Liquidity is under significant pressure, as demonstrated by a $744.0K free cash flow burn in 2025Q2 and an OCF/NI ratio of 0.44, highlighting a failure to convert operations into cash.
| Cash from Operations | -13.14M | -12.25M | -373.1K | -131.78K | 1.55M | 1.44M |
| Operating CF Margin % | - | -274.33% | -7.77% | -1.62% | 22.37% | 24.09% |
| Operating CF Growth % | -6451.11% | -3184.22% | -183.12% | -108.48% | 7.86% | - |
| Net Income | -12.53M | -9.31M | -1.59M | 12.6K | 849.21K | 590.57K |
| Depreciation & Amortization | 1.55M | 294.55K | 12.27K | 214.22K | 219.91K | 17.98K |
| Stock-Based Compensation | -839.96K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 321.36K | 0 | 0 | -61.53K | 0 | 40.79K |
| Other Non-Cash Items | -594.71K | 2.04M | 1.72M | 314.52K | -219.91K | 0 |
| Working Capital Changes | -2.16M | -5.28M | -507.35K | -611.59K | 704.59K | 791.23K |
| Change in Receivables | 1.05M | -449.21K | -560.22K | -28K | 452.9K | -414.8K |
| Change in Inventory | -2.42M | -1.91M | 393.64K | -4.35K | -208.89K | -92.6K |
| Change in Payables | 32.45K | 42.23K | 363.69K | -198.75K | -371K | 0 |
| Cash from Investing | -2.5M | -2.5M | 0 | -465.3K | -775.79K | -300.08K |
| Capital Expenditures | 0 | 0 | 4 | -51.74K | 0 | 0 |
| CapEx % of Revenue | 0% | - | 0% | 0.63% | 22.44% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -2.5M | -2.5M | -4 | 1.08M | -775.79K | -300.08K |
| Cash from Financing | 15.92M | 15.47M | -79.06K | 93.92K | -737.04K | -395.25K |
| Debt Issued (Net) | 503.05K | 1.84M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -300 | 1000K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -718.88K | 0 |
| Share Repurchases | -300 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 15.41M | 14.42K | -79.06K | 93.92K | -18.15K | -395.25K |
| Net Change in Cash | -2.57M | 702.19K | -479.23K | -570.11K | 4.04K | 745.23K |
| Free Cash Flow | -13.14M | -12.25M | -373.1K | -183.52K | 1.55M | 1.44M |
| FCF Margin % | -148.36% | -274.33% | -7.77% | -2.25% | 22.37% | 24.09% |
| FCF Growth % | -1887.85% | -3184.22% | -103.3% | -111.81% | 7.86% | - |
| FCF per Share | -10.45 | -13.98 | -0.54 | -0.26 | 2.24 | 2.07 |
| FCF Conversion (FCF/Net Income) | 1.05x | 1.32x | 0.23x | -10.46x | 1.83x | 2.44x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 247.31K | 80.38K | 547.12K | 107.32K | 0 |
Liquidity and operational insolvency
As reported in recent financial filings, Fitell's operating cash flow consistently fails to track with net income, evidenced by an OCF/NI ratio that fluctuates wildly, including a 0.44 reading in 2025Q2, which suggests that accounting losses are not being mitigated by cash-generative operational efficiency.
The recurring divergence between net income and operating cash flow indicates that the company's reported losses are compounded by cash-consuming operational activities. Investors should monitor this gap, as it suggests that the business model is currently unable to convert its revenue base into sustainable liquidity.
According to historical cash flow statements, Fitell has struggled to maintain positive free cash flow, with the most recent 2025Q2 period showing a burn of $744.0K, highlighting a persistent inability to generate self-sustaining capital despite various attempts to pivot the business model.
The consistent negative FCF margins suggest that the company's operational scale is insufficient to cover its overhead, forcing a reliance on external financing. This trajectory warrants further investigation into whether the current cost structure can ever reach a break-even point without significant capital injections.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $4.5M drain in 2024Q2 to a $527.7K inflow in 2025Q2, which indicates significant instability in inventory management and the timing of customer collections for the company's equipment sales.
Such volatility in working capital suggests that the company may be struggling to manage its inventory turnover effectively, potentially leading to liquidity traps. The inability to stabilize these flows implies that the operational cycle remains highly sensitive to external demand shocks and supply chain disruptions.
Analysis of the cash flow statement reveals that Fitell's reported figures are often bolstered by non-cash adjustments, while the underlying cash burn remains masked by significant swings in working capital, as seen in the 2023Q4 period where SBC adjustments reached $840.0K in negative impact.
The reliance on non-cash items to reconcile the cash flow statement may obscure the true extent of the company's operational distress. Analysts should be cautious, as these adjustments do not address the fundamental issue of cash depletion occurring at the core business level.
Quick answers to the most common questions about buying FTEL stock.
Fitell Corporation (FTEL) generated $-12.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Fitell Corporation (FTEL) reported negative free cash flow of $12.3M in 2024, indicating capital requirements exceeded cash from operations.
Fitell Corporation (FTEL) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.