Cash conversion efficiency is inconsistent, as evidenced by an OCF/NI ratio that swung from 5.23 in 2024Q1 to a negative 0.93 in 2026Q2, reflecting significant working capital drag.
| Metric | TTM | Sep'25 | Sep'24 | Oct'23 | Oct'22 | Oct'21 | Sep'20 | Sep'19 | Sep'18 | Oct'17 | Oct'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Oct'11 | Oct'10 | Sep'09 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | -90.3M | 6.93M | 1.78M | -296K | 2.04M | 481K | 3.91M | 160K | 1.04M | 16K | -539K | -1.22M | 1.67M | -1.54M | 848K | 1.11M | -876.24K | -141.72K | -590.98K | -1.49M |
| Operating CF Margin % | - | 16.77% | 5.24% | -1.15% | 9.12% | 2.64% | 15.11% | 0.65% | 4.98% | 0.09% | -3.12% | -9.39% | 16.37% | -9.01% | 5.95% | 6.87% | -3.83% | -0.53% | -2.95% | -9.65% |
| Operating CF Growth % | -815.87% | 289.16% | 701.69% | -114.5% | 324.53% | -87.7% | 2344.38% | -84.6% | 6393.74% | 102.97% | 55.86% | -173.07% | 208.65% | -281.37% | -23.88% | 227.13% | -518.28% | 76.02% | 60.26% | - |
| Net Income | 4.12M | 5.15M | 3.77M | 2.26M | 1.28M | 2.13M | 1.82M | 5.67M | 1.39M | -304K | -208K | 491K | -2.06M | 137K | -367K | 591K | -9.61M | -24.16K | -386.86K | -15.19K |
| Depreciation & Amortization | 90.36M | 515K | 487K | 345K | 307K | 263K | 248K | 340K | 327K | 337K | 345K | 334K | 80K | 69K | 165K | 66K | 1.1M | 2.17M | 0 | 0 |
| Stock-Based Compensation | 212.22M | 383K | 0 | 0 | 0 | 0 | 0 | 113K | 0 | 220K | 192K | 140K | 105K | 0 | 0 | 87K | 0 | 0 | 0 | 0 |
| Deferred Taxes | -45.3M | -252K | -25K | 20K | 346K | -60K | 187K | -1.41M | 0 | 0 | 0 | 0 | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -315.34M | 808K | 435K | 247K | 183K | -2.31M | 705K | -1.35M | 108K | 417K | -691K | 401K | 119K | 277K | 464K | 356K | 8.03M | 53.04K | 1.68M | 837.46K |
| Working Capital Changes | -4.1M | 330K | -2.88M | -3.17M | -77K | 454K | 946K | -3.2M | -790K | -654K | -177K | -2.59M | 2.35M | -2.1M | 539K | 225K | -111.98K | -1.56M | 1.8M | 3.42M |
| Change in Receivables | -1.36M | -733K | -32K | -1.05M | 254K | -230K | 113K | -608K | 666K | -1.19M | 771K | -2.13M | 2.39M | -1.28M | 549K | -17K | -572.85K | -398K | -410.6K | 688.02K |
| Change in Inventory | -1.71M | 541K | -2.71M | -2.94M | -1.63M | 1.21M | 1.74M | -2.9M | -75K | -1.37M | -562K | -49K | 1.55M | -634K | -3.33M | 1.47M | 2.25M | -3.35M | 0 | 0 |
| Change in Payables | -556K | 725K | 359K | 365K | 551K | -510K | -1.1M | 903K | -700K | 1.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -456.43M | -504K | -1.73M | -376K | -257K | -274K | -152K | -135K | -167K | -108K | -30K | -2.1M | -10K | -91K | -306K | -31K | -116K | 226.42K | 0 | 0 |
| Capital Expenditures | -456.43M | -494K | -681K | -376K | -257K | -274K | -152K | -143K | -167K | -149K | -34K | -2.1M | -40K | -121K | -96K | -31K | -116K | -27.16K | 0 | 0 |
| CapEx % of Revenue | 1108.36% | 1.2% | 2% | 1.47% | 1.15% | 1.5% | 0.59% | 0.58% | 0.8% | 0.8% | 0.2% | 16.15% | 0.39% | 0.71% | 0.67% | 0.19% | 0.51% | 0.1% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8K | 0 | 41K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -10K | -1.05M | 0 | 0 | 0 | 0 | 8K | 0 | 41K | 4K | 0 | 30K | 30K | -210K | 0 | 0 | 253.58K | 0 | 0 |
| Cash from Financing | -89K | -1.05M | -245K | 942K | -4.75M | -1.01M | -127K | -90K | -1.42M | -794K | 2.45M | 2.29M | -858K | 858K | -403K | -599K | 1.11M | 797.26K | 0 | 17.7K |
| Debt Issued (Net) | 1M | -1M | 0 | 1M | 0 | -377K | 127K | -50K | 0 | 0 | -500K | 2.36M | -858K | 858K | -507K | -599K | 1.11M | -227.26K | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | -245K | -58K | -4.73M | -586K | -200K | 72K | -700K | -518K | 3M | 0 | 0 | 0 | 104K | 0 | 0 | 1.02M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -784K | -261K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -245K | -58K | -4.73M | -869K | -200K | 0 | -700K | -518K | -1.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.09M | -47K | 0 | 0 | -19K | -44K | -54K | -40K | 63K | -15K | -45K | -74K | 0 | 0 | 54K | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -546.82M | 5.38M | -195K | 270K | -2.97M | -800K | 3.63M | -65K | -549K | -886K | 1.89M | -1M | 803K | -771K | 139K | 484K | 115K | 998.7K | -10.16K | 5.26K |
| Free Cash Flow | -546.73M | 6.43M | 50K | -672K | 1.78M | 207K | 3.76M | 17K | 872K | -133K | -573K | -3.29M | 1.63M | -1.66M | 752K | 1.08M | -992K | -52.15K | -10.16K | -12.44K |
| FCF Margin % | -1327.63% | 15.55% | 0.15% | -2.62% | 7.97% | 1.14% | 14.52% | 0.07% | 4.18% | -0.72% | -3.32% | -25.29% | 15.98% | -9.72% | 5.28% | 6.67% | -4.33% | -0.2% | -0.05% | -0.08% |
| FCF Growth % | -14521.79% | 12754% | 107.44% | -137.65% | 762.32% | -94.49% | 22011.76% | -98.05% | 755.64% | 76.79% | 82.57% | -301.59% | 198.31% | -320.61% | -30.56% | 209.17% | -1802.24% | -413.43% | 18.33% | - |
| FCF per Share | -78.95 | 0.93 | 0.01 | -0.10 | 0.22 | 0.02 | 0.44 | 0.00 | 0.10 | -0.02 | -0.37 | -10.53 | 5.35 | -10.46 | 5.24 | 7.77 | -7.11 | -0.43 | -0.26 | -0.31 |
| FCF Conversion (FCF/Net Income) | -132.77x | 1.35x | 0.47x | -0.13x | 1.59x | 0.23x | 2.14x | 0.03x | 0.75x | -0.05x | 2.59x | -2.49x | -0.81x | -11.23x | -2.31x | 1.88x | 0.09x | 5.87x | 38.92x | 16.98x |
| Interest Paid | 0 | 12K | 47K | 0 | 0 | 11K | 19K | 23K | 20K | 19K | 53K | 25K | 8K | 42K | 35K | 58K | 70K | 0 | 0 | 0 |
| Taxes Paid | 835K | 1.44M | 1.2M | 534K | 0 | 48K | 289K | 360K | 144K | 0 | 0 | 0 | 0 | 0 | 0 | 376K | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from 5.23 in 2024Q1 to a negative 0.93 in 2026Q2, indicating significant disconnects between accounting profits and actual cash generation.
The frequent divergence between net income and operating cash flow suggests that the company's earnings are heavily influenced by non-cash accruals and timing differences in contract milestones. Investors should monitor whether this volatility stems from the percentage-of-completion accounting method, which may be creating artificial earnings spikes that do not materialize into immediate liquidity.
Based on the provided quarterly data, free cash flow margins have exhibited extreme volatility, ranging from a positive 31.5% in 2024Q1 to a negative 59.9% in 2026Q1, highlighting the difficulty in maintaining consistent cash generation within the firm's project-based defense manufacturing business model.
The erratic FCF trajectory appears to be a direct consequence of the company's reliance on large, lumpy defense contracts that require significant upfront investment. This lack of cash flow predictability may limit the company's ability to fund internal growth initiatives without periodically straining its liquidity position.
According to recent SEC filings, working capital changes have frequently acted as a significant drag on cash flow, with a notable $3.1 million outflow in 2026Q2, suggesting that the company struggles to efficiently manage its cash conversion cycle amidst fluctuating defense procurement demand.
The recurring negative working capital adjustments suggest that the company is often forced to carry substantial inventory or unbilled receivables to satisfy contract requirements. This pattern implies that the firm's cash position is highly sensitive to the timing of payments from prime contractors, which may be subject to bureaucratic delays.
Based on the provided data, the 2026Q1 period shows an extreme, anomalous cash outflow of $92 million, which appears to be an outlier that warrants further investigation to determine if it represents a fundamental shift in operational cash requirements or a one-time accounting adjustment.
The presence of such extreme figures in the cash flow statement suggests that standard metrics may be distorted by non-recurring items or accounting reclassifications. Analysts should exercise caution, as these anomalies make it difficult to assess the underlying cash-generating capability of the core optical manufacturing operations.
Quick answers to the most common questions about buying OPXS stock.
Optex Systems Holdings, Inc (OPXS) generated $6.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Optex Systems Holdings, Inc (OPXS) generated $6.4M 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.
Optex Systems Holdings, Inc (OPXS) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.