Operating cash flow consistently exceeds net income, with an OCF/NI ratio of 1.11 in 2026Q2, demonstrating high earnings quality, though free cash flow remains volatile due to lumpy fleet expansion capital expenditures.
Euroseas Ltd. (ESEA) cash flow statement — 24-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 147.89M | 141.13M | 128.17M | 130.01M | 114.08M | 52.61M | 2.43M | 3.14M | -1.47M | -832.24K | -832.24K | -1.74M | -730.28K | 4.03M | 8.51M | 17.05M | 12.75M | 7.84M | 74.28M | 48.96M | 20.97M | 20.59M | 34.21M | 10.96M | 5.63M |
| Operating CF Margin % | - | 61.93% | 60.2% | 68.66% | 62.44% | 56.04% | 4.56% | 7.85% | -4.28% | -3.5% | -4.05% | -4.61% | -1.8% | 10.3% | 16.22% | 27.77% | 24.29% | 12.29% | 58.81% | 59.65% | 52.01% | 48.88% | 78.64% | 43.75% | 37.87% |
| Operating CF Growth % | 39.47% | 10.12% | -1.42% | 13.96% | 116.83% | 2065.7% | -22.64% | 312.94% | -77.21% | 0% | 52.04% | -137.61% | -118.11% | -52.64% | -50.06% | 33.71% | 62.66% | -89.45% | 51.73% | 133.48% | 1.82% | -39.8% | 212.23% | 94.56% | - |
| Net Income | 135.93M | 136.97M | 112.78M | 114.55M | 106.24M | 42.96M | 4.04M | -1.68M | -663.4K | -44.22M | -44.22M | -13.7M | -17.92M | -103.42M | -13.2M | 1.12M | -6.61M | -15.63M | 23.61M | 40.66M | 20.07M | 25.18M | 30.61M | 8.43M | 891.63K |
| Depreciation & Amortization | 26.67M | 28.61M | 21.95M | 22.84M | 18.52M | 7.2M | 6.61M | 4.18M | 3.31M | 8.79M | 8.79M | 11M | 12.14M | 19.98M | 17.39M | 18.35M | 17.98M | 19.09M | 29.12M | 18.04M | 7.37M | 4.29M | -3.51M | 0 | 0 |
| Stock-Based Compensation | 1.77M | 1.96M | 1.52M | 1.08M | 951.38K | 182.32K | 121.63K | 97.92K | 124.49K | 294.34K | 294.34K | 306.11K | 510.11K | 568.33K | 671.38K | 568.49K | 696.12K | 820.19K | 1.62M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -1.28M | 286.86K | -1.22M | 32.86M | 32.86M | 2.96M | 5.32M | 80.79M | 8.71M | -1.17M | -1.46M | 17.03M | 2.12M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -8.65M | -21.2M | -6.3M | -14.17M | -14.71M | -151.04K | -4.11M | -557.14K | 465.51K | 613.33K | 613.33K | -1.06M | -850.57K | -50.37K | 183.83K | 886.6K | -8.05M | -3.63M | 26.4M | -10.94M | -4.8M | 100.03K | 4.68M | 2.53M | 4.74M |
| Working Capital Changes | -7.83M | -5.21M | -1.78M | 5.71M | 3.07M | 2.41M | -2.95M | 816.58K | -3.48M | 829.33K | 829.33K | -1.24M | 68.84K | 6.17M | -5.24M | -2.7M | 10.19M | -9.85M | -8.58M | 1.2M | -1.67M | -8.98M | 2.43M | 0 | 0 |
| Change in Receivables | 0 | -7.78M | -1.01M | 1.81M | 0 | 0 | -1.3M | 243.61K | -73.21K | -47.17K | -23.84K | 781.71K | -316.84K | -453.98K | -54.28K | 192.88K | 86.95K | -416.82K | -183.79K | -1.14M | 68.8K | -68.78K | 422.29K | 0 | 0 |
| Change in Inventory | 0 | 165.97K | -652.8K | 178.14K | -31.72K | -612.03K | 226.74K | -184.77K | -511.37K | 145.17K | 245.08K | 293.99K | -284.82K | 338.52K | 793.9K | -818.28K | 80.98K | 142.74K | -108.3K | -1.19M | -344.44K | -68.21K | 51.45K | 0 | 0 |
| Change in Payables | 0 | -395.09K | 779.25K | -1.08M | 2.01M | -740.66K | -1.01M | 1.54M | 766.05K | 235.41K | 588.42K | -1.26M | 466.14K | -101.76K | 476.4K | -2.06M | 2.21M | -243.11K | -2.19M | 1.92M | 197.53K | -42.36K | 77.49K | 0 | 0 |
| Cash from Investing | -48.96M | -15.2M | -168.77M | -102.19M | -87.13M | -74.1M | 16.3M | -55.72M | 6.25M | -23.13M | -18.81M | -11.02M | -37.09M | -7.88M | -3.51M | 1.9M | -29.21M | -45.6M | -46.15M | -146.67M | -55.37M | -21.83M | 6.76M | 214.83K | -17.04M |
| Capital Expenditures | -58.56M | -77.05M | -178.92M | -112.29M | -90.69M | -74.1M | -667.07K | -55.72M | -1.87K | -27.33M | -27.33M | -17.01M | -36.96M | -6.02M | 0 | 0 | -16.12M | -62.22M | -45.4M | -149.5M | -53.83M | -20.82M | 0 | 0 | 0 |
| CapEx % of Revenue | 25.84% | 33.81% | 84.04% | 59.3% | 49.64% | 78.92% | 1.25% | 139.22% | 0.01% | 115.03% | 133.02% | 45.16% | 90.96% | 15.36% | - | - | 30.72% | 97.56% | 35.95% | 182.14% | 133.53% | 49.42% | - | - | - |
| Acquisitions | 5.63M | 61.85M | 0 | 0 | 0 | 0 | 14.62M | 0 | 6.26M | 9.55M | 4.2M | 8.47M | 0 | -6.25M | -3.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 43.98M | 0 | 10.15M | 10.1M | 3.56M | 0 | 2.34M | 0 | 6.26M | 196.27K | 8.52M | 5.99M | -131.68K | 2.06M | 244.94K | 1.9M | 1.91M | 16.63M | -741.38K | 2.83M | -1.54M | -1.01M | 6.76M | 214.83K | -17.04M |
| Cash from Financing | -47.29M | -23.28M | 56.96M | 5.06M | -27.01M | 46.65M | -18.32M | 45.3M | 135.4K | 14.13M | 14.13M | -3.94M | 51.83M | -18.13M | -2.84M | -22.28M | 9.75M | 4.89M | -58.42M | 199.06M | 16.74M | 6.19M | -33.57M | -4.78M | 12.25M |
| Debt Issued (Net) | -34.38M | 10.93M | 76.26M | 23.02M | -11.03M | 49.21M | -18.53M | 51.77M | 1.9M | 13.01M | 382.88K | -13.74M | 8.61M | -15.94M | -13.33M | -13.47M | 16.87M | 15.29M | -25.57M | 6.53M | 26.39M | 34.57M | -6.61M | 0 | 0 |
| Equity Issued (Net) | -815.04K | -2.12M | -1.07M | -3.15M | -5.03M | -3.26M | 531.23K | -4.97M | 1.98M | 549.5K | 0 | 10.55M | 44.1M | 0 | 15.24M | 0 | -99.81K | 4.02K | 1.81M | 214.22M | 10K | 70.27K | 0 | 0 | 0 |
| Dividends Paid | -25.23M | -18.96M | -16.84M | -13.98M | -10.8M | -424K | -320.88K | -1.03M | 0 | 0 | 0 | 0 | -13.05K | -2.09M | -4.45M | -8.44M | -6.86M | -10.85M | -34.55M | -20.28M | -9.47M | -46.88M | -26.96M | 0 | 0 |
| Share Repurchases | -815.04K | -2.12M | -1.07M | -3.15M | -5.03M | -2M | 0 | -11.69M | 0 | 0 | 0 | 0 | -150.69K | -99.2K | 0 | -148.39K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 13.13M | -13.13M | -1.4M | -833.9K | -143.13K | 1.12M | 0 | -566.5K | -3.74M | -804.92K | 13.75M | -843.27K | -864.82K | -99.2K | -295.73K | -368.39K | -160.25K | 448.05K | -110.34K | -1.41M | -192.92K | 18.42M | 0 | -4.78M | 12.25M |
| Net Change in Cash | 51.63M | 102.36M | 16.35M | 32.88M | -59.72K | 25.16M | 408.12K | -7.28M | 4.91M | -9.83M | -5.51M | -16.7M | 14.01M | -21.97M | 2.17M | -3.34M | -6.71M | -32.87M | -30.28M | 101.34M | -17.66M | 4.95M | 7.4M | -4.78M | 12.25M |
| Free Cash Flow | 89.32M | 64.08M | -50.76M | 17.71M | 23.39M | -21.49M | 1.76M | -52.58M | -1.48M | -28.16M | -28.16M | -18.75M | -37.69M | -1.98M | 8.51M | 17.05M | -3.37M | -54.39M | 28.88M | -100.54M | -32.86M | -226.87K | 34.21M | 10.96M | 5.63M |
| FCF Margin % | 39.41% | 28.12% | -23.84% | 9.35% | 12.8% | -22.88% | 3.31% | -131.37% | -4.29% | -118.53% | -137.07% | -49.76% | -92.76% | -5.07% | 16.22% | 27.77% | -6.43% | -85.27% | 22.87% | -122.49% | -81.51% | -0.54% | 78.64% | 43.75% | 37.87% |
| FCF Growth % | 239.32% | 226.26% | -386.53% | -24.28% | 208.87% | -1319.22% | 103.35% | -3460.64% | 94.76% | 0% | -50.2% | 50.26% | -1799.78% | -123.31% | -50.06% | 605.49% | 93.8% | -288.32% | 128.72% | -205.96% | -14385.06% | -100.66% | 212.23% | 94.56% | - |
| FCF per Share | 12.74 | 9.22 | -7.29 | 2.55 | 3.25 | -3.07 | 0.31 | -18.37 | -1.04 | -20.36 | -27.59 | -23.40 | -55.03 | -3.49 | 15.29 | 37.46 | -7.46 | -124.17 | 66.24 | -325.03 | -183.44 | -1.48 | 241.35 | 77.33 | 39.73 |
| FCF Conversion (FCF/Net Income) | 0.66x | 1.03x | 1.14x | 1.13x | 1.07x | 1.22x | 0.60x | -1.87x | 13.54x | 0.14x | 0.02x | 0.12x | 0.04x | -0.04x | -0.64x | 15.28x | -1.93x | -0.50x | 3.46x | 1.20x | 1.04x | 0.82x | 1.12x | 1.30x | 6.32x |
| Interest Paid | 0 | 0 | 0 | 0 | 5.1M | 2.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ESEA stock.
Euroseas Ltd. (ESEA) generated $141.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Euroseas Ltd. (ESEA) generated $64.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Euroseas Ltd. (ESEA) spent $77.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Euroseas Ltd. (ESEA) returned $19.0M to shareholders via cash dividends and spent $2.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cyclical earnings and volatile FCF
Earnings Quality Supported by Strong Cash Conversion
Euroseas consistently converts net income into operating cash flow, with an OCF/NI ratio averaging 1.12 over the last ten quarters, indicating high-quality earnings and minimal accrual-based distortions.
The company's operating cash flow has generally exceeded net income, a positive signal for earnings quality. This suggests that reported profits are backed by actual cash generation, with non-cash charges like depreciation being a minor offset. The consistency of this conversion, even as net income has fluctuated, implies a stable underlying cash generation engine.
FCF Volatility Driven by Lumpy Capital Spending
Free cash flow has swung dramatically from negative $43.6M in 2024Q2 to positive $38.1M in 2025Q4, a pattern driven by the timing of large vessel acquisitions rather than operational weakness.
The FCF margin has been highly erratic, ranging from -74.3% to 66.4% over the period. This volatility is almost entirely explained by the capital expenditure profile, which spikes in quarters with vessel purchases (e.g., 100.6% of revenue in 2025Q1) and collapses in others. The underlying operational cash flow remains robust, but the lumpy nature of growth investments creates significant quarter-to-quarter FCF noise.
Growth Capex Dominates, Masking Maintenance Needs
Capital expenditure is overwhelmingly growth-oriented, with CapEx/Rev swinging from 0.6% to 132.6%, indicating that maintenance spending is minimal and the company is in an aggressive fleet expansion phase.
The extreme variability in capital intensity confirms that Euroseas is not spending to maintain its existing fleet but to acquire new vessels. The low baseline CapEx in quarters without acquisitions (e.g., 0.6% in 2025Q4) suggests the current fleet requires relatively low ongoing investment. This strategy prioritizes growth over steady-state asset replacement, which could create future capital needs if the fleet ages.
Working Capital a Minor, Inconsistent Cash Drag
Changes in working capital have been a modest and inconsistent use of cash, with a cumulative outflow of approximately $5.3M over the last ten quarters, suggesting efficient management of receivables and payables.
Working capital adjustments have not been a major driver of operating cash flow, which is positive. The swings between inflows and outflows are relatively small compared to net income, indicating that the company is not experiencing significant issues with collections or inventory buildup. This stability allows the strong operational cash flow to flow through to free cash flow more directly.
Capital Returns Funded by Operations, Not Leverage
Euroseas has returned over $42M to shareholders via dividends and buybacks in the last ten quarters, fully funded by operating cash flow without relying on debt issuance.
The company has maintained a consistent dividend payout, averaging around $4.5M per quarter, and has executed modest share repurchases. This shareholder return program is comfortably covered by operating cash flow, which has averaged over $35M per quarter. The deployment strategy appears disciplined, prioritizing returns to shareholders while funding growth capex from internal cash generation.
Cash Flow Obscures Fleet Age and Future Capex
The cash flow statement does not distinguish between maintenance and growth capital expenditure, potentially obscuring the true cost of sustaining the current fleet and the future investment required for aging vessels.
While the company reports low maintenance-like CapEx in some quarters, this may not reflect the true long-term replacement cost of its vessels. The aggressive acquisition strategy could be masking the need for future, larger capital outlays to replace an aging fleet. Investors should monitor the relationship between depreciation expense and capital expenditure over a longer horizon to assess whether the current spending is sustainable.