A substantial $571.1K outflow from working capital changes in 2024Q2 has resulted in a negative free cash flow of $32.8K, highlighting a disconnect between reported net income and cash generation.
| Cash from Operations | -178.54K | -766.73K | 430.57K | -348.81K |
| Operating CF Margin % | - | -9.59% | 7.61% | -8.39% |
| Operating CF Growth % | 0% | -278.07% | 223.44% | - |
| Net Income | 521.13K | -1.02M | 802.65K | 182.91K |
| Depreciation & Amortization | 15.8K | 58.96K | 27.14K | 32.36K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -3.57K | 0 | 0 |
| Other Non-Cash Items | -352.27K | 1.42M | 143.05K | 162.25K |
| Working Capital Changes | -363.2K | -1.22M | -542.27K | -726.33K |
| Change in Receivables | -472.15K | -200.46K | -467.66K | -500.67K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 80.9K | -34.69K | -24.63K | -17.44K |
| Cash from Investing | -1.91K | -8.87M | -6.02K | -166.91K |
| Capital Expenditures | -1.91K | -81.1K | -6.02K | -166.91K |
| CapEx % of Revenue | 0.05% | 1.01% | 0.11% | 4.02% |
| Acquisitions | 0 | -8.79M | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 4.77K | 10.77M | -179.49K | 641.03K |
| Debt Issued (Net) | 220.64K | -449.3K | -179.49K | 641.03K |
| Equity Issued (Net) | 512.86K | 11.22M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | -728.73K | 0 | 0 | 0 |
| Net Change in Cash | 221.05K | 1.28M | 245.14K | 125.35K |
| Free Cash Flow | -180.44K | -847.82K | 424.55K | -515.71K |
| FCF Margin % | -5.08% | -10.61% | 7.5% | -12.41% |
| FCF Growth % | - | -299.7% | 182.32% | - |
| FCF per Share | -0.17 | -40.23 | 0.40 | -1.03 |
| FCF Conversion (FCF/Net Income) | -0.35x | -0.82x | 0.54x | -1.91x |
| Interest Paid | 0 | 274.87K | 25.02K | 5.49K |
| Taxes Paid | 0 | 1.67M | 2.23K | 0 |
Working capital cycle volatility
As reported in recent financial statements, CLIK's operating cash flow of -$30.5K in 2024Q2 significantly trails the $467.8K net income, resulting in a negative OCF/NI ratio that warrants close scrutiny regarding the timing of revenue recognition versus actual cash collection from corporate clients.
The stark divergence between reported net income and operating cash flow suggests that earnings are currently driven by accruals rather than immediate cash generation. Investors should monitor whether this gap represents a temporary timing mismatch in billing cycles or a structural difficulty in converting high-growth revenue into liquid assets.
Based on the 2024Q2 data, a substantial $571.1K outflow from working capital changes has effectively neutralized the company's profitability, indicating that the rapid scaling of operations is placing significant pressure on the firm's liquidity position as accounts receivable likely expand alongside top-line growth.
The negative working capital impact suggests that the company is financing its clients' payment cycles, which is a common but risky trait in the staffing industry. If this trend persists, the firm may face liquidity constraints despite its reported profitability, necessitating a more disciplined approach to credit management.
According to recent SEC filings, CLIK's free cash flow has remained negative, with a 2024Q2 figure of -$32.8K, highlighting a disconnect between the firm's rapid revenue expansion and its ability to generate self-sustaining cash flow to fund its ongoing operational requirements.
The persistent negative free cash flow trajectory suggests that the company's growth is currently capital-intensive, potentially requiring external funding if the cash burn continues. This trend appears to contradict the strong income statement performance, suggesting that the firm's expansion is currently being subsidized by its balance sheet rather than operational efficiency.
As indicated by the 2024Q2 data, CLIK maintains a negligible capital expenditure profile with a CapEx/Revenue ratio of only 0.1%, confirming that the business model is asset-light and does not require significant reinvestment in physical infrastructure to support its current service-based growth trajectory.
The low capital intensity is a positive indicator for long-term scalability, as it implies that the firm can grow without the burden of heavy maintenance or expansionary capital spending. However, this also means that the current cash flow issues are entirely operational in nature rather than driven by heavy investment in fixed assets.
Quick answers to the most common questions about buying CLIK stock.
Click Holdings Limited (CLIK) generated $-0.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Click Holdings Limited (CLIK) reported negative free cash flow of $0.8M in 2024, indicating capital requirements exceeded cash from operations.
Click Holdings Limited (CLIK) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.