Liquidity is under pressure as free cash flow margins deteriorated to -1.3% in 2026Q3, exacerbated by a $5.3 million outflow related to working capital changes.
| Metric | TTM | Jun'25 | Jun'24 | Jul'23 | Jul'22 | Jul'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 18.78M | 18.93M | 13.78M | -11.31M | -4.91M | -15.05M | -31M | 919K | 11.46M | 9.43M | 4.58M | 7.67M | 1.46M | 29.28M | -5.07M | -2.57M | 3.7M | 10.04M | -718K | -1.86M | -34K | 5.11M | -17K | -544K | 919K | 7.48M | 3.26M | 4.2M | 7.8M | 700K | 19.1M |
| Operating CF Margin % | - | 4.05% | 2.43% | -1.87% | -0.92% | -2.9% | -6.9% | 0.2% | 2.57% | 2.01% | 0.94% | 1.77% | 0.48% | 8.11% | -1.46% | -1.01% | 1.85% | 5.43% | -0.35% | -0.92% | -0.02% | 2.52% | -0.01% | -0.42% | 0.52% | 4.51% | 1.98% | 2.36% | 4.59% | 0.38% | 9.5% |
| Operating CF Growth % | 109.42% | 37.41% | 221.79% | -130.51% | 67.4% | 51.45% | -3473.67% | -91.98% | 21.56% | 105.79% | -40.26% | 425.86% | -95.02% | 678.01% | -97.2% | -169.49% | -63.17% | 1498.05% | 61.34% | -5361.76% | -100.66% | 30182.35% | 96.88% | -159.19% | -87.72% | 129.76% | -22.48% | -46.15% | 1014.29% | -96.34% | 496.88% |
| Net Income | -17.37M | -8.32M | -2.79M | 5.16M | 3.38M | 4.34M | 4.76M | -7.98M | -1.32M | 5.62M | 6.53M | 4.3M | 7.61M | 12.58M | 11.63M | 5.74M | 8.69M | 1.06M | 5.58M | 5.23M | 9.75M | 4.38M | 110K | 13.41M | -25.36M | -11.37M | -5.33M | 3M | -900K | 600K | -1.8M |
| Depreciation & Amortization | 8.78M | 9.6M | 11.04M | 9.54M | 7.56M | 6.86M | 5.59M | 7.3M | 7.77M | 7.23M | 6.16M | 5.91M | 3.83M | 2.96M | 2.33M | 2.21M | 1.79M | 1.59M | 1.77M | 1.81M | 1.89M | 2.37M | 2.96M | 2.94M | 4.4M | 5.89M | 6.33M | 6.9M | 9.6M | 8.9M | 10M |
| Stock-Based Compensation | 577K | 218K | -444K | 254K | 293K | 192K | 266K | 436K | 447K | 692K | 764K | 732K | 659K | 848K | 624K | 0 | 0 | 675K | 6K | 0 | 40K | 0 | -198K | 188K | 188K | -966K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -8.1M | -6.65M | -5.13M | -1.99M | 481K | -942K | -958K | -1.12M | -1.56M | -471K | -1.31M | -1.52M | -687K | 2.49M | 221K | 470K | -2.06M | -104K | -955K | 0 | -5M | 0 | 198K | 12.87M | 12.87M | 121K | 121K | 800K | -600K | 200K | 1.3M |
| Other Non-Cash Items | 12.21M | 8.28M | 2.27M | 2.65M | 6.16M | 1.34M | 1.04M | 19.4M | -4.46M | 672K | 488K | 752K | 268K | -9K | 207K | 6.69M | 10.88M | 840K | 399K | -405K | 178K | 226K | 291K | -24.92M | 21.1M | 1.47M | 532K | 1.1M | -200K | -200K | -100K |
| Working Capital Changes | 22.69M | 15.79M | 8.83M | -26.92M | -22.78M | -26.84M | -41.71M | -17.11M | 10.59M | -4.32M | -8.05M | -2.51M | -10.22M | 10.4M | -20.08M | -11.91M | -6.95M | 5.97M | -7.52M | -8.5M | -6.89M | -1.85M | -3.38M | -5.02M | -12.27M | 12.34M | 1.61M | -7.6M | -3.4M | -12.9M | 3.1M |
| Change in Receivables | 24.06M | 36.24M | 24.47M | -22.71M | -22.81M | -25.35M | -29.85M | 3.34M | -10.6M | -3.5M | 11.14M | -2.08M | -2.69M | 13.64M | -20.27M | -5.75M | -10.1M | 10.55M | -1.94M | 0 | -4.82M | 0 | -7.36M | 521K | 521K | -3.29M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 10.51M | 7.68M | 32.49M | 17.4M | -19.36M | -23.06M | -14.72M | -1.42M | 589K | 4.92M | -16.17M | -14.71M | -10.45M | 13.25M | -17.65M | -2.08M | -9.67M | 5.33M | -5.74M | 3.45M | -6.99M | -2.59M | -3.86M | -5.96M | -19K | 1.68M | 2.54M | 0 | -4.1M | -400K | 0 |
| Change in Payables | 573K | -15.67M | -36.51M | -5.49M | 28.57M | 12.62M | 6.63M | -2.63M | 23.32M | -5.89M | -2.56M | 18M | 6.06M | -16.63M | 16.88M | -3.67M | 10.46M | -10.79M | -7.12M | 0 | 5.75M | 0 | 11.21M | -6.98M | -6.98M | 5.59M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.86M | -4.2M | -2.11M | -4.53M | -8.05M | -10.6M | -3.58M | -1.91M | -3.48M | -8.47M | -5.67M | -48.13M | -13.79M | -3.3M | -4.64M | -3.69M | -3.3M | -1.89M | 305K | -446K | -1.5M | -1.41M | -1.19M | -2.94M | 569K | 4.54M | -1.35M | -1.2M | -7M | -8.5M | -6.7M |
| Capital Expenditures | -4.76M | -4.09M | -3.96M | -9.77M | -6.81M | -10.6M | -8.62M | -8.39M | -4.52M | -9.31M | -13.28M | -8.81M | -7.76M | -3.47M | -4.65M | -3.82M | -3.38M | -1.89M | -1.18M | -3.14M | -1.64M | -2.87M | -1.63M | -2.13M | -1.14M | -720K | -1.44M | -2.3M | -7.1M | -9.6M | -7.1M |
| CapEx % of Revenue | 1.2% | 0.88% | 0.7% | 1.61% | 1.28% | 2.04% | 1.92% | 1.81% | 1.01% | 1.99% | 2.74% | 2.03% | 2.54% | 0.96% | 1.34% | 1.5% | 1.69% | 1.02% | 0.58% | 1.56% | 0.87% | 1.41% | 1.1% | 1.63% | 0.65% | 0.43% | 0.88% | 1.29% | 4.17% | 5.19% | 3.53% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22K | 1.04M | 834K | 7.61M | -47.96M | -6.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -104K | -104K | 1.85M | 5.24M | -1.24M | 0 | 5.05M | 6.46M | 1.04M | 834K | 7.61M | 8.64M | -6.03M | 171K | 9K | 128K | 74K | 1.49M | 1.49M | 2.69M | 140K | 1.46M | 441K | -816K | 1.71M | 5.26M | 92K | 1.1M | 0 | 1.1M | 400K |
| Cash from Financing | -15.96M | -18.1M | -10.52M | 17.74M | 11.19M | 28.57M | 34.53M | 1.25M | -8.01M | -1.6M | 1.73M | 35.03M | 7.32M | -15.67M | 8.98M | 6.72M | -352K | -10.3M | -94K | 3.26M | 2.5M | -2.84M | 853K | 3.24M | -2.14M | -10.89M | -2.76M | -1.4M | -3.3M | 8M | -13.7M |
| Debt Issued (Net) | -15.54M | -15.13M | -9.71M | 17.99M | 11.31M | 30.07M | 34.62M | 1.26M | -7.98M | -1.25M | 1.44M | 42.88M | -576K | -15.81M | 8.32M | 6.44M | -1.03M | -10.27M | -817K | 2.49M | 2.15M | -2.32M | 884K | 3.39M | -1.64M | -10.93M | -2.79M | -1.4M | -3.5M | 8.8M | -14.3M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 253K | 460K | 116K | 29K | 4K | 0 | 0 | 89K | 31K | 0 | 100K | 0 | 700K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | -122K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -421K | -2.97M | -807K | -245K | -118K | -1.5M | -84K | -15K | -21K | -343K | 289K | -7.85M | 7.89M | 149K | 659K | 282K | 678K | -27K | 470K | 315K | 234K | -543K | -35K | -1.01M | -504K | -50K | 0 | 0 | 100K | -800K | -100K |
| Net Change in Cash | -2.04M | -3.37M | 1.15M | 1.9M | -1.77M | 2.92M | -48K | 258K | -30K | -645K | 646K | -5.43M | -5.02M | 10.32M | -730K | 462K | 41K | -2.15M | -507K | 958K | 965K | 863K | -356K | -249K | -652K | 1.12M | -853K | 1.6M | -2.5M | 200K | -1.9M |
| Free Cash Flow | 14.02M | 14.83M | 9.82M | -21.08M | -11.72M | -25.65M | -39.63M | -7.47M | 6.93M | 118K | -8.7M | -1.14M | -6.3M | 25.81M | -9.72M | -6.39M | 319K | 8.15M | -1.9M | -4.99M | -1.67M | 2.25M | -1.65M | -2.67M | -223K | 6.76M | 1.82M | 1.9M | 700K | -8.9M | 12M |
| FCF Margin % | 3.55% | 3.17% | 1.73% | -3.48% | -2.2% | -4.95% | -8.82% | -1.61% | 1.55% | 0.03% | -1.79% | -0.26% | -2.06% | 7.15% | -2.81% | -2.52% | 0.16% | 4.41% | -0.93% | -2.48% | -0.89% | 1.11% | -1.11% | -2.04% | -0.13% | 4.08% | 1.11% | 1.07% | 0.41% | -4.81% | 5.97% |
| FCF Growth % | -1.48% | 51.09% | 146.57% | -79.88% | 54.32% | 35.26% | -430.7% | -207.69% | 5776.27% | 101.36% | -662.23% | 81.9% | -124.43% | 365.56% | -52.18% | -2102.19% | -96.08% | 529.24% | 61.99% | -198.68% | -174.44% | 236.12% | 38.25% | -1098.21% | -103.3% | 272.1% | -4.37% | 171.43% | 107.87% | -174.17% | 366.67% |
| FCF per Share | 1.29 | 1.38 | 0.91 | -1.93 | -1.06 | -2.32 | -3.66 | -0.69 | 0.64 | 0.01 | -0.77 | -0.10 | -0.55 | 2.29 | -0.90 | -0.61 | 0.03 | 0.81 | -0.18 | -0.48 | -0.17 | 0.23 | -0.15 | -0.28 | -0.02 | 0.70 | 0.19 | 0.20 | 0.07 | -0.93 | 1.20 |
| FCF Conversion (FCF/Net Income) | -0.81x | -2.28x | -4.94x | -2.19x | -1.45x | -3.47x | -6.52x | -0.12x | -8.65x | 1.68x | 0.70x | 1.78x | 0.19x | 2.33x | -0.44x | -0.45x | 0.43x | 9.44x | -0.13x | -0.36x | -0.00x | 1.17x | -0.15x | -0.04x | -0.04x | -0.66x | -0.61x | 1.40x | -8.67x | 1.75x | -10.61x |
| Interest Paid | 9.88M | 11.07M | 10.27M | 9.26M | 5.11M | 3.78M | 2.48M | 0 | 2.53M | 2.24M | 2.31M | 1.22M | 90K | 317K | 443K | 463K | 85K | 621K | 1.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 355K | 989K | 2.4M | 1.41M | 1.31M | 2.01M | 683K | 0 | 304K | 1.8M | 813K | 3.27M | -2.18M | 2.71M | 1.41M | 533K | 415K | 327K | 301K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and working capital volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 8.85 in 2025Q1 to -3.37 in 2026Q1, suggesting that accruals and working capital shifts dominate the company's reported cash generation profile.
The extreme variance in the conversion ratio indicates that net income is a poor proxy for the company's actual cash-generating ability. Investors should monitor this divergence, as it suggests that operational cash flow is heavily dependent on the timing of customer payments and inventory procurement rather than sustainable core profitability.
Based on recent quarterly data, FCF margins have deteriorated significantly, falling from a peak of 7.3% in 2025Q1 to -1.3% in 2026Q3, reflecting the company's inability to maintain positive cash flow generation amidst a backdrop of persistent revenue contraction and operational margin pressure.
The shift into negative FCF territory in the most recent quarter warrants further investigation into whether this is a temporary cyclical trough or a structural decline. The lack of consistent FCF generation limits the company's ability to self-fund operations, increasing the likelihood of future liquidity stress.
According to recent SEC filings, working capital changes have been the primary driver of cash flow volatility, with a significant $5.3 million outflow in 2026Q3 following a period of positive contributions, highlighting the company's sensitivity to inventory and receivable management in a contracting demand environment.
The reliance on working capital management to bridge cash flow gaps suggests that the company is highly vulnerable to supply chain disruptions or customer payment delays. This volatility appears to be a direct consequence of the company's low-margin, high-volume business model which leaves little room for operational error.
As indicated by historical data, capital expenditures have remained relatively elevated, with CapEx/Revenue ratios reaching 3.1% in 2026Q3, which appears disproportionately high given the company's recent revenue contraction and the lack of clear growth initiatives to justify such ongoing investment.
The persistence of capital spending during a period of declining revenue suggests that the company may be struggling to right-size its asset base to match current demand levels. This capital intensity may be further straining the company's already thin cash reserves, potentially limiting its operational flexibility.
Quick answers to the most common questions about buying KTCC stock.
Key Tronic Corporation (KTCC) generated $18.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Key Tronic Corporation (KTCC) generated $14.8M 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.
Key Tronic Corporation (KTCC) spent $4.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.