Free cash flow reached -84.2% of revenue in 2025Q2, reflecting a substantial disconnect between accounting losses and actual cash generation.
| Cash from Operations | -10.43M | 1.81K | 670.54K | 7.11M | 14.35M | -429.38K |
| Operating CF Margin % | - | 0% | 1.5% | 13.01% | 56.06% | -4.29% |
| Operating CF Growth % | -919.05% | -99.73% | -90.57% | -50.48% | 3442.99% | - |
| Net Income | 649.26K | 2.6M | 2.67M | 8.16M | 6.97M | 3.09M |
| Depreciation & Amortization | 649.9K | 679.75K | 728.32K | 514.4K | 8.76K | 8.76K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -10.8M | 99.78K | 277.76K | 0 | 0 | 0 |
| Working Capital Changes | -924.72K | -3.37M | -3M | -1.57M | 7.37M | -3.53M |
| Change in Receivables | 6.19M | -8.51M | -7.54M | 2.91M | 7.62M | -11.69M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 7.25M | 4.44M | 1.15M | -5.88M | 5.88M |
| Cash from Investing | -17.13M | 0 | -28.4K | -1.48M | 0 | 0 |
| Capital Expenditures | -1.33M | 0 | -28.4K | -1.48M | 0 | 0 |
| CapEx % of Revenue | 2.88% | - | 0.06% | 2.72% | 0% | - |
| Acquisitions | -6.12M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -9.68M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 40.06M | 2.16M | -408.07K | -1.36M | -12.69M | 456.48K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 958.91K | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -1.5M | -7.5M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 32.32M | 2.16M | -408.07K | 142.23K | -5.19M | 456.48K |
| Net Change in Cash | -4.44M | 2.16M | 234.07K | 4.27M | 1.67M | 27.11K |
| Free Cash Flow | -17.92M | 1.81K | 642.14K | 5.62M | 14.35M | -429.38K |
| FCF Margin % | -38.96% | 0% | 1.44% | 10.3% | 56.06% | -4.29% |
| FCF Growth % | - | -99.72% | -88.58% | -60.82% | 3442.99% | - |
| FCF per Share | -0.98 | 0.00 | 0.04 | 0.31 | 0.80 | -0.02 |
| FCF Conversion (FCF/Net Income) | -27.61x | 0.00x | 0.25x | 0.87x | 2.06x | -0.14x |
| Interest Paid | 1.66K | 1.05K | 5.54K | 1.55K | 85 | 0 |
| Taxes Paid | 0 | 0 | 1.43M | 2.69M | 0 | 0 |
Negative operating cash conversion
According to the latest financial data, GLE's operating cash flow of -$7.4M significantly trails its net loss of -$622.7K, indicating a substantial disconnect between accounting profitability and actual cash generation that warrants immediate investor scrutiny regarding the company's underlying earnings quality and accrual management.
The persistent gap between net income and operating cash flow suggests that the company is struggling to convert its reported service activity into liquid assets. This divergence often implies that revenue recognition may be outpacing cash collection, potentially due to extended payment terms or difficulties in realizing contract assets.
As reported in recent quarterly filings, GLE's free cash flow margin has plummeted to -84.2%, reflecting a sharp deterioration in the company's ability to fund its operations internally while simultaneously managing the capital requirements of its ICT service projects in the Hong Kong market.
The negative FCF trajectory highlights a business model that is currently consuming cash at an unsustainable rate relative to its revenue base. Investors should monitor whether this trend is a temporary byproduct of project-specific investment or a structural shift toward permanent cash burn.
Based on the provided cash flow statements, the company's working capital dynamics appear highly volatile, with significant swings in cash usage that suggest challenges in managing the timing of client collections versus the payment of technical labor and hardware procurement costs.
The inability to maintain positive working capital cycles suggests that the company may be financing its clients' projects through its own balance sheet. This reliance on internal liquidity to bridge the gap between project milestones and cash receipts creates significant operational risk in a high-cost environment.
Financial records indicate that GLE utilized $3.1M for acquisitions in 2025Q2, a move that appears aggressive given the company's concurrent negative operating cash flow and the ongoing pressure on its core ICT service margins within the competitive Hong Kong technology landscape.
Deploying capital for acquisitions while the core business is burning cash suggests a strategy focused on rapid scale at the expense of immediate liquidity. This approach may increase the company's risk profile if the acquired assets do not provide immediate, accretive cash flow to offset the current burn.
Quick answers to the most common questions about buying GLE stock.
Global Engine Group Holding Limited Ordinary Shares (GLE) generated $0.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Global Engine Group Holding Limited Ordinary Shares (GLE) generated $0.0M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Global Engine Group Holding Limited Ordinary Shares (GLE) 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.