Operational cash flow remains deeply negative, with a -4.2% free cash flow margin in 2025Q4 and a $866.8K drain from working capital, highlighting a persistent inability to generate self-sustaining liquidity.
| Cash from Operations | -9.32M | -4.9M | -7.94M | 910.25K | 31.89K | 1.17M | 6.81M |
| Operating CF Margin % | -26.26% | -48.24% | -129.02% | 8.42% | 0.21% | 8.37% | 44.88% |
| Operating CF Growth % | -90.13% | 38.29% | -972.51% | 2754.08% | -97.27% | -82.83% | - |
| Net Income | -5.92M | -3.97M | -5.79M | -2.12M | 1.31M | 54.92K | 3.51M |
| Depreciation & Amortization | 140.59K | 479.5K | 476.25K | 169.81K | 143.56K | 609.55K | 536.15K |
| Stock-Based Compensation | 0 | 0 | 1.82M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -3.55K | 0 | 0 | 0 | 21.63K | -63.62K | 335.29K |
| Other Non-Cash Items | 3.42M | 1.14M | 202.66K | 171.72K | 920.45K | 823.58K | 3.57K |
| Working Capital Changes | -6.96M | -2.55M | -4.66M | 2.69M | -2.36M | -255.76K | 2.42M |
| Change in Receivables | -2.04M | -128.53K | 226.41K | 236.33K | -498.36K | -156.82K | 0 |
| Change in Inventory | 14.52K | -334.46K | -159.15K | 0 | 498.36K | 156.82K | 0 |
| Change in Payables | 2.58M | 385.25K | 336.76K | 514.57K | 158.11K | -786.64K | 188.38K |
| Cash from Investing | 165.28K | -1.97M | -5.72M | -174.07K | -212.62K | -1.58M | -592.55K |
| Capital Expenditures | -9.37K | -133.15K | -248.96K | -174.07K | -91.14K | -1.69M | -592.55K |
| CapEx % of Revenue | 0.03% | 1.31% | 4.04% | 1.61% | 0.61% | 12.14% | 3.91% |
| Acquisitions | 623.86K | -1.73M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -415.94K | -113.39K | -28.36K | 0 | -121.47K | 114.16K | 0 |
| Cash from Financing | 9.02M | 1.12M | 246.8K | 18.63M | -2M | 360.55K | -4.04M |
| Debt Issued (Net) | 526.19K | 349.57K | 79.96K | 1.28M | 752.75K | 85.62K | 1.05M |
| Equity Issued (Net) | 5M | 0 | 0 | 18.28M | -240.81K | -280.42K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 3.49M | 767.63K | 166.84K | -922.74K | -2.52M | 555.35K | -5.09M |
| Net Change in Cash | 38.31K | -5.71M | -13.79M | 19.15M | -2.02M | 100.36K | 2.05M |
| Free Cash Flow | -9.33M | -5.03M | -8.22M | 736.18K | -59.25K | -525.73K | 6.21M |
| FCF Margin % | -26.29% | -49.55% | -133.53% | 6.81% | -0.39% | -3.77% | 40.97% |
| FCF Growth % | -85.29% | 38.75% | -1216.49% | 1342.45% | 88.73% | -108.46% | - |
| FCF per Share | -3.27 | -2.54 | -4.37 | 0.51 | -0.05 | -0.40 | 2.99 |
| FCF Conversion (FCF/Net Income) | 1.83x | 1.32x | 1.37x | -0.43x | 0.02x | 27.82x | 2.02x |
| Interest Paid | 0 | 273.07K | 352.84K | 215.62K | 139.28K | 113.73K | 129.31K |
| Taxes Paid | 0 | 7.81K | 2.56K | 147 | 10.44K | 1.45K | 2.49K |
Liquidity and margin collapse
According to historical financial data, GSUN consistently reports operating cash flows that deviate significantly from net income, with the OCF/NI ratio reaching 2.73 in 2025Q4, suggesting that accounting earnings fail to capture the underlying cash burn inherent in the company's current operational model.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based earnings are not translating into realized liquidity. This divergence suggests that the firm may be struggling with aggressive revenue recognition or delayed collections that do not align with the actual cash cycle.
As reported in recent quarterly filings, GSUN's free cash flow has remained consistently negative, culminating in a -4.2% FCF margin in 2025Q4, which highlights the company's inability to generate self-sustaining cash flow despite the reported surge in top-line revenue volume.
The inability to achieve positive free cash flow suggests that the business model is currently capital-consumptive rather than capital-generative. Investors should monitor whether this trend is a temporary byproduct of expansion or a structural failure to achieve economies of scale.
Based on the provided cash flow statements, working capital changes have acted as a consistent drain on liquidity, with a significant outflow of $866.8K in 2025Q4, indicating that the company's operational growth is placing immense pressure on its limited cash reserves.
The recurring negative impact of working capital changes suggests that the company is likely financing its growth through delayed cash inflows or inventory build-ups. This dynamic exacerbates the liquidity risk, as the firm appears to be consuming cash faster than it can collect from its service contracts.
Analysis of the cash flow statement reveals that the company's reliance on non-operating adjustments, such as the $623.9K net acquisition inflow in 2025Q4, masks the core operational cash burn, which warrants further investigation into the sustainability of these one-time financial maneuvers.
The reliance on non-recurring items to bolster the cash position suggests that the core business is not yet self-funding. Investors should be wary of these adjustments, as they may be used to obscure the underlying weakness in the company's primary education and management service operations.
Quick answers to the most common questions about buying GSUN stock.
Golden Sun Education Group Limited (GSUN) generated $-9.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Golden Sun Education Group Limited (GSUN) reported negative free cash flow of $9.3M in 2025, indicating capital requirements exceeded cash from operations.
Golden Sun Education Group Limited (GSUN) 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.