Operational cash flow remains unsustainable, with the most recent quarter reporting a $1.1 million free cash flow deficit that highlights a persistent inability to achieve self-funding status.
| Cash from Operations | -947.42K | -1.58M | 30.09K | -2.86M | -843.59K | 1M |
| Operating CF Margin % | - | -53.74% | 0.96% | -63.17% | -22.51% | 45.98% |
| Operating CF Growth % | 340.53% | -5334.42% | 101.05% | -239.22% | -184.09% | - |
| Net Income | -3.94M | -2.57M | -2.01M | -4.13M | 31.76K | 595.77K |
| Depreciation & Amortization | 563.25K | 449.91K | 252.17K | 244.88K | 158.24K | 46.27K |
| Stock-Based Compensation | 268.32K | 1.12M | 803.22K | 201.1K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.45M | 605.8K | 380.16K | 951.8K | 0 | 0 |
| Working Capital Changes | 713.07K | -1.18M | 608.49K | -131.69K | -1.03M | 361.15K |
| Change in Receivables | -142.07K | 720.03K | -126.6K | 7.4K | -959.66K | 101.56K |
| Change in Inventory | 581.64K | -126.91K | 422.32K | -341.63K | -318.18K | -285.92K |
| Change in Payables | 250.55K | -677.44K | 434.21K | 799.32K | 255.82K | 500.75K |
| Cash from Investing | -151.49K | -61.02K | -119.5K | 36.96K | -1.76M | -708.83K |
| Capital Expenditures | -3.37K | -6.38K | -502 | -10.35K | -46.32K | -4.25K |
| CapEx % of Revenue | 0.08% | 0.22% | 0.02% | 0.23% | 1.24% | 0.19% |
| Acquisitions | 2.39K | 0 | 0 | 0 | -748.76K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -150.5K | -54.64K | -119K | 47.31K | -963.15K | -704.57K |
| Cash from Financing | 708.59K | 2.14M | 25.94K | 1.34M | 3.91M | -5.21K |
| Debt Issued (Net) | 0 | -1.18M | -247.68K | 829.75K | -36.63K | -5.21K |
| Equity Issued (Net) | 273.61K | 3.32M | 273.61K | 512.29K | 3.94M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 434.98K | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 96.41K | 605.8K | -77.85K | -1.47M | 1.16M | 371.98K |
| Free Cash Flow | -949.75K | -1.58M | 28.55K | -2.9M | -1.36M | 998.93K |
| FCF Margin % | -21.96% | -53.96% | 0.91% | -64% | -36.27% | 45.79% |
| FCF Growth % | 72.62% | -5641.01% | 100.98% | -113.26% | -236.1% | - |
| FCF per Share | -2.64 | -4.76 | 0.09 | -9.65 | -3.39 | 2.49 |
| FCF Conversion (FCF/Net Income) | 0.24x | 0.61x | -0.01x | 0.69x | -26.56x | 1.68x |
| Interest Paid | 64.33K | 0 | 131.15K | 5.73K | 32.55K | 6.14K |
| Taxes Paid | 0 | 0 | 0 | 0 | 158.2K | 0 |
Imminent liquidity and solvency
According to recent financial disclosures, IBG's operating cash flow consistently fails to align with net losses, as evidenced by the 2025Q2 OCF/NI ratio of 0.88, which highlights the company's inability to generate internal cash to offset its ongoing accounting deficits and operational burn.
The recurring gap between net income and operating cash flow suggests that the company's losses are not merely accounting artifacts but represent actual cash outflows. Investors should monitor this relationship closely, as the inability to achieve positive cash conversion indicates that the business model remains fundamentally unproven at its current scale.
As reported in quarterly filings, IBG's free cash flow remains deeply negative, with the most recent period showing a $1.1 million outflow, underscoring a persistent inability to reach self-sustaining operations despite the company's focus on premium bitters and direct-to-consumer marketplace expansion.
The consistent negative FCF margins, which reached -90.9% in 2025Q2, suggest that the company is consuming capital at an unsustainable rate. This trajectory implies that without a significant pivot in operational efficiency or a massive revenue inflection, the company will continue to rely on external financing to survive.
Based on historical cash flow statements, IBG's working capital management appears erratic, with significant swings in quarterly changes that suggest inconsistent inventory turnover and collection cycles, further complicating the company's already precarious liquidity position as it attempts to manage its diverse product portfolio.
The volatility in working capital changes, such as the $543.2K inflow in 2023Q4 followed by a $53.7K outflow in 2025Q2, indicates a lack of predictable cash management. This instability warrants further investigation into whether the company is effectively managing its inventory levels or if it is struggling with delayed receivables from its wholesale distribution partners.
Data from recent SEC filings indicates that IBG's cash flow statement masks the severity of its operational burn by failing to account for the high cost of customer acquisition, which is likely buried within operating expenses rather than being capitalized as a long-term asset.
The reliance on non-cash adjustments and the absence of significant capital expenditure suggest that the company is not investing in long-term infrastructure but is instead burning cash to maintain its current market presence. This structure appears to prioritize short-term revenue maintenance over the development of a sustainable, cash-generative business model.
Quick answers to the most common questions about buying IBG stock.
Innovation Beverage Group Limited (IBG) generated $-1.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Innovation Beverage Group Limited (IBG) reported negative free cash flow of $1.6M in 2024, indicating capital requirements exceeded cash from operations.
Innovation Beverage Group Limited (IBG) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.