Liquidity is rapidly evaporating, as demonstrated by a negative free cash flow margin of -2.1% in 2025Q4 and an OCF/NI ratio of 0.31, indicating a fundamental failure to convert earnings into sustainable cash.
| Cash from Operations | -256.21K | -239.11K | -184.69K |
| Operating CF Margin % | -126.83% | -45.06% | -16.8% |
| Operating CF Growth % | -7.15% | -29.46% | - |
| Net Income | -714.68K | -93.2K | 174.27K |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | 49.86K | 0 | 0 |
| Working Capital Changes | 408.6K | -145.91K | -358.96K |
| Change in Receivables | 12.01K | 86.69K | -57.12K |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | -15.09K | 11.07K | 772 |
| Cash from Investing | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | 0 | 0 | 0 |
| Cash from Financing | -1.5K | 472.48K | 0 |
| Debt Issued (Net) | -1.5K | 472.48K | 0 |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 |
| Net Change in Cash | -236.21K | 233.44K | -185.06K |
| Free Cash Flow | -256.21K | -239.11K | -184.69K |
| FCF Margin % | -126.83% | -45.06% | -16.8% |
| FCF Growth % | -7.15% | -29.46% | - |
| FCF per Share | -0.02 | -0.02 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.36x | 2.57x | -1.06x |
| Interest Paid | 16.3K | 1.2K | 0 |
| Taxes Paid | 0 | 0 | 0 |
Imminent liquidity and insolvency
As reported in recent financial statements, OFAL's operating cash flow consistently trails net income, with the 2025Q4 OCF/NI ratio of 0.31 highlighting a persistent inability to convert accounting profits into actual liquidity, suggesting that reported earnings are not supported by tangible cash inflows from core operations.
The persistent gap between net income and operating cash flow suggests that the company's accrual-based accounting may be masking underlying operational inefficiencies. Investors should monitor whether this divergence stems from aggressive revenue recognition or an inability to collect on project-based billings in a timely manner.
Based on the company's reported figures, the free cash flow margin plummeted to -2.1% in 2025Q4, indicating that the firm is currently unable to fund its operations through internal cash generation and is instead relying on external capital to sustain its ongoing business activities and overhead costs.
The downward trend in FCF margins reflects a business model that is failing to achieve the necessary scale to cover its fixed cost base. This trajectory suggests that without a significant pivot in project volume or cost structure, the company will continue to consume its limited cash reserves.
According to recent SEC filings, the erratic swings in working capital, including a $310,000 inflow in 2025Q4, suggest that OFAL is managing its liquidity through aggressive timing of payables or collections rather than sustainable operational efficiency, which warrants further investigation into the firm's underlying cash management practices.
The reliance on working capital adjustments to mitigate cash burn indicates that the company is likely struggling with the timing of project payments. Such volatility often precedes liquidity crunches in the construction sector, as the firm may be forced to prioritize subcontractor payments over its own operational stability.
As indicated by the provided data, the cumulative divergence between net income and operating cash flow over the observed periods suggests that the company's reported losses are being compounded by a structural inability to generate positive cash flow, pointing toward a fundamental misalignment in the business model.
The persistent failure to bridge the gap between accounting performance and cash reality suggests that the company's business model may be inherently cash-negative. This divergence implies that the firm's long-term viability is at risk unless it can significantly improve its cash conversion cycle and operational efficiency.
Quick answers to the most common questions about buying OFAL stock.
OFA Group (OFAL) generated $-0.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OFA Group (OFAL) reported negative free cash flow of $0.3M in 2025, indicating capital requirements exceeded cash from operations.
OFA Group (OFAL) 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.