Operational cash flow remains negative, evidenced by a 2025Q3 OCF/NI ratio of -0.76, indicating that accounting profits are failing to translate into the liquidity required to sustain the business.
| Cash from Operations | -8.51M | -9.76M | -5.01M | 1.49M | -20.75K |
| Operating CF Margin % | - | -38.79% | -25.69% | 15.53% | -0.18% |
| Operating CF Growth % | -59.97% | -94.95% | -435.18% | 7302.01% | - |
| Net Income | -8.1M | -10.77M | -1.6M | 160.73K | 882.91K |
| Depreciation & Amortization | 460.65K | 485.1K | 478.87K | 88.73K | 64.85K |
| Stock-Based Compensation | 2.66M | 331.96K | 0 | 0 | 0 |
| Deferred Taxes | -800K | 0 | 0 | 0 | -247.61K |
| Other Non-Cash Items | -2.2M | 2.92M | -3.01M | 56.45K | 0 |
| Working Capital Changes | 1.22M | -2.73M | -877.15K | 1.19M | 249.61K |
| Change in Receivables | -895.69K | -76.51K | 209.81K | -69.6K | 38.52K |
| Change in Inventory | 6.75M | -1.22M | -5.73M | 486.94K | -1.99M |
| Change in Payables | 1.96M | 1.51M | 281.32K | 227.69K | 121.96K |
| Cash from Investing | -17.03M | -17.05K | -554.82K | -509.73K | -61.84K |
| Capital Expenditures | 53.41K | -23.76K | 0 | -539.73K | -61.84K |
| CapEx % of Revenue | 0.22% | 0.09% | 2.85% | 5.61% | 0.54% |
| Acquisitions | 0 | 6.72K | 0 | 30K | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -17.08M | 0 | -554.82K | 116.18M | -61.84K |
| Cash from Financing | 5.08M | 3.13M | 7.11M | -278.16K | 661.63K |
| Debt Issued (Net) | 4.14M | 2.37M | 13.2M | 0 | 998.23K |
| Equity Issued (Net) | 939.9K | 1.15M | 95.54K | 2.47K | 0 |
| Dividends Paid | 0 | 0 | -2.53M | -280.63K | -336.6K |
| Share Repurchases | 0 | 0 | 0 | -280.63K | -336.6K |
| Other Financing | 435 | -382.53K | -3.65M | 0 | 0 |
| Net Change in Cash | -3.43M | -6.66M | 4.62M | 706.24K | 579.04K |
| Free Cash Flow | -8.51M | -9.76M | -5.56M | 954.4K | -82.59K |
| FCF Margin % | -34.71% | -38.79% | -28.54% | 9.92% | -0.72% |
| FCF Growth % | 29.82% | -75.51% | -682.86% | 1255.57% | - |
| FCF per Share | -7.99 | -58.28 | -44.72 | 5.99 | -0.52 |
| FCF Conversion (FCF/Net Income) | 1.05x | 0.91x | 4.25x | -0.61x | -0.02x |
| Interest Paid | 599.31K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Liquidity and production scalability
As reported in recent financial filings, ECDA's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching -0.76 in 2025Q3, suggesting that accounting profits are not translating into tangible cash inflows due to the company's complex project-based revenue recognition and working capital requirements.
The persistent gap between net income and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash items and timing differences. Investors should monitor whether this disconnect is a structural feature of the bespoke manufacturing model or a sign of deteriorating collection efficiency.
Based on the provided cash flow statements, ECDA has consistently generated negative free cash flow, with margins reaching as low as -53.5% in 2024Q3, reflecting the company's inability to fund its high-cost restoration operations through internal cash generation rather than external financing or customer deposits.
The trajectory of FCF remains deeply negative, which underscores the difficulty of scaling a craft-based business into a profitable manufacturing entity. Without a clear path to positive FCF, the company remains reliant on its ability to secure new deposits to bridge the funding gap.
According to historical data, working capital changes have been highly erratic, swinging from a $2.7M inflow in 2025Q3 to a $4.2M outflow in 2023Q4, which suggests that the company's cash position is highly sensitive to the timing of donor vehicle acquisitions and final customer payments.
This volatility in working capital highlights the operational risks inherent in the restomod business, where inventory buildup and long production cycles tie up significant capital. The reliance on these fluctuations to manage liquidity warrants further investigation into the company's inventory turnover and accounts receivable aging.
As indicated by the financial statements, the company's cash flow is significantly impacted by stock-based compensation, such as the $1.9M expense in 2025Q2, which masks the true cash burn rate and complicates the assessment of the firm's underlying operational performance for equity holders.
The use of stock-based compensation as a primary tool for managing expenses may be obscuring the true cost of talent acquisition in a specialized labor market. Investors should be cautious of these adjustments, as they do not represent a reduction in the actual cash required to sustain the business.
Quick answers to the most common questions about buying ECDA stock.
ECD Automotive Design, Inc. (ECDA) generated $-9.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
ECD Automotive Design, Inc. (ECDA) reported negative free cash flow of $9.8M in 2024, indicating capital requirements exceeded cash from operations.
ECD Automotive Design, Inc. (ECDA) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.