The firm's cash conversion efficiency remains distressed, evidenced by a negative free cash flow margin of -63.4% in 2025Q2 and a reliance on cash reserves that dropped from $2.4M to $2.0M.
| Cash from Operations | -2.38M | -1.39M | 1.86M | 1.4M | 988.83K | -112.94K |
| Operating CF Margin % | -46.49% | -11.13% | 6.38% | 12.49% | 5.43% | -0.57% |
| Operating CF Growth % | -70.82% | -174.8% | 33.41% | 41.15% | 975.52% | - |
| Net Income | -1.5M | 284.69K | 3.72M | 1.13M | 1.05M | 951.51K |
| Depreciation & Amortization | 0 | 15.41K | 19.99K | 22.59K | 22.86K | 20.94K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 287.74K | 86.47K | 17.1K | 88.42K | 131.79K | 0 |
| Working Capital Changes | -1.17M | -1.78M | -1.89M | 153.79K | -217.85K | -1.09M |
| Change in Receivables | 0 | -479.49K | -426.17K | 68.59K | -67.45K | 123.86K |
| Change in Inventory | 0 | 805.11K | 435.84K | -1.06M | -2.44M | 323.03K |
| Change in Payables | 0 | -861.17K | 546.7K | 705.45K | 118.15K | -45.58K |
| Cash from Investing | -4.16K | -127.97K | -770 | -11.72K | -916 | -20.57K |
| Capital Expenditures | -4.16K | -83.18K | -770 | -4.22K | -916 | -20.57K |
| CapEx % of Revenue | 0.08% | 0.66% | 0% | 0.04% | 0.01% | 0.1% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -7.51K | 0 | 0 |
| Cash from Financing | 4.22M | 352.85K | -1.07M | -1.13M | -1.08M | 417.05K |
| Debt Issued (Net) | 0 | 0 | -26.83K | -104.47K | -100.87K | -414.22K |
| Equity Issued (Net) | 4.58M | 0 | 0 | 0 | 120.16K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -360.46K | 352.85K | -1.04M | -1.03M | -1.1M | 831.26K |
| Net Change in Cash | 1.83M | -1.17M | 790.6K | 253.55K | -92.51K | 284.08K |
| Free Cash Flow | -2.38M | -1.48M | 1.86M | 1.39M | 987.91K | -133.51K |
| FCF Margin % | -46.57% | -11.79% | 6.38% | 12.45% | 5.43% | -0.68% |
| FCF Growth % | -61.47% | -179.3% | 33.76% | 40.86% | 839.97% | - |
| FCF per Share | -0.18 | -0.11 | 0.14 | 0.11 | 0.07 | -0.01 |
| FCF Conversion (FCF/Net Income) | 1.59x | -5.07x | 0.51x | 1.25x | 0.95x | -0.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 22.77K | 0 | 0 | 0 |
Liquidity and revenue collapse
According to recent financial filings, EPSM's operating cash flow to net income ratio fluctuated wildly, reaching 0.57 in 2025Q4, which suggests that the company's reported earnings are not being effectively converted into actual cash inflows, further complicating the firm's already precarious liquidity position in the Macau market.
The significant divergence between net income and operating cash flow indicates that accruals are masking the underlying cash burn. Investors should monitor this gap, as it suggests that the company's accounting earnings may be significantly more optimistic than the actual cash generation capacity of its luxury beverage distribution business.
As reported in the latest quarterly data, EPSM's free cash flow margin plummeted to -63.4% in 2025Q2, illustrating a severe inability to generate positive cash flow from operations while maintaining its current, albeit limited, capital expenditure requirements for its high-end spirits and wine procurement activities.
The persistent negative free cash flow trajectory confirms that the business model is currently consuming rather than generating capital. This trend warrants further investigation into whether the company can achieve a break-even point without significant external financing or a radical reduction in its operating footprint.
Based on the provided cash flow statements, EPSM experienced a massive $1.3M working capital outflow in 2025Q2, which suggests that the company is struggling to manage its inventory and receivables effectively amidst a sharp 59% decline in top-line revenue across its core luxury beverage segments.
The erratic nature of working capital changes implies that the company may be facing difficulties in collecting payments from its hospitality and gaming clients. This volatility is a major red flag, as it indicates that the firm's cash conversion cycle is likely lengthening at a time when liquidity is most critical.
Data from recent financial disclosures indicates that EPSM utilized $300,000 for share repurchases in 2025Q2, a decision that appears highly questionable given the company's negative operating cash flow and the urgent need to preserve liquidity to support its core procurement-heavy business model in the Macau region.
Allocating capital to share buybacks while the company is actively burning cash suggests a potential misalignment between management's capital allocation strategy and the firm's immediate financial survival. Investors should monitor whether such deployment continues, as it may further weaken the company's already vulnerable balance sheet.
Quick answers to the most common questions about buying EPSM stock.
Epsium Enterprise Limited Ordinary Shares (EPSM) generated $-2.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Epsium Enterprise Limited Ordinary Shares (EPSM) reported negative free cash flow of $2.4M in 2025, indicating capital requirements exceeded cash from operations.
Epsium Enterprise Limited Ordinary Shares (EPSM) 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.