Free cash flow remains deeply negative with a -77.8% margin in 2026Q2, highlighting a persistent disconnect where capital expenditures frequently outpace the company's ability to generate internal cash.
| Cash from Operations | 1.42M | 567.09K | 813.83K | -8.9M | 6.16M | 3.75M | -2.21M | -1.27M | 3.51M | 5.51M | 3.95M | 2.91M |
| Operating CF Margin % | - | 2.74% | 5.48% | -50.63% | 22.74% | 15.43% | -11.54% | -4.84% | 11.66% | 26.02% | 24.53% | 18.81% |
| Operating CF Growth % | -74.54% | -30.32% | 109.14% | -244.51% | 64.18% | 269.61% | -74.34% | -136.11% | -36.19% | 39.49% | 35.64% | - |
| Net Income | -13.14M | -5.1M | -6.06M | -7.2M | 3.24M | 1.51M | -8.44M | 1.42M | 4.6M | 4.95M | 3.48M | 3.83M |
| Depreciation & Amortization | 7.23M | 3.44M | 3.95M | 4.34M | 3.87M | 3.51M | 2.64M | 1.47M | 1.22M | 830.33K | 837.65K | 734.74K |
| Stock-Based Compensation | 1.11M | 0 | 1.11M | 1.24M | 11.83K | 529.66K | 394.46K | 682.25K | 341.13K | 0 | 0 | 0 |
| Deferred Taxes | -1.2M | -640.48K | -597.24K | -658.6K | -118.42K | -478.32K | 84.05K | -209.01K | -12.75K | 53.4K | -66.51K | 0 |
| Other Non-Cash Items | 4.03M | 1.12M | 1.59M | 162.63K | 90.4K | -496K | 3.49M | -21.28K | -123.38K | -385.02K | 137.03K | -805.41K |
| Working Capital Changes | 3.37M | 1.75M | 810.63K | -6.79M | -925.82K | -821.46K | -384.61K | -4.61M | -2.51M | 63.52K | -442.98K | -844.05K |
| Change in Receivables | 1.94M | 1.82M | -368.74K | -381.39K | 62.39K | -526.37K | 1.62M | 55.19K | -1.46M | -743.35K | -588.36K | -397.12K |
| Change in Inventory | -544.14K | -248.27K | -447.63K | 268.59K | 740.26K | -1.21M | 1.21M | -1.36M | -1.24M | -434.41K | 438.74K | -358.03K |
| Change in Payables | 290.69K | 308.34K | 395.56K | -441.36K | 282.87K | 91.19K | -2.78M | 205.43K | -317.72K | 57.36K | -803.39K | 0 |
| Cash from Investing | -6.72M | 877.64K | -3.44M | -1.48M | -14.74M | -11.14M | -1.86M | -1.49M | -44.26M | -3.62M | -1.22M | -896.34K |
| Capital Expenditures | -8.64M | -1.02M | -3.52M | -1.52M | -15.26M | -14.45M | -9.44M | -16.73M | -15.52M | -3.62M | -1.22M | -896.34K |
| CapEx % of Revenue | 23.6% | 4.93% | 23.74% | 8.65% | 56.32% | 59.4% | 49.26% | 63.81% | 51.51% | 17.1% | 7.58% | 5.79% |
| Acquisitions | 1.92M | 1.9M | 79.85K | -11.37K | 22.21K | 288.95K | 634.48K | 136.71K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 9.58M | 4.4M | 5.21M | -1.04M | 20.87M | 10.95M | 2.45M | -1.78M | 47.61M | -2.01M | -1.64M | -2.1M |
| Debt Issued (Net) | -1.54M | -1.48M | -35.63K | -1.04M | -2.88M | 4.34M | 2.45M | -1.78M | -2.59M | 716.22K | -3.6M | 0 |
| Equity Issued (Net) | 11.11M | 5.88M | 5.25M | 0 | 23.75M | 6.61M | 0 | 0 | 50.2M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.73M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.96M | -2.1M |
| Net Change in Cash | 4.15M | 5.88M | 2.47M | -12.12M | 11.67M | 3.71M | -1.32M | -4.54M | 5.58M | 120.36K | 1.38M | -83.5K |
| Free Cash Flow | -7.22M | -453.07K | -2.71M | -10.42M | -9.1M | -10.69M | -11.66M | -18M | -9.93M | 1.89M | 2.73M | 2.01M |
| FCF Margin % | -19.73% | -2.19% | -18.26% | -59.27% | -33.58% | -43.97% | -60.8% | -68.65% | -32.95% | 8.91% | 16.96% | 13.02% |
| FCF Growth % | 55.19% | 83.29% | 73.99% | -14.55% | 14.91% | 8.26% | 35.23% | -81.27% | -626.06% | -30.83% | 35.44% | - |
| FCF per Share | -0.41 | -0.03 | -0.25 | -0.98 | -0.86 | -1.04 | -1.18 | -1.82 | -1.00 | 0.20 | 3.64 | 2.69 |
| FCF Conversion (FCF/Net Income) | 0.55x | -0.11x | -0.13x | 1.24x | 1.90x | 2.48x | 0.26x | -0.89x | 0.76x | 1.11x | 1.13x | 0.76x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
According to historical cash flow statements, DOGZ exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a 0.31 reading in 2026Q2, which suggests that reported earnings are not being supported by actual cash generation from core operations.
The frequent divergence between net losses and operating cash flow indicates that accruals and non-cash adjustments are masking the underlying cash-burning nature of the business. Investors should monitor whether this gap represents temporary working capital timing or a structural inability to convert sales into realized liquidity.
As reported in financial filings, DOGZ has consistently posted negative free cash flow over the last ten quarters, with a -77.8% FCF margin in 2026Q2, signaling that the company's aggressive growth strategy is currently consuming capital rather than generating sustainable returns for shareholders.
The persistent negative FCF trajectory suggests that the company's pivot toward smart pet products requires significant ongoing investment that exceeds the cash generated by its legacy textile business. This trend warrants further investigation into how long the current cash reserves can sustain such high-intensity capital requirements.
Based on the provided data, DOGZ maintains a high capital intensity, with CapEx/Revenue ratios reaching as high as 68.6% in 2022Q4, indicating that the company is heavily reinvesting in manufacturing infrastructure to support its transition into the smart pet hardware market.
The elevated level of capital expenditure relative to revenue suggests that the company is still in a heavy asset-building phase. This high capital intensity may indicate that the company's competitive advantage is tied to physical manufacturing capacity, which remains a significant drag on free cash flow.
As evidenced by quarterly cash flow data, working capital changes have been highly inconsistent, swinging from a $1.7M inflow in 2024Q4 to a $3.8M outflow in 2023Q4, which suggests significant challenges in managing inventory levels and collection cycles for its diverse product portfolio.
The erratic nature of working capital movements may indicate difficulties in aligning production schedules with retail demand for smart pet gadgets. Such volatility often suggests that the company is struggling to optimize its cash conversion cycle, potentially leading to liquidity pressure during periods of inventory buildup.
Quick answers to the most common questions about buying DOGZ stock.
Dogness (International) Corporation (DOGZ) generated $0.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Dogness (International) Corporation (DOGZ) reported negative free cash flow of $0.5M in 2025, indicating capital requirements exceeded cash from operations.
Dogness (International) Corporation (DOGZ) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.