Liquidity remains a critical concern as the company continues to burn cash, evidenced by a -$65.8% FCF margin in 2026Q1 and a $1.1 million stock-based compensation expense that masks operational cash outflows.
| Cash from Operations | -4.91M | -2.66M | -53.64K | 39.3K | 312.98K |
| Operating CF Margin % | - | -14.92% | -0.29% | 0.31% | 3.26% |
| Operating CF Growth % | -177.47% | -4849.68% | -236.48% | -87.44% | - |
| Net Income | -5.36M | -5.25M | -228.28K | 983.6K | -2.89K |
| Depreciation & Amortization | 181.68K | 160.28K | 175.35K | 162.53K | 105.22K |
| Stock-Based Compensation | 2.09M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -78.86K | 68.02K | -114.33K | 32.24K | 0 |
| Other Non-Cash Items | -841.47K | 2.37M | 1.11M | 692.67K | 850.17K |
| Working Capital Changes | -2.57M | -10.12K | -993.37K | -1.83M | -639.52K |
| Change in Receivables | -2.2M | -558.63K | -1.46M | -1.06M | -61.65K |
| Change in Inventory | 194.47K | -96.53K | 0 | 0 | 0 |
| Change in Payables | 875.44K | 1.17M | 561.95K | -47.49K | 347.37K |
| Cash from Investing | -8.13M | -688.26K | -78.8K | -18.29K | -124.3K |
| Capital Expenditures | -38.38K | -49.82K | 0 | -18.29K | -124.3K |
| CapEx % of Revenue | 0.18% | 0.28% | - | 0.14% | 1.29% |
| Acquisitions | 0 | 0 | -48.89K | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -8.09M | -638.45K | 0 | 0 | 0 |
| Cash from Financing | 12.49M | 8.17M | 78.75K | -253.09K | 14.89K |
| Debt Issued (Net) | 224.16K | 1.21M | 35.42K | -250.27K | 169.45K |
| Equity Issued (Net) | 12.41M | 9.52M | -170K | -90K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -139.76K | -2.57M | 213.33K | 87.19K | -154.56K |
| Net Change in Cash | -198.95K | 4.83M | -50.47K | -199.51K | 203.58K |
| Free Cash Flow | -3.56M | -2.7M | -53.64K | 21.02K | 188.69K |
| FCF Margin % | -17.17% | -15.2% | -0.29% | 0.16% | 1.96% |
| FCF Growth % | -47.29% | -4942.55% | -355.25% | -88.86% | - |
| FCF per Share | -0.10 | -0.36 | -0.01 | 0.00 | 0.03 |
| FCF Conversion (FCF/Net Income) | 0.66x | 0.51x | 0.24x | 0.05x | -108.34x |
| Interest Paid | 156.64K | 0 | 0 | 0 | 53.76K |
| Taxes Paid | 13.83K | 0 | 0 | 0 | 37.13K |
Liquidity exhaustion and insolvency
According to recent financial disclosures, LSH exhibits a persistent disconnect between net losses and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a 2.96x reading in 2026Q1, which suggests that reported earnings are heavily impacted by non-cash items rather than operational cash generation.
The extreme volatility in the OCF/NI ratio indicates that the company's net income is not a reliable proxy for its underlying cash-generating capacity. Investors should monitor this divergence, as it suggests that the business model is currently unable to convert its service activities into consistent, positive cash flow.
As reported in quarterly filings, LSH's free cash flow remains deeply inconsistent, with a significant -65.8% FCF margin in 2026Q1, highlighting the company's inability to sustain operations without external capital or the depletion of its existing cash reserves.
The erratic FCF trajectory, characterized by frequent negative quarters, implies that the company is currently in a cash-burning phase that may not be sustainable. This trend warrants further investigation into whether the firm can reach a break-even point before its liquidity position becomes critically constrained.
Based on the provided cash flow statements, LSH experienced a substantial $3.7 million working capital outflow in 2026Q1, which suggests that the company is struggling to manage its cash conversion cycle effectively amidst its current operational contraction.
The significant swings in working capital changes indicate that the company's cash position is highly sensitive to the timing of collections and payments. This instability may reflect difficulties in managing trade credit with its fragmented e-commerce customer base, potentially exacerbating the firm's liquidity risks.
Data from recent filings reveals that LSH recognized $1.1 million in stock-based compensation during 2026Q3, which serves to mask the true extent of the company's cash burn by inflating non-cash expenses relative to actual operational outflows.
The reliance on stock-based compensation as a significant adjustment to cash flow suggests that management may be attempting to mitigate the appearance of cash depletion. Analysts should be wary of these adjustments, as they do not represent a genuine improvement in the company's ability to fund its operations through core business activities.
Quick answers to the most common questions about buying LSH stock.
Lakeside Holding Limited (LSH) generated $-2.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lakeside Holding Limited (LSH) reported negative free cash flow of $2.7M in 2025, indicating capital requirements exceeded cash from operations.
Lakeside Holding Limited (LSH) 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.