Liquidity remains critically strained as evidenced by a negative $613,100 free cash flow in 2025Q2 and a persistent inability to convert net income into positive operating cash flow, as shown by the -0.01 OCF/NI ratio in 2025Q4.
| Cash from Operations | -617.18K | -3.52M | 4.87M | 654.49K | -416.7K |
| Operating CF Margin % | -22.75% | -9.9% | 9.7% | 2.35% | -3.29% |
| Operating CF Growth % | 82.49% | -172.3% | 644.8% | 257.06% | - |
| Net Income | -1.72M | 4.28M | 3.16M | 3.41M | 2.49M |
| Depreciation & Amortization | 2.15K | 82.07K | 6.88K | 522 | 1.5K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.53K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.84M | 537.91K | 0 | 3.56K | -95.08K |
| Working Capital Changes | -741.34K | -7.89M | 1.71M | -2.76M | -2.82M |
| Change in Receivables | 1.34M | -10.49M | 0 | 0 | 0 |
| Change in Inventory | -1.4M | 1.91M | -1.87M | -808.04K | -2.61M |
| Change in Payables | 27 | 0 | 0 | 0 | 0 |
| Cash from Investing | 0 | -18.6K | -3.78K | -17.14K | 92.5K |
| Capital Expenditures | 0 | -18.6K | -3.78K | -17.14K | -2.58K |
| CapEx % of Revenue | 0% | 0.05% | 0.01% | 0.06% | 0.02% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 588.06K | -299.32K | -1.55M | 44.49K | 368.49K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 622.99K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -34.94K | -299.32K | -1.55M | 44.49K | 368.49K |
| Net Change in Cash | -33.27K | -3.86M | 3.35M | 661.45K | 45.16K |
| Free Cash Flow | -617.18K | -3.54M | 4.87M | 637.35K | -419.28K |
| FCF Margin % | -22.75% | -9.95% | 9.69% | 2.29% | -3.31% |
| FCF Growth % | 82.58% | -172.73% | 664.24% | 252.01% | - |
| FCF per Share | -0.02 | -0.18 | 0.20 | 0.03 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.36x | -0.82x | 1.54x | 0.19x | -0.17x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Acute liquidity depletion risk
As reported in recent financial filings, CGTL's operating cash flow consistently fails to track net income, with the OCF/NI ratio frequently dipping into negative territory, most notably reaching -0.01 in 2025Q4, which suggests that reported profits are not translating into actual cash generation for the firm.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily reliant on non-cash accruals rather than realized cash inflows. Investors should monitor this divergence, as it implies that the business model is struggling to convert its transactional revenue into liquid capital.
Based on the company's historical cash flow statements, free cash flow has remained persistently negative across nearly all reported periods, with the most recent 2025Q2 figure showing a -38.9% FCF margin, highlighting a structural inability to fund operations through internal cash generation rather than external financing.
The consistent failure to generate positive free cash flow suggests that the company's current cost structure is fundamentally incompatible with its revenue scale. This trajectory warrants further investigation into whether the firm can achieve self-sustainability without significant capital injections or a radical reduction in fixed overhead.
According to quarterly data, CGTL has experienced massive swings in working capital, including a $2.8 million outflow in 2024Q4, which indicates that the company's cash position is highly sensitive to the timing of inventory procurement and the collection of receivables from its wholesale partners.
The erratic nature of these working capital changes suggests that the company lacks the logistical efficiency to manage its cash conversion cycle effectively. This volatility appears to be a primary driver of the firm's liquidity crisis, as cash is frequently trapped in inventory or tied up in delayed payments.
Data from the past ten quarters reveals a significant cumulative divergence between reported net income and operating cash flow, as the company has consistently reported positive earnings while simultaneously burning cash, a trend that suggests the business model is fundamentally disconnected from actual cash-based economic reality.
This long-term gap between accounting profitability and cash flow performance may indicate that the company's revenue recognition practices are overly aggressive relative to its actual cash collection capabilities. Analysts should be wary of this pattern, as it often precedes a period of severe financial distress or asset impairment.
Quick answers to the most common questions about buying CGTL stock.
Creative Global Technology Holdings Limited Ordinary Shares (CGTL) generated $-0.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Creative Global Technology Holdings Limited Ordinary Shares (CGTL) reported negative free cash flow of $0.6M in 2025, indicating capital requirements exceeded cash from operations.
Creative Global Technology Holdings Limited Ordinary Shares (CGTL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.