A negative free cash flow of $3.8M in 2025Q4 highlights a disconnect between accounting results and cash generation, further evidenced by a low 0.38 OCF/NI ratio.
CLPS Incorporation (CLPS) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 |
|---|
| Cash from Operations | -380.56K | -2.54M | 8.93M | 9.71M | 3.2M | -2.61M | 5.93M | 401.11K | -4.77M | 624.34K | 4.46M |
| Operating CF Margin % | -0.22% | -1.55% | 6.25% | 6.46% | 2.11% | -2.07% | 6.63% | 0.62% | -9.75% | 1.99% | 15.37% |
| Operating CF Growth % | 85.04% | -128.5% | -8.04% | 203.23% | 222.65% | -144% | 1378.69% | 108.4% | -864.42% | -86.01% | - |
| Net Income | -13.18M | -7.05M | -2.33M | 192.53K | 4.46M | 6.82M | 2.94M | -3.27M | 2.43M | 2.05M | 1.83M |
| Depreciation & Amortization | 2.22M | 1.88M | 1.25M | 1.22M | 912.25K | 677.24K | 593.17K | 403.7K | 206.17K | 143.63K | 54.1K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -27.4K | 484.34K | -717.68K | 264.03K | 245.83K | -413.61K | 172.74K | 100.11K | -208.05K | -221.11K | -96.71K |
| Other Non-Cash Items | 11.73M | 5.61M | 5.58M | 5.69M | 7.17M | 5.62M | 3.74M | 6.9M | 387.98K | 260.38K | -35.92K |
| Working Capital Changes | -1.12M | -3.46M | 5.14M | 2.34M | -9.59M | -15.31M | -1.51M | -3.73M | -7.59M | -1.61M | 2.71M |
| Change in Receivables | 4.69M | -5.59M | 7.18M | 481.91K | -12.09M | -16.94M | -6.6M | -3.06M | -9.75M | -2.41M | 1.05M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -971.61K | 1.57M | 212.77K | 346.44K | -215.85K | 363.7K | 146.36K | -842.91K | 592.48K | 52.57K | 27.15K |
| Cash from Investing | -1.15M | -1.75M | -12.25M | -306.05K | -16.29M | -6.08M | 173.23K | -4.44M | -492.67K | -94.78K | -334.42K |
| Capital Expenditures | -743.98K | -1.27M | -2.12M | -519.28K | -20.76M | -1.08M | -231.56K | -499.55K | -231.23K | -62.52K | -327.77K |
| CapEx % of Revenue | 0.43% | 0.77% | 1.48% | 0.35% | 13.66% | 0.86% | 0.26% | 0.77% | 0.47% | 0.2% | 1.13% |
| Acquisitions | 4.96K | -210.03K | -2.35M | 172.17K | 552 | -951.86K | -1.56M | -1.05M | -107.65K | -76.32K | 39.93K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -212.09K | -47.6K | -5.68M | -70K | -68.16K | -337.69K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -1.82M | 2.9M | 10.19M | -4.32M | 7.47M | 19.8M | 125.36K | 1.05M | 10.3M | -839.19K | -418.77K |
| Debt Issued (Net) | -1.62M | 6.7M | 12.75M | -2.94M | 7.47M | 5.03M | -74.64K | -276.77K | 2.6M | 0 | 0 |
| Equity Issued (Net) | -132.3K | 0 | 0 | 0 | 3.87K | 14.8M | 0 | 1.47M | 10.74M | 0 | 2.14M |
| Dividends Paid | 0 | -3.64M | -2.55M | -1.18M | 0 | -34.14K | 0 | 0 | -612.99K | -736.44K | -5.28M |
| Share Repurchases | -132.3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -65.6K | -161.19K | 0 | -207.09K | 0 | 0 | 200K | -146.6K | -2.42M | -102.75K | 2.72M |
| Net Change in Cash | -2.71M | -967.35K | 6.84M | 3.9M | -6.34M | 12.09M | 6.05M | -3.14M | 4.93M | -462.63K | 5.28M |
| Free Cash Flow | -982.58K | -3.8M | 6.81M | 9.19M | -17.55M | -3.68M | 5.76M | -98.45K | -5M | 561.83K | 4.13M |
| FCF Margin % | -0.57% | -2.31% | 4.77% | 6.11% | -11.54% | -2.92% | 6.45% | -0.15% | -10.22% | 1.79% | 14.24% |
| FCF Growth % | 74.16% | -155.85% | -25.89% | 152.35% | -376.6% | -163.89% | 5954.16% | 98.03% | -990.63% | -86.41% | - |
| FCF per Share | -0.03 | -0.14 | 0.27 | 0.40 | -0.83 | -0.21 | 0.39 | -0.01 | -0.43 | 0.04 | 0.31 |
| FCF Conversion (FCF/Net Income) | 0.03x | 0.36x | -3.83x | 50.41x | 0.72x | -0.38x | 2.02x | -0.12x | -1.96x | 0.30x | 2.44x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CLPS stock.
CLPS Incorporation (CLPS) generated $-0.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
CLPS Incorporation (CLPS) reported negative free cash flow of $1.0M in 2026, indicating capital requirements exceeded cash from operations.
CLPS Incorporation (CLPS) spent $0.7M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, CLPS Incorporation (CLPS) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent negative operating cash
Earnings Quality and Cash Disconnect
As reported in recent financial filings, CLPS exhibits a significant disconnect between net income and operating cash flow, with the 2025Q4 OCF/NI ratio of 0.38 highlighting a persistent inability to convert accounting losses into positive cash generation from core service delivery activities.
The recurring gap between net income and operating cash flow suggests that the company's accrual-based accounting may be masking deeper liquidity challenges. Investors should monitor whether this divergence stems from aggressive revenue recognition on long-term banking projects or an inability to collect receivables efficiently.
Negative Free Cash Flow Trajectory
Based on the latest quarterly data, CLPS reported a negative free cash flow of $3.8M in 2025Q4, reflecting a deteriorating cash trajectory that underscores the company's struggle to fund its operational expansion through internal cash generation rather than relying on existing liquidity reserves.
The consistent failure to generate positive free cash flow indicates that the current business model is capital-intensive and lacks the necessary scale to cover both operating expenses and required capital investments. This trend suggests that the company may remain reliant on external financing or cash reserves to sustain its growth initiatives.
Capital Intensity and Asset Replacement
According to historical data, CLPS maintains a variable capital expenditure profile, with CapEx/Revenue ratios fluctuating significantly, such as the 1.6% observed in 2025Q4, which suggests that the company is prioritizing essential infrastructure maintenance over large-scale, transformative capital investments in its core banking service platforms.
The volatility in capital spending may indicate that management is attempting to manage cash outflows tightly in response to negative operating margins. Analysts should investigate whether these levels of investment are sufficient to maintain the competitive edge of the proprietary training platform or if they represent deferred maintenance.
Working Capital Efficiency and Liquidity
As evidenced by the $3.5M negative working capital change in 2025Q4, CLPS is experiencing pressure on its cash conversion cycle, which appears to be driven by the timing of project milestone payments and the accumulation of unbilled receivables within its banking client portfolio.
The negative impact of working capital on cash flow suggests that the company is effectively financing its clients' IT projects through extended payment terms. This dynamic warrants further investigation into the credit quality of the underlying banking clients and the potential for future write-downs on contract assets.
Capital Allocation Amidst Operational Losses
Based on reported figures, CLPS utilized $3.6M for dividends in 2025Q4 despite generating negative operating cash flow, a decision that appears to prioritize shareholder returns over the preservation of liquidity during a period of sustained operational unprofitability and negative net income.
The commitment to dividend payments while the core business is burning cash may indicate management's desire to signal stability to the market. However, this strategy appears to be depleting the company's cash buffer and may limit its flexibility to pivot or invest in higher-margin growth opportunities.