Free cash flow has turned negative with a -12.4% margin, reflecting a significant consumption of liquidity compared to the firm's operational requirements.
Lucas GC Limited Ordinary Shares (LGCL) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 63.92M | 34.92M | 20.19M | -36.41M | -15.12M | 60.63M | 2.43M | 5.28M | 5.65M | 229K |
| Operating CF Margin % | - | 3.44% | 1.9% | -2.47% | -1.97% | 9.29% | 1.06% | 10.98% | 14.15% | 2.61% |
| Operating CF Growth % | 367.79% | 73% | 155.44% | -140.79% | -124.94% | 2393.83% | -53.96% | -6.53% | 2366.75% | - |
| Net Income | 48.21M | 9.52M | 40.09M | 77.67M | 36.14M | 39.8M | 4.6M | 6.76M | 3.15M | 863.5K |
| Depreciation & Amortization | 31.92M | 13.19M | 8.85M | 5.01M | 3.99M | 1.53M | 336K | 73.87K | 51.09K | 21.93K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 4.63M | 2.4M | 0 | 0 | -91.48K | 0 | -104.31K | 0 | 0 | 0 |
| Other Non-Cash Items | 18.23M | 1.8M | -4.58M | 4.33M | -26.97M | 99.39M | 29.49M | -2.77M | 16.23M | 22.79K |
| Working Capital Changes | -60.56M | 8.01M | -24.16M | -123.41M | -28.19M | -80.09M | -31.89M | 1.22M | -13.79M | -679.22K |
| Change in Receivables | -77.13M | 27.78M | -28.56M | 63.7M | -44.92M | -22.9M | -30.51M | 1.22M | -13.69M | -679.22K |
| Change in Inventory | -44.59M | 7.16M | 112.41K | -125.42M | 20.55M | -59.62M | -320K | 0 | 0 | 0 |
| Change in Payables | 75.95M | -10.96M | 12.09M | -51.77M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -497.67M | -104.34M | -79.95M | -12.1M | 16.82M | -47.85M | -12.29M | 849.63K | -984.27K | -250K |
| Capital Expenditures | -158.16M | -83.21M | -44.65M | -1.71M | -13.73M | -24.14M | -7.72M | -152.53K | 0 | -250K |
| CapEx % of Revenue | 8.1% | 8.21% | 4.2% | 0.12% | 1.79% | 3.7% | 3.35% | 0.32% | - | 2.85% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -32.52M | 0 | -32.52M | -10.39M | 0 | 0 | 0 | 1M | -984.27K | 0 |
| Cash from Financing | 418.03M | 69.2M | 60.75M | 29.42M | 3.42M | 79.16M | 12.7M | -808.65K | 0 | 0 |
| Debt Issued (Net) | 58.59M | 26.22M | 28.09M | 33.46M | 5.92M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 362.08M | 41.18M | 37.66M | -4.04M | -2.55M | 52.66M | 12.7M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -856K | 0 | -856K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.64M | 1.8M | -5.01M | -546 | 43.96K | 26.5M | 0 | -808.65K | 0 | 0 |
| Net Change in Cash | 18.11M | -6.58K | 1.44M | -19.09M | 5.26M | 91.85M | 4.85M | 5.06M | 4.81M | 52.61K |
| Free Cash Flow | -103.11M | -46.05M | -56.98M | -48.51M | -17.16M | 56.88M | -766.71K | 5.13M | 5.65M | -21K |
| FCF Margin % | -5.28% | -4.54% | -5.36% | -3.29% | -2.24% | 8.72% | -0.33% | 10.66% | 14.15% | -0.24% |
| FCF Growth % | -95.31% | 19.19% | -17.47% | -182.71% | -130.17% | 7519.04% | -114.95% | -9.23% | 26994.96% | - |
| FCF per Share | -377.18 | -2388.84 | -3649.65 | -3106.96 | -1078.29 | 3574.59 | -48.18 | 4401.28 | 4836.26 | -18.25 |
| FCF Conversion (FCF/Net Income) | -2.14x | 3.67x | 0.51x | -0.47x | -0.42x | 1.53x | 0.53x | 0.78x | 1.79x | 0.27x |
| Interest Paid | 2.68M | 0 | 1.82M | 919K | 30K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 361K | 0 | 169K | 6K | 415K | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying LGCL stock.
Lucas GC Limited Ordinary Shares (LGCL) generated $34.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lucas GC Limited Ordinary Shares (LGCL) reported negative free cash flow of $46.0M in 2025, indicating capital requirements exceeded cash from operations.
Lucas GC Limited Ordinary Shares (LGCL) spent $83.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Persistent negative cash conversion
Persistent Disconnect Between Earnings Reality
As evidenced by the most recent quarterly data, LGCL's operating cash flow of $20.2 million against a net loss of $13.7 million highlights a significant divergence, suggesting that reported earnings are failing to capture the underlying cash volatility inherent in the company's current service-heavy business model.
The recurring inability to align net income with operating cash flow suggests that accrual-based accounting may be masking the true cash-generative capacity of the firm. Investors should monitor whether this gap indicates aggressive revenue recognition or simply the timing mismatch of project-based service delivery.
Free Cash Flow Margin Erosion
Based on historical financial filings, LGCL's free cash flow trajectory has turned sharply negative, with the most recent quarter reporting a -12.4% FCF margin, indicating that the company is currently consuming rather than generating cash to sustain its core operations in a cooling market.
The shift from positive FCF in earlier periods to the current deficit suggests that the company's cost structure is becoming increasingly difficult to manage. This trend warrants further investigation into whether the firm can achieve self-sustaining growth without further capital depletion.
Capital Intensity Outpacing Revenue Growth
According to reported figures, the company's capital expenditure reached 9.8% of revenue in 2024Q4, a notable increase that suggests a shift toward higher capital intensity despite the recent contraction in top-line performance and overall business activity levels across the platform's primary service segments.
This elevated capital intensity appears inconsistent with a software-centric model, implying that the firm may be forced to invest heavily in infrastructure or equipment to maintain its service delivery capabilities. Such spending may indicate that the platform requires constant reinvestment just to remain competitive.
Working Capital Volatility Hinders Liquidity
As reported in recent statements, the company experienced a $24.2 million outflow from working capital in 2024Q4, which, when compared to the massive $312.1 million outflow in 2023Q4, suggests highly erratic cash management cycles that complicate the firm's ability to maintain stable liquidity buffers.
The extreme fluctuations in working capital suggest that the company's collection and payment cycles are highly sensitive to project timing and client credit terms. This volatility may indicate a lack of control over the cash conversion cycle, leaving the firm vulnerable to sudden liquidity shocks.