Persistent operational inefficiencies have resulted in consistent free cash flow deficits, including a negative 37.4% FCF margin in 2025Q3, further straining the company's limited $1.3 million cash buffer.
| Metric | TTM | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -6.54M | -7.37M | -3.88M | 572.55K | 6.47M | 249.19K | 916.8K | -2.56M | 2.21M | 1.57M | 2.03M | -9.31M | 2.78M | 3.45M | 1.48M | 1.92M | -937.7K | -4.94M | -1.79M | 7.76M | 505.23K | -908.76K | 3.48M | 435.19K | -9.59M | -15.7M | -8.2M | -2.9M | -400K |
| Operating CF Margin % | - | -33.55% | -12.94% | 1.33% | 16.5% | 0.85% | 2.84% | -9.47% | 7.57% | 5.1% | 7.94% | -32.69% | 12.42% | 21.53% | 11.69% | 23.14% | -6.37% | -17.75% | -4.39% | 17.81% | 2.11% | -5.27% | 21.06% | 3.78% | -74.92% | -127.64% | -205% | -2900% | -400% |
| Operating CF Growth % | -2617.16% | -90.07% | -776.81% | -91.15% | 2497.71% | -72.82% | 135.81% | -215.9% | 40.9% | -22.95% | 121.85% | -434.38% | -19.34% | 132.78% | -22.9% | 305.15% | 81.01% | -176.4% | -123.03% | 1435.22% | 155.6% | -126.14% | 698.99% | 104.54% | 38.94% | -91.46% | -182.76% | -625% | - |
| Net Income | -11.97M | -14.36M | -19.58M | 2.37M | 12.81M | -6.16M | 2.28M | -453.48K | -3.95M | -9.57M | -13.1M | -1.29M | 4.45M | 1.57M | 1.56M | -3.4M | -6.15M | -24.42K | 6.11M | 5.87M | 1.61M | 1.04M | 9.41M | 1.22M | -7.08M | -5.2M | -6.7M | -4.9M | -400K |
| Depreciation & Amortization | 954.93K | 703.37K | 653.16K | 479.31K | 567.12K | 490.24K | 481.32K | 422.02K | 557.39K | 863.35K | 1.11M | 862.68K | 608.16K | 299.55K | 136.62K | 168.88K | 216.03K | 200.63K | 188.76K | 247.44K | 197.19K | 161.9K | 128.6K | 150.94K | 569.99K | 700K | 200K | 0 | 0 |
| Stock-Based Compensation | 81.07K | 237.74K | 249.43K | 774.34K | 352.58K | 459.54K | 502.81K | 443.48K | 959.13K | 1.77M | 1.69M | 1.68M | 1.02M | 983.5K | 415.28K | 233.91K | 467.1K | 568.24K | 316.89K | 1.06M | 70.67K | 0 | 92.5K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 5.85M | 498.93K | -6.35M | 0 | 0 | 748K | 0 | 0 | 4.04M | -307.13K | -3.85M | -1.27M | 12.91K | 2.17M | -662.77K | 108.58K | 2.49M | 967.9K | 1.45M | 1.1M | -7.04M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -6.22M | 1.21M | 6.07M | 120.72K | -860.45K | 5.83M | 524.33K | -183.22K | -1.2M | 346.34K | 763.77K | 1.09M | 661.93K | 1.57M | -579.47K | 270.81K | 3.6M | 989.47K | 238.99K | 2.62M | 124.77K | 24.28K | 251.02K | 111.72K | 736.33K | 600K | 500K | 1.8M | -1.2M |
| Working Capital Changes | 3.14M | 4.85M | 2.88M | -3.67M | -46.1K | -373.04K | -2.87M | -3.54M | 5.84M | 8.16M | 7.53M | -11.35M | -97.64K | 307.7K | -59.16K | 2.48M | 1.6M | -6.78M | -11.12M | -3.02M | -2.95M | -3.24M | 640.44K | -1.05M | -3.81M | -11.8M | -2.2M | 200K | 1.2M |
| Change in Receivables | 8.12K | 7K | 1.77M | -484.46K | -955.23K | 1.32M | -328.08K | -732.83K | 1.45M | 1.75M | 4.28M | -2.83M | -2.59M | -2.85M | -3.38M | 1.46M | 2.82M | 3.99M | -3.32M | -4.13M | -3.41M | 0 | 742.16K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 2.02M | 1.32M | 755.22K | -4.54M | 1.31M | -2.76M | -2.3M | -3.5M | 4M | 6.17M | 3.18M | -9.88M | 2.1M | 2.65M | 3.1M | 2.96M | -238.85K | -8.49M | -8.77M | -912.07K | -636.68K | -1.7M | -1.02M | 1.73M | -3.3M | -11.7M | -2.8M | -300K | 0 |
| Change in Payables | 203.25K | 3.49M | 384.93K | 1.63M | -973.86K | 468.69K | -798.78K | 489.01K | 654K | 177.06K | -384.46K | 1.56M | 1.05M | 518.85K | 276.64K | -1.37M | -1.72M | -950.15K | 1.54M | 701.14K | 911.33K | 0 | 343.11K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -498.78K | -1.04M | -1.28M | -1.56M | -733.47K | -535.98K | -425.76K | -272.89K | -58.45K | -473.69K | -601.06K | -410.75K | 2.22M | -4.18M | -1.34M | -102.1K | -336.98K | -261.47K | -333.2K | -695.49K | -356.32K | -168.39K | -217.99K | 18.73K | -43.92K | -3.5M | -4M | -300K | 0 |
| Capital Expenditures | -10.04K | -953.58K | -1.23M | -1.56M | -483.46K | -535.98K | -425.76K | -272.89K | -427.38K | -473.87K | -601.06K | -910.75K | -1.03M | -1.43M | -287.55K | -102.1K | -28.91K | -155.86K | -309.14K | -207.29K | -238.41K | -144.28K | -215.82K | -37.36K | -23.77K | -3.2M | -3.8M | -200K | 0 |
| CapEx % of Revenue | 0.06% | 4.34% | 4.11% | 3.62% | 1.23% | 1.84% | 1.32% | 1.01% | 1.47% | 1.54% | 2.34% | 3.2% | 4.61% | 8.94% | 2.27% | 1.23% | 0.2% | 0.56% | 0.76% | 0.48% | 1% | 0.84% | 1.31% | 0.32% | 0.19% | 26.02% | 95% | 200% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 250 | 0 | 0 | 0 | 0 | -4.25M | -4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -488.73K | -84.32K | -53.95K | 0 | -250K | 0 | -64.32K | -28.09K | 368.92K | 175 | -55.52K | 389.62K | 3.09M | 4.25M | 4M | -26.31K | -308.07K | -105.6K | -24.06K | -695.49K | -117.91K | -24.1K | -2.17K | 56.09K | -20.15K | -300K | -200K | -100K | 0 |
| Cash from Financing | -500K | 2.3M | -451.81K | 720.5K | 1.09M | 1.9M | 9.12M | 0 | 2.3K | 172.77K | 0 | 434.81K | 158.39K | -307.21K | 191.83K | -3.04K | -186.58K | -1.51M | -5.12M | 1.07M | 1.17M | -645.97K | -213.18K | 5.96M | 294.81K | 400K | 200K | 46.1M | 1.6M |
| Debt Issued (Net) | -500K | 2.3M | 0 | 0 | 0 | 965K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -76K | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | -451.81K | -38.16K | 0 | 0 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | -354.44K | 0 | -50.43K | 0 | 230.96K | -1000K | 1000K | 1000K | -645.97K | -213.18K | 1000K | 294.81K | 400K | 200K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.45M | -1.48M | -699.31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -451.81K | -38.16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -354.44K | 0 | -50.43K | 0 | 0 | -4.06M | 0 | -234.93K | -748K | -224.02K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 758.66K | 1.09M | 932.48K | 63.75K | 0 | 2.3K | 172.77K | 0 | 434.81K | 158.39K | 47.23K | 191.83K | 47.38K | -186.58K | -297.22K | 173.78K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -8.93M | -6.1M | -5.61M | -267.61K | 6.83M | 1.61M | 9.61M | -2.83M | 2.15M | 1.27M | 1.43M | -9.29M | 5.16M | -1.03M | 330.36K | 1.82M | -1.46M | -6.71M | -7.24M | 8.13M | 1.31M | -1.72M | 3.05M | 6.41M | -9.34M | -18.8M | -12M | 42.9M | 1.2M |
| Free Cash Flow | -5.46M | -8.32M | -5.16M | -988.11K | 5.99M | -286.79K | 491.04K | -2.83M | 1.78M | 1.09M | 1.43M | -10.22M | 1.75M | 2.02M | 1.2M | 1.82M | -966.61K | -5.09M | -2.1M | 7.55M | 266.83K | -1.05M | 3.26M | 397.83K | -9.61M | -18.9M | -12M | -3.1M | -400K |
| FCF Margin % | -34.65% | -37.89% | -17.23% | -2.29% | 15.27% | -0.98% | 1.52% | -10.48% | 6.11% | 3.56% | 5.59% | -35.88% | 7.81% | 12.59% | 9.42% | 21.91% | -6.56% | -18.31% | -5.15% | 17.34% | 1.12% | -6.11% | 19.75% | 3.46% | -75.11% | -153.66% | -300% | -3100% | -400% |
| FCF Growth % | 24.54% | -61.27% | -422.07% | -116.5% | 2188.5% | -158.4% | 117.33% | -259.02% | 62.86% | -23.7% | 114.03% | -683.88% | -13.26% | 68.84% | -34.37% | 288.45% | 81.02% | -143.06% | -127.76% | 2729.23% | 125.34% | -132.29% | 719.77% | 104.14% | 49.15% | -57.5% | -287.1% | -675% | - |
| FCF per Share | -1.75 | -2.74 | -1.70 | -0.32 | 1.98 | -0.10 | 0.22 | -1.33 | 0.85 | 0.54 | 0.71 | -5.14 | 0.09 | 0.10 | 0.06 | 0.10 | -0.05 | -0.28 | -0.11 | 0.40 | 0.01 | -0.06 | 0.18 | 0.02 | -1.02 | -2.05 | -1.31 | -0.83 | -0.07 |
| FCF Conversion (FCF/Net Income) | 0.46x | 0.51x | 0.20x | 0.24x | 0.51x | -0.04x | 0.40x | 5.65x | -0.49x | -0.16x | -0.16x | 7.21x | 0.63x | 2.20x | 0.95x | -0.57x | 0.15x | 202.19x | -0.29x | 1.32x | 0.31x | -0.87x | 0.37x | 0.36x | 1.35x | 3.02x | 1.22x | 0.59x | 1.00x |
| Interest Paid | 15.77K | 0 | 0 | 0 | 0 | 884 | 2.2K | 541 | 0 | 0 | 0 | 2.11K | 1.26K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -16.49K | 0 | 5.9K | 0 | 14.7K | 2.05K | 5.76K | 84.79K | 0 | 0 | 0 | 5.57K | 52.52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and existential obsolescence
As reported in recent financial statements, the persistent gap between net losses and operating cash flow suggests that CTHR's cash burn is driven by structural operational inefficiencies rather than non-cash accounting charges, with OCF/NI ratios frequently failing to provide a meaningful signal of earnings quality.
The consistent inability to generate positive operating cash flow despite significant net losses indicates that the company's core business model is currently unable to self-fund its operations. Investors should monitor the OCF/NI volatility, which suggests that working capital swings are masking the underlying cash-generative weakness of the business.
Based on the company's quarterly filings, free cash flow has remained consistently negative over the last ten quarters, with FCF margins reaching as low as -58.5% in 2024Q1, highlighting a structural inability to achieve positive cash flow generation at the current revenue scale.
The trajectory of FCF suggests that the company is trapped in a cycle of cash consumption, where even minimal capital expenditures cannot be offset by operational inflows. This trend implies that the business may require external financing to sustain its current operating footprint if revenue contraction continues.
According to the provided cash flow data, working capital changes have been highly erratic, with a $3.1 million inflow in 2023Q4 followed by significant outflows in subsequent periods, indicating that the company is struggling to manage its inventory and payables in a declining demand environment.
The erratic nature of working capital adjustments suggests that the company may be aggressively managing payables or liquidating inventory to preserve its limited cash position. This behavior warrants further investigation, as it may indicate that the company is pulling forward future cash flows to mask current operational distress.
As indicated by the reported financial data, the company's capital expenditure relative to revenue has fluctuated between 1.4% and 6.4%, which, while seemingly modest, represents a significant burden given the company's inability to generate positive operating cash flow to cover these essential investments.
The maintenance of capital spending during a period of sustained revenue contraction suggests that the company is forced to invest in its digital infrastructure just to maintain its current market position. This capital intensity appears to be a headwind that further exacerbates the company's overall cash burn.
Quick answers to the most common questions about buying CTHR stock.
Charles & Colvard, Ltd. (CTHR) generated $-7.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Charles & Colvard, Ltd. (CTHR) reported negative free cash flow of $8.3M in 2024, indicating capital requirements exceeded cash from operations.
Charles & Colvard, Ltd. (CTHR) spent $1.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.