Cash conversion efficiency remains a primary concern, as evidenced by the 2025Q4 period where $4.0M in net income failed to prevent a $912.5K operating cash flow deficit.
| Cash from Operations | -780.39K | -504.12K | -363.43K | -1.84M | -190.61K |
| Operating CF Margin % | -4.06% | -3.09% | -2.03% | -11.66% | -1.54% |
| Operating CF Growth % | -54.8% | -38.71% | 80.27% | -866.47% | - |
| Net Income | 4.97M | 1.95M | 4.28M | 3.14M | 454.19K |
| Depreciation & Amortization | 369.25K | 545.71K | 699.26K | 582.33K | 513.75K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.88M | 768.8K | 257.56K | -1.19M | -315.94K |
| Working Capital Changes | -8M | -3.77M | -5.6M | -4.38M | -842.62K |
| Change in Receivables | -6.3M | -4.55M | -7.49M | -4.27M | -557.03K |
| Change in Inventory | -26.16K | -306.15K | 242.43K | 300.04K | -574.77K |
| Change in Payables | -47.08K | 19.72K | 176.42K | 166.38K | -75.55K |
| Cash from Investing | -52.48K | -19.76K | -19.19K | -163.53K | -38.35K |
| Capital Expenditures | -52.48K | -16.76K | -19.19K | -163.53K | -35.42K |
| CapEx % of Revenue | 0.27% | 0.1% | 0.11% | 1.04% | 0.29% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | -3K | 0 | 0 | -2.94K |
| Cash from Financing | 3.32M | 2.49M | 205.68K | 1.69M | -481.72K |
| Debt Issued (Net) | -423.03K | 2.49M | 85.68K | 1.69M | -481.72K |
| Equity Issued (Net) | 3.74M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 120K | 0 | 0 |
| Net Change in Cash | 2.29M | 1.81M | 35.02K | -298.35K | -836.15K |
| Free Cash Flow | -832.88K | -523.89K | -382.61K | -2.01M | -228.97K |
| FCF Margin % | -4.34% | -3.22% | -2.14% | -12.7% | -1.85% |
| FCF Growth % | -58.98% | -36.92% | 80.92% | -776% | - |
| FCF per Share | -0.06 | -0.04 | -0.03 | -0.15 | -0.02 |
| FCF Conversion (FCF/Net Income) | -0.16x | -0.26x | -0.08x | -0.63x | -0.39x |
| Interest Paid | 0 | 329.89K | 302.12K | 107.13K | 31.27K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Revenue volatility and cash burn
As reported in recent financial statements, FatPipe's operating cash flow frequently decouples from net income, evidenced by a 2025Q4 net income of $4.0M against a negative $912.5K in operating cash flow, highlighting a persistent disconnect between accounting profitability and actual cash generation for the firm.
The recurring gap between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items or aggressive revenue recognition timing. Investors should monitor whether this divergence indicates a structural inability to convert paper profits into liquidity, which is critical for a firm of this scale.
Based on the provided quarterly data, FatPipe's free cash flow trajectory is erratic, swinging from a 36.1% margin in 2023Q4 to a negative 12.7% margin by 2025Q4, which underscores the instability of the company's cash-generating capabilities during its transition to a subscription-based model.
The lack of a consistent positive free cash flow trend suggests that the company's operational model is not yet self-sustaining. This volatility may reflect the lumpy nature of enterprise contract renewals and the ongoing costs associated with maintaining its technical infrastructure.
According to the company's cash flow filings, working capital changes have become a significant drag on liquidity, with a $6.1M outflow in 2025Q4 alone, indicating that the firm is struggling to manage its receivables and payables cycle effectively amidst its current growth phase.
These substantial working capital fluctuations suggest potential inefficiencies in collections or inventory management that directly erode the company's cash position. The inability to stabilize these flows warrants further investigation into the firm's credit terms with its channel partners and government clients.
As indicated by the quarterly cash flow statements, the company's reliance on non-operating adjustments and significant working capital volatility obscures the underlying cash burn, with 2025Q4 showing a $6.1M working capital drain that masks the true operational cash requirements of the business.
The cash flow statement appears to be heavily impacted by timing differences that may not be sustainable in the long term. Analysts should be wary of the reliance on non-core income to bolster net income, as it masks the underlying operational cash burn that is currently occurring.
Quick answers to the most common questions about buying FATN stock.
FatPipe, Inc. Common Stock (FATN) generated $-0.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
FatPipe, Inc. Common Stock (FATN) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
FatPipe, Inc. Common Stock (FATN) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.