Free cash flow margins have stabilized at 16.6% in 2025Q2, though this liquidity improvement appears disconnected from the underlying business contraction and lack of reinvestment.
| Cash from Operations | 9.12M | 2.48M | 4.08M | -6.41M | 1.96M | 15.27M | 14.72M | -4.97K |
| Operating CF Margin % | - | 4.13% | 5.49% | -7.85% | 2.3% | 18.62% | 31.23% | -0.03% |
| Operating CF Growth % | 34717.02% | -39.11% | 163.56% | -427.9% | -87.2% | 3.72% | 296071.56% | - |
| Net Income | 6.79M | 16.21M | 5.37M | -37.87M | -6.92M | 8.7M | 14M | -4.97K |
| Depreciation & Amortization | 195.3K | 197.1K | 186K | 260.29K | 1.52M | 1.61M | 769.49K | 426.4K |
| Stock-Based Compensation | 0 | 0 | 0 | 16.85M | 0 | 0 | 604.96K | 0 |
| Deferred Taxes | 0 | -390 | 76.17K | -376.54K | -580.01K | 0 | -159.85K | 0 |
| Other Non-Cash Items | 8.63M | -15.51M | 6.59M | 16.06M | 8.24M | 2.31M | 245.92K | -563.57K |
| Working Capital Changes | -6.5M | 1.59M | -8.15M | -1.33M | -302.37K | 2.66M | -736.8K | 137.18K |
| Change in Receivables | -302.81K | -2.83M | 427.04K | -49.5K | -958.72K | 5.1M | -1.2M | 54.57K |
| Change in Inventory | 0 | 0 | 0 | 128.35K | 691.22K | -649.48K | 211.21K | 0 |
| Change in Payables | 0 | 1.23M | -325K | 947.6K | 141.02K | 385.42K | -34.64K | 0 |
| Cash from Investing | -61.28M | -121.82M | -17.34M | -2.36M | 2.76M | -6.56M | 5.13M | -3.25K |
| Capital Expenditures | -3.54K | -1.16K | -3.98K | 0 | -160.92K | -36.45K | -61.59K | -1.15K |
| CapEx % of Revenue | 0.01% | 0% | 0.01% | - | 0.19% | 0.04% | 0.13% | 0.01% |
| Acquisitions | 0 | 0 | 0 | 0 | 302 | -3.11M | -14.61M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -61.28M | 0 | -17 | 61.82K | 3.17M | -3.32M | 19.81M | -2.1K |
| Cash from Financing | 244.92M | 153.94M | 112.55M | 10.81M | -2.42M | -3.85M | 17.29M | 436.53K |
| Debt Issued (Net) | 0 | 153.94M | 94.6M | 5.52M | 0 | -2M | -221.52K | 450K |
| Equity Issued (Net) | 0 | 0 | 17.95M | 0 | 20.66M | 51 | -128.68K | -34.32K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 244.92M | 0 | 0 | 5.29M | -23.08M | -1.85M | 17.64M | 20.85K |
| Net Change in Cash | -59.64M | 30.74M | 99.98M | 2.75M | 26.48K | 4.74M | 36.73M | 428.31K |
| Free Cash Flow | 9.12M | 2.48M | 4.07M | -6.41M | 1.79M | 15.42M | 14.66M | -6.12K |
| FCF Margin % | 14.9% | 4.13% | 5.49% | -7.85% | 2.11% | 18.8% | 31.1% | -0.04% |
| FCF Growth % | 1458.46% | -39.07% | 163.49% | -457.31% | -88.36% | 5.17% | 239573.97% | - |
| FCF per Share | 3.28 | 0.32 | 0.42 | -28.11 | 9.00 | 70.33 | 66.87 | -0.03 |
| FCF Conversion (FCF/Net Income) | 1.34x | 0.15x | 0.77x | 0.17x | -0.29x | 1.78x | 1.05x | -0.00x |
| Interest Paid | 158.04K | 108.05K | 104.05K | 17.61K | 2.92K | 17.8K | 10.24K | 0 |
| Taxes Paid | 0 | 2.28K | 14.72K | 33.21K | 185.91K | 675.48K | 723.58K | 0 |
Revenue contraction and concentration
As reported in recent financial statements, MicroAlgo's operating cash flow to net income ratio has fluctuated significantly, reaching 1.18 in 2025Q2, which suggests that cash generation is currently outpacing accounting profits, likely due to non-cash adjustments or timing differences in working capital management.
The divergence between net income and operating cash flow warrants caution, as it implies that reported earnings may not be fully representative of the company's underlying cash-generating capacity. Investors should monitor whether this conversion quality is sustainable or merely a byproduct of aggressive working capital management during periods of revenue decline.
Based on the provided quarterly data, MicroAlgo's free cash flow margins have stabilized at 16.6% in 2025Q2, marking a recovery from the negative territory observed in early 2024, though this improvement appears largely disconnected from the company's broader top-line revenue contraction.
The recent positive trajectory in free cash flow appears to be driven more by a reduction in cash outflows rather than organic growth in core operations. This trend suggests that management is prioritizing liquidity preservation, which may be necessary given the ongoing challenges in the firm's primary service segments.
According to historical cash flow filings, MicroAlgo experienced significant working capital swings, including a $3.4 million outflow in 2024Q4, indicating that the company's cash position is highly sensitive to the timing of collections and payments within its cyclical advertising and gaming client base.
These erratic working capital movements suggest that the company lacks a predictable cash conversion cycle, which may exacerbate liquidity risks during industry downturns. The volatility in these accounts implies that operational cash flow remains vulnerable to the payment behaviors of a concentrated customer set.
As evidenced by the lack of dividends or share repurchases in the provided data, MicroAlgo has maintained a conservative capital deployment strategy, choosing to hold its $174.8 million cash balance rather than reinvesting in growth or returning capital to shareholders during this period of contraction.
The absence of active capital deployment suggests a defensive posture that may be intended to mitigate the risks associated with the company's shrinking revenue base. This strategy appears to prioritize balance sheet strength over operational expansion, leaving the firm with significant dry powder but limited evidence of a clear growth-oriented investment thesis.
Based on an examination of historical filings, the cash flow statement obscures the impact of significant stock-based compensation, which reached $8.4 million in 2023Q4, effectively masking the true economic cost of operations and diluting the perceived quality of the company's cash flow generation.
The reliance on non-cash compensation during periods of negative net income suggests that the company's cash flow statement may present a more favorable picture than the underlying operational reality. Analysts should adjust for these items to better understand the true burn rate and the sustainability of the current business model.
Quick answers to the most common questions about buying MLGO stock.
MicroAlgo Inc. (MLGO) generated $2.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MicroAlgo Inc. (MLGO) generated $2.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MicroAlgo Inc. (MLGO) 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.