The firm faces severe liquidity pressure, evidenced by a -190.3% free cash flow margin and an OCF/NI ratio of 0.67, which highlights a disconnect between accounting losses and cash generation.
| Cash from Operations | -3.19M | -7.67M | -5.86M | -6.59M | -6.47M |
| Operating CF Margin % | - | -375.93% | -450.68% | -405.43% | -577.76% |
| Operating CF Growth % | 0% | -30.98% | 11.15% | -1.85% | - |
| Net Income | -4.76M | -5.21M | -4.86M | -9.26M | -12.97M |
| Depreciation & Amortization | 74.43K | 125.58K | 103.28K | 1.01K | 335 |
| Stock-Based Compensation | 0 | 1.23M | 1.35M | 587.82K | 402.19K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 330.44K | -1.41M | -3.07M | 2.1M | 5.62M |
| Working Capital Changes | 1.16M | -2.4M | 621.53K | -22.79K | 473.93K |
| Change in Receivables | -916.48K | -2.11M | -206.78K | 89.58K | -190.84K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.02M | 0 | 0 | 0 | 0 |
| Cash from Investing | -7.19M | -10.03K | 0 | 0 | -5.04K |
| Capital Expenditures | 0 | 0 | 0 | 0 | -5.04K |
| CapEx % of Revenue | 0% | - | - | - | 0.45% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -7.19M | -10.03K | 0 | 0 | 0 |
| Cash from Financing | 9.35M | 10.72M | 4.75M | 6.5M | 7.45M |
| Debt Issued (Net) | 0 | 2.74M | -595.27K | 5.9M | 0 |
| Equity Issued (Net) | 9.46M | 10.61M | 0 | 0 | 9.72M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -113.12K | -2.63M | 5.35M | 600K | -2.27M |
| Net Change in Cash | -1.05M | 3.03M | -1.11M | -91.32K | 978.27K |
| Free Cash Flow | -3.19M | -7.67M | -5.86M | -6.59M | -6.48M |
| FCF Margin % | -190.29% | -375.93% | -450.68% | -405.43% | -578.21% |
| FCF Growth % | - | -30.98% | 11.15% | -1.77% | - |
| FCF per Share | -0.13 | -0.44 | -0.26 | -0.29 | -0.29 |
| FCF Conversion (FCF/Net Income) | 0.67x | 1.47x | 1.20x | 0.71x | 0.50x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Insufficient liquidity for operations
As reported in the 2026Q2 financial statements, DGNX exhibits an OCF/NI ratio of 0.67, indicating that operating cash flow is failing to capture the full extent of the company's net losses, which suggests that non-cash items are not sufficiently offsetting the underlying cash burn.
The divergence between net income and operating cash flow suggests that the company's accounting earnings are not being supported by actual cash generation. Investors should monitor this ratio closely, as a sub-1.0 conversion factor in a loss-making entity often points to aggressive accrual accounting or significant working capital drag.
Based on the most recent quarterly data, DGNX reported a free cash flow margin of -190.3%, highlighting a severe disconnect between the company's revenue generation and its ability to fund operations internally without relying on external financing or existing cash reserves.
The deep negative FCF margin underscores the company's current status as a cash-consuming entity rather than a self-sustaining business. This trajectory suggests that the firm remains in a high-intensity investment phase where the cost of scaling the platform significantly outweighs the current revenue intake.
According to the latest quarterly filings, DGNX recorded a $1.2 million positive change in working capital, which appears to be the primary factor mitigating the severity of the company's operating cash outflow during the period.
This positive working capital adjustment suggests that the company may be delaying payables or accelerating collections to preserve liquidity. Analysts should investigate whether this is a sustainable operational efficiency or a temporary measure that will reverse in subsequent quarters, potentially exacerbating the cash burn.
As indicated by the reported figures, DGNX maintained a CapEx/Revenue ratio of 0.0%, suggesting that the company is currently avoiding significant investment in physical infrastructure or tangible assets to preserve its limited cash position.
The lack of capital expenditure may imply that the company is relying on cloud-based infrastructure or that development costs are being funneled through operating expenses rather than capitalized. This approach warrants further investigation to determine if the firm is under-investing in the necessary technology stack to support long-term growth.
Quick answers to the most common questions about buying DGNX stock.
Diginex Limited (DGNX) generated $-7.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Diginex Limited (DGNX) reported negative free cash flow of $7.7M in 2025, indicating capital requirements exceeded cash from operations.
Diginex Limited (DGNX) 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.