Cash conversion remains highly volatile, highlighted by a $3.9 million working capital outflow in 2026Q2 that resulted in a negative operating cash flow to net income ratio of 2.39.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Cash from Operations | -2.76M | 1.41M | -857.02K | -395.68K | -1.59M | 2.12M | -3.55M | -283.8K | 3.21M | -687.07K | 3.16M | 1.2M | 4.38M | 3.48M | 1.98M | 2.35M | 1.15M | 2.77M | 2.96M | 6M | -57.84K | 2.09M | 3.24M | 5.2M | 7.22M | 3.93M | -5.01M | 11.9M | 9.6M | 4M | 4.1M |
| Operating CF Margin % | - | 1.94% | -1.29% | -0.55% | -2.3% | 3.58% | -6.43% | -0.4% | 3.65% | -1.07% | 4.88% | 1.63% | 5.28% | 4.62% | 2.38% | 3.21% | 1.7% | 4.72% | 4.85% | 13.18% | -0.13% | 4.55% | 7.5% | 12.65% | 16.95% | 6.51% | -8.6% | 23.47% | 18.97% | 7.66% | 9.07% |
| Operating CF Growth % | -2288.39% | 265% | -116.6% | 75.08% | -175% | 159.57% | -1152% | -108.85% | 566.65% | -121.77% | 162.44% | -72.58% | 26.15% | 75.12% | -15.6% | 104.41% | -58.42% | -6.48% | -50.67% | 10468.9% | -102.77% | -35.6% | -37.73% | -27.97% | 83.71% | 178.54% | -142.06% | 23.96% | 140% | -2.44% | - |
| Net Income | 1.01M | -1.45M | -4.21M | 2.07M | -347.09K | 6.61M | -6.12M | -5.67M | 1.07M | -1.74M | -1.8M | -4.3M | 622.91K | -72.48K | 2.63M | 457.5K | -6.01M | -1.92M | 2.21M | 1.25M | 350.63K | 1.17M | 750.07K | 314.61K | 283.45K | -6.73M | 8.26M | 8.3M | 7.3M | 7.8M | 7.5M |
| Depreciation & Amortization | 769.08K | 804.51K | 865.85K | 946.46K | 1.07M | 1.21M | 1.43M | 1.72M | 1.82M | 1.68M | 2.05M | 2.08M | 2.02M | 2.05M | 2.18M | 2.69M | 2.96M | 3.08M | 2.28M | 1.6M | 1.4M | 1.29M | 1.05M | 1.13M | 1.16M | 1.06M | 841.65K | 800K | 800K | 700K | 500K |
| Stock-Based Compensation | 362.99K | 386.64K | 443.23K | 611.48K | 412K | 335.52K | 142.24K | 980.55K | 2.22M | 787.1K | 800.52K | 1.08M | 956.86K | 971.14K | 1.44M | 893.35K | 942.71K | 920.22K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22.17K | 2.23M | -423.52K | 998.75K | -558.77K | 132.1K | -724.2K | 566.1K | -831.82K | 286.51K | -165.17K | 384.8K | 378.14K | -264.59K | 292.61K | -429.93K | -737.72K | 100K | -100K | 100K | -100K |
| Other Non-Cash Items | 28.07K | -12.92K | -279.93K | -2.19M | 30.36K | -4.94M | 435.59K | 62.44K | 38.26K | 124.71K | -26.09K | -5.35K | 24.59K | -8.28K | -6.92K | -109.41K | 5.61M | 281.04K | 636.49K | 760.65K | 732.86K | 475.69K | 293.38K | 1.35M | 466.46K | 13.45M | 3.89M | 100K | 100K | 0 | 2M |
| Working Capital Changes | -4.93M | 1.69M | 2.32M | -1.83M | -2.76M | -1.1M | 563.18K | 2.62M | -1.94M | -1.54M | 2.1M | 121.97K | 1.18M | -465.03K | -3.7M | -1.71M | -1.62M | -157.43K | -1.34M | 2.09M | -2.29M | -1.23M | 768.36K | 2.68M | 5.02M | -3.42M | -17.26M | 2.6M | 1.5M | -4.6M | -5.8M |
| Change in Receivables | -2M | 716.97K | -1.83M | 2.23M | -2.6M | -825.42K | 2.36M | 2.42M | -3.87M | -45.86K | 262K | 4.9M | -4.14M | 2.63M | -1.79M | -178.43K | -1.16M | 1.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.21M | -1.08M | 5.04M | -4.33M | -3.13M | 795.96K | 995.86K | -620.87K | -693.31K | -1.76M | 2.79M | -297.96K | 716.16K | 229.74K | -1.97M | -2.07M | -2.12M | 1.93M | -1.74M | 1.27M | 91.21K | -2.16M | 75.73K | 2.79M | 4.67M | -6.51M | 1.18M | 1.2M | 2.1M | -1.8M | -4.2M |
| Change in Payables | -752.66K | 1.55M | -829.09K | 479.37K | 1.07M | 1.36M | -3.04M | 2.32M | 622.44K | -78.13K | -997.16K | -1.7M | 2.17M | -800.38K | 66.61K | 491.79K | 1.53M | -4.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -411.32K | -317.2K | -67.14K | 1.43M | -292.46K | -192.87K | -168.46K | -550.4K | -734.39K | -583.87K | -676.28K | -3.24M | -2.96M | -3.14M | -1.55M | -1.49M | -532.73K | -1.46M | -13.31M | -1.98M | -3.55M | -3.16M | -1.26M | -500.12K | 16.81K | -2.59M | -1.39M | -600K | -600K | -3.6M | -3.1M |
| Capital Expenditures | -371.35K | -295.54K | -369.63K | -520.85K | -302.6K | -192.87K | -168.46K | -550.4K | -734.39K | -583.87K | -703.4K | -3.24M | -2.96M | -3.15M | -1.55M | -1.52M | -541.08K | -674.85K | -1.25M | -829.76K | -2.29M | -2.29M | -1.26M | -500.12K | -350.66K | -2.48M | -1.3M | -400K | -600K | -3.6M | -3.1M |
| CapEx % of Revenue | 0.47% | 0.4% | 0.55% | 0.72% | 0.44% | 0.33% | 0.3% | 0.77% | 0.84% | 0.91% | 1.09% | 4.41% | 3.57% | 4.18% | 1.86% | 2.08% | 0.8% | 1.15% | 2.04% | 1.82% | 5.05% | 4.98% | 2.9% | 1.22% | 0.82% | 4.11% | 2.23% | 0.79% | 1.19% | 6.9% | 6.86% |
| Acquisitions | 0 | 0 | 0 | 0 | 10.13K | 0 | 0 | 0 | 0 | 0 | 27.12K | 0 | 0 | 0 | 0 | 0 | 0 | -643.37K | -11.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -39.97K | -21.67K | 302.49K | 1.95M | -12.65K | -26.64K | -48.46K | -62.84K | -45.54K | -74.96K | 27.12K | 500 | -138.5K | 5K | 80 | 35.09K | 8.35K | -142.36K | -845.6K | -1.15M | -1.26M | -872.18K | 0 | 0 | 367.47K | -105.53K | -90.55K | -200K | 0 | 0 | 0 |
| Cash from Financing | 2.42M | -1.1M | -300.29K | 219.8K | 1.96M | -1.93M | 3.33M | 1.19M | -3.19M | 283.04K | -1.68M | 2.04M | -1.09M | -172.73K | -933.76K | -2.29M | -43.86K | -3.27M | 11.12M | -1.43M | 877.87K | 20.18K | 19.99K | -3.11M | -8.58M | -715.43K | 1.04M | -5.7M | -8.8M | -1.1M | 200K |
| Debt Issued (Net) | 647.07K | -2.9M | -87.34K | 435.65K | 2.17M | -1.84M | 3.58M | 2.14M | -2.95M | 424.34K | -1.28M | 3.23M | -258.65K | 1.17M | 812.51K | -988.59K | 533.1K | -2.42M | 10.88M | -990.72K | 990.72K | 0 | 0 | -35.15K | -8.27M | 8.27M | 0 | 0 | 0 | -1.1M | 800K |
| Equity Issued (Net) | 1.91M | 1.91M | -112.95K | 0 | 0 | 0 | 0 | -1.57K | -172.06K | -123.8K | -40.15K | -379.68K | -195.21K | -543.42K | -1.18M | -846.29K | -425.35K | -454.7K | -36.53K | -441.56K | 6.54K | 20.18K | 19.99K | -3.08M | 0 | -8.99M | 1.04M | -5.7M | -8.8M | 0 | 5.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -141.31K | -555.57K | -539.97K | -479.13K | -357.06K | -251.95K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -112.95K | -115.85K | -111.14K | 0 | 0 | -1.57K | -1.56K | -18.12K | -40.15K | -379.68K | -195.21K | -543.42K | -1.18M | -846.29K | -425.35K | -454.7K | -36.53K | -722.51K | 0 | 0 | 0 | -3.11M | 0 | -9.28M | 0 | -5.9M | -9M | 0 | 0 |
| Other Financing | -131.72K | -107.31K | -100K | -215.85K | -211.14K | -91.67K | -251.9K | -943.36K | -62.8K | -17.5K | -220.73K | -259.24K | -92.61K | -316.25K | -212.56K | -206.97K | -151.61K | -395.99K | 279.52K | 0 | -119.39K | 0 | 0 | 0 | -308.89K | 0 | 0 | 0 | 0 | 0 | -6.1M |
| Net Change in Cash | -748.68K | -6.74K | -1.22M | 1.25M | 83.69K | -8.59K | -396.49K | 359.92K | -713.76K | -987.89K | 795.99K | -6.43K | 339.2K | 159.26K | -500.48K | -1.43M | 573.72K | -1.96M | 771.24K | 2.58M | -2.73M | -1.05M | 2M | 1.59M | -1.34M | 628.71K | -5.36M | 5.7M | 200K | -700K | 1.2M |
| Free Cash Flow | -3.13M | 1.12M | -1.23M | -918.52K | -1.89M | 1.92M | -3.72M | -834.19K | 2.47M | -1.27M | 2.45M | -2.04M | 1.43M | 326.99K | 433.21K | 828.17K | 609.23K | 2.09M | 1.71M | 5.17M | -2.35M | -199.82K | 1.98M | 4.7M | 6.87M | 1.45M | -6.3M | 11.5M | 9M | 400K | 1M |
| FCF Margin % | -3.99% | 1.53% | -1.84% | -1.27% | -2.74% | 3.25% | -6.73% | -1.17% | 2.81% | -1.98% | 3.79% | -2.78% | 1.72% | 0.43% | 0.52% | 1.13% | 0.9% | 3.57% | 2.81% | 11.36% | -5.18% | -0.44% | 4.59% | 11.44% | 16.13% | 2.4% | -10.83% | 22.68% | 17.79% | 0.77% | 2.21% |
| FCF Growth % | -299.01% | 191.05% | -33.75% | 51.4% | -198.25% | 151.69% | -346.13% | -133.75% | 294.49% | -151.83% | 220.06% | -243.27% | 335.98% | -24.52% | -47.69% | 35.94% | -70.87% | 22.16% | -66.86% | 320.04% | -1075.16% | -110.07% | -57.79% | -31.57% | 374.01% | 123% | -154.82% | 27.78% | 2150% | -60% | - |
| FCF per Share | -0.35 | 0.14 | -0.16 | -0.12 | -0.25 | 0.25 | -0.51 | -0.11 | 0.33 | -0.19 | 0.38 | -0.33 | 0.21 | 0.06 | 0.07 | 0.13 | 0.10 | 0.37 | 0.28 | 0.87 | -0.40 | -0.03 | 0.33 | 0.75 | 0.97 | 0.21 | -0.89 | 1.62 | 1.24 | 0.05 | 0.14 |
| FCF Conversion (FCF/Net Income) | -3.10x | -0.97x | 0.20x | -0.19x | 4.58x | 0.32x | 0.58x | 0.05x | 3.00x | 0.40x | -1.75x | -0.28x | 6.41x | -47.95x | 0.72x | 5.14x | -0.19x | -1.44x | 1.34x | 4.79x | -0.16x | 1.78x | 4.32x | 16.54x | 25.48x | -0.58x | -0.61x | 1.43x | 1.32x | 0.51x | 0.55x |
| Interest Paid | 0 | 0 | 1.07M | 1.03M | 640.59K | 492.55K | 0 | 516K | 503.9K | 452.92K | 0 | 427.02K | 0 | 0 | 524.94K | 573.48K | 605.47K | 669.38K | 180.29K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 221.99K | 17.38K | 10.66K | 0 | 30.48K | 27.81K | 15.61K | 0 | 434.21K | 0 | 0 | 1.46M | 191.01K | 774.83K | 480.29K | 2.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Critical Liquidity and Scale
As reported in recent financial filings, OCC's operating cash flow to net income ratio has fluctuated wildly, reaching a negative 2.39 in 2026Q2, which highlights a persistent disconnect between accounting profitability and the actual cash generated from the company's core manufacturing operations.
The extreme variance in the OCF/NI ratio suggests that accrual-based earnings are not reliably translating into cash, likely due to the lumpy nature of project-based revenue recognition. Investors should monitor this divergence as it indicates that reported net income may be a poor proxy for the company's underlying cash-generating capacity.
Based on the quarterly data provided, OCC's free cash flow trajectory remains erratic, with a negative 11.7% FCF margin in 2026Q2, underscoring the difficulty the firm faces in sustaining positive cash generation while navigating its current operational and capital expenditure requirements.
The frequent swings between positive and negative FCF suggest that the company's cash flow profile is highly sensitive to short-term working capital shifts rather than consistent operational efficiency. This instability complicates the outlook for self-funded growth and may necessitate external financing to bridge recurring cash gaps.
According to the cash flow statements, working capital changes have been a primary driver of cash flow variance, including a significant $3.9 million outflow in 2026Q2, which suggests that inventory and receivables management are exerting substantial pressure on the company's already thin liquidity position.
The magnitude of these working capital swings relative to the company's total cash balance warrants close investigation into the efficiency of the collection cycle. It appears that the firm's reliance on project-based contracts creates significant timing mismatches that directly threaten its ability to maintain adequate operating liquidity.
As indicated by the provided figures, OCC maintains a low capital intensity with CapEx/Revenue ratios consistently below 1.0%, suggesting that the company is currently prioritizing maintenance over significant capacity expansion despite the ongoing challenges in achieving positive operating margins.
While the low capital intensity preserves cash, it may also imply that the company is not investing sufficiently in the modernization of its manufacturing facilities to drive future efficiency gains. This strategy appears to be a defensive measure to conserve cash rather than a proactive investment in long-term scalability.
Quick answers to the most common questions about buying OCC stock.
Optical Cable Corporation (OCC) generated $1.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Optical Cable Corporation (OCC) generated $1.1M 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.
Optical Cable Corporation (OCC) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.