The company exhibits a severe disconnect between profitability and liquidity, evidenced by a 2025Q4 OCF/NI ratio of -18.11 and a $3.1M working capital outflow that highlights collection difficulties.
| Cash from Operations | -3.46M | -362.32K | 1.58M | 1.39M | 651.16K |
| Operating CF Margin % | -26.69% | -3.14% | 16.77% | 38.7% | 20.75% |
| Operating CF Growth % | -853.73% | -122.87% | 13.9% | 113.61% | - |
| Net Income | -322.2K | 2.1M | 1.86M | 372.44K | 516.89K |
| Depreciation & Amortization | 83.99K | 91.38K | 60.55K | 20.8K | 4.75K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -110.56K | 10.05K | -27.99K | -39.63K | 78.61K |
| Other Non-Cash Items | 842.65K | 28.85K | 230.84K | 413.98K | 256.34K |
| Working Capital Changes | -3.95M | -2.6M | -538.77K | 623.34K | -205.43K |
| Change in Receivables | -5.01M | -6.76M | -783.5K | 135.73K | -282.8K |
| Change in Inventory | 5 | -127 | 1.78M | 479.33K | -30.26K |
| Change in Payables | 1.31M | 1.75M | 87.08K | -371.39K | 372.19K |
| Cash from Investing | -321.9K | -117.48K | -143.03K | 599.61K | -872.44K |
| Capital Expenditures | -589 | -78.13K | -153.79K | -254.83K | -3.39K |
| CapEx % of Revenue | 0% | 0.68% | 1.63% | 7.09% | 0.11% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -321.31K | -39.35K | 10.76K | 854.44K | -869.04K |
| Cash from Financing | 3.94M | -466.61K | -2.1M | -544.36K | 958.9K |
| Debt Issued (Net) | 4.98M | -23.66K | -1.89M | -129.59K | 1.52M |
| Equity Issued (Net) | -1.04M | -417.49K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.04M | -25.47K | -209.81K | -414.76K | -558.22K |
| Net Change in Cash | 165.78K | -918.43K | -639.9K | 1.22M | 746.48K |
| Free Cash Flow | -3.46M | -440.45K | 1.43M | 1.13M | 647.76K |
| FCF Margin % | -26.69% | -3.82% | 15.14% | 31.4% | 20.64% |
| FCF Growth % | -684.68% | -130.79% | 26.75% | 74.22% | - |
| FCF per Share | -5.32 | -0.68 | 2.20 | 1.74 | 1.00 |
| FCF Conversion (FCF/Net Income) | 10.72x | -0.17x | 0.85x | 3.73x | 1.26x |
| Interest Paid | 0 | 0 | 6.02K | 86.67K | 93.22K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Municipal payment collection delays
According to the provided financial statements, DXST exhibits a profound disconnect between net income and operating cash flow, highlighted by a 2025Q4 OCF/NI ratio of -18.11, which suggests that reported profits are not being converted into actual liquidity for the firm's ongoing operations.
The persistent divergence between accounting earnings and cash generation indicates that the company's revenue recognition likely relies heavily on non-cash accruals. Investors should monitor whether these contract assets ever materialize into cash, as the current trend suggests a high risk of earnings quality degradation.
As reported in recent quarterly filings, DXST's free cash flow has remained consistently negative, reaching a low of -$2.8M in 2025Q4, which underscores the company's inability to fund its operational requirements through internal cash generation despite periods of reported positive net income.
The inability to sustain positive free cash flow margins suggests that the business model is currently capital-consumptive rather than self-funding. This trajectory warrants further investigation into whether the company can achieve scale before its limited cash reserves are exhausted.
Based on the reported figures, DXST's working capital changes have been consistently negative, including a significant $3.1M outflow in 2025Q4, which appears to reflect the company's struggle to collect receivables from its municipal and industrial client base in a timely manner.
The consistent cash outflows tied to working capital suggest that the company is effectively financing its clients' operations. This dynamic creates a structural liquidity risk, as the firm's cash position remains insufficient to absorb prolonged delays in municipal payment cycles.
Analysis of the cash flow statement reveals that DXST's reliance on project-based accounting obscures the true cash-generating capacity of the business, as evidenced by the stark contrast between the $12.9M revenue base and the minimal cash and equivalents reported on the balance sheet.
The lack of transparency regarding the aging of accounts receivable makes it difficult to determine if the reported revenue is truly collectible. The cash flow statement appears to mask the underlying operational reality that the company is essentially trading services for long-dated, potentially illiquid contract assets.
Quick answers to the most common questions about buying DXST stock.
Decent Holding Inc. (DXST) generated $-3.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Decent Holding Inc. (DXST) reported negative free cash flow of $3.5M in 2025, indicating capital requirements exceeded cash from operations.
Decent Holding Inc. (DXST) 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.