Cash flow conversion remains weak, evidenced by an OCF/NI ratio of 0.10 in 2025Q2, which suggests that reported net income is not effectively translating into core operational cash generation.
| Cash from Operations | 47.18M | 56.37M | -98.62M | -27.74M | -134.66M | 102.99M | -14.25M | 9.74M |
| Operating CF Margin % | - | 14.36% | -33.97% | -13.63% | -27.6% | 28.72% | -6.59% | 12.89% |
| Operating CF Growth % | 859.76% | 157.16% | -255.53% | 79.4% | -230.74% | 822.97% | -246.19% | - |
| Net Income | 295.27M | -50.17M | -64.23M | -81.59M | -136.46M | 81.24M | 31.83M | 10.26M |
| Depreciation & Amortization | 1.76M | 1.69M | 1.95M | 7.24M | 8.43M | 6.67M | 2.54M | 807.46K |
| Stock-Based Compensation | -1.53K | 0 | 952.56K | 32.16M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 2.93M | -4.04M | -880.48K | -841.95K | -153.47K | 0 |
| Other Non-Cash Items | -245.52M | 102.24M | -38.99M | 22.46M | 164.43K | 342.97K | 482.56K | -5.42M |
| Working Capital Changes | -4.34M | 2.61M | -1.24M | -3.98M | -5.92M | 15.58M | -48.95M | 4.1M |
| Change in Receivables | -4.61M | -11.83M | -16.12M | 70.78M | -15.07M | 11.48M | -88.44M | 5.17M |
| Change in Inventory | -16.93K | 823.17K | -66.24K | 384.04K | 167.56K | 2.86M | -4.34M | 17.66K |
| Change in Payables | 0 | 12.85M | 12.09M | -59.89M | 14.19M | -6.01M | 46.33M | 0 |
| Cash from Investing | -955.43M | -285.56M | -682.98M | -1.37M | 11.51M | -84.1M | 1.2M | -4.97M |
| Capital Expenditures | -29.69K | -99.89K | -11.93K | -774.62K | -1.82M | -135.68K | -12.83K | -30.69K |
| CapEx % of Revenue | 0.01% | 0.03% | 0% | 0.38% | 0.37% | 0.04% | 0.01% | 0.04% |
| Acquisitions | 0 | 745.1K | 0 | -600K | 0 | -50M | 1.21M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -955.4M | 0 | 0 | 0 | 13.33M | -32.36M | 0 | -4.94M |
| Cash from Financing | 1.88B | 1.24B | 1.51B | 2.2M | 223.88M | -1.3M | 43.13M | -6.82M |
| Debt Issued (Net) | 0 | 1.24B | 1.51B | 2.49M | 410K | -1.17M | 35.76M | 1.5M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.88B | 0 | 1.51B | -289.72K | 223.47M | -133.91K | 7.37M | -8.32M |
| Net Change in Cash | -630.07M | 991.92M | 725.43M | -25.08M | 103.11M | 17.32M | 29.68M | 998.89K |
| Free Cash Flow | 47.15M | 56.27M | -98.63M | -28.51M | -136.48M | 102.99M | -14.25M | 9.71M |
| FCF Margin % | 14.68% | 14.33% | -33.98% | -14.01% | -27.97% | 28.72% | -6.59% | 12.85% |
| FCF Growth % | 135.03% | 157.05% | -245.91% | 79.11% | -232.51% | 822.97% | -246.65% | - |
| FCF per Share | 8.77 | 4.27 | -67.70 | -26.31 | -135.99 | 15.61 | -2.16 | 1.47 |
| FCF Conversion (FCF/Net Income) | 0.16x | -1.10x | 1.56x | 0.34x | 0.98x | 1.27x | -0.45x | 0.95x |
| Interest Paid | 134.28K | 155.29K | 120.25K | 26.44K | 38.08K | 20.18K | 49.07K | 0 |
| Taxes Paid | 0 | 0 | 1.27K | 0 | 4.2K | 72.04K | 0 | 0 |
High cash flow volatility
According to recent financial statements, the OCF/NI ratio has fluctuated wildly, reaching as low as 0.10 in 2025Q2, which suggests that reported net income is not currently being supported by a commensurate generation of actual cash from the company's core holographic operations.
The significant divergence between net income and operating cash flow indicates that accounting profits may be driven by non-cash items or timing differences rather than operational efficiency. Investors should monitor whether this gap persists, as it raises questions regarding the quality of earnings and the sustainability of the company's current business model.
As reported in quarterly filings, HOLO's free cash flow trajectory has been highly inconsistent, swinging from a -95.4% margin in 2024Q2 to a 14.4% margin in 2025Q2, reflecting the volatile nature of project-based revenue and the lack of a stable cash-generative core.
The rapid shift in FCF margins suggests that the company's cash position is highly sensitive to the timing of specific project milestones and hardware deliveries. This volatility makes it difficult to forecast future liquidity needs and suggests that the company has yet to achieve a predictable, self-sustaining cash flow profile.
Based on the provided cash flow data, working capital changes have been a significant source of volatility, with shifts ranging from a $32 million inflow in 2023Q4 to a $4 million outflow in 2024Q2, indicating inconsistent management of receivables and inventory cycles.
These fluctuations in working capital suggest that the company may be struggling to align its cash collection cycles with its aggressive revenue growth targets. Further investigation is warranted to determine if these swings are indicative of aggressive credit terms offered to customers to secure new holographic solution contracts.
As indicated by historical data, the company's cash flow statement obscures the impact of significant stock-based compensation, which reached $16.1 million in 2023Q3, potentially masking the true economic cost of operations and diluting the value of cash generated from core business activities.
The reliance on non-cash adjustments to reconcile net income to operating cash flow warrants skepticism regarding the company's underlying operational health. Analysts should be wary of how these adjustments impact the reported cash flow figures, as they may be inflating the perceived stability of the company's financial position.
Quick answers to the most common questions about buying HOLO stock.
MicroCloud Hologram Inc. (HOLO) generated $56.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MicroCloud Hologram Inc. (HOLO) generated $56.3M 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.
MicroCloud Hologram Inc. (HOLO) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.