Liquidity remains under severe pressure with a current ratio of 1.10 and an operating cash flow to net income ratio of -0.49, highlighting a disconnect between accounting results and actual cash generation.
| Cash from Operations | 22.11M | 18.11M | 5.78M | -1.14M | -1.47M | -1.1M |
| Operating CF Margin % | 39.52% | 43.78% | 21.48% | -6.62% | -10.33% | -21.9% |
| Operating CF Growth % | 22.1% | 213.51% | 607.91% | 22.81% | -33.42% | - |
| Net Income | -19.3M | 12.14M | 6.55M | -265.24K | 1.41M | -486.28K |
| Depreciation & Amortization | 12.26M | 5.72M | 623.71K | 179.72K | 23.14K | 5.7K |
| Stock-Based Compensation | 0 | 3.83M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 33.41M | -5.1M | 1.2M | -16.08K | 21.42K | 0 |
| Working Capital Changes | -4.26M | 1.53M | -2.6M | -1.04M | -2.93M | -623.65K |
| Change in Receivables | -711.33K | 1.89M | -1.38M | 3.24M | -5.3M | 681.73K |
| Change in Inventory | -7.33M | -3.61M | 257 | -3.19M | 915.47K | 1.74M |
| Change in Payables | 547.6K | 643.77K | -411.04K | -1.82M | 1.41M | -32.58K |
| Cash from Investing | -33.43M | -34.7M | -7.73M | -166.18K | -81.19K | -301.38K |
| Capital Expenditures | -33.19M | -5.55K | -7.17M | -28.84K | -51.68K | -6.9K |
| CapEx % of Revenue | 59.33% | 0.01% | 26.65% | 0.17% | 0.36% | 0.14% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -33.17M | -35.17M | 184.31K | -137.34K | -29.51K | -294.48K |
| Cash from Financing | 4.57M | 16.92M | 11.64M | 1.47M | 2.62M | 1.06M |
| Debt Issued (Net) | -1.93M | 2.78M | 787.27K | -398.77K | 1.82M | 459.49K |
| Equity Issued (Net) | 6.5M | 14.14M | 10.92M | 2M | 805.72K | 602.9K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -70.87K | -131.63K | 0 | 0 |
| Net Change in Cash | -6.9M | 630.98K | 9.3M | 47.37K | 1.08M | -335.97K |
| Free Cash Flow | 22.1M | -18.46M | -1.39M | -1.17M | -1.52M | -1.11M |
| FCF Margin % | 39.5% | -44.64% | -5.17% | -6.78% | -10.69% | -22.04% |
| FCF Growth % | 219.69% | -1227.88% | -19.23% | 23.53% | -37.24% | - |
| FCF per Share | 68.25 | -32.30 | -2.68 | -2.25 | -2.94 | -2.14 |
| FCF Conversion (FCF/Net Income) | -1.15x | 1.49x | 0.88x | 4.26x | -1.04x | 2.04x |
| Interest Paid | 195.26K | 195.33K | 126.21K | 0 | 25.18K | 3.9K |
| Taxes Paid | 9.65K | 37.15K | 258 | 0 | 739 | 26.19K |
Liquidity and capital intensity
According to the latest financial data, GMM's operating cash flow to net income ratio reached -0.49 in 2025Q4, highlighting a significant divergence between accounting profitability and actual cash generation that warrants close scrutiny from investors evaluating the sustainability of the company's current business model.
The negative conversion ratio suggests that reported net income is failing to capture the full extent of the cash-based operational challenges facing the firm. This disconnect implies that the company's earnings quality may be compromised by non-cash charges or aggressive revenue recognition practices that do not translate into liquid inflows.
As reported in recent filings, GMM's capital expenditure reached 54.0% of revenue in 2025Q4, indicating a high level of capital intensity that suggests the company is heavily reinvesting in its digital asset library to maintain its competitive position in the metaverse services market.
The elevated capex-to-revenue ratio reflects the ongoing costs required to build and maintain high-fidelity 3D assets, which are central to the company's value proposition. Investors should monitor whether this heavy spending will eventually lead to operating leverage or if it represents a permanent, high-cost requirement for the business.
Based on the provided cash flow statements, GMM's free cash flow margin fluctuated significantly, reaching 41.0% in 2025Q4 after periods of negative cash generation, which underscores the inherent volatility of a project-based revenue model that is highly sensitive to client production schedules.
The erratic nature of free cash flow suggests that the company lacks a predictable, recurring revenue stream, making it difficult to forecast long-term cash sustainability. This volatility may indicate that the company's cash position is subject to the timing of large, lumpy payments from media and advertising clients.
Data from recent quarterly reports indicates that GMM experienced a $3.9M working capital outflow in 2025Q4, suggesting that the company is struggling to efficiently manage its collections and payables as it scales its operations within the competitive Chinese digital media landscape.
The recurring outflows in working capital imply that the company may be offering extended payment terms to its clients to secure contracts, which puts additional pressure on its limited cash reserves. This trend warrants further investigation into the credit quality of the company's customer base and its ability to collect receivables in a timely manner.
Quick answers to the most common questions about buying GMM stock.
Global Mofy Metaverse Limited (GMM) generated $22.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Global Mofy Metaverse Limited (GMM) generated $22.1M in free cash flow in 2025. 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 Mofy Metaverse Limited (GMM) spent $33.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.