Operational cash flow quality has deteriorated significantly, evidenced by a negative -0.82 operating cash flow to net income ratio and a -7.7% free cash flow margin in 2025Q4.
Leishen Energy Holding Co., Ltd. (LSE) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 |
|---|
| Cash from Operations | 7.21M | -3.52M | 15.07M | 4.39M | -4.39M | 12.59M |
| Operating CF Margin % | - | -7.29% | 21.82% | 6% | -9.39% | 40.28% |
| Operating CF Growth % | -64.26% | -123.37% | 243.35% | 200.06% | -134.84% | - |
| Net Income | 2.29M | 1.28M | 7.99M | 11.63M | 5.76M | 4.59M |
| Depreciation & Amortization | 1.01M | 485.62K | 519.01K | 420.86K | 292.85K | 167.35K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.71M | -562.28K | -883.2K | -1.43M | 1.74M | 1.18M |
| Other Non-Cash Items | 4.93M | 1.47M | 1.06M | 813.52K | 1.01M | 1.13M |
| Working Capital Changes | 686.18K | -6.2M | 6.38M | -7.05M | -13.19M | 5.52M |
| Change in Receivables | 4.72M | 1.72M | 9.49M | -14.63M | -4.06M | 6.9M |
| Change in Inventory | -1.56M | 1.01M | 2.63M | -4.77M | -1.93M | 2.03M |
| Change in Payables | 2.16M | -2.99M | -1.26M | 8.05M | -170.52K | -4.92M |
| Cash from Investing | -11.57M | -405.67K | -12.14M | -6.02M | 1.21M | -7.92M |
| Capital Expenditures | -733.66K | -170.98K | -681.21K | -740.51K | -2.85M | -1.01M |
| CapEx % of Revenue | - | 0.35% | 0.99% | 1.01% | 6.11% | 3.24% |
| Acquisitions | 711.06K | 820.7K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -5.29M | -2.52M | -1.56M | -232.71K | 1.57K | 0 |
| Cash from Financing | 6.6M | 6.89M | -344.72K | -19.55K | 1.72M | 153.71K |
| Debt Issued (Net) | 1.53M | 1.89M | 10.02K | 35.96K | 1.21M | 0 |
| Equity Issued (Net) | 5.25M | 5.38M | 0 | 0 | 0 | 0 |
| Dividends Paid | -70.14K | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -116.6K | -378.87K | -354.74K | -55.51K | 507.19K | 153.71K |
| Net Change in Cash | 2.41M | 2.86M | 2.73M | -1.69M | -2.07M | 5.01M |
| Free Cash Flow | 6.55M | -3.73M | 14.35M | 3.41M | -7.24M | 11.58M |
| FCF Margin % | - | -7.71% | 20.78% | 4.67% | -15.5% | 37.03% |
| FCF Growth % | - | -125.97% | 320.73% | 147.12% | -162.54% | - |
| FCF per Share | 0.39 | -0.22 | 0.85 | 0.20 | -0.43 | 0.69 |
| FCF Conversion (FCF/Net Income) | 2.86x | -2.81x | 1.86x | 0.37x | -0.77x | 2.70x |
| Interest Paid | 0 | 71.19K | 57.92K | 67.96K | 42.56K | 0 |
| Taxes Paid | 0 | 170.51K | 307.46K | 107.93K | 58.65K | 59.07K |
Quick answers to the most common questions about buying LSE stock.
Leishen Energy Holding Co., Ltd. (LSE) generated $-3.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Leishen Energy Holding Co., Ltd. (LSE) reported negative free cash flow of $3.7M in 2025, indicating capital requirements exceeded cash from operations.
Leishen Energy Holding Co., Ltd. (LSE) spent $0.2M 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
NOC CAPEX cycle dependency
Earnings Quality Lacks Cash Support
According to quarterly financial disclosures, Leishen Energy's operating cash flow to net income ratio plummeted to -0.82 in 2025Q4, indicating a significant disconnect between reported accounting profits and the actual cash generated from core operations, which warrants deep skepticism regarding the sustainability of current earnings quality.
The persistent divergence between net income and operating cash flow suggests that reported profits are likely inflated by non-cash items or aggressive revenue recognition practices. Investors should monitor whether this trend reflects a structural inability to convert sales into liquidity or merely temporary timing differences in project-based accounting.
Free Cash Flow Margin Erosion
As reported in recent financial statements, Leishen Energy's free cash flow margin deteriorated to -7.7% in 2025Q4, marking a sharp reversal from the 33.4% margin observed in 2024Q4 and highlighting the company's struggle to maintain positive cash generation amidst a broader revenue contraction.
The rapid shift from positive to negative free cash flow suggests that the company's cost structure is poorly aligned with its current revenue scale. This trajectory implies that without a significant recovery in order volume, the company may face increasing pressure on its cash reserves to fund ongoing operations.
Working Capital Volatility Impairs Liquidity
Based on the provided cash flow data, working capital changes swung from a $8.0M inflow in 2024Q4 to a $2.7M outflow in 2025Q4, suggesting that the company's cash position is highly susceptible to the timing of customer payments and inventory management within its specialized equipment business.
This volatility in working capital indicates that Leishen Energy may be struggling with collection cycles or inefficient inventory turnover as demand from state-owned enterprises fluctuates. Such instability in cash conversion cycles often precedes liquidity constraints, particularly when operating margins are already under significant pressure.
Capital Allocation Lacks Strategic Clarity
As evidenced by recent filings, Leishen Energy has directed cash toward net acquisitions of $573.2K in 2025Q4 despite negative operating cash flow, which suggests a potentially misaligned capital allocation strategy that prioritizes inorganic growth over the preservation of liquidity during a period of operational decline.
The decision to pursue acquisitions while core operations are burning cash may indicate a lack of strategic focus or an attempt to mask underlying performance issues through inorganic expansion. Investors should investigate whether these investments are yielding any tangible return on capital or if they are merely depleting the company's cash buffer.