Free cash flow generation remains erratic, swinging from a peak of $12.2 million in 2025Q3 to a deficit of $1.4 million in 2024Q2, highlighting significant liquidity management challenges.
| Cash from Operations | 33.53M | 33.18M | 10.72M | 10.73M |
| Operating CF Margin % | - | 7.71% | 4.45% | 7.91% |
| Operating CF Growth % | 585.87% | 209.56% | -0.14% | - |
| Net Income | -36.74M | -36.02M | -8.48M | 7.16M |
| Depreciation & Amortization | 40.42M | 39.31M | 21.41M | 2.52M |
| Stock-Based Compensation | 2.47M | 5.53M | 8.88M | 0 |
| Deferred Taxes | -7.28M | -7.74M | -1.41M | 857.61K |
| Other Non-Cash Items | 33.21M | 31.29M | -1.97M | 138.69K |
| Working Capital Changes | 4.02M | 817.08K | -7.72M | 57.05K |
| Change in Receivables | -146K | -3.66M | 2.37M | -1.62M |
| Change in Inventory | -191.19K | -152.83K | -261.68K | -153.93K |
| Change in Payables | -4.3M | -2.31M | -5.77M | 798.8K |
| Cash from Investing | -9.85M | -11.52M | -205.03M | 194.25K |
| Capital Expenditures | -2.04M | -3.9M | -6.18M | -515.66K |
| CapEx % of Revenue | 0.48% | 0.91% | 2.56% | 0.38% |
| Acquisitions | -7.86M | -8.77M | -200.44M | 0 |
| Investments | - | - | - | - |
| Other Investing | 55K | 1.14M | 1.58M | 709.92K |
| Cash from Financing | -24.84M | -22.77M | 209.25M | -10.93M |
| Debt Issued (Net) | -24.32M | -22.77M | -3.04M | -5.93M |
| Equity Issued (Net) | -517.88K | 0 | 212.29M | 0 |
| Dividends Paid | 0 | 0 | 0 | -5M |
| Share Repurchases | -517.88K | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 |
| Net Change in Cash | -1.16M | -1.11M | 14.94M | 649 |
| Free Cash Flow | 31.49M | 29.28M | 4.54M | 10.22M |
| FCF Margin % | 7.34% | 6.8% | 1.89% | 7.53% |
| FCF Growth % | 704.23% | 544.68% | -55.55% | - |
| FCF per Share | 1.13 | 1.06 | 0.25 | 0.42 |
| FCF Conversion (FCF/Net Income) | -0.86x | -0.99x | -1.26x | 1.50x |
| Interest Paid | 3.5M | 0 | 0 | 1.12M |
| Taxes Paid | 1M | 0 | 0 | 1.25M |
Cyclical Automotive Demand Exposure
As reported in financial statements, PAL exhibits a persistent divergence between net income and operating cash flow, with OCF/NI ratios frequently reaching extreme negative levels, such as the -17.24 observed in 2024Q1, suggesting that accounting losses are not fully capturing the underlying cash-generative volatility.
The consistent gap between net income and operating cash flow suggests that non-cash charges, likely related to the amortization of assets from the recent consolidation, are significantly distorting the bottom line. Investors should monitor whether this disconnect narrows as the company moves past its initial integration phase, as the current reliance on non-cash adjustments to bridge the gap may mask underlying operational inefficiencies.
Based on PAL's reported figures, free cash flow trajectory remains highly erratic, swinging from a peak of $12.2 million in 2025Q3 to a deficit of $1.4 million in 2024Q2, indicating that the company has yet to establish a predictable pattern of self-funded growth.
The lack of a stable FCF margin suggests that the business is highly sensitive to the timing of working capital shifts and capital expenditures. This volatility warrants further investigation into whether the company can maintain positive cash flow during periods of lower automotive production, given its high fixed-cost base.
According to recent SEC filings, PAL's capital expenditure relative to revenue has fluctuated significantly, peaking at 11.0% in 2024Q2, which highlights the heavy burden of maintaining a specialized fleet of 615 transport units in a capital-intensive logistics environment.
The variability in CapEx/Revenue suggests that the company is still in a phase of heavy investment to modernize its acquired fleet. If capital intensity remains elevated, it may continue to pressure free cash flow, potentially limiting the company's ability to deleverage or return capital to shareholders in the near term.
As indicated by the quarterly data, working capital changes have been a major source of cash flow volatility, with swings ranging from a $6.7 million outflow in 2023Q4 to a $3.7 million inflow in 2024Q1, reflecting the challenges of managing receivables in a fragmented logistics market.
These fluctuations suggest that PAL's cash conversion cycle is highly susceptible to the payment terms of its OEM partners and the efficiency of its internal billing systems. Investors should monitor whether management can stabilize these working capital swings, as they currently represent a significant source of uncertainty for short-term liquidity.
Based on an analysis of the provided data, the cash flow statement appears to obscure the impact of significant stock-based compensation and acquisition-related outflows, which totaled $6.7 million in 2024Q2 alone, potentially overstating the company's true ability to generate cash from core operations.
The presence of these non-operating cash outflows suggests that the reported cash flow figures may be more reflective of corporate restructuring than operational success. Analysts should be cautious in interpreting these figures as a proxy for sustainable profitability until the company demonstrates a cleaner, more consistent cash flow profile.
Quick answers to the most common questions about buying PAL stock.
Proficient Auto Logistics, Inc. Common Stock (PAL) generated $33.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Proficient Auto Logistics, Inc. Common Stock (PAL) generated $29.3M 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.
Proficient Auto Logistics, Inc. Common Stock (PAL) spent $3.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.