Operational efficiency is currently compromised, as evidenced by a negative $906.7K free cash flow and a -7.5% FCF margin during the most recent quarter.
| Cash from Operations | -796.23K | 2.87M | 1.6M | 549.26K | 10.98M | 314.27K |
| Operating CF Margin % | - | 4.54% | 3.2% | 1.08% | 18.6% | 0.78% |
| Operating CF Growth % | 0% | 79.89% | 190.77% | -95% | 3395.32% | - |
| Net Income | -32.88K | -2.21M | 1.17M | 1.81M | 2.15M | 2.28M |
| Depreciation & Amortization | 203.99K | 772.09K | 475.89K | 420.17K | 166.08K | 64.8K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.68M | 694.5K | 307.5K | 115.63K | 117.41K | 618.27K |
| Working Capital Changes | -2.65M | 3.62M | -352.12K | -1.79M | 8.55M | -2.65M |
| Change in Receivables | 140.89K | -4.2M | -3.79M | -6.11M | -723.89K | 955.64K |
| Change in Inventory | -622.34K | -1.73M | 1.55M | 4.9M | -4.04M | 5.74M |
| Change in Payables | 0 | 5.24M | -1.24M | -622.71K | 951.39K | 5.29M |
| Cash from Investing | -1.56M | -4.8M | -4.43M | -2.27M | -168.06K | -115.54K |
| Capital Expenditures | -110.51K | -465.36K | -239.82K | -303.41K | -168.06K | -118.37K |
| CapEx % of Revenue | 0.91% | 0.73% | 0.48% | 0.6% | 0.28% | 0.29% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -1.45M | -1.39M | -165.53K | -1.97M | 0 | 2.83K |
| Cash from Financing | 4.73M | 8.2M | 1.87M | 3.52M | -7.77M | 272.5K |
| Debt Issued (Net) | 0 | -722.02K | 324.61K | 1.17M | 917.43K | -151.48K |
| Equity Issued (Net) | 0 | 8M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 4.73M | 919.54K | 1.54M | 2.36M | -8.69M | 423.98K |
| Net Change in Cash | 0 | 6.31M | -763.49K | 1.63M | 2.65M | 535.65K |
| Free Cash Flow | -906.74K | 2.36M | 1.19M | -1.72M | 10.82M | 195.9K |
| FCF Margin % | -7.5% | 3.72% | 2.39% | -3.38% | 18.31% | 0.49% |
| FCF Growth % | - | 97.83% | 169.31% | -115.9% | 5421.58% | - |
| FCF per Share | -0.72 | 1.86 | 0.86 | -1.24 | 7.81 | 0.14 |
| FCF Conversion (FCF/Net Income) | 27.58x | -1.07x | 3.39x | 0.50x | 6.79x | 0.15x |
| Interest Paid | 56.98K | 124.42K | 202.69K | 88.73K | 54.55K | 18.14K |
| Taxes Paid | 0 | 3.24K | 32.2K | 43.46K | 212.17K | 68.24K |
Liquidity and working capital
As reported in the 2025Q2 financial statements, Skycorp Solar recorded a net loss of $32.9K while suffering an operating cash outflow of $796.2K, indicating a significant disconnect between accounting profitability and the actual cash generation required to sustain the company's current operational scale.
The substantial gap between net income and operating cash flow suggests that the company is struggling to convert its reported revenue into liquid assets. This divergence implies that either working capital requirements are ballooning or that non-cash expenses are failing to offset the underlying cash burn.
Based on the 2025Q2 data, the company generated a negative free cash flow of $906.7K, representing a -7.5% FCF margin that highlights the structural inability of the current business model to self-fund its operations without external capital injections or further balance sheet depletion.
The negative FCF trajectory confirms that the company is currently in a cash-burning phase, which is particularly concerning given the thin gross margins noted in prior analysis. Investors should monitor whether this trend is a temporary result of aggressive growth investments or a permanent feature of the company's cost structure.
According to the latest quarterly filings, a $2.7M negative change in working capital significantly exacerbated the company's cash position, suggesting that capital is being trapped in inventory or uncollected receivables rather than being converted into the cash necessary to support ongoing manufacturing and distribution activities.
This massive working capital outflow indicates potential inefficiencies in the cash conversion cycle, likely driven by either inventory accumulation or delayed customer payments. Such a drain on liquidity warrants further investigation into the company's credit terms and the quality of its current accounts receivable.
As indicated by the 2025Q2 figures, the company maintained a capital expenditure to revenue ratio of 0.9%, suggesting that while the business is asset-heavy, it is not currently deploying significant new capital toward capacity expansion or major infrastructure upgrades at this stage of the cycle.
The low level of capital expenditure relative to revenue may imply that the company is prioritizing the preservation of its limited cash reserves over aggressive capacity expansion. However, this lack of investment could also limit the company's ability to modernize its manufacturing processes or improve its competitive positioning against larger, better-capitalized peers.
Quick answers to the most common questions about buying PN stock.
Skycorp Solar Group Limited (PN) generated $2.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Skycorp Solar Group Limited (PN) generated $2.4M 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.
Skycorp Solar Group Limited (PN) 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.