Liquidity is under critical pressure with cash reserves dwindling to $567.5K, forcing the company to cease all capital expenditures as it struggles with a persistent negative free cash flow trajectory.
| Cash from Operations | -7.08M | -4.01M | -2.66M | -2.56M | 4.83M | 10.75M | 11.48M | 20.29M | 16.95M |
| Operating CF Margin % | - | -449.14% | -133.07% | -22.59% | 20.95% | 36.87% | 40.14% | 82.26% | 113.69% |
| Operating CF Growth % | -93.19% | -50.89% | -3.97% | -152.98% | -55.1% | -6.32% | -43.43% | 19.71% | - |
| Net Income | -9.79M | -2.98M | -4.72M | -20.91M | -1.4M | 3.5M | 9.98M | 8.68M | 6.01M |
| Depreciation & Amortization | 294.75K | 116.11K | 258K | 10.01M | 11.96M | 10.34M | 8.99M | 7.25M | 4.38M |
| Stock-Based Compensation | 436.8K | 436.8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 38.74K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.76M | -1.35M | 2.81M | 13.38M | 24.56M | 2.44M | -7.86M | 20.81M | 4.88M |
| Working Capital Changes | -1.17M | -236.23K | -1M | -5.04M | -6.2M | -5.52M | 372.35K | 4.36M | 6.56M |
| Change in Receivables | -685.06K | -660.54K | 288.26K | -205.89K | -168.24K | -155.2K | 372.35K | -279.38K | -131.16K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 7.87M | -4.64M | -2.28M |
| Change in Payables | -2.44K | 0 | -21.89K | -55.37K | -36.44K | -135.38K | 239.06K | -6.03M | 4.02M |
| Cash from Investing | 3 | 0 | 4.79K | -300.63K | -13.6M | -20.86M | -10.4M | -15.75M | -15.07M |
| Capital Expenditures | 0 | 0 | 0 | 0 | -2.36M | -12.86M | -1.67M | -15.75M | -15.07M |
| CapEx % of Revenue | 0% | - | - | - | 10.25% | 44.1% | 5.85% | 63.83% | 101.09% |
| Acquisitions | 0 | 0 | 0 | 0 | 55.11K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 3 | 0 | 4.79K | -300.63K | -13.13M | -15.77M | -8.73M | -1.78M | -15.07M |
| Cash from Financing | 1M | 600K | 0 | 1M | 14.81M | 13.24M | 0 | 0 | 0 |
| Debt Issued (Net) | 1M | 600K | 0 | 1M | 14.81M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 13.24M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -19.16M | -1.06M | -3.17M | -2.84M | 6.38M | 5.52M | 1.57M | 5.47M | 848.3K |
| Free Cash Flow | -7.08M | -4.01M | -2.66M | -2.56M | 2.47M | -2.11M | 9.81M | 4.55M | 1.88M |
| FCF Margin % | -506.07% | -449.14% | -133.07% | -22.59% | 10.7% | -7.23% | 34.29% | 18.43% | 12.6% |
| FCF Growth % | -342.16% | -50.89% | -3.97% | -203.76% | 216.84% | -121.52% | 115.72% | 142.02% | - |
| FCF per Share | -0.44 | -0.25 | -0.17 | -0.17 | 0.18 | -0.19 | 1.09 | 0.37 | 0.15 |
| FCF Conversion (FCF/Net Income) | 0.72x | 1.35x | 0.56x | 0.12x | -3.45x | 3.07x | 1.15x | 2.34x | 2.82x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 422 | 195 | 114 |
| Taxes Paid | 0 | 23.72K | 0 | 0 | 1.23M | 3.61M | 3.06M | 3.26M | 1.66M |
Insolvency and liquidity crisis
According to recent financial filings, EDTK's operating cash flow to net income ratio reached 1.01 in 2026Q2, yet this parity masks a persistent inability to generate positive cash flow, as the company continues to report significant net losses across nearly all observed historical reporting periods.
The alignment between net income and operating cash flow suggests that the company's losses are largely cash-based rather than driven by non-cash accounting adjustments. This indicates that the firm is experiencing a genuine depletion of liquidity rather than a temporary accounting mismatch, which warrants significant concern regarding operational sustainability.
As reported in quarterly statements, EDTK's free cash flow trajectory has remained consistently negative, with the most recent 2026Q2 period showing a $1.0 million outflow, reflecting a structural inability to achieve positive cash generation despite the company's attempts to pivot its business model.
The persistent negative free cash flow margins suggest that the company's core operations are unable to cover even minimal overhead, let alone fund future growth initiatives. Investors should monitor whether the company can reach a cash-flow-neutral state before its remaining liquidity is fully exhausted.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $1.3 million inflow in 2025Q2 to a $1.4 million outflow in 2025Q4, which suggests significant instability in the company's ability to manage its receivables and payables effectively.
This volatility in working capital appears to be a symptom of the company's broader revenue collapse and potential difficulties in collecting payments from institutional partners. Such fluctuations often indicate that the firm is struggling to maintain a predictable cash conversion cycle, further complicating its liquidity management.
As indicated by historical data, EDTK has drastically reduced its capital expenditure to zero in recent periods, down from a peak of $6.6 million in 2021Q4, suggesting a defensive posture aimed at preserving cash amidst a severe contraction in the company's operational scale.
The cessation of capital investment may imply that the company is no longer prioritizing the maintenance or expansion of its virtual simulation platform. While this preserves immediate cash, it may also signal a long-term risk to the competitiveness and relevance of the company's core technology assets.
Quick answers to the most common questions about buying EDTK stock.
Skillful Craftsman Education Technology Limited (EDTK) generated $-4.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Skillful Craftsman Education Technology Limited (EDTK) reported negative free cash flow of $4.0M in 2025, indicating capital requirements exceeded cash from operations.
Skillful Craftsman Education Technology Limited (EDTK) 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.