The firm exhibits a concerning disconnect between earnings and cash generation, highlighted by a $1.2 million free cash flow deficit in 2026Q1 that underscores a lack of self-funding capability.
| Cash from Operations | -3.77M | -2.82M | -8.82K |
| Operating CF Margin % | - | -105.77% | -0.36% |
| Operating CF Growth % | -320.29% | -31863.11% | - |
| Net Income | -2.09M | -2.19M | -208.39K |
| Depreciation & Amortization | -48.37K | 0 | 230.95K |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 106.7K | 0 | -7.44K |
| Other Non-Cash Items | -1.79M | -633.8K | 0 |
| Working Capital Changes | 47.56K | 0 | -23.94K |
| Change in Receivables | -20.07K | 0 | -6.15K |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 20.43K | 0 | 0 |
| Cash from Investing | -10.04M | -10.09M | -6.01K |
| Capital Expenditures | 0 | 0 | -6.01K |
| CapEx % of Revenue | 0% | - | 0.25% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | -10.04M | -10.09M | 0 |
| Cash from Financing | 13.71M | 14.04M | -30.35K |
| Debt Issued (Net) | 0 | 0 | -30.32K |
| Equity Issued (Net) | -300K | 0 | -22 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -22 |
| Other Financing | 14.01M | 14.04M | 0 |
| Net Change in Cash | -1.41M | 1.14M | -45.18K |
| Free Cash Flow | -3.77M | -2.82M | -14.83K |
| FCF Margin % | -135.7% | -105.77% | -0.61% |
| FCF Growth % | - | -18911.5% | - |
| FCF per Share | -0.23 | -0.19 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.80x | 1.29x | 0.04x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Persistent Operating Cash Deficit
According to the provided quarterly data, ETS exhibits a persistent disconnect between net income and operating cash flow, with the 2026Q1 period showing a $1.2 million cash outflow despite a net loss of only $110.1K, highlighting significant quality of earnings concerns for investors.
The wide variance between net losses and operating cash outflows suggests that non-cash adjustments are insufficient to bridge the gap, implying that core operations are consuming cash at a rate far exceeding accounting losses. This pattern indicates that the company's accrual-based profitability metrics may be masking a more severe underlying cash-generation problem.
As reported in financial statements, the company's free cash flow trajectory remains deeply negative, with a $1.2 million burn in 2026Q1 alone, underscoring the structural inability of the current business model to self-fund its operations or capital requirements through internal cash generation.
The consistent negative FCF margins, including the -155.1% margin observed in 2026Q1, suggest that the company is currently in a value-destructive phase. Without a clear inflection point in operational efficiency, the current trajectory implies a continued reliance on external financing to sustain basic service delivery.
Based on the reported figures, ETS shows intermittent capital expenditure, such as the $79.9K outlay in 2025Q4, which represents a significant 11.3% of revenue, suggesting that even modest fleet maintenance or expansion efforts place a heavy burden on the company's limited liquidity.
The high capital intensity relative to revenue indicates that the company's asset-heavy model requires constant reinvestment just to maintain existing service levels. Investors should monitor whether these expenditures are truly growth-oriented or merely necessary maintenance to prevent further degradation of the aging truck and trailer fleet.
Data from recent filings indicates erratic working capital movements, such as the $47.7K inflow in 2025Q2 followed by a $47.6K outflow in 2025Q1, suggesting that the company lacks a stable or predictable cycle for managing its receivables and payables effectively.
This volatility in working capital suggests that the company may be struggling with the timing of collections or is forced to manage payables aggressively to preserve cash. Such instability in the cash conversion cycle often points to underlying operational friction that complicates the company's ability to forecast liquidity needs.
Quick answers to the most common questions about buying ETS stock.
Elite Express Holding Inc. (ETS) generated $-2.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Elite Express Holding Inc. (ETS) reported negative free cash flow of $2.8M in 2025, indicating capital requirements exceeded cash from operations.
Elite Express Holding Inc. (ETS) 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.