Operating cash flow has deteriorated to -$249.8K, reflecting a negative free cash flow margin of 2.0% that highlights significant liquidity pressure.
| Cash from Operations | -147.1K | 1.03M | 10.39M |
| Operating CF Margin % | - | 1.37% | 15.23% |
| Operating CF Growth % | -170.9% | -90.12% | - |
| Net Income | 108.19K | 8.9M | 10.26M |
| Depreciation & Amortization | 198.72K | 8.18M | 8.19M |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | -286.23K | -126.41K |
| Other Non-Cash Items | -67.05K | -114.67K | -529.93K |
| Working Capital Changes | -386.96K | -15.65M | -7.4M |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | -95.84K | 236.33K | -2.68M |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | -125.18K | -790.89K | -3.04M |
| Capital Expenditures | -256.78K | -1.21M | -3.65M |
| CapEx % of Revenue | 0.47% | 1.62% | 5.35% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | 131.6K | 420K | 610K |
| Cash from Financing | 23.97K | -2.24M | -2.67M |
| Debt Issued (Net) | 0 | 6.5M | 5.58M |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | -469.18K | -7.33M | -8M |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 493.15K | -1.42M | -253.01K |
| Net Change in Cash | 0 | -2.01M | 4.68M |
| Free Cash Flow | -403.88K | -184.91K | 6.74M |
| FCF Margin % | -0.74% | -0.25% | 9.89% |
| FCF Growth % | - | -102.74% | - |
| FCF per Share | -0.02 | -0.01 | 0.34 |
| FCF Conversion (FCF/Net Income) | -0.48x | 0.12x | 1.01x |
| Interest Paid | 0 | 71.3K | 43.58K |
| Taxes Paid | 0 | 12.32M | 165K |
High Fixed Cost Exposure
As reported in recent financial statements, PTNM's operating cash flow of -$249.8K in 2025Q2 significantly trails its net loss of -$351.6K, indicating that the company is currently unable to generate positive cash from its core operations despite the high-margin nature of its proprietary beauty formulations.
The persistent gap between net income and operating cash flow suggests that the company's accruals are not providing the expected cash buffer. Investors should monitor whether this negative conversion is a temporary result of inventory management or a structural issue where high fixed costs prevent cash generation even during periods of revenue growth.
Based on the latest quarterly data, PTNM's free cash flow margin has deteriorated to -2.0%, a sharp reversal from the positive 1.8% margin observed in 2024Q1, reflecting the company's struggle to maintain profitability amidst rising operational expenses and stagnant top-line performance.
The shift into negative free cash flow territory implies that the business is currently consuming capital to sustain its retail footprint. This trajectory warrants further investigation into whether the company can optimize its cost structure before its cash reserves are depleted by ongoing operational losses.
According to the most recent quarterly filings, PTNM experienced a working capital outflow of $236.3K, which significantly exacerbated the company's cash burn and suggests that inventory or receivables management is currently placing a substantial strain on the firm's available liquidity.
The negative working capital change indicates that cash is being tied up in the business cycle, potentially due to inventory buildup of PITANIUM and BIG PI products. This trend suggests that the company's retail model is becoming increasingly capital-intensive, which may limit its ability to fund future growth initiatives.
As indicated by the provided financial data, PTNM's capital expenditure of $117.5K in 2025Q2 represents a 0.6% revenue intensity, which, while relatively low, appears to be an unnecessary burden given the company's current inability to generate positive operating cash flow from its existing retail assets.
The continued investment in capital projects during a period of negative cash flow suggests that management may be prioritizing store maintenance or upgrades over immediate cash preservation. Investors should monitor whether these expenditures are truly essential for maintaining the brand's premium positioning or if they represent discretionary spending that could be deferred.
Quick answers to the most common questions about buying PTNM stock.
Pitanium Limited (PTNM) generated $1.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Pitanium Limited (PTNM) reported negative free cash flow of $0.2M in 2024, indicating capital requirements exceeded cash from operations.
Pitanium Limited (PTNM) spent $1.2M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Pitanium Limited (PTNM) returned $7.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.