The company's cash conversion efficiency remains volatile, with free cash flow margins dropping from 51.6% in 2023Q2 to 8.6% in 2026Q2, heavily reliant on working capital adjustments.
| Cash from Operations | 711.61K | -3.56M | 6.73M | 16.09M | 12M | 7.2M | -7.81M |
| Operating CF Margin % | - | -101.02% | 22.33% | 51.12% | 25.58% | 20.69% | -22.12% |
| Operating CF Growth % | -245.98% | -152.88% | -58.19% | 34.06% | 66.74% | 192.16% | - |
| Net Income | -4.64M | -3.54M | 5.51M | 9.01M | 22.56M | 9.69M | 4.61M |
| Depreciation & Amortization | 161.33K | 157.57K | 1.24M | 1.25M | 1.33M | 1.3M | 618.86K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 7.86M | -9.91K | 101.6K | -61.36K | 5.25K | 86 | -658.36K |
| Working Capital Changes | 244.73K | -165.53K | -120.35K | 5.89M | -11.9M | -3.79M | -12.38M |
| Change in Receivables | 57.74K | -121.75K | -407.38K | 6.85M | -5.6M | 971.48K | 613.36K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.36K | 873 | -24.25K | -39.02K | -19.5K | -7.43K | 0 |
| Cash from Investing | -5.58K | -8.13K | -59.45K | -25.3K | 0 | -361.29K | -72.36K |
| Capital Expenditures | -5.58K | -8.13K | -59.45K | -25.3K | 0 | -361.29K | -72.36K |
| CapEx % of Revenue | 0.03% | 0.23% | 0.2% | 0.08% | 0% | 1.04% | 0.21% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -266.17K | 6.32M | -13.29M | -12.59M | -26.05M | 769.39K | -4.87M |
| Debt Issued (Net) | -89 | 0 | -2M | -933.28K | -3.97M | 2.27M | 884.95K |
| Equity Issued (Net) | -116.04K | 0 | -29.89K | -28.93K | -51.58K | 0 | 0 |
| Dividends Paid | -150.03K | -752.9K | -9.46M | -9.88M | -18.92M | -1.5M | -6.81M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 7.08M | -1.79M | -1.75M | -3.11M | 0 | 1.06M |
| Net Change in Cash | 490.04K | 2.7M | -6.59M | 3.48M | -14.03M | 7.79M | 20.22M |
| Free Cash Flow | 706.03K | -3.56M | 6.67M | 16.06M | 12M | 6.83M | -7.88M |
| FCF Margin % | 3.93% | -101.25% | 22.13% | 51.04% | 25.58% | 19.65% | -22.33% |
| FCF Growth % | -84.83% | -153.48% | -58.5% | 33.85% | 75.56% | 186.73% | - |
| FCF per Share | 0.35 | -1.97 | 4.02 | 9.05 | 6.76 | 3.85 | -4.93 |
| FCF Conversion (FCF/Net Income) | -0.15x | 1.01x | 1.22x | 1.79x | 0.53x | 0.74x | -1.69x |
| Interest Paid | 0 | 0 | 34.67K | 123.27K | 238.74K | 233.67K | 213.73K |
| Taxes Paid | 0 | 0 | 2.13M | 1.71M | 3.62M | 5M | 0 |
Rapid cash reserve depletion
As reported in financial statements, GLXG's operating cash flow to net income ratio reached -1.09 in 2026Q2, highlighting a significant divergence where the company generated positive cash despite reporting a net loss, suggesting that non-cash items or working capital shifts are currently masking the underlying operational reality.
The persistent gap between net income and operating cash flow suggests that the company's accounting earnings are not reflective of its actual liquidity generation. Investors should monitor whether this disconnect is driven by sustainable working capital management or if it represents a temporary accounting anomaly that will reverse in future periods.
Based on recent quarterly filings, GLXG's free cash flow margin has fluctuated from a high of 51.6% in 2023Q2 to 8.6% in 2026Q2, indicating that the company's ability to convert revenue into actual cash has been severely compromised by the ongoing contraction of its core business operations.
The extreme volatility in free cash flow margins suggests that the company lacks a stable, recurring cash generation engine. This trend warrants further investigation into whether the recent positive cash flow is a result of genuine operational efficiency or merely the liquidation of assets and reduction of variable costs.
According to historical data, working capital changes have been a primary driver of cash flow, with a $221.6K contribution in 2026Q2, which suggests that the company is relying on short-term balance sheet adjustments rather than organic revenue growth to maintain its current liquidity position.
The reliance on working capital fluctuations to bolster cash flow may indicate that the company is aggressively collecting receivables or delaying payables to preserve cash. Such tactics are typically unsustainable and may signal that the underlying business is struggling to generate cash through its primary service offerings.
As indicated by the provided financial data, GLXG has historically prioritized dividend payments, such as the $4.1 million distributed in 2024Q1, even as the company's revenue base began to collapse, which appears to be an inefficient use of capital given the current negative operating margin environment.
The decision to return capital to shareholders during a period of extreme revenue contraction suggests a potential misalignment between management's capital allocation strategy and the company's long-term operational viability. Investors should monitor whether the remaining $4.1 million in cash will be preserved for a strategic pivot or further depleted by continued operational losses.
Quick answers to the most common questions about buying GLXG stock.
Galaxy Payroll Group Limited (GLXG) generated $-3.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Galaxy Payroll Group Limited (GLXG) reported negative free cash flow of $3.6M in 2025, indicating capital requirements exceeded cash from operations.
Galaxy Payroll Group Limited (GLXG) 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.
In 2025, Galaxy Payroll Group Limited (GLXG) returned $0.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.