Free cash flow remains highly unpredictable, with margins fluctuating from -69.9% in 2024Q2 to 111.7% in 2026Q2, largely driven by erratic working capital changes rather than core operational profitability.
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 |
|---|
| Cash from Operations | 2.53M | 2.21M | -365K | -984K | -1.51M | -1.74M | -1M | -3.55M | -1.18M | -2.11M | -3.44M | -4.53M | -15.7M | -14.46M | -15.77M | -2.05M | 8.54M | -454K | 2.4M |
| Operating CF Margin % | - | 5.14% | -7.04% | -16.46% | -21.39% | -36.68% | -16.5% | -60.08% | -15.7% | -22.89% | -33.92% | -32.04% | -108.4% | -80.49% | -53.83% | -6.05% | 23.87% | -3.93% | 16.27% |
| Operating CF Growth % | 882.57% | 706.03% | 62.91% | 34.75% | 13.18% | -73.53% | 71.77% | -201.27% | 44.19% | 38.67% | 24% | 71.17% | -8.55% | 8.31% | -669.32% | -124.01% | 1980.4% | -118.92% | - |
| Net Income | -2.32M | -1.13M | -2.04M | -2.69M | -2.74M | -2.85M | -544K | -3.56M | -2.98M | -4.09M | -21.27M | -13.27M | -24.48M | -43.72M | -49.46M | -16.14M | 10.83M | -3.69M | -814K |
| Depreciation & Amortization | 760K | 717K | 612K | 1M | 938K | 897K | 843K | 1.09M | 998K | 1.1M | 5.53M | 4.97M | 6.61M | 8.32M | 8.68M | 6.66M | 4.7M | 4.55M | 4.09M |
| Stock-Based Compensation | 152K | 92K | 282K | 518K | 459K | 186K | 101K | 149K | 141K | 25K | 382K | 1.29M | 1.95M | 2.02M | 2.62M | 1.78M | 247K | 16K | 8K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.32M | 313K | 0 | -37K |
| Other Non-Cash Items | 8.69M | 1.4M | 81K | 787K | 376K | 1.23M | -736K | 270K | -772K | 1.56M | 10.9M | 641K | 930K | 18.18M | 25.01M | 5.78M | -249K | 24K | 92K |
| Working Capital Changes | -4.75M | 1.14M | 696K | -602K | -537K | -1.2M | -665K | -1.49M | 1.44M | -697K | 1.03M | 1.85M | -712K | 751K | -1.22M | -4.46M | -7.3M | -1.35M | -943K |
| Change in Receivables | -1.49M | -3.21M | 460K | -147K | 171K | 158K | 15K | -427K | 801K | -202K | 1.04M | -165K | 49K | 1.65M | -773K | 1.99M | -4.87M | -27K | -1.97M |
| Change in Inventory | 8.24M | -1.47M | 28K | -1.01M | -940K | -1.97M | -988K | -987K | 393K | -205K | 380K | 1.43M | -1M | -579K | -445K | -8.13M | -3.42M | -1.55M | -566K |
| Change in Payables | -5.33M | 4.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -595K | 1.5M | 221K | 706K |
| Cash from Investing | -353K | -595K | -101K | -321K | -113K | 159K | 518K | -2.63M | 1.21M | 31K | -535K | -1.14M | -5.5M | 2.18M | -20.53M | -23.64M | -26.41M | -8.9M | -2.88M |
| Capital Expenditures | -375K | -569K | -123K | -200K | -280K | -118K | -271K | -127K | -341K | -150K | -821K | -1.57M | -2.68M | -2.72M | -11.57M | -21.73M | -10.04M | -8.79M | -2.52M |
| CapEx % of Revenue | 1.09% | 1.32% | 2.37% | 3.35% | 3.97% | 2.49% | 4.47% | 2.15% | 4.55% | 1.63% | 8.1% | 11.14% | 18.52% | 15.12% | 39.49% | 64.1% | 28.08% | 76.14% | 17.12% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.07M | -888K | 0 | -1.33M | -922K | 0 | 5K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 22K | -26K | 22K | -121K | 167K | 277K | 789K | -2.5M | 1.55M | 181K | 286K | 434K | -752K | 5.78M | -8.96M | 145K | 285K | -101K | -398K |
| Cash from Financing | -501K | -622K | -449K | -456K | 490K | 3.99M | 2.42M | 4.05M | -331K | -369K | 5.32M | -1.81M | -2.46M | 1.02M | -181K | 94.62M | 17.33M | 12.58M | 9.82M |
| Debt Issued (Net) | -489K | -480K | -449K | -456K | -482K | -173K | 1.72M | 4.05M | -331K | -323K | -1.06M | -1.81M | -2.27M | 2.57M | 0 | 1.84M | 2.04M | 2.64M | 120K |
| Equity Issued (Net) | 0 | 1.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 92.7M | 15.04M | 9.94M | 9.7M |
| Dividends Paid | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -64K | 0 |
| Other Financing | -12K | -1.74M | 0 | 0 | 972K | 4.16M | 698K | -1K | 0 | -46K | 6.38M | 0 | -189K | -1.55M | -181K | 82K | 250K | 4K | 1K |
| Net Change in Cash | 1.6M | 930K | -901K | -1.71M | -576K | 2.02M | 1.54M | -2.04M | -70K | -2.45M | 1.22M | -7.84M | 12.65M | 36.27M | 47.23M | 70.1M | -195K | 2.6M | 9.16M |
| Free Cash Flow | 2.15M | 1.64M | -488K | -1.18M | -1.79M | -1.85M | -1.27M | -3.67M | -1.52M | -2.26M | -4.26M | -6.1M | -18.38M | -17.18M | -27.34M | -23.78M | -1.5M | -9.25M | -126K |
| FCF Margin % | 6.23% | 3.82% | -9.42% | -19.8% | -25.36% | -39.18% | -20.96% | -62.23% | -20.25% | -24.52% | -42.01% | -43.18% | -126.92% | -95.6% | -93.31% | -70.15% | -4.21% | -80.07% | -0.85% |
| FCF Growth % | 69.5% | 436.68% | 58.78% | 33.78% | 3.61% | -45.83% | 65.37% | -141.96% | 32.8% | 46.97% | 30.15% | 66.82% | -7% | 37.17% | -14.96% | -1480.2% | 83.73% | -7240.48% | - |
| FCF per Share | 0.26 | 0.21 | -0.08 | -0.24 | -0.40 | -0.44 | -0.32 | -1.03 | -0.43 | -0.64 | -1.45 | -2.12 | -6.53 | -6.22 | -9.97 | -10.87 | -0.36 | -2.22 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.93x | -1.96x | 0.18x | 0.37x | 0.55x | 0.61x | 1.84x | 0.99x | 0.39x | 0.52x | 0.16x | 0.34x | 0.64x | 0.33x | 0.32x | 0.13x | 0.79x | 0.12x | -2.95x |
| Interest Paid | 158K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47K | 60K | 105K | 149K | 153K | 129K | 0 | 65K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 3K | 5K | 4K | 17K | 51K | 0 | 4K | 0 | 0 |
Liquidity and Working Capital
According to quarterly financial data, the persistent divergence between net income and operating cash flow suggests that SemiLEDs' earnings quality is heavily influenced by non-cash items and working capital fluctuations rather than core operational profitability, as evidenced by the erratic OCF/NI ratios observed over recent periods.
The frequent disconnect between net losses and positive operating cash flow indicates that the company relies on balance sheet management to sustain liquidity. Investors should monitor whether this reliance on working capital shifts is a temporary bridge or a structural necessity to mask underlying operational weakness.
As reported in recent financial statements, the company's free cash flow trajectory remains highly unstable, with margins swinging from a negative 69.9% in 2024Q2 to a positive 111.7% in 2026Q2, reflecting a business model that lacks the predictability required for consistent capital generation.
This extreme volatility suggests that free cash flow is driven by sporadic project milestones rather than recurring operational success. The inability to maintain a stable positive FCF margin warrants further investigation into the sustainability of the company's current revenue-generating activities.
Based on the provided cash flow tables, working capital changes have become the primary determinant of short-term liquidity, with a significant $1.5M inflow in 2026Q2 helping to offset ongoing net losses and maintain the company's precarious cash position during a period of operational stress.
The reliance on working capital management to generate cash flow appears to be a defensive measure against persistent operating losses. Such dynamics suggest that the company may be aggressively managing payables or receivables to preserve cash, which may not be sustainable over the long term.
As indicated by the reported figures, SemiLEDs maintains a very low capital intensity, with CapEx/Revenue ratios consistently below 3.2%, which may suggest that the company is under-investing in its fabrication facilities to preserve cash rather than pursuing necessary technological upgrades to remain competitive.
While low capital intensity preserves immediate liquidity, it may also indicate a lack of investment in the MvpLED substrate technology required to differentiate the company from larger peers. This strategy appears to prioritize short-term survival over the long-term capacity expansion needed to achieve meaningful economies of scale.
Quick answers to the most common questions about buying LEDS stock.
SemiLEDs Corporation (LEDS) generated $2.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SemiLEDs Corporation (LEDS) generated $1.6M 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.
SemiLEDs Corporation (LEDS) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.