Operational inefficiency is highlighted by a persistent decoupling of earnings from cash generation, with an OCF/NI ratio of -2.88 in 2025Q2 and a $277.4K working capital drain in 2025Q4.
| Cash from Operations | -177.81K | -1.25M | 348.67K | 625K | 1.31M | 5.96M |
| Operating CF Margin % | -7.5% | -47.87% | 13.29% | 34.15% | 45.21% | 409.6% |
| Operating CF Growth % | 85.75% | -457.92% | -44.21% | -52.36% | -77.99% | - |
| Net Income | -18.15M | -425.71K | 519.87K | 444.24K | 1.5M | 6.13M |
| Depreciation & Amortization | 527.41K | 835.14K | 114.84K | 113.89K | 113.76K | 709.38K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 718.31K | -804.02K | -45.43K | 0 | 0 | 0 |
| Other Non-Cash Items | 19.89M | 4.9M | 360.15K | -206.6K | 80.93K | 6.32K |
| Working Capital Changes | -3.17M | -5.75M | -600.77K | 273.48K | -386.1K | -887.31K |
| Change in Receivables | -1.63M | -1.81M | -624.72K | 179.45K | -497.32K | -561.7K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -20.52M | -9.09M | 838 | -6.39K | -655.07K | -1.24M |
| Capital Expenditures | -838.98K | 0 | -4.02K | -1.55K | 0 | -1.18M |
| CapEx % of Revenue | 35.39% | 0% | 0.15% | 0.08% | - | 81.18% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -19.68M | -9.09M | 4.86K | -4.84K | -655.07K | -53.82K |
| Cash from Financing | 24.62M | 48.58M | 904.93K | -303.32K | 448.33K | -3M |
| Debt Issued (Net) | -485.98K | -460.72K | -58.07K | -75.24K | 446.68K | 0 |
| Equity Issued (Net) | 25.11M | 6.28M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -2.3M | 0 | -3M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -8 | 42.76M | 963K | 2.07M | 1.66K | 0 |
| Net Change in Cash | 3.9M | 38.24M | 1.26M | 314.26K | 1.1M | 1.73M |
| Free Cash Flow | -1.02M | -1.25M | 344.66K | 623.45K | 1.31M | 4.78M |
| FCF Margin % | -42.89% | -47.87% | 13.13% | 34.07% | 45.21% | 328.42% |
| FCF Growth % | 18.53% | -462.09% | -44.72% | -52.48% | -72.55% | - |
| FCF per Share | -0.99 | -38.03 | 10.50 | 19.00 | 39.98 | 145.64 |
| FCF Conversion (FCF/Net Income) | 0.08x | 2.93x | 0.67x | 1.41x | 0.87x | 0.97x |
| Interest Paid | 0 | 13.07K | 13.86K | 12.44K | 1.05K | 0 |
| Taxes Paid | 0 | 1.02M | 6.12K | 315.12K | 54.33K | 934.79K |
Capital Allocation Inefficiency
According to the provided cash flow data, the firm exhibits a persistent inability to convert net income into operating cash, as evidenced by the OCF/NI ratio frequently falling into negative territory, most notably reaching -2.88 in 2025Q2 despite reported net income figures.
The consistent divergence between accounting profits and actual cash flow suggests that the company's earnings quality is severely compromised by non-cash items or aggressive accrual accounting. Investors should monitor whether this gap reflects genuine operational inefficiencies or a structural mismatch in revenue recognition timing.
As reported in recent financial statements, the company's free cash flow trajectory has remained firmly in negative territory, with the 2025Q4 period showing a cash burn of $116.8K, highlighting a fundamental inability to generate self-sustaining cash flow from its core consulting operations.
The persistent negative FCF margins indicate that the business model is currently incapable of covering its own operating and capital requirements. This trend suggests that the firm is reliant on its existing cash reserves to fund ongoing operations rather than internal cash generation.
Based on the quarterly cash flow statements, the company has experienced consistent working capital outflows, with a significant $277.4K drain in 2025Q4 alone, which appears to be a primary driver of the firm's deteriorating cash position relative to its service delivery cycle.
These recurring negative working capital changes suggest potential difficulties in collecting receivables or managing the cash conversion cycle effectively. The consistent nature of these outflows warrants further investigation into the firm's credit terms and the underlying health of its client base.
As evidenced by the company's financial disclosures, the massive cash pile of $67.4M remains largely stagnant, with no significant evidence of capital deployment toward dividends, share repurchases, or strategic acquisitions that could potentially improve the firm's long-term return on invested capital.
The lack of active capital deployment suggests that management may be struggling to identify accretive investment opportunities within the current HKEX environment. This idle capital, while providing a safety net, highlights a significant opportunity cost that may be weighing on shareholder value.
Based on the multi-period cash flow data, there is a stark and widening gap between cumulative net income and operating cash flow, suggesting that the company's reported profitability has not translated into tangible cash accumulation over the observed timeframe.
This long-term divergence is a red flag for fundamental analysts, as it implies that the reported earnings may not be representative of the company's true economic performance. The persistent failure to bridge this gap suggests that the business may be structurally unprofitable despite accounting-based profitability in certain periods.
Quick answers to the most common questions about buying INTJ stock.
Intelligent Group Limited (INTJ) generated $-0.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Intelligent Group Limited (INTJ) reported negative free cash flow of $1.0M in 2025, indicating capital requirements exceeded cash from operations.
Intelligent Group Limited (INTJ) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.