The firm exhibits a deteriorating cash trajectory with a -17.4% FCF margin in 2025Q2, further pressured by $694.5K in stock-based compensation that dilutes shareholder value.
| Cash from Operations | -1.27M | -3.53M | 815K | 1.51M | 715K | -2.72M | 1.44M |
| Operating CF Margin % | - | -13.73% | 4.3% | 7.93% | 53.6% | -28.94% | 11.64% |
| Operating CF Growth % | -536.45% | -533.13% | -46.13% | 111.61% | 126.26% | -289.18% | - |
| Net Income | -18.79M | -17.86M | -1.98M | -326K | 134K | -3.8M | -1.86M |
| Depreciation & Amortization | 3.23M | 0 | 7.67M | 4.9M | 354K | 2.15M | 2.48M |
| Stock-Based Compensation | 1.39M | 2.78M | 1.89M | 568K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -4.9M | 0 | 0 | 0 |
| Other Non-Cash Items | 3.29M | 13.38M | -5.32M | 4.9M | 0 | -200.5K | 3.05M |
| Working Capital Changes | 1.27M | -1.82M | -1.46M | -3.63M | 227K | -878.69K | -2.23M |
| Change in Receivables | 1.26M | -101K | 1.29M | -3.44M | -46K | -725.32K | -302.7K |
| Change in Inventory | 1.43M | -1.31M | 47K | -148K | 23K | -13.2K | 392.25K |
| Change in Payables | 0 | 1.45M | 124K | 18K | 263K | -47.06K | -160.92K |
| Cash from Investing | 18.51M | -2.52M | -6.01M | -5.09M | -42K | -1.47M | 0 |
| Capital Expenditures | 0 | -18.91M | -4.37M | -5.09M | -42K | -1.47M | 0 |
| CapEx % of Revenue | 0% | 73.56% | 23.04% | 26.69% | 3.15% | 15.67% | - |
| Acquisitions | 17.52M | -1.38M | -1.64M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 989.21K | 17.77M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -2.19M | -1.64M | 11.58M | 10.36M | 1M | 4.24M | -1.5M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 15.16M | 16.2M | 0 | 0 | 0 |
| Dividends Paid | -1.19M | -1.64M | -2.09M | -3.1M | -1.67M | 0 | -1.5M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1M | 0 | -1.49M | -2.73M | 2.67M | 4.24M | 0 |
| Net Change in Cash | -3.64M | -7.68M | 6.39M | 6.78M | 1.63M | 37.72K | -64.77K |
| Free Cash Flow | -20.21M | -22.44M | -3.55M | -3.58M | 673K | -4.2M | 1.44M |
| FCF Margin % | -103.98% | -87.29% | -18.74% | -18.76% | 50.45% | -44.61% | 11.64% |
| FCF Growth % | -563.01% | -531.47% | 0.78% | -632.1% | 116.03% | -391.65% | - |
| FCF per Share | -67.24 | -75.14 | -26.34 | -57.52 | 9.14 | -79.33 | 27.20 |
| FCF Conversion (FCF/Net Income) | 1.08x | 0.20x | -0.41x | -4.64x | 5.34x | 0.72x | -0.77x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and Dilution Risk
As reported in recent financial statements, OceanPal's OCF/NI ratio of 0.10 in 2025Q2 highlights a persistent inability to convert accounting losses into meaningful cash generation, suggesting that the company's operational structure remains fundamentally misaligned with the cash requirements of its asset-heavy business model.
The consistent gap between net income and operating cash flow suggests that non-cash charges and accruals are failing to mask the underlying cash burn. Investors should monitor this low conversion ratio, as it indicates that even when accounting losses are adjusted, the core business is not generating sufficient liquidity to cover its basic operating obligations.
Based on the company's quarterly filings, the FCF margin of -17.4% in 2025Q2 underscores a deteriorating cash trajectory, as the firm struggles to maintain positive cash flow while navigating a volatile spot market environment that offers little relief for its high fixed-cost structure.
The inability to sustain positive free cash flow suggests that the company is currently consuming its limited capital reserves rather than reinvesting in growth. This trajectory warrants further investigation into how long the current cash position can support operations before management is forced to seek external financing.
According to recent SEC filings, OceanPal's decision to continue dividend payments of $593.5K in 2025Q2 despite ongoing negative operating cash flow appears counterintuitive, potentially signaling a prioritization of shareholder optics over the preservation of liquidity in a period of significant operational distress.
Distributing cash while the business is burning through its reserves may indicate a lack of strategic flexibility or a reliance on external capital to fund basic operations. Investors should be wary of this deployment strategy, as it appears to accelerate the depletion of the company's already thin cash runway.
Financial data reveals that stock-based compensation of $694.5K in 2025Q2 effectively offsets a significant portion of the company's reported cash flow, suggesting that the true cost of operations is higher than the headline cash flow figures might otherwise imply to a casual observer.
The reliance on equity-based compensation in a cash-constrained environment may serve to preserve immediate liquidity but at the cost of significant shareholder dilution. This practice warrants further investigation, as it obscures the true economic cost of management and staff retention during a period of sustained negative profitability.
Quick answers to the most common questions about buying OP stock.
OceanPal Inc. (OP) generated $-3.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
OceanPal Inc. (OP) reported negative free cash flow of $22.4M in 2024, indicating capital requirements exceeded cash from operations.
OceanPal Inc. (OP) spent $18.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, OceanPal Inc. (OP) returned $1.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.