Cash flow generation appears decoupled from accounting performance, as evidenced by a 2025Q4 OCF/NI ratio of -10.54 driven primarily by a $17.6M change in working capital.
Neo-Concept International Group Holdings Limited (NCI) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | -14.46M | 21.37M | 428.24K | -49.23M | -42.76M | 10.27M | 6.28M |
| Operating CF Margin % | - | 15.57% | 0.18% | -28.26% | -12.31% | 4.27% | 3.44% |
| Operating CF Growth % | -1230.43% | 4891.27% | 100.87% | -15.12% | -516.34% | 63.44% | - |
| Net Income | -9.61M | 331.68K | 8.06M | 4.41M | 12.4M | 5.45M | -3.33M |
| Depreciation & Amortization | 7.53M | 4.23M | 2.18M | 3.41M | 148.47K | 287.87K | 319.74K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 609.08K | 1.14M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.02M | -2.12M | 1.26M | 1.45M | 0 | 0 | 358.95K |
| Working Capital Changes | -15.01M | 17.79M | -11.08M | -58.5M | -55.31M | 4.53M | 8.93M |
| Change in Receivables | 38.55M | 30.13M | -4.07M | -23.39M | 19.37M | -29.74M | -42.56M |
| Change in Inventory | -9.84M | -8.08M | 1.68M | -4.09M | -619.88K | 646.29K | -851.27K |
| Change in Payables | 0 | 0 | 0 | -10.43M | -74.18M | 32.55M | 52.06M |
| Cash from Investing | -3.58M | -4.01M | -19.17M | -1.28M | -73.53K | -78.19K | -115.89K |
| Capital Expenditures | -4.5M | -4.01M | -4.14M | -1.28M | -73.53K | -78.19K | -115.89K |
| CapEx % of Revenue | - | 2.92% | 1.76% | 0.73% | 0.02% | 0.03% | 0.06% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 935.59K | 0 | -15.02M | 0 | 0 | 0 | 0 |
| Cash from Financing | 20.83M | -22.83M | 21.89M | 47.55M | 50M | -9.19M | -6.48M |
| Debt Issued (Net) | -27.09M | -22.35M | -3.65M | -53.58M | 56.34M | 22.72M | -238.56K |
| Equity Issued (Net) | 58.04M | 0 | 65.64M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -266.56K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.12M | -476.19K | -40.1M | 101.13M | -6.34M | -31.64M | -6.24M |
| Net Change in Cash | 808.7K | -6.83M | 3.32M | -2.95M | 7.16M | 1.01M | -308.13K |
| Free Cash Flow | -18.96M | 17.37M | -18.74M | -50.5M | -42.83M | 10.19M | 6.17M |
| FCF Margin % | - | 12.65% | -7.95% | -28.99% | -12.33% | 4.24% | 3.38% |
| FCF Growth % | - | 192.68% | 62.89% | -17.9% | -520.25% | 65.24% | - |
| FCF per Share | -9.81 | 34.19 | -7.38 | -20.20 | -17.13 | 4.08 | 3.29 |
| FCF Conversion (FCF/Net Income) | 1.97x | 64.44x | 0.05x | -11.15x | -3.45x | 1.88x | -1.89x |
| Interest Paid | 363.67K | 1.35M | 3.31M | 6.13M | 6.1M | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.89M | 3.31M | 22K | 0 | 0 |
Quick answers to the most common questions about buying NCI stock.
Neo-Concept International Group Holdings Limited (NCI) generated $21.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Neo-Concept International Group Holdings Limited (NCI) generated $17.4M 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.
Neo-Concept International Group Holdings Limited (NCI) spent $4.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Liquidity and working capital volatility
Earnings Quality Masked by Volatility
According to the latest financial statements, NCI reported a net loss of $1.7M in 2025Q4, yet generated $17.9M in operating cash flow, resulting in an OCF/NI ratio of -10.54, which suggests that cash generation is currently decoupled from accounting profitability due to significant working capital movements.
The extreme divergence between net income and operating cash flow indicates that the company's cash position is highly sensitive to timing differences rather than core operational profitability. Investors should interpret this as a sign that cash flow stability is precarious and heavily reliant on the management of receivables and payables rather than sustainable earnings growth.
FCF Margin Swings Indicate Instability
Based on reported figures, NCI's free cash flow margin shifted from -0.4% in 2025Q2 to 22.8% in 2025Q4, a dramatic swing that highlights the company's inability to maintain consistent cash flow generation amidst a contracting revenue environment and shifting operational requirements.
This volatility suggests that the company's cash flow trajectory is not yet stabilized, likely reflecting the lumpy nature of its wholesale apparel contracts. The reliance on large, non-recurring cash inflows to offset operating losses warrants caution regarding the firm's ability to sustain positive free cash flow in future periods.
Working Capital Swings Drive Liquidity
As indicated in the 2025Q4 data, a $17.6M change in working capital was the primary driver of the company's cash position, suggesting that NCI's liquidity is currently dictated by aggressive inventory liquidation or collection cycles rather than organic growth in its core apparel manufacturing and retail segments.
The heavy reliance on working capital adjustments to bolster cash flow may indicate that the company is pulling forward collections or delaying payments to manage its tight liquidity profile. Such tactics are often unsustainable and may suggest underlying pressure on the firm's ability to fund its operations through normal business cycles.
Minimal Capital Reinvestment Signals Stagnation
Based on the provided financial data, NCI's capital expenditure intensity dropped from 6.0% in 2025Q2 to a mere 0.5% in 2025Q4, which may indicate a strategic pivot toward capital preservation in response to the recent 41.76% revenue contraction.
The sharp reduction in capital spending suggests that management is prioritizing liquidity over long-term asset renewal or growth initiatives. While this preserves cash in the short term, it may also impair the company's competitive positioning and its ability to maintain the design-led sourcing model that underpins its value proposition.