| Net Change in Cash | 3.64M | -2.04M | -1.98M | 308.17K | -1.98M | -1.32M | 1.36M |
| Free Cash Flow | -8.41M | -1.91M | -6.35M | 414.08K | 326.91K | 2.2M | 3.77M |
| FCF Margin % | -32.4% | -10.83% | -43.08% | 13.49% | 9.37% | 9.74% | 16.9% |
| FCF Growth % | -385.26% | 69.95% | -1634.56% | 26.66% | -85.16% | -41.49% | - |
| FCF per Share | -7.26 | -1.65 | -5.49 | 0.36 | 0.29 | 1.94 | 3.77 |
| FCF Conversion (FCF/Net Income) | 2.59x | 0.72x | 1.95x | 1.57x | 1.28x | 0.92x | 1.53x |
| Interest Paid | 0 | 0 | 228 | 4.99K | 8.65K | 9.37K | 0 |
| Taxes Paid | 0 | 0 | 859.88K | 119.68K | 471.26K | 647.65K | 0 |
Insufficient operating scale
As reported in financial statements, CCTG's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching an extreme -3.59 in 2023Q4, suggesting that reported earnings provide little insight into the actual cash-generating capacity of the company's underlying industrial manufacturing operations.
The persistent gap between net income and operating cash flow indicates that accruals and non-cash adjustments are heavily influencing the bottom line. Investors should monitor whether this volatility is a byproduct of aggressive revenue recognition or simply the result of lumpy, project-based cash receipts that fail to align with accounting profit.
Based on CCTG's reported figures, free cash flow margins have trended into negative territory, bottoming out at -89.3% in 2024Q4, which highlights a significant inability to fund operations internally while simultaneously managing the capital requirements of its high-mix, low-volume manufacturing business model.
The shift from positive FCF in 2023 to consistent outflows suggests that the company is struggling to achieve the necessary scale to cover its fixed cost base. This trajectory warrants further investigation into whether the current cash burn is a temporary investment phase or a structural issue with the company's cost of production.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $3.1 million inflow in 2023Q4 to a $1.1 million outflow in 2025Q2, indicating that the company's cash position is highly sensitive to the timing of customer payments and inventory management.
The reliance on large, project-based contracts likely creates significant swings in accounts receivable, which directly impacts the company's liquidity. Without a more predictable cash conversion cycle, the company remains vulnerable to sudden shifts in customer payment behavior, which could exacerbate its existing cash burn.
As indicated by the data, CCTG's CapEx/Revenue ratio spiked to 51.7% in 2024Q4, suggesting that the company is aggressively investing in manufacturing infrastructure despite a lack of consistent top-line growth, which may be placing undue pressure on its limited cash reserves.
High capital intensity relative to revenue is particularly concerning for a micro-cap entity that is not yet generating positive operating cash flow. Analysts should evaluate whether these capital expenditures are truly growth-oriented or if they represent necessary maintenance to keep aging manufacturing equipment operational.
Quick answers to the most common questions about buying CCTG stock.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) generated $-1.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) reported negative free cash flow of $1.9M in 2025, indicating capital requirements exceeded cash from operations.
CCSC Technology International Holdings Limited Ordinary Shares (CCTG) 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.