Operational cash flow remains highly erratic, highlighted by a $2.1M cash outflow in 2026Q2 and a persistent inability to generate positive free cash flow across most reporting periods.
| Cash from Operations | -4.94M | 192.84K | -5.16M | -5.96M | -19.37M | -4.04M | -2.6M | 821.2K | -815.84K |
| Operating CF Margin % | - | 0.18% | -10.88% | -32.15% | -59.99% | -15.82% | -16.6% | 4.31% | -9.52% |
| Operating CF Growth % | -2433.38% | 103.74% | 13.51% | 69.21% | -379.65% | -54.99% | -417.2% | 200.66% | - |
| Net Income | -16.71M | -6.89M | -12.63M | -24.33M | 687.89K | 4.27M | 2.63M | 3.83M | 934.27K |
| Depreciation & Amortization | 168.66K | 79.85K | 399.87K | 2.14M | 310.34K | 351.04K | 233.35K | 159.35K | 26.26K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 10.62K | 0 | 0 | 440.83K | -334.05K | -47.8K | -84.25K | -8.05K | -93 |
| Other Non-Cash Items | 22.35M | 10.94M | 12.37M | 3.1M | 1.39M | 195.19K | 433.62K | 86.05K | 2.28M |
| Working Capital Changes | -10.75M | -3.93M | -5.29M | 12.69M | -21.42M | -8.8M | -5.81M | -3.29M | -1.89M |
| Change in Receivables | -18.96M | -21.89M | -15.05M | 2.03M | -3M | -9.26M | -5.67M | -6.12M | -1.98M |
| Change in Inventory | -7.45M | -1.02M | -5.88M | 8.41M | -7.54M | 1.86M | -1.95M | 910.99K | 131.33K |
| Change in Payables | 10.91M | 20.25M | 11.43M | 1.88M | -898.45K | -1.13M | 49.59K | 2.17M | -277.72K |
| Cash from Investing | -41.08M | -9.17M | -672.81K | -6.17M | -802.73K | 0 | 3.26K | -2.08M | -5.02K |
| Capital Expenditures | -33.11M | -12.57K | -16.79K | -623.28K | -802.73K | 0 | -1.72K | -2.1M | -5.07K |
| CapEx % of Revenue | 16.56% | 0.01% | 0.04% | 3.36% | 2.49% | 0% | 0.01% | 11.03% | 0.06% |
| Acquisitions | 242.65K | 260.18K | -35.24K | -43.14K | -720K | 0 | 4.98K | 20.96K | 52 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.09M | 592.41K | -620.78K | -6.43M | 720K | 0 | 0 | 0 | 0 |
| Cash from Financing | 49.9M | 11.67M | 3.37M | 683.28K | 33.06M | 3.95M | 3.27M | 1.5M | 1.17M |
| Debt Issued (Net) | 2.19M | 1.55M | 1.07M | 345.14K | -1.77M | 4.68M | -142.97K | 1.5M | 0 |
| Equity Issued (Net) | 47.54M | 9.94M | 4.29M | 338.13K | 33.63M | 0 | 3.82M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 170.45K | 183.76K | -1.99M | 0 | 1.2M | -729.98K | -409.74K | 0 | 1.17M |
| Net Change in Cash | 3.14M | 2.7M | -2.52M | -11.64M | 13.08M | -39.16K | 703.65K | 226K | 352.65K |
| Free Cash Flow | -5.05M | 180.27K | -5.17M | -6.59M | -20.17M | -4.04M | -2.61M | -1.28M | -820.91K |
| FCF Margin % | -2.53% | 0.17% | -10.92% | -35.52% | -62.47% | -15.82% | -16.61% | -6.71% | -9.58% |
| FCF Growth % | 80.86% | 103.48% | 21.44% | 67.35% | -399.53% | -54.89% | -104.11% | -55.57% | - |
| FCF per Share | -0.07 | 0.01 | -1.80 | -0.27 | -0.84 | -0.17 | -0.11 | -0.05 | -0.05 |
| FCF Conversion (FCF/Net Income) | 0.30x | -0.03x | 0.42x | 0.25x | -24.58x | -0.95x | -1.07x | 0.23x | -0.87x |
| Interest Paid | 0 | 266.38K | 241.6K | 226.3K | 56.73K | 235.36K | 126.09K | 122.15K | 0 |
| Taxes Paid | 0 | 173.49K | 204K | 389.73K | 398.37K | 34.77K | 17.41K | 45.8K | 0 |
Persistent Negative Operating Cash
As reported in recent financial statements, CPOP exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently swinging into extreme negative territory, such as the -40.67 reading observed in 2022Q4, highlighting significant quality of earnings concerns for investors.
The recurring inability to convert reported net income into positive operating cash flow suggests that the company's accounting profits are not supported by actual cash generation. This divergence implies that the business model is heavily reliant on accruals or non-cash adjustments that fail to materialize into liquidity, warranting extreme caution regarding the sustainability of reported earnings.
Based on historical data, CPOP's free cash flow trajectory remains deeply negative, with the company failing to generate positive FCF in nearly all reported periods, including a -2.0% FCF margin in 2026Q2, which underscores the structural difficulty in achieving self-sustaining operations within its current business model.
The consistent failure to produce positive free cash flow indicates that the company's aggressive revenue growth is currently value-destructive from a cash perspective. Investors should monitor whether the company can ever achieve a positive FCF margin, as the current trend suggests that every dollar of revenue growth requires additional cash consumption rather than generation.
According to recent SEC filings, CPOP's working capital dynamics are characterized by erratic swings, including a significant $2.1M cash outflow in 2026Q2, which suggests that the company struggles to manage its collection cycles and payables effectively amidst its rapid, project-based expansion.
The frequent negative working capital changes indicate that the company is likely extending credit to clients or facing delays in project payments, which further exacerbates its liquidity constraints. This volatility in working capital management appears to be a primary driver of the company's persistent cash burn, making it highly sensitive to any slowdown in client payments.
As evidenced by the 48.0% CapEx-to-revenue ratio in 2026Q2, CPOP's capital intensity remains disproportionately high for a service-oriented firm, suggesting that the company is forced to reinvest heavily in infrastructure or equipment just to maintain its current operational footprint.
The high capital intensity relative to revenue is particularly concerning given the company's razor-thin gross margins and negative operating cash flow. This suggests that the firm's growth is not capital-light, and the ongoing need for significant capital expenditure may continue to suppress any potential for free cash flow generation in the near term.
Quick answers to the most common questions about buying CPOP stock.
Pop Culture Group Co., Ltd (CPOP) generated $0.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pop Culture Group Co., Ltd (CPOP) generated $0.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Pop Culture Group Co., Ltd (CPOP) 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.