Free cash flow remains structurally negative, with the company burning cash in eight of the last ten quarters and exhibiting an OCF/NI ratio as low as 0.30 in 2025Q4, highlighting a chronic inability to fund operations internally.
| Cash from Operations | -2.95M | -9.48M | -5.25M | -4.61M | 322.19K | -144.04K | 4.67M | 2.17M | -491.96K |
| Operating CF Margin % | -32.96% | -116.29% | -91.95% | -72.88% | 6.03% | -1.59% | 53.67% | 34.45% | -8.46% |
| Operating CF Growth % | 68.93% | -80.52% | -13.85% | -1531.98% | 323.68% | -103.08% | 115.68% | 540.11% | - |
| Net Income | -2.53M | -6.57M | -7.17M | -6.24M | -1.08M | 1.01M | 2.05M | 1.07M | 990.23K |
| Depreciation & Amortization | 409.9K | 425.76K | 407.01K | 252.1K | 126.23K | 87.59K | 91.81K | 82.22K | 84.91K |
| Stock-Based Compensation | 972.88K | 1.98M | 2.06M | 4.81M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.47K | -354.01K | 277.87K | -99.81K | -321.06K | 0 | 96.71K | 646.88K | 510.12K |
| Other Non-Cash Items | -1.61M | -477.12K | 117.3K | -838.71K | 90.7K | 0 | -458K | -506.1K | 934.99K |
| Working Capital Changes | -192.24K | -4.48M | -943.4K | -2.5M | 1.51M | -1.24M | 2.43M | 366.43K | -2.08M |
| Change in Receivables | -2.03M | -7.91M | 217.41K | 118.61K | -5.18K | 89.52K | -207.6K | -51.88K | -5.37K |
| Change in Inventory | 2.09K | -7.29K | -21.17K | 1.32M | -1.12M | 348.55K | 573.84K | -1.63M | 0 |
| Change in Payables | -81.31K | 1.11M | -1.33M | -1.32M | 1.12M | 545.61K | 849.23K | 722.43K | -759.8K |
| Cash from Investing | 1.46M | 716.77K | -877.63K | -651.48K | -514.53K | -288.56K | -203.17K | -491.59K | -561.92K |
| Capital Expenditures | -292.84K | -40.34K | -14.23K | -51.41K | -618.53K | -288.56K | -203.17K | -211.59K | -132.13K |
| CapEx % of Revenue | 3.28% | 0.49% | 0.25% | 0.81% | 11.58% | 3.18% | 2.34% | 3.37% | 2.27% |
| Acquisitions | 1.75M | 0 | 386.6K | -1.95M | 4K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 757.12K | -1.25M | 1.62M | 100K | 0 | 0 | -280K | -429.8K |
| Cash from Financing | 5.11M | 4.95M | -1.25M | 200K | 9.32M | -432.04K | -211.85K | 438.8K | 429.19K |
| Debt Issued (Net) | 0 | 409.96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 5.11M | 800K | -1.25M | 200K | 9.32M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.25M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 3.74M | 0 | 0 | 0 | -432.04K | -211.85K | 438.8K | 429.19K |
| Net Change in Cash | 3.6M | -3.82M | -6.14M | -5.09M | 9.13M | -864.63K | 4.25M | 2.11M | -624.69K |
| Free Cash Flow | -3.24M | -9.52M | -5.27M | -4.67M | -296.34K | -432.6K | 4.47M | 1.95M | -624.08K |
| FCF Margin % | -36.23% | -116.78% | -92.2% | -73.69% | -5.55% | -4.77% | 51.34% | 31.08% | -10.73% |
| FCF Growth % | 65.98% | -80.8% | -12.9% | -1474.25% | 31.5% | -109.69% | 128.64% | 413.03% | - |
| FCF per Share | -3.35 | -12.06 | -7.23 | -6.78 | -0.46 | -0.79 | 8.12 | 3.60 | -1.13 |
| FCF Conversion (FCF/Net Income) | 1.21x | 1.58x | 0.79x | 0.77x | -0.30x | -0.14x | 2.27x | 2.02x | -0.50x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.13K | 10.79K | 10.57K | 14.17K | 490.25K | 1.05M | 160.73K | 0 | 0 |
Geopolitical and enrollment concentration
As reported in recent financial filings, EEIQ exhibits a chronic inability to convert net income into operating cash flow, with the OCF/NI ratio fluctuating wildly between 0.30 and 9.89, suggesting that accounting accruals and working capital swings frequently mask the underlying cash-generative weakness of the business.
The extreme volatility in the OCF/NI ratio indicates that reported net income is a poor proxy for the company's actual cash-generating capacity. Investors should monitor this divergence, as it suggests that the firm's accrual-based accounting is heavily influenced by the timing of student payments rather than consistent operational performance.
Based on the provided cash flow statements, EEIQ's free cash flow trajectory is consistently negative, with the company burning cash in eight of the last ten quarters, highlighting a structural inability to fund its US-based operational footprint through internal cash generation alone.
The persistent negative FCF margins, which reached as low as -127.1% in 2023Q2, imply that the company is currently reliant on external liquidity or existing cash reserves to sustain its operations. This trend warrants further investigation into whether the current business model can ever achieve self-sustaining cash flow without a significant increase in student density.
According to historical cash flow data, working capital changes are the primary driver of quarterly cash fluctuations, with swings as large as $7.3 million in 2024Q2, reflecting the company's heavy reliance on the timing of upfront student payments for housing and auxiliary services.
The reliance on working capital shifts to manage liquidity suggests that the company's cash position is highly sensitive to the academic calendar and enrollment cycles. This dependency creates significant cash flow risk, as any disruption in the timing of student payments could rapidly deplete the company's available cash reserves.
As indicated by the company's financial statements, stock-based compensation has been utilized as a recurring non-cash expense, with peaks reaching $1.3 million in 2023Q4, which effectively masks the true extent of the company's cash burn by reducing the reported net loss without impacting cash reserves.
The use of equity-based incentives appears to be a strategy to preserve cash while compensating personnel, yet it dilutes shareholders without addressing the core issue of negative operating cash flow. Analysts should adjust for these non-cash charges to understand the true economic cost of maintaining the company's US-based support staff.
Quick answers to the most common questions about buying EEIQ stock.
Elite Education Group International Limited (EEIQ) generated $-2.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Elite Education Group International Limited (EEIQ) reported negative free cash flow of $3.2M in 2025, indicating capital requirements exceeded cash from operations.
Elite Education Group International Limited (EEIQ) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.