Operational liquidity remains severely impaired, with the firm failing to generate positive free cash flow and experiencing historical free cash flow margins as low as -30.1% in 2024Q2.
| Cash from Operations | 85.25K | -4.94M | -2.59M | 9.7M | -17.66M | 7.72M | 123.14K | -1.42M |
| Operating CF Margin % | 0.21% | -15.23% | -4.5% | 9.2% | -10.53% | 5.51% | 0.26% | -2.31% |
| Operating CF Growth % | 101.72% | -90.74% | -126.72% | 154.9% | -328.67% | 6173.04% | 108.67% | - |
| Net Income | -10.02M | -10.06M | -10.95M | 198.98K | 3.1M | 2.71M | 757.89K | 495.31K |
| Depreciation & Amortization | 3.27M | 4.69M | 3.11M | 2.58M | 2.16M | 1.43M | 668.73K | 482.97K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -5.33K | 0 | 616.76K | 106.78K | 208.83K | -300K | -189.56K | -378.43K |
| Other Non-Cash Items | 75.96K | 729.76K | 165.75K | -614.38K | 1.31M | 867.7K | 401.81K | 805.99K |
| Working Capital Changes | 6.76M | -302.41K | 4.46M | 7.43M | -24.44M | 3.02M | -1.52M | -2.83M |
| Change in Receivables | 199.26K | 1.81M | -398.93K | 18.47M | -13.03M | -8.6M | -251.22K | -3.41M |
| Change in Inventory | 4.7M | 2.55M | 4.91M | 1.93M | 819.21K | -7.88M | -8.1M | -2.19M |
| Change in Payables | 1.8M | -4.18M | 260.02K | -10.51M | -6.78M | 11.54M | 5.83M | 947.21K |
| Cash from Investing | -7.29M | -1.39M | -6.99M | -6.88M | -5.2M | -5.18M | -6.82M | -3.57M |
| Capital Expenditures | -7.5M | -2.44M | -7.5M | -8.18M | -6.22M | -5.18M | -6.82M | -3.57M |
| CapEx % of Revenue | 18.9% | 7.5% | 13.04% | 7.76% | 3.71% | 3.7% | 14.64% | 5.81% |
| Acquisitions | 213.13K | 502.46K | 509.92K | 1.52M | 1.02M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 10.95M | 6.75M | 7.72M | 11.79K | 18.56M | 210.46K | 7.51M | 6.2M |
| Debt Issued (Net) | -2.23M | 2.07M | 5.35M | -9.89M | 16.36M | 111.97K | 6.03M | 4.09M |
| Equity Issued (Net) | 12.64M | 3.46M | 0 | 12.41M | 0 | 98.49K | 1.48M | 3.44M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.33M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 542.73K | 1.22M | 2.37M | -2.5M | 2.21M | 0 | 0 | 0 |
| Net Change in Cash | 3.74M | 182.07K | -2.65M | 3.12M | -4.68M | 2.89M | 987.2K | 1.48M |
| Free Cash Flow | -7.12M | -7.36M | -7.08M | 4.58M | -23.88M | 4.02M | -6.32M | -4.89M |
| FCF Margin % | -17.94% | -22.68% | -12.3% | 4.34% | -14.23% | 2.87% | -13.57% | -7.96% |
| FCF Growth % | 3.34% | -4.05% | -254.63% | 119.17% | -693.4% | 163.64% | -29.28% | - |
| FCF per Share | -3.11 | -123.23 | -126.30 | 97.17 | -442.14 | 74.51 | -117.07 | -90.55 |
| FCF Conversion (FCF/Net Income) | -0.01x | 0.49x | 0.24x | 48.74x | -5.70x | 2.85x | 0.16x | -2.87x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Deficit
As reported in recent financial filings, OST's inability to generate positive operating cash flow despite persistent net losses suggests a fundamental disconnect between accounting earnings and actual liquidity, with the OCF/NI ratio frequently oscillating into negative territory over the past several reporting periods.
The consistent failure to convert net income into positive operating cash flow indicates that the company's core business model is currently incapable of self-funding. Investors should monitor this divergence, as it suggests that the reported losses are not merely accounting artifacts but reflect a genuine, ongoing consumption of cash resources.
Based on historical data, OST's free cash flow has remained consistently negative, with margins reaching as low as -30.1% in 2024Q2, highlighting a structural inability to generate surplus capital after accounting for necessary capital expenditures and operational requirements.
The persistent negative free cash flow trajectory underscores the company's reliance on external financing or existing cash reserves to sustain operations. This trend appears to be worsening as revenue contracts, suggesting that the company lacks the operational scale required to achieve positive cash flow generation.
According to the company's cash flow statements, capital expenditures have frequently represented a significant portion of revenue, peaking at 15.3% in 2023Q2, which indicates a high level of capital intensity that is not currently supported by the firm's thin gross margins.
The ongoing investment in property, plant, and equipment appears to be a defensive necessity rather than a growth-oriented strategy, given the lack of corresponding revenue expansion. This capital intensity warrants further investigation, as it may be masking the true cost of maintaining outdated or inefficient assembly infrastructure.
As evidenced by the erratic swings in working capital changes, ranging from a $20.3M outflow in 2021Q4 to a $5.4M inflow in 2022Q2, OST's liquidity position is highly sensitive to the timing of inventory procurement and customer collections.
The volatility in working capital suggests that the company struggles to manage its cash conversion cycle effectively, likely due to its position as a downstream assembler with limited bargaining power. This instability creates significant cash flow risk, as any delay in receivables or inventory turnover can rapidly deplete the company's limited cash reserves.
Quick answers to the most common questions about buying OST stock.
Ostin Technology Group Co., Ltd. (OST) generated $0.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ostin Technology Group Co., Ltd. (OST) reported negative free cash flow of $7.1M in 2025, indicating capital requirements exceeded cash from operations.
Ostin Technology Group Co., Ltd. (OST) spent $7.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.