Operational efficiency is severely lacking, evidenced by a 2025Q4 negative operating cash flow of $2.1M despite the company reporting a net income of $420.3K.
| Cash from Operations | -1.78M | -233.99K | -2.49M | -2.07M | -3.3M | -2.63M | -5.63M | -2.17M | -2.67M | -1.49M | -700.74K |
| Operating CF Margin % | -142.27% | -41.51% | -330600.13% | -66.89% | -305.21% | -422.01% | -44.49% | -9.18% | -9.23% | -6.09% | -4.3% |
| Operating CF Growth % | -660.8% | 90.61% | -20.26% | 37.18% | -25.54% | 53.29% | -158.84% | 18.74% | -79.63% | -112.51% | - |
| Net Income | 1.8M | 2.11M | -8.53M | 803.7K | -6.12M | -874.67K | -6.96M | -14.22M | 115.11K | 1.01M | 466.75K |
| Depreciation & Amortization | 1.09M | -564.75K | 292.63K | -391.08K | 904.78K | 54.23K | 571.53K | 395.36K | 364.17K | 256.1K | 266.53K |
| Stock-Based Compensation | 0 | 0 | 3.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 1.13K | -1.11K | -3.86K | -591 | -8.58K | -127 | 15.51K |
| Other Non-Cash Items | -10.23M | -5.42M | 3.76M | -3.73M | -2.74M | -1.66M | 850.86K | 3.29M | 19.98K | 3.12M | 7.41K |
| Working Capital Changes | 5.56M | 3.64M | -1.05M | 1.24M | 4.66M | -150.83K | -90.05K | 8.37M | -3.17M | -2.75M | -1.46M |
| Change in Receivables | -141.07K | 114.46K | 47.02K | 2.73K | 128.99K | -112.18K | 635.34K | 524.06K | -982.65K | -609.1K | 336.19K |
| Change in Inventory | 0 | 8.37K | 9.5K | 47.1K | 4.8K | 201.73K | 2.01M | 4.2M | -2.66M | -3.32M | -2.14M |
| Change in Payables | 2.85M | 66.82K | -2.78K | -437.46K | -21.19K | -416.51K | -2.78M | 1.89M | 1.21M | 1.32M | -482.51K |
| Cash from Investing | 6.24M | 2.78M | -6.07M | -1.33M | -1.64M | 3.36M | 113.55K | -6.59M | -1.39M | 944.19K | -309.66K |
| Capital Expenditures | -244.09K | -1.88M | -7.66K | 0 | 1.02M | -47.09K | -121.56K | -6.48M | -331.5K | -9K | -231.94K |
| CapEx % of Revenue | 19.51% | 333.74% | 1015.25% | 0% | 94.35% | 7.56% | 0.96% | 27.38% | 1.14% | 0.04% | 1.42% |
| Acquisitions | 0 | 16.05K | 0 | 0 | -848.17K | 61.68K | 83 | 19.89K | 2.01K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 578.4K | -16.84K | 0 | -1.02M | -61.68K | 235.03K | 102.9K | -1.06M | 953.19K | -77.72K |
| Cash from Financing | -1.05M | 0 | 1.92M | 6.06M | 17.95M | -589.36K | 9.52M | 7.73M | 5.26M | 1.07M | 1.5M |
| Debt Issued (Net) | -422.24K | 0 | 1.92M | 37.7K | 1.48M | -589.26K | 2.76M | 8.01M | -417.57K | 0 | 529.8K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 20.22M | 0 | 6.76M | 0 | 5.54M | 879.42K | 10 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -624.6K | 0 | 0 | 6.02M | -3.75M | -100 | -1K | -280.11K | 134.3K | 192.34K | 971.52K |
| Net Change in Cash | 3.46M | 2.04M | -8.2M | 3.64M | 12.76M | 244.49K | 3.8M | -943.27K | 1.2M | 493.42K | 461.35K |
| Free Cash Flow | -2.02M | -2.12M | -2.5M | -2.07M | -2.43M | -2.68M | -5.75M | -8.66M | -3.01M | -1.5M | -932.68K |
| FCF Margin % | -161.78% | -375.25% | -331615.38% | -66.89% | -224.39% | -429.57% | -45.45% | -36.56% | -10.37% | -6.13% | -5.72% |
| FCF Growth % | 4.31% | 15.4% | -20.63% | 14.56% | 9.33% | 53.46% | 33.59% | -187.9% | -100.68% | -60.63% | - |
| FCF per Share | -0.20 | -0.20 | -0.24 | -0.26 | -0.46 | -1.17 | -5.47 | -18.11 | -7.24 | -3.25 | -2.02 |
| FCF Conversion (FCF/Net Income) | -0.99x | -0.09x | 0.30x | -2.58x | 0.54x | 3.00x | 0.65x | 0.15x | -23.24x | -1.48x | -1.50x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 82.23K | 102.27K | 117.37K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59.93K | 102.04K | 103.44K |
Persistent operational cash burn
According to the company's reported financial statements, the disconnect between net income and operating cash flow is stark, with 2025Q4 showing a net income of $420.3K against a negative operating cash flow of $2.1M, indicating that reported profits are not translating into actual liquidity.
The consistent failure of net income to convert into positive operating cash flow suggests that the company's accounting profits are heavily reliant on non-cash items or non-operating gains. Investors should monitor this divergence as it implies the core manufacturing business is unable to self-fund its own operations.
As reported in recent filings, the company's free cash flow trajectory is highly erratic, swinging from a positive $2.0M in 2024Q4 to a negative $2.3M in 2025Q4, which highlights the lack of a stable, predictable cash generation model within the current business structure.
The inability to maintain positive free cash flow suggests that the company's capital requirements, even at low levels, continue to outpace its operational output. This volatility warrants further investigation into whether the business can ever achieve a sustainable, self-sustaining cash flow profile.
Based on the provided cash flow data, working capital changes are frequently the primary driver of quarterly cash fluctuations, such as the $4.7M inflow in 2025Q4, which appears to temporarily offset the underlying operational cash burn inherent in the company's manufacturing activities.
These large, inconsistent swings in working capital suggest that the company may be managing its cash position through aggressive timing of payables or receivables rather than operational efficiency. Such reliance on working capital management to mask core losses is a significant red flag for long-term viability.
As evidenced by the financial data, the company continues to allocate capital to maintenance and infrastructure, with 2025Q4 CapEx/Revenue reaching 35.5%, a figure that appears disproportionately high given the company's inability to generate positive gross margins or consistent revenue growth.
High capital intensity in the face of negative gross margins suggests that the company is investing in assets that are not currently contributing to operational profitability. This capital allocation strategy appears to be value-destructive and warrants further investigation into the necessity of these ongoing expenditures.
Based on an analysis of the cash flow statement, the company's reliance on non-operating adjustments and working capital volatility obscures the true burn rate, as evidenced by the $3.0M in stock-based compensation reported in 2023Q4 despite the company's persistent inability to generate positive operating cash flow.
The presence of significant non-cash adjustments and lumpy working capital movements makes it difficult to assess the true underlying cash burn of the business. Analysts should be cautious, as these items may be used to present a more favorable liquidity picture than the core operations justify.
Quick answers to the most common questions about buying PETZ stock.
TDH Holdings, Inc. (PETZ) generated $-1.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TDH Holdings, Inc. (PETZ) reported negative free cash flow of $2.0M in 2025, indicating capital requirements exceeded cash from operations.
TDH Holdings, Inc. (PETZ) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.