Operational efficiency has collapsed, evidenced by a -155.9% free cash flow margin in 2025Q4 and a $10.9 million outflow related to working capital volatility.
| Cash from Operations | -17.85M | -5.57M | 557K | 10.77M | 7.3M | 8.35M | 13.57M | 6.36M | 8.8M | 3.72M | 1.26M |
| Operating CF Margin % | -72.8% | -13.43% | 1.4% | 31.85% | 21.3% | 27.23% | 42.94% | 24.88% | 42.33% | 25.18% | 13.59% |
| Operating CF Growth % | -220.33% | -1100.36% | -94.83% | 47.4% | -12.53% | -38.46% | 113.21% | -27.66% | 136.71% | 195.04% | - |
| Net Income | -21.79M | -6.12M | 8.34M | 7.82M | 8.46M | 6.41M | 7.07M | 6.51M | 5.82M | 3.96M | 1.82M |
| Depreciation & Amortization | 4.15M | 2.88M | 2.92M | 2.68M | 2.45M | 2.16M | 2.19M | 457.22K | 305.26K | 202.06K | 93.48K |
| Stock-Based Compensation | 314K | 3.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 7.65M | 109K | 72K | 50K | 63K | 87K | -5K | -604.74K | 526.98K | 2.31M | -170.57K |
| Working Capital Changes | -8.17M | -5.85M | -10.78M | 217K | -3.67M | -304K | 4.31M | 460.33K | 1.38M | -899.74K | -675.79K |
| Change in Receivables | 2.06M | 642K | -982K | 66K | -1.45M | -465K | -2.36M | 136.43K | 1.27M | -2.88M | -503.59K |
| Change in Inventory | 67K | 19K | 38K | 11K | -126K | 11K | 3K | -2.07K | 12.19K | -14.32K | -11.04K |
| Change in Payables | -55K | -4K | -98K | 51K | 25K | 4K | 64K | 325.97K | 100.4K | 1.44M | 891.31K |
| Cash from Investing | -5.48M | -9.89M | -9.87M | -2.84M | 561K | -1.16M | -10.83M | -6.53M | -2.96M | -4.9M | -866.97K |
| Capital Expenditures | 0 | -36K | -5.27M | -2.84M | -28K | -1.16M | -10.83M | -4.46M | -1.76M | -122.99K | -866.97K |
| CapEx % of Revenue | - | 0.09% | 13.25% | 8.41% | 0.08% | 3.78% | 34.26% | 17.42% | 8.45% | 0.83% | 9.35% |
| Acquisitions | -4.33M | -3.96M | 0 | 0 | 589K | 0 | 0 | 0 | 4.52K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -5.9M | -4.6M | -892K | 589K | 0 | 0 | -2.07M | -1.2M | -4.77M | 0 |
| Cash from Financing | 23.61M | 13.09M | 14.1M | -327K | 0 | -4.35M | -8.99M | 244K | -2.66M | 2.3M | 267.3K |
| Debt Issued (Net) | 0 | 0 | 0 | -327K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 24.48M | 12.22M | 14.1M | 0 | 0 | 0 | 0 | 0 | 0 | 1.02M | 568.02K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -4.35M | -7.25M | 0 | -3.01M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -871K | 866K | 0 | 0 | 0 | 0 | -1.74M | 244K | 346.5K | 1.28M | -300.73K |
| Net Change in Cash | 202K | 856K | 3.26M | 5.75M | 8.18M | 3.27M | 376.18K | 390.18K | 2.9M | 1.12M | 660.04K |
| Free Cash Flow | -17.85M | -11.51M | -2.65M | 7.92M | 7.28M | 7.19M | 2.74M | 1.91M | 7.04M | 3.59M | 392.75K |
| FCF Margin % | -72.8% | -27.74% | -6.66% | 23.44% | 21.22% | 23.45% | 8.67% | 7.46% | 33.88% | 24.34% | 4.24% |
| FCF Growth % | -55.14% | -334.64% | -133.4% | 8.91% | 1.2% | 162.31% | 43.62% | -72.9% | 95.94% | 815.02% | - |
| FCF per Share | -3.37 | -0.77 | -0.10 | 0.35 | 0.25 | 0.25 | 0.10 | 0.07 | 0.24 | 0.12 | 0.01 |
| FCF Conversion (FCF/Net Income) | 0.81x | 0.91x | 0.07x | 1.38x | 0.86x | 1.30x | 1.92x | 0.98x | 1.51x | 0.94x | 0.69x |
| Interest Paid | 0 | 0 | 0 | 1K | 15K | 15K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 115K | 2.41M | 2.63M | 2.96M | 2.98M | 2.31M | 0 | 0 | 0 | 0 | 0 |
Unsustainable Cash Burn Rate
According to the provided cash flow statements, LICN's operating cash flow has consistently diverged from net income, with the 2025Q4 period showing a net loss of $12.6 million alongside a $16.0 million cash outflow, indicating a severe breakdown in the company's ability to convert earnings into liquidity.
The persistent gap between net income and operating cash flow suggests that the company's reported earnings are not being supported by actual cash generation. Investors should monitor this trend closely, as the reliance on non-cash adjustments or working capital swings to bridge this gap appears increasingly unsustainable.
As reported in financial statements, LICN's free cash flow trajectory has deteriorated sharply, moving from positive margins in 2022 to a -155.9% FCF margin in 2025Q4, reflecting an aggressive depletion of capital that far outpaces the company's ability to generate revenue from its core service offerings.
The transition from positive free cash flow to significant negative territory suggests that the business model is currently unable to self-fund its operations. This trajectory warrants further investigation into whether the company can stabilize its cash burn before its liquidity position is compromised.
Based on the reported figures, working capital changes have become a primary source of cash flow volatility, with a significant $10.9 million outflow in 2025Q4 alone, suggesting that the company is struggling to manage its receivables and payables effectively amidst a broader revenue contraction.
The erratic nature of these working capital swings may indicate difficulties in collecting payments from SME clients or potential inefficiencies in managing operational liabilities. Such instability often precedes deeper liquidity issues and suggests that the company's internal cash management processes are currently under significant stress.
Data from recent filings indicates that LICN has utilized cash for net acquisitions, such as the $1.0 million outflow in 2025Q4, despite facing substantial operating losses, which suggests a potentially misaligned capital allocation strategy that prioritizes inorganic growth over stabilizing the firm's core operational cash flow.
Deploying capital for acquisitions while the core business is burning cash appears to be a high-risk strategy that may not be yielding the intended returns. Investors should monitor whether management shifts toward preserving cash rather than pursuing external growth in the current distressed environment.
Quick answers to the most common questions about buying LICN stock.
Lichen International Limited (LICN) generated $-17.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lichen International Limited (LICN) reported negative free cash flow of $17.8M in 2025, indicating capital requirements exceeded cash from operations.
Lichen International Limited (LICN) 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.