Operational cash generation remains weak, highlighted by a -100.3% free cash flow margin in 2026Q2 and an operating cash flow to net income ratio of 0.53.
| Cash from Operations | -11.15M | -1.15M | -7.09M | -239.36K | -888.95K | 10.49M |
| Operating CF Margin % | - | -21.26% | -519.64% | -57.57% | -300.03% | 174.67% |
| Operating CF Growth % | -3619.36% | 83.8% | -2862.37% | 73.07% | -108.47% | - |
| Net Income | -9.88M | -4.32M | -4.59M | -26.43K | -65.63K | -329.54K |
| Depreciation & Amortization | 142.59K | 165.74K | 10.51K | 10.1K | 1.4K | 4.61K |
| Stock-Based Compensation | 1.87M | 1.68M | 1.87M | 0 | 0 | 0 |
| Deferred Taxes | 0 | -21.19K | -2.5K | -524 | 792 | -66 |
| Other Non-Cash Items | 3.98M | 113.34K | -3.32M | 226.85K | 831.15K | 13.21M |
| Working Capital Changes | -5.35M | 1.23M | -1.06M | -223.27K | -824.86K | 10.82M |
| Change in Receivables | -5.06M | -963.43K | 672.98K | -519.35K | 65.21K | -817.6K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 4.05M | 1.38M | -436.08K | 312.93K | -893.43K | 12.08M |
| Cash from Investing | -29.75K | -218.24K | -1.45K | -2.83K | -2.35K | -3.2K |
| Capital Expenditures | -29.75K | -218.24K | -1.45K | -2.83K | -2.35K | -3.2K |
| CapEx % of Revenue | 0.33% | 4.04% | 0.11% | 0.68% | 0.79% | 0.05% |
| Acquisitions | 0 | - | - | - | - | - |
| Investments | 0 | 0 | 0 | 543.89K | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 24.77M | 263.49K | 9.69M | 49.54K | -4.55K | 267.76K |
| Debt Issued (Net) | 0 | - | - | - | - | - |
| Equity Issued (Net) | 17.3M | 0 | 10.13M | -52.01K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -116.08K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.48M | 263.49K | -439.73K | 440.35K | -35.43K | 383.84K |
| Net Change in Cash | 11.22M | -1.05M | 2.62M | -196.71K | -13.9M | 10.74M |
| Free Cash Flow | -11.18M | -1.37M | -7.09M | -242.19K | -891.3K | 10.49M |
| FCF Margin % | -122.41% | -25.3% | -519.75% | -58.25% | -300.83% | 174.62% |
| FCF Growth % | -66.2% | 80.73% | -2828.34% | 72.83% | -108.5% | - |
| FCF per Share | -0.05 | -0.01 | -0.04 | -0.00 | -0.00 | 0.05 |
| FCF Conversion (FCF/Net Income) | 1.13x | 0.27x | 1.55x | 9.06x | 13.54x | -31.84x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 16.57K | 0 | 0 | 83.11K | 0 |
Liquidity and margin compression
As reported in recent financial filings, GSIW's operating cash flow to net income ratio has fluctuated wildly, reaching 0.53 in 2026Q2, which suggests that the company's reported earnings are not currently supported by a consistent or reliable conversion of operational activities into actual cash inflows.
The persistent gap between net income and operating cash flow indicates that the firm's accrual-based accounting may be masking significant cash-burn realities. Investors should monitor whether this divergence is a result of delayed fee collections or high non-cash expenses, as the current trend suggests a fundamental disconnect between accounting profitability and liquidity.
Based on the company's reported figures, the free cash flow margin has remained consistently negative, hitting -100.3% in 2026Q2, which highlights the firm's inability to generate self-sustaining cash flow despite the significant revenue growth observed in recent periods across its underwriting and placing segments.
The trajectory of free cash flow suggests that the business model is currently capital-intensive and reliant on external funding to bridge the gap between operational costs and revenue realization. This pattern warrants further investigation into whether the firm can ever achieve positive cash flow without a fundamental shift in its cost structure.
According to historical data, working capital changes have been highly erratic, including a $990.8K inflow in 2026Q2, which suggests that the company's cash position is heavily dependent on the timing of client payments and the settlement of underwriting mandates rather than stable, recurring operational efficiency.
The extreme swings in working capital indicate that the firm's liquidity is highly sensitive to the timing of specific deal completions. This volatility creates significant uncertainty for investors, as the company's ability to meet its short-term obligations appears tethered to the unpredictable nature of the Hong Kong capital markets.
As indicated by the financial statements, the company's cash flow statement obscures the impact of stock-based compensation and capitalized costs, with $1.9M in SBC recorded in 2024Q4, suggesting that the true economic cost of operations may be higher than the reported cash flow figures imply.
The reliance on non-cash adjustments to reconcile net income to operating cash flow warrants caution, as these items may be masking the true extent of the firm's operational burn. Analysts should look beyond the headline cash flow numbers to understand the underlying impact of these adjustments on long-term shareholder value.
Quick answers to the most common questions about buying GSIW stock.
Garden Stage Limited Ordinary Shares (GSIW) generated $-1.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Garden Stage Limited Ordinary Shares (GSIW) reported negative free cash flow of $1.4M in 2025, indicating capital requirements exceeded cash from operations.
Garden Stage Limited Ordinary Shares (GSIW) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.