Free cash flow remains deeply negative, with margins frequently exceeding -100% and an OCF/NI ratio reaching 23.23 in 2025Q1, highlighting a structural inability to generate internal liquidity.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Jul'12 | Jul'11 |
|---|
| Cash from Operations | -25.44M | -17.59M | -10.1M | -6.93M | -7.46M | -7.11M | -4.24M | -4.4M | -2.31M | -1.4M | -1.15M | -1.45M | -1.7M | -1.2M | -286.22K | -15K |
| Operating CF Margin % | - | -170.85% | -523.12% | -393.99% | -240% | -368.88% | -301.91% | -245.35% | -166.36% | -85.84% | -251.99% | -1259.57% | -2375.02% | -982.13% | - | - |
| Operating CF Growth % | -747.89% | -74.24% | -45.79% | 7.18% | -4.99% | -67.77% | 3.73% | -90.44% | -65.31% | -21.78% | 20.78% | 15% | -41.97% | -319.43% | -1808.11% | - |
| Net Income | -37.86M | 0 | -8.54M | -8.75M | -11.8M | -18.55M | -9.52M | -12.19M | -3.58M | -1.78M | -1.28M | -1.47M | -3.14M | -1.1M | -285.06K | 0 |
| Depreciation & Amortization | 69.38K | 0 | 190.55K | 220.65K | 379.47K | 344.67K | 408.49K | 435.1K | 163.32K | 87.39K | 41.92K | 22.15K | 3.25K | 587 | 124 | 0 |
| Stock-Based Compensation | 1.16M | 0 | -62.31K | 468.56K | 3.03M | 10.66M | 4.17M | 7.86M | 838.78K | 138.1K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 32.27M | -3.1M | 2.37M | 540.73K | 1.4M | 1.6M | 422.46K | 122.08K | 199.62K | 152.33K | 92.58K | 100.17K | 1.54M | 61.48K | 80.42K | -8K |
| Working Capital Changes | -21.8M | -14.5M | -4.05M | 593.25K | -476.99K | -1.16M | 289.36K | -628.95K | 64.69K | 538 | -6.99K | -101.75K | -108.92K | -164.57K | -81.7K | -7K |
| Change in Receivables | -1.5M | -40.76K | 499.58K | -358.63K | 175.63K | -359.63K | 333.93K | -365.14K | -73.01K | -130.44K | -39.51K | -13K | 7.99K | -152.86K | 0 | 0 |
| Change in Inventory | 2.84M | -8.25M | -3.78M | -50.08K | -364.87K | -328.09K | 157.84K | -366.11K | 49.11K | 140.78K | -53.82K | -150.88K | -50.88K | 11.76K | -153.66K | 0 |
| Change in Payables | 1.33M | -451.4K | 426.3K | 1.05M | -67.84K | 293.01K | -155.17K | -19.49K | 161.65K | -159.86K | 123.8K | 22.14K | -12.44K | -24.06K | 79.89K | 1K |
| Cash from Investing | 15.28K | 22.36K | -320.04K | -16.24K | -604.83K | -115.36K | -6.7K | -2.04M | -550.21K | -35.3K | -4.48K | -235.56K | -27.95K | -6.78K | -2.6K | 0 |
| Capital Expenditures | 10.74K | 0 | -319.84K | -16.24K | -191.76K | -115.36K | -119.84K | -2.06M | -550.21K | -186.97K | -4.48K | -235.56K | -27.95K | -6.78K | -2.6K | 0 |
| CapEx % of Revenue | 0.04% | 0% | 16.57% | 0.92% | 6.17% | 5.99% | 8.54% | 114.94% | 39.61% | 11.48% | 0.98% | 204.79% | 38.95% | 5.54% | - | - |
| Acquisitions | 2.67K | 22.36K | -200 | 0 | -413.07K | 0 | 3.14K | 23.6K | 0 | 151.68K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.87K | 0 | 0 | 0 | 0 | 0 | 110K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 25.22M | 17.25M | 9.59M | -36.03K | 5.68M | 13.63M | 7.25M | 6M | 4.34M | 1.76M | 1.09M | 1.55M | 859.82K | 2.15M | 454.3K | 15K |
| Debt Issued (Net) | 14.55M | 13.74M | 3.81M | -36.03K | -67.88K | -78.2K | -116.87K | 84.6K | -48.58K | -3K | 145K | 600K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 9.07M | 3.51M | 5.78M | 0 | 6.1M | 13.7M | 7.58M | 5.95M | 4.54M | 1.76M | 938.7K | 953.86K | 859.82K | 2.1M | 304.59K | 15K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -105K | 0 | 0 | 0 |
| Other Financing | 1.6M | 0 | 0 | 0 | -356.18K | 9.18K | -212.72K | -27.63K | -157.69K | 0 | 1.5K | 0 | 0 | 50K | 149.71K | 0 |
| Net Change in Cash | -141.24K | -326.94K | -518.65K | -6.94M | -2.5M | 6.42M | 3.07M | -480.63K | 1.46M | 306.71K | -67.06K | -130.48K | -872.5K | 945.18K | 165.48K | 0 |
| Free Cash Flow | -25.44M | -17.59M | -10.42M | -6.94M | -7.65M | -7.22M | -4.36M | -6.46M | -2.86M | -1.58M | -1.15M | -1.68M | -1.73M | -1.21M | -288.81K | -15K |
| FCF Margin % | -86.9% | -170.85% | -539.69% | -394.92% | -246.17% | -374.87% | -310.46% | -360.29% | -205.98% | -97.32% | -252.97% | -1464.37% | -2413.98% | -987.67% | - | - |
| FCF Growth % | -1.68% | -68.89% | -50.06% | 9.29% | -5.97% | -65.8% | 32.59% | -125.87% | -80.53% | -37.54% | 31.59% | 2.77% | -43.49% | -318% | -1825.43% | - |
| FCF per Share | -0.81 | -10.08 | -4.84 | -9.48 | -13.83 | -15.40 | -10.99 | -16.31 | -8.10 | -5.18 | -3.93 | -5.89 | -6.04 | -3.63 | -4.89 | -0.39 |
| FCF Conversion (FCF/Net Income) | 0.67x | 3.60x | 1.13x | 0.79x | 0.63x | 0.38x | 0.45x | 0.36x | 0.65x | 0.79x | 0.90x | 0.99x | 0.54x | 1.09x | 1.00x | 1.88x |
| Interest Paid | 0 | 0 | 1.96K | 4.94K | 9.81K | 2.87K | 21.24K | 1.5K | 3.91K | 2.65K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 800 | 800 | 800 | 800 | 800 | 800 | 800 | 800 | 800 | 0 | 0 | 0 | 0 |
Liquidity and margin insolvency
According to recent financial statements, IMG's operating cash flow consistently trails net income, with the OCF/NI ratio reaching extreme levels such as 23.23 in 2025Q1, suggesting that reported earnings fail to capture the significant cash outflows required to sustain the company's current high-growth, low-margin operational model.
The persistent gap between net income and operating cash flow indicates that the company is consuming cash at a rate far exceeding its accounting losses. This divergence suggests that the business model is heavily reliant on working capital absorption, which may mask the true severity of the underlying cash burn.
As reported in quarterly filings, IMG's free cash flow remains deeply negative, with margins frequently exceeding -100% as seen in 2025Q3, highlighting a structural inability to generate internal liquidity despite the rapid top-line expansion observed across the company's specialized single-serve coffee co-packing and branded product segments.
The consistent negative FCF trajectory implies that the company's growth is currently self-defeating from a cash perspective. Investors should monitor whether this trend is a temporary byproduct of scaling or a permanent feature of a business model that lacks the necessary pricing power to cover its operating costs.
Based on the provided cash flow data, working capital changes have acted as a consistent drag on liquidity, with outflows reaching $8.6 million in multiple quarters during 2025, indicating that the company's rapid revenue growth is placing immense pressure on its ability to manage collections and inventory efficiently.
The recurring negative working capital adjustments suggest that the company is effectively financing its customers' growth through extended payment terms or inefficient inventory management. This dynamic exacerbates the liquidity risk, as cash is tied up in operations rather than being available to fund the company's immediate obligations.
Analysis of the cash flow statement reveals that stock-based compensation, such as the $1.2 million recorded in 2026Q1, serves as a non-cash expense that obscures the true cash cost of operations, while minimal depreciation suggests the company may be under-investing in the maintenance of its specialized manufacturing assets.
The reliance on non-cash adjustments to manage the optics of the income statement warrants further investigation into the sustainability of the current compensation structure. Furthermore, the lack of significant capital expenditure relative to the reported revenue growth may indicate that the company is deferring necessary maintenance, which could lead to future operational disruptions.
Quick answers to the most common questions about buying IMG stock.
CIMG Inc. (IMG) generated $-17.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CIMG Inc. (IMG) reported negative free cash flow of $17.6M in 2025, indicating capital requirements exceeded cash from operations.
CIMG Inc. (IMG) 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.