Cash conversion is severely impaired, with a free cash flow margin deteriorating to -39.8% in 2025Q4, driven by a -$17.6M working capital outflow that represents a primary drain on liquidity.
Founder Group Limited (FGL) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | -41.03M | -6.13M | -17.18M | -2.53M | 5.54M |
| Operating CF Margin % | -34% | -6.78% | -11.61% | -3.98% | 22.02% |
| Operating CF Growth % | -569.66% | 64.34% | -579.94% | -145.6% | - |
| Net Income | -5.66M | -5.65M | 7.15M | 3.94M | 1.92M |
| Depreciation & Amortization | 2.62M | 771.98K | 323.18K | 415.64K | 361.16K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 75.31K |
| Other Non-Cash Items | 2.55M | 2.87M | 1.1M | 233.15K | 1.95M |
| Working Capital Changes | -40.55M | -4.12M | -25.76M | -7.12M | 1.24M |
| Change in Receivables | -12.02M | 1.56M | -46.98M | -20.43M | -3.65M |
| Change in Inventory | 591.49K | -1.19M | -276K | -963.15K | -624.79K |
| Change in Payables | -9.08M | -11.02M | 19.86M | 13.43M | 5.19M |
| Cash from Investing | -7.93M | -5.38M | -4.29M | -937.66K | -887.59K |
| Capital Expenditures | -826.33K | -1.26M | -1.46M | -161.87K | -887.59K |
| CapEx % of Revenue | 0.68% | 1.4% | 0.98% | 0.25% | 3.53% |
| Acquisitions | -1.92M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -5.18M | -4.12M | -2.83M | -775.79K | 0 |
| Cash from Financing | 110.28M | 13.92M | 15.96M | 9.52M | -3.24M |
| Debt Issued (Net) | 28.37M | 8.41M | 19M | 4.28M | -51K |
| Equity Issued (Net) | 84.9M | 7.36M | 0 | 0 | 69.28K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.98M | -1.85M | -3.04M | 5.24M | -3.26M |
| Net Change in Cash | 61.65M | 2.62M | -5.51M | 6.17M | 1.29M |
| Free Cash Flow | -41.86M | -7.39M | -18.91M | -2.69M | 4.65M |
| FCF Margin % | -34.68% | -8.18% | -12.77% | -4.23% | 18.49% |
| FCF Growth % | -466.43% | 60.91% | -603.01% | -157.78% | - |
| FCF per Share | -13382.72 | -4182.40 | -12041.59 | -1712.87 | 2964.70 |
| FCF Conversion (FCF/Net Income) | 5.29x | 1.19x | -2.40x | -0.64x | 2.89x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying FGL stock.
Founder Group Limited (FGL) generated $-41.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Founder Group Limited (FGL) reported negative free cash flow of $41.9M in 2025, indicating capital requirements exceeded cash from operations.
Founder Group Limited (FGL) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Chronic cash burn and negative conversion
Persistent Negative Cash Conversion
FGL's operating cash flow has been consistently negative, with the OCF/NI ratio swinging wildly, indicating severe earnings quality issues and a fundamental disconnect between reported net income and actual cash generation.
The company's operating cash flow has been negative in four of the last five quarters, with the OCF/NI ratio showing extreme volatility from -3.10 to 4.36. This pattern suggests that reported net income figures are not translating into cash, pointing to significant accrual-based accounting or working capital pressures that obscure the true cash-generating ability of the business.
Deepening Free Cash Flow Deficit
FGL's free cash flow margin has deteriorated to -39.8% in 2025Q4, representing a significant cash burn that is accelerating despite the reported revenue surge, as per the company's financial statements.
The FCF margin has worsened from -13.5% in 2022Q4 to -39.8% in 2025Q4, indicating that the company is consuming cash at an increasing rate relative to its revenue. This negative trajectory is particularly concerning given the concurrent 117.8% revenue growth in 2025Q4, suggesting that the growth is not only unprofitable but also cash-destructive.
Working Capital as Primary Cash Drain
Negative working capital changes have been the dominant use of cash, with a -$23.0M outflow in 2023Q4 and a -$17.6M outflow in 2025Q4, indicating severe inefficiency in converting sales to cash.
The working capital dynamics are the primary driver of the negative operating cash flow, consistently consuming more cash than the net income loss. This suggests that FGL is extending generous payment terms to customers or experiencing significant inventory build-up, both of which are red flags for an industrial company and indicate potential collection or operational issues.
Minimal Investment Amid Cash Burn
Capital expenditures have been minimal, ranging from 0.8% to 12.4% of revenue, which appears insufficient for a manufacturing or engineering firm to maintain its asset base, based on reported figures.
The low CapEx/Rev ratio, especially the 0.8% in 2025Q4, is unusual for an industrial company and may indicate deferred maintenance or a lack of investment in growth assets. This could be a strategic choice to preserve cash, but it raises questions about the long-term sustainability of the company's operational capacity and competitive position.
Cash Flow Statement Obscures True Cost
The cash flow statement may obscure the true economic cost of operations, as the absence of stock-based compensation and the minimal depreciation figures suggest that reported cash flows do not reflect the full cost of maintaining the business.
The lack of SBC and the very low D&A figures (e.g., $1.2M in 2025Q4) are unusual for a company of this size and may indicate that the cash flow statement is not capturing the full economic depreciation of assets or the dilutive cost of equity compensation. This warrants further investigation into the company's capital structure and the true cost of its operations.