The firm's $4.5 million cash reserve provides a necessary liquidity buffer, though the lack of transparent cash flow data complicates the assessment of operational sustainability.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | -1.71M | 5.46M | 3.33M | -1M | 1.37M |
| Operating CF Margin % | -5.1% | 12.16% | 6.48% | -2.01% | 4.01% |
| Operating CF Growth % | -131.31% | 63.75% | 432.38% | -173.24% | - |
| Net Income | 556.83K | -361.02K | 3.03M | 3.07M | 4.94M |
| Depreciation & Amortization | 601.86K | 480.61K | 470.12K | 433.38K | 478.57K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 145.94K | -265.47K | -186.3K | 50.22K | 305.51K |
| Other Non-Cash Items | -2.05M | 709.53K | 960.02K | 761.17K | -3.99M |
| Working Capital Changes | -964.75K | 4.89M | -943.57K | -5.31M | -363.59K |
| Change in Receivables | -867.76K | 6.97M | -1.31M | -9.51M | -1.83M |
| Change in Inventory | 803.49K | 1.16M | -1.64M | -2.17M | -1.06M |
| Change in Payables | 314.32K | -1.93M | -44.5K | 5.93M | 2.57M |
| Cash from Investing | -11.03M | -2.82M | -1.76M | -431.32K | -492.3K |
| Capital Expenditures | -458.22K | -1.08M | -1.76M | -460.38K | -518.93K |
| CapEx % of Revenue | 1.37% | 2.4% | 3.42% | 0.92% | 1.52% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 108.87K | -1.74M | -699 | 24.65K | 10.6K |
| Cash from Financing | 8.82M | -2.59M | 2.71M | 524.09K | 696.16K |
| Debt Issued (Net) | -225.07K | 621.93K | 3.96M | 729.48K | 995.61K |
| Equity Issued (Net) | 9.61M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | -3.38M | -630.78K | 0 | -306.04K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -565.94K | 170.48K | -625.6K | -205.39K | 6.59K |
| Net Change in Cash | -3.56M | -62.75K | 4.12M | -1.33M | 1.68M |
| Free Cash Flow | -2.17M | 4.38M | 1.57M | -1.46M | 850.13K |
| FCF Margin % | -6.46% | 9.76% | 3.06% | -2.94% | 2.49% |
| FCF Growth % | -149.48% | 178.18% | 207.6% | -272.1% | - |
| FCF per Share | -0.11 | 0.19 | 0.07 | -0.07 | 0.04 |
| FCF Conversion (FCF/Net Income) | -3.07x | -15.12x | 1.10x | -0.33x | 0.28x |
| Interest Paid | 473.44K | 530.18K | 455.46K | 339.16K | 294.62K |
| Taxes Paid | 204.46K | 557.35K | 954.11K | 703.03K | 331.39K |
Operational cash flow opacity
Given the absence of reported cash flow data, the relationship between net income and operating cash flow remains opaque, preventing a definitive assessment of earnings quality for Luda Technology Group Limited despite the company's reported net margin of 1.66% in recent financial filings.
The divergence between the company's positive net income and its negative operating margin suggests that reported earnings may be heavily influenced by non-operating items. Investors should monitor whether future cash flow statements reveal a significant accrual-based gap that would indicate poor quality of earnings.
As reported in financial statements, the lack of disclosed cash flow metrics makes it impossible to determine the free cash flow trajectory, leaving the sustainability of LUD's current business model in question following a 25.25% year-over-year revenue decline in the most recent period.
Without visibility into capital expenditures or working capital changes, it is difficult to ascertain if the company is generating sufficient internal liquidity to fund its operations. The current reliance on non-operating income to achieve net profitability warrants further investigation into the firm's underlying cash-generating capacity.
Based on the company's reported figures, the potential for inventory buildup during a period of contracting revenue suggests that working capital efficiency may be deteriorating, which could further strain the firm's liquidity position if not managed with strict discipline.
The steel trading and manufacturing model inherently carries significant inventory risk, particularly when demand in the maritime and petrochemical sectors softens. Any accumulation of high-cost raw materials in a declining price environment may lead to future write-downs that would negatively impact cash flow.
According to recent SEC filings, LUD's reliance on non-operating income to mask an underlying negative operating margin of -2.84% suggests that the cash flow statement may be significantly distorted by one-off gains or subsidies that do not reflect core operational health.
The discrepancy between operating and net margins implies that the company's cash position is being bolstered by sources other than its primary steel business. Analysts should be cautious, as these non-core inflows may not be sustainable and could mask a deeper, structural cash burn.
Quick answers to the most common questions about buying LUD stock.
Luda Technology Group Limited (LUD) generated $-1.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Luda Technology Group Limited (LUD) reported negative free cash flow of $2.2M in 2025, indicating capital requirements exceeded cash from operations.
Luda Technology Group Limited (LUD) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.