The firm's inability to generate positive net income, coupled with a 63.41% revenue contraction, suggests that capital is being consumed by high fixed costs rather than being converted into sustainable cash flow.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Cash from Operations | -9.39M | -5.56M | -8.06M |
| Operating CF Margin % | -1669.22% | -361.52% | -856.2% |
| Operating CF Growth % | -68.94% | 31.03% | - |
| Net Income | -14.41M | -20.6M | -11.2M |
| Depreciation & Amortization | 520.7K | 360.02K | 260.65K |
| Stock-Based Compensation | 4.52M | 2.37M | 1.55M |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -193.19K | 11.92M | -588.92K |
| Working Capital Changes | 173.04K | 400.78K | 1.92M |
| Change in Receivables | 372.39K | 506.74K | 130.93K |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | -223.67K | 69.67K | -1.17M |
| Capital Expenditures | -18.64K | -14.8K | -59.43K |
| CapEx % of Revenue | 3.31% | 0.96% | 6.32% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | -205.04K | 31.75K | -1.04M |
| Cash from Financing | 9.47M | 8.66M | 5.68M |
| Debt Issued (Net) | 0 | 8.66M | 5.68M |
| Equity Issued (Net) | 1000K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 |
| Net Change in Cash | -157.73K | 3.13M | -3.57M |
| Free Cash Flow | -9.61M | -5.92M | -9.16M |
| FCF Margin % | -1708.99% | -385.4% | -973.43% |
| FCF Growth % | -62.25% | 35.33% | - |
| FCF per Share | -0.94 | -0.58 | -0.89 |
| FCF Conversion (FCF/Net Income) | 0.65x | 0.27x | 0.72x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidity and operational viability
As reported in financial statements, the company's inability to generate positive net income renders traditional cash conversion metrics moot, as the massive operating losses suggest that the firm is currently consuming capital rather than converting operational activity into sustainable cash flow for the business.
The extreme disconnect between the company's reported gross margins and its deep negative operating margins indicates that the business is currently unable to translate its service delivery into meaningful cash generation. Investors should monitor whether the company's accrual-based accounting for training programs is masking a more severe underlying cash burn.
Based on the company's reported figures, the free cash flow trajectory appears severely compromised, as the firm's inability to achieve scale while maintaining a global corporate infrastructure suggests that cash outflows are likely outpacing any potential inflows from its digital and physical training programs.
The absence of positive free cash flow is a critical concern given the 63.41% year-over-year revenue decline. This trend suggests that the company may be forced to rely on its remaining $3.5 million cash balance to fund ongoing operations, which appears unsustainable without a rapid pivot to a more efficient cost structure.
According to recent SEC filings, the company's capital deployment is currently focused on maintaining a $3.5 million cash buffer, which appears to be a defensive measure against the backdrop of significant revenue contraction and the high fixed costs associated with its global operational footprint.
Management's current capital allocation appears constrained by the need to preserve liquidity rather than investing in growth initiatives. The lack of evidence regarding debt paydown or strategic acquisitions suggests that the firm is in a survival mode, prioritizing the extension of its cash runway over long-term value creation.
As indicated by the company's financial disclosures, the cash flow statement likely obscures the true cost of customer acquisition, as marketing and platform development expenses are heavily weighted toward maintaining the Alta ecosystem rather than generating immediate, high-margin cash returns from the UFC Fit program.
The company's reliance on third-party brand partnerships may involve off-balance-sheet commitments or contingent liabilities that are not immediately apparent in the cash flow data. Analysts should investigate whether capitalized costs related to the Steppen app development are artificially inflating the company's perceived asset base while masking the true cash cost of maintaining the platform.
Quick answers to the most common questions about buying MMA stock.
Mixed Martial Arts Group Limited (MMA) generated $-9.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Mixed Martial Arts Group Limited (MMA) reported negative free cash flow of $9.6M in 2024, indicating capital requirements exceeded cash from operations.
Mixed Martial Arts Group Limited (MMA) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.