Cash conversion efficiency is severely impaired, as evidenced by an OCF/NI ratio of -4.87 in 2026Q2 and a negative free cash flow margin of 25.3% during the same period.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 |
|---|
| Cash from Operations | -6.75M | 159.31K | -3.95M | -2.23M | -16.09M | -10.05M | -4.09M | 3.94M | -2.8M | 1.11M | 7.9M | 4.04M | -2.34M | -622.96K | 943.44K | -101.52K | -968.93K | 374.23K | -389.47K | 802.92K |
| Operating CF Margin % | - | 0.21% | -5.91% | -3.76% | -32.01% | -23.3% | -9.41% | 10.02% | -3.12% | 0.92% | 8.43% | 7.09% | -4.92% | -4.56% | 7.76% | -0.74% | -29.33% | 5.37% | -5.84% | 13.73% |
| Operating CF Growth % | -137.61% | 104.03% | -76.89% | 86.13% | -60.12% | -145.57% | -204% | 240.44% | -352.98% | -85.97% | 95.65% | 272.29% | -275.99% | -166.03% | 1029.32% | 89.52% | -358.92% | 196.09% | -148.51% | - |
| Net Income | -27.15M | -28.29M | -7.64M | -9.23M | -13.29M | 393.78K | -8.89M | -11.3M | -9.24M | 4.39M | 4.99M | 2.84M | 2.67M | 288.5K | 702.2K | 1.01M | -1.03M | 155.01K | 118.08K | -123.56K |
| Depreciation & Amortization | 1.58M | 1.36M | 1.33M | 1.03M | 1.86M | 2.21M | 3.71M | 3.01M | 4.18M | 3.14M | 2.3M | 772.43K | 494.65K | 11.14K | 18.86K | 22.94K | 23.25K | 33.3K | 33.14K | 12.71K |
| Stock-Based Compensation | 7.05K | 14.24K | 30.23K | 106.84K | 155.5K | 156.42K | 191.42K | 622.23K | 408K | 67.5K | 51.9K | 57.26K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -211.53K | 0 | 0 | 0 | -208.54K | 375.43K | 2.07M | -1.34M | -2.81M | -540K | 102K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 21.11M | 28.6M | 3.46M | 7.63M | -1.01M | -9.36M | 3.4M | 10.14M | 3.03M | -651.87K | 2.52M | 1.67M | 2.21M | 250.78K | 17K | 72.6K | 24K | 0 | 0 | 0 |
| Working Capital Changes | -1.9M | -1.52M | -1.14M | -1.93M | -3.6M | -3.83M | -4.58M | 2.8M | 1.63M | -5.3M | -2.07M | 367.66K | -5.51M | -922.6K | 205.38K | -1.21M | 12.49K | 185.92K | -540.69K | 913.78K |
| Change in Receivables | 275.03K | -1.85M | -1.87M | -4.94M | 1.78M | -1.02M | -623.3K | 3.02M | 1.35M | -1.89M | -5.59M | -732.7K | -1.84M | -1.2M | -48.61K | 397.81K | 216.85K | 579.42K | -747.76K | -200.71K |
| Change in Inventory | -305.97K | 403.58K | 1.89M | 48.6K | -3.87M | -670.84K | -2.22M | 1.34M | 5.32M | -3.2M | 764.64K | -99.19K | -6.11M | 37.5K | 67.05K | 69.73K | -53.53K | 122.47K | -204.12K | -52.5K |
| Change in Payables | -205.84K | -27.31K | -818.73K | 3.41M | -942.25K | -512.14K | -846.34K | -2.11M | -42.26K | -788.31K | 1.38M | 1.66M | 2.15M | 250.78K | -329.69K | -261.44K | 35.04K | 8.97K | 25.16K | 643.86K |
| Cash from Investing | -15.5M | -2.96M | -1.26M | -5.63M | 6.61M | 840.9K | 764.55K | 6.84M | -12.21M | -6.96M | -17.15M | -956.05K | -9.29M | 0 | -82.05K | 0 | -390 | -10.16K | -151.94K | -713.92K |
| Capital Expenditures | -1.91M | -1.93M | -1.3M | -2.76M | -1.84M | -1.07M | -1.57M | -1.66M | -12.21M | -5.68M | -663.83K | -1.52M | -7.88M | 0 | 0 | 0 | -390 | -10.16K | -151.94K | -13.92K |
| CapEx % of Revenue | 2.74% | 2.53% | 1.94% | 4.65% | 3.67% | 2.48% | 3.6% | 4.23% | 13.57% | 4.71% | 0.71% | 2.66% | 16.55% | - | - | - | 0.01% | 0.15% | 2.28% | 0.24% |
| Acquisitions | -7.58M | -100K | -100K | -2.79M | -500K | -1.58M | -30.08M | 14K | 0 | 65.63K | -16.48M | 0 | -6.03M | 0 | 0 | 0 | 0 | 0 | 0 | -700K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -912.19K | 69.26K | 139.95K | 26.2K | 554.34K | 2.99M | 2.81M | 8.9M | 0 | -1.28M | -16.48M | 559.82K | -559.82K | 0 | -2.04K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 23.91M | 4.08M | 4.4M | 2.04M | 5.02M | 4.45M | 24.07M | -11.86M | 5.35M | 10.25M | 13.81M | -1.74M | 11.71M | 356.88K | -943.72K | 475.75K | 653.91K | -68.13K | 458.19K | 24.48K |
| Debt Issued (Net) | 4.63M | -595.11K | -4.57M | 2.04M | 5.02M | 4.45M | 9.86M | -209.8K | 2.12M | -2.04M | 8.73M | -1.74M | 11.71M | 631.03K | 0 | 475.75K | 305.94K | 0 | 458.19K | -354.02K |
| Equity Issued (Net) | 18.05M | 4.9M | 9.97M | 0 | 0 | 0 | -338.77K | 1.16M | 0 | 11.39M | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 8.53K | 0 | 378.5K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -528.64K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -69.7K | 0 | 0 | 0 | -338.77K | 0 | 0 | -1.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.23M | -232.1K | -995.33K | 0 | 0 | 0 | 14.55M | -12.81M | 3.23M | 1.09M | 5.08M | 0 | 0 | -274.15K | -1.04M | 0 | 347.97K | -76.65K | 0 | 0 |
| Net Change in Cash | 1.84M | 926.65K | -929.17K | -5.12M | -5M | -3.88M | 18.21M | 542.15K | -9.66M | 4.4M | 4.56M | 1.34M | 79.13K | -266.08K | -82.32K | 374.23K | -315.41K | 295.94K | -83.22K | 113.48K |
| Free Cash Flow | -7.66M | -1.77M | -5.25M | -4.99M | -17.94M | -11.12M | -5.66M | 2.28M | -15.01M | -4.57M | 7.23M | 2.52M | -10.23M | -622.96K | 943.44K | -101.52K | -969.32K | 364.07K | -541.41K | 789K |
| FCF Margin % | -10.99% | -2.32% | -7.85% | -8.41% | -35.68% | -25.78% | -13% | 5.8% | -16.69% | -3.79% | 7.72% | 4.43% | -21.46% | -4.56% | 7.76% | -0.74% | -29.34% | 5.22% | -8.12% | 13.49% |
| FCF Growth % | -303.46% | 66.22% | -5.06% | 72.16% | -61.31% | -96.51% | -348.64% | 115.16% | -228.44% | -163.2% | 187% | 124.64% | -1541.63% | -166.03% | 1029.32% | 89.53% | -366.25% | 167.24% | -168.62% | - |
| FCF per Share | -7.48 | -133.85 | -555.21 | -516.45 | -2276.41 | -1674.77 | -1855.43 | 3161.10 | -33354.79 | -11146.19 | 21268.76 | 8998.58 | -37876.63 | -2224.85 | 3369.43 | -362.57 | -3461.86 | 1400.26 | -2578.13 | 3757.15 |
| FCF Conversion (FCF/Net Income) | 0.28x | -0.01x | 0.55x | 0.24x | 1.21x | -25.52x | 0.46x | -0.35x | 0.30x | 0.25x | 1.58x | 1.42x | -0.88x | -2.16x | 1.34x | -0.10x | 0.94x | 2.41x | -3.30x | -6.50x |
| Interest Paid | 1.39M | 0 | 0 | 585.38K | 383.11K | 0 | 429.22K | 672.64K | 259.32K | 920.92K | 312.29K | 312.29K | 333.32K | 0 | 0 | 16.94K | 0 | 0 | 0 | 0 |
| Taxes Paid | -31.74K | 0 | 196.73K | 293.78K | 353.35K | 0 | 75.72K | 162.87K | 852.07K | 73.92K | 5.03K | 5.03K | 27.87K | 999 | 7.04K | 2.79K | 0 | 0 | 0 | 0 |
Persistent Negative Cash Burn
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, with an OCF/NI ratio of -4.87 in 2026Q2, indicating that reported accounting profits frequently fail to materialize into actual cash inflows for the company.
The extreme volatility in the OCF/NI ratio suggests that accrual-based accounting adjustments are masking the underlying cash-generative weakness of the business. Investors should monitor this divergence, as it implies that the company's reported net income is often driven by non-cash items rather than sustainable operational performance.
As reported in financial statements, Cemtrex's free cash flow trajectory is characterized by persistent instability, with FCF margins reaching a low of -25.3% in 2026Q2, underscoring the company's ongoing struggle to achieve self-sustaining cash generation despite periodic revenue growth in its industrial and security segments.
The inability to maintain positive FCF suggests that the company's current operational scale is insufficient to cover its capital requirements. This trend warrants further investigation into whether the business model can ever reach a break-even point without continued external financing or significant structural cost reductions.
Based on reported figures, working capital changes have been a significant source of cash flow instability, with a $2.7 million outflow in 2026Q2 alone, highlighting the difficulty in managing collections and inventory cycles within the company's project-based industrial and security service business models.
The frequent swings in working capital suggest that the company is struggling to align its cash conversion cycle with project milestones. This volatility appears to be a primary driver of the company's liquidity constraints, as cash is often trapped in receivables or inventory rather than being available for operations.
Data from recent filings indicates that Cemtrex has limited capacity for capital deployment, as evidenced by the $7.6 million net acquisition outflow in 2026Q2, which occurred despite the company's broader struggle to generate positive operating cash flow to fund such growth initiatives.
The company's strategy of pursuing acquisitions while simultaneously burning cash appears to be a high-risk approach that may be exacerbating its liquidity issues. Investors should monitor whether these investments provide any tangible return, as the current financial data suggests they are primarily consuming limited cash reserves.
Quick answers to the most common questions about buying CETX stock.
Cemtrex, Inc. (CETX) generated $0.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cemtrex, Inc. (CETX) reported negative free cash flow of $1.8M in 2025, indicating capital requirements exceeded cash from operations.
Cemtrex, Inc. (CETX) spent $1.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.