Liquidity is under extreme pressure, highlighted by a negative free cash flow of $23.7 million in 2026Q1 and a $19.7 million outflow related to working capital volatility.
| Cash from Operations | -16.19M | -697.39K | -7.11M | -3.94M |
| Operating CF Margin % | - | -0.58% | -7.18% | -4.29% |
| Operating CF Growth % | -288.13% | 90.19% | -80.59% | - |
| Net Income | -5.63M | -1.87M | 991.68K | 1.3M |
| Depreciation & Amortization | 433.19K | 310.87K | 255.24K | 217.06K |
| Stock-Based Compensation | 0 | 1.8M | 0 | 0 |
| Deferred Taxes | 0 | -132.91K | 0 | 0 |
| Other Non-Cash Items | 3.93M | 84.11K | 40.75K | 43.23K |
| Working Capital Changes | -14.92M | -888.57K | -8.4M | -5.49M |
| Change in Receivables | 2.4K | 6.27K | 1.57M | -1.18M |
| Change in Inventory | -19.73M | -3.44M | -10.04M | 1.42M |
| Change in Payables | 924.85K | 508.47K | 740.54K | -230.19K |
| Cash from Investing | -3.65M | -749.89K | -25.01K | -536.4K |
| Capital Expenditures | -3.5M | -749.89K | -25.01K | -536.4K |
| CapEx % of Revenue | 2.86% | 0.63% | 0.03% | 0.58% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -150K | 0 | 0 | 0 |
| Cash from Financing | 24.24M | 10.95M | 8.41M | 288.99K |
| Debt Issued (Net) | 13.06M | 360.27K | 8.22M | -1.19M |
| Equity Issued (Net) | 11.18M | 10.59M | 184.68K | 1.48M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.21M | -2.8M | -736.29K | -286.06K |
| Other Financing | 0 | 0 | 0 | 0 |
| Net Change in Cash | 4.4M | 9.5M | 1.27M | -4.18M |
| Free Cash Flow | -19.8M | -1.45M | -7.13M | -4.47M |
| FCF Margin % | -16.17% | -1.21% | -7.21% | -4.87% |
| FCF Growth % | - | 79.71% | -59.49% | - |
| FCF per Share | -0.81 | -0.06 | -0.29 | -0.17 |
| FCF Conversion (FCF/Net Income) | 3.52x | 0.37x | -7.17x | -3.04x |
| Interest Paid | 1.51M | 2.04M | 1.67M | 1.7M |
| Taxes Paid | 0 | 0 | 0 | 0 |
Liquidity and solvency pressure
According to recent financial disclosures, OTH's operating cash flow of negative $20.9 million in 2026Q1 significantly diverges from its net loss of $3.5 million, highlighting a severe inability to convert accounting profits into actual liquidity as the company faces mounting pressure from its core business operations.
The extreme variance between net income and operating cash flow suggests that non-cash items and working capital requirements are masking the true severity of the company's cash burn. Investors should monitor this widening gap, as it indicates that the business model is currently unable to generate self-sustaining cash flow from its primary activities.
As reported in quarterly filings, OTH's free cash flow trajectory has deteriorated sharply, reaching a negative $23.7 million in 2026Q1, which reflects a consistent failure to achieve positive cash generation despite the company's attempts to manage its capital expenditure levels during this volatile period.
The persistent negative free cash flow margin of -79.6% in the most recent quarter underscores a structural inability to cover operational costs and capital investments. This trend suggests that the company may be reliant on external financing to maintain its current operational footprint, which warrants further investigation into its long-term viability.
Based on the company's reported figures, working capital fluctuations have become a primary driver of cash volatility, evidenced by a $19.7 million outflow in 2026Q1 that significantly exacerbated the company's liquidity constraints and hampered its ability to manage short-term obligations effectively during the recent quarter.
The erratic nature of these working capital changes suggests potential inefficiencies in inventory management or collection cycles that are directly impacting the firm's cash position. Such instability in the cash conversion cycle appears to be a significant drag on the company's overall financial health and operational flexibility.
As indicated in the provided data, OTH continued to allocate capital toward share repurchases even while operating cash flow remained deeply negative, with buybacks totaling $449.2 thousand in 2025Q4 despite the company's clear struggle to maintain a stable and positive cash balance for its core business.
This deployment strategy appears counterintuitive given the company's underlying cash burn and negative profitability profile. Investors should monitor whether such capital allocation decisions are sustainable or if they represent an inefficient use of limited resources that could be better utilized to stabilize the balance sheet.
Quick answers to the most common questions about buying OTH stock.
Off The Hook YS Inc. (OTH) generated $-0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Off The Hook YS Inc. (OTH) reported negative free cash flow of $1.4M in 2025, indicating capital requirements exceeded cash from operations.
Off The Hook YS Inc. (OTH) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Off The Hook YS Inc. (OTH) spent $2.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.