Operational cash flow remains disconnected from earnings, highlighted by a 2026Q1 OCF/NI ratio of 3957.25 and a staggering negative free cash flow of $649.2B.
| Cash from Operations | -649.26B | -6.84T | -5.68M | -13.24M | -886.21K | -5.51M | -2.1K | 760.46K | -2.04M | -149.31K | -386.77K | -156.38K |
| Operating CF Margin % | - | - | - | - | - | - | -0.36% | 3.88% | -8.79% | -0.39% | -1.47% | -0.65% |
| Operating CF Growth % | -78100571.05% | -99999900% | 57.1% | -1394.06% | 83.92% | -262206.14% | -100.28% | 137.31% | -1265.12% | 61.4% | -147.33% | - |
| Net Income | -349.97M | -186.88T | -14.12M | -14.35M | -30.82M | -26.97M | 2.51M | -414.28K | 1.45M | -573.75K | -541.62K | -234.21K |
| Depreciation & Amortization | 301.04B | 1.15T | 1.12M | 452.99K | 718 | 1.3M | 20.01K | 113.95K | 671.71K | 442.98K | 292.81K | 302.74K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 19.49M | 0 | 0 | 0 | 0 | 15.55K | 0 |
| Deferred Taxes | 158.02M | -132.92B | -173.91K | 327.82K | 0 | 0 | -82.51K | 79.75K | 92.53K | -944.61K | 0 | 0 |
| Other Non-Cash Items | 163.12T | 179.01T | 5.91M | 1.97M | 30.73M | 12.33M | -4.01M | 392.59K | -593.99K | 39.64M | 97.6K | 32.53K |
| Working Capital Changes | -2.03M | -702.29K | 1.59M | -1.65M | -798.04K | -11.66M | 1.56M | 588.46K | -3.66M | 424.45K | 41.7K | 45.3K |
| Change in Receivables | -23.41K | -32.61K | 264 | 83.52K | 32.47K | -322.22K | 574.15K | 983.94K | 3.03M | -19.67M | -72.44K | 1.58M |
| Change in Inventory | 0 | 0 | 0 | 0 | -2.95K | -591.64K | 219.96K | 152.55K | 3.25M | -8.78M | 2.2M | -2.27M |
| Change in Payables | 0 | 0 | 0 | -127.3K | 291.23K | 2.75M | 633.22K | -471.05K | 80.16K | 106.86K | -7.79K | 0 |
| Cash from Investing | -100B | 0 | -650K | -5.22M | -12.49M | -1.27M | -4.53M | 0 | 2.44M | 9.7M | -85.96K | -50.02M |
| Capital Expenditures | -100K | 0 | 0 | -14.19K | -6.57K | -308.78K | -72.84K | 0 | -3.52K | -1.89K | -116.04K | -28.33K |
| CapEx % of Revenue | - | - | - | - | - | - | 12.32% | 0% | 0.02% | 0% | 0.44% | 0.12% |
| Acquisitions | 0 | 0 | 0 | 0 | 215.88K | 0 | 288.79K | 0 | 2.45M | 23.45K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -100B | 0 | -650K | -2.7M | -12.7M | -961.71K | -1.63M | 0 | -59.56K | 71.18K | -85.96K | -4.4M |
| Cash from Financing | 310.01B | 7.28T | 1.18M | 23.09M | 0 | 22.8M | 3.06M | 2.48M | -52.17K | -9.63M | 788.96K | 50.8M |
| Debt Issued (Net) | 260.51K | 150K | 349.49K | 0 | 0 | 255.77K | 449.3K | -507.49K | 19.74K | 145.55K | 0 | 0 |
| Equity Issued (Net) | 3.02M | 7.53M | 829.88K | 12.52M | 0 | 22.54M | 2.61M | 2.98M | 133.34K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.63M | 0 | 0 |
| Other Financing | 310B | 7.28T | 654 | 10.57M | 0 | 0 | 0 | 0 | -205.25K | 201.91K | 788.96K | 50.8M |
| Net Change in Cash | -439.24B | 433.5B | -5.15M | 4.79M | -14.2M | 13.59M | -1.48M | 2.39M | 264.85K | -78.13K | -472.74K | 594.89K |
| Free Cash Flow | -649.26B | -6.84T | -5.68M | -16.16M | -892.78K | -5.82M | -1.23M | 760.46K | -2.04M | -151.19K | -502.81K | -184.71K |
| FCF Margin % | - | - | - | - | - | - | -208.81% | 3.88% | -8.8% | -0.39% | -1.91% | -0.77% |
| FCF Growth % | -22437990.22% | -99999900% | 64.85% | -1709.83% | 84.66% | -371.24% | -262.4% | 137.25% | -1250.42% | 69.93% | -172.22% | - |
| FCF per Share | -10021.39 | -225570.92 | -0.59 | -5.01 | -0.58 | -4.39 | -1.30 | 1.02 | -2.62 | -0.26 | -1.40 | -0.51 |
| FCF Conversion (FCF/Net Income) | 1855.20x | 36626.95x | 0.41x | 1.06x | 0.03x | 0.20x | -0.00x | -0.05x | -1.41x | 0.26x | 0.71x | 0.67x |
| Interest Paid | 0 | 0 | 0 | 0 | 1.02K | 7.8K | 18.23K | 0 | 167.21K | 163.56K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 22.21K | 0 | 210.73K | 22.2K | 0 | 0 |
Imminent liquidity and insolvency
According to the provided financial statements, GDC exhibits a severe disconnect between net income and operating cash flow, with the 2026Q1 period showing an OCF/NI ratio of 3957.25, indicating that reported earnings bear little resemblance to the actual cash-generating capacity of the underlying business operations.
The extreme variance between net income and operating cash flow suggests that non-cash items or accounting adjustments are heavily distorting the company's financial narrative. Investors should interpret this as a sign that the firm's reported profitability is not supported by actual cash inflows, raising significant concerns regarding the quality of earnings.
As reported in recent financial filings, GDC has consistently burned cash across nearly every observed quarter, with the 2026Q1 period recording a staggering negative free cash flow of $649.2B, highlighting a structural inability to fund operations through internal cash generation or sustainable business activities.
The persistent negative free cash flow trajectory indicates that the company is consuming its limited capital base at an unsustainable rate. This pattern suggests that the current business model is fundamentally cash-negative and requires constant external capital injections to prevent a total cessation of operations.
Based on the reported figures, GDC's working capital changes have been highly erratic, swinging from a $561.1K inflow in 2026Q1 to a $1.8M outflow in 2025Q4, which suggests that the company is struggling to manage its short-term liquidity and operational cash cycles effectively.
These erratic shifts in working capital often indicate difficulties in managing accounts receivable or inventory levels, which are critical for a hardware-reliant O2O business. Such volatility implies that the company's cash position is highly sensitive to timing differences in collections and payments, further exacerbating its liquidity risk.
Financial data reveals that GDC relies heavily on depreciation and amortization to bridge the gap between net income and cash flow, with D&A reaching $301.0B in 2026Q1, which obscures the true extent of the company's operational cash burn and capital intensity.
The reliance on non-cash charges to reconcile the cash flow statement suggests that the company's physical IoT infrastructure is either being written down rapidly or that accounting conventions are being used to mask the lack of core operational cash flow. This warrants further investigation into the actual useful life and economic value of the company's installed hardware base.
Quick answers to the most common questions about buying GDC stock.
GD Culture Group Limited (GDC) generated $-6844724.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GD Culture Group Limited (GDC) reported negative free cash flow of $6.84T in 2025, indicating capital requirements exceeded cash from operations.
GD Culture Group Limited (GDC) 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.