Free cash flow remains deeply negative with a -104.3% margin in 2025Q4, reflecting a consistent cash burn that tracks closely with reported net losses.
| Metric | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 |
|---|
| Cash from Operations | -33.77M | -43.75M | -51.69M | -26.25M | -34.05M | -5.23M | -32.21M | -19.57M | -7.38M | -285.67K | -15.1M | -7.96M | 24.76M | -21.87M | -6.33M | -53.9M | -6.04M | 6.13M | -2.4M |
| Operating CF Margin % | -50.95% | -63.54% | -77.02% | -31.33% | -71.03% | -8.03% | -31.46% | -23.18% | -12.29% | -0.67% | -29.32% | -8.52% | 32.33% | -28.95% | -9.94% | -46.07% | -7.98% | 9.32% | -4.15% |
| Operating CF Growth % | 22.81% | 15.36% | -96.93% | 22.92% | -550.98% | 83.76% | -64.6% | -165.12% | -2483.91% | 98.11% | -89.73% | -132.15% | 213.19% | -245.45% | 88.25% | -792.94% | -198.48% | 355.62% | - |
| Net Income | -42.59M | -49.87M | -59.17M | 95.59M | -22.83M | -19.25M | -25.36M | -44.07M | -31.45M | -40.88M | -31.46M | 807.19K | 39.7K | -3.51M | -28.69M | 20.06M | 15.21M | 11.6M | 5.97M |
| Depreciation & Amortization | 7.72M | 4.48M | 8.42M | 6.48M | 17.6M | 3.02M | 1.12M | 1.12M | 856.74K | 955.08K | 526.05K | 595.65K | 618.55K | 197.87K | 361.84K | 368.8K | 321.3K | 195.62K | 234.2K |
| Stock-Based Compensation | 10.28M | 23.5M | 32M | 48.2M | 6.14M | 7.98M | 22.13M | 18.51M | 23.34M | 7.98M | 4.71M | 2.84M | 1.85M | 1.24M | 1.42M | 1.62M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -648.67K | -182.17K | -2.64M | 3.99M | 0 | 0 |
| Other Non-Cash Items | -5.88M | -5.21M | -19.01M | -184.91M | -27.35M | 11.32M | 2.52M | -2.24M | 3.56M | 6.7M | 8.86M | 6.93M | -6.98M | 3.92M | 8.99M | 2.76M | 1.67M | 1.16M | 470.66K |
| Working Capital Changes | -3.3M | -16.64M | -13.93M | 8.4M | -7.61M | -8.3M | -32.63M | 7.11M | -3.7M | 24.96M | 2.26M | -19.13M | 29.23M | -23.07M | 11.77M | -76.07M | -27.22M | -6.82M | -9.07M |
| Change in Receivables | 1.69M | -12.15M | -495.78K | 19.23M | -208.55K | 18.43M | -43.87M | 11.84M | -245.19K | 15.75M | 1.07M | -9.11M | 25.78M | -37.33M | 17.35M | -37.86M | -24.09M | -5.82M | -13.5M |
| Change in Inventory | -4.79M | 3.17M | -4.95M | 176.14K | -3.4M | 85.37K | 4.59M | -5.31M | -6.94M | 7.5M | -937.31K | -7.94M | 9.52M | -1.71M | -23.29M | -2.44M | -1.93M | -4.13M | -814.42K |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.92M | -4.75M | 745.95K | 5.71M | -2.71M | 3.31M |
| Cash from Investing | 33.71M | 2.98M | -245.22M | -328.68K | -46.54M | -2.11M | -13.55M | -17.55M | 12.47M | -121.08K | -1.68M | -336.24K | -2.14M | -840.27K | -2.43M | -260.21K | -952.15K | -265.59K | -663.66K |
| Capital Expenditures | -9.93M | -501.32K | -940.67K | -692.21K | -522.42K | -3.87M | -6.34M | -10.66M | -638.12K | -181.07K | -2.08M | -477.96K | -753.58K | -840.27K | -173.09K | -260.21K | -952.15K | -248.65K | -663.66K |
| CapEx % of Revenue | 14.99% | 0.73% | 1.4% | 0.83% | 1.09% | 5.94% | 6.2% | 12.63% | 1.06% | 0.42% | 4.03% | 0.51% | 0.98% | 1.11% | 0.27% | 0.22% | 1.26% | 0.38% | 1.15% |
| Acquisitions | 0 | 0 | 0 | 0 | 471.84K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 43.65M | 3.49M | -244.28M | 363.52K | -46.49M | 1.76M | -7.21M | -6.89M | 13.1M | 60K | 400.4K | 141.72K | -1.39M | 0 | -2.26M | 0 | 0 | -16.94K | 0 |
| Cash from Financing | -3.27M | 45.02M | 56.38M | -10M | 394.03M | 33.24M | 3.55M | 76.89M | -3.08M | -10.18M | 11.09M | 13.97M | -13.8M | 22.74M | 341.24K | 63.66M | 2.08M | -509.29K | 2.21M |
| Debt Issued (Net) | 0 | 0 | -1.5M | -892.7K | -816.95K | -747.63K | -684.19K | 9.63M | 0 | 0 | 0 | 0 | 0 | 22.24M | 341.24K | 4.34M | 3.7M | -7.38M | 899.71K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1000K | 0 | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -51.55K | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.27M | 45.02M | 57.88M | -9.11M | 394.84M | 33.99M | 4.23M | 67.26M | -3.08M | -10.18M | 11.09M | 13.97M | -13.8M | 500K | 0 | 0 | -1.62M | 5.5M | 1.31M |
| Net Change in Cash | -11.96M | 5.98M | -212.84M | -26.3M | 313.66M | 25.82M | -40.82M | 41.53M | 1.99M | -10.53M | 12.34M | 18.09M | 12.35M | 47.34K | -8.66M | 9.42M | -4.91M | 5.35M | -851.83K |
| Free Cash Flow | -43.71M | -44.25M | -52.63M | -26.94M | -34.57M | -9.1M | -38.55M | -30.23M | -8.02M | -466.75K | -17.18M | -8.44M | 24M | -22.71M | -6.5M | -54.16M | -6.99M | 5.88M | -3.06M |
| FCF Margin % | -65.94% | -64.27% | -78.42% | -32.16% | -72.12% | -13.97% | -37.66% | -35.81% | -13.35% | -1.09% | -33.35% | -9.03% | 31.34% | -30.07% | -10.21% | -46.29% | -9.24% | 8.94% | -5.29% |
| FCF Growth % | 1.23% | 15.92% | -95.36% | 22.08% | -279.94% | 76.4% | -27.54% | -276.95% | -1618.2% | 97.28% | -103.61% | -135.15% | 205.69% | -249.18% | 87.99% | -675.01% | -218.84% | 292.09% | - |
| FCF per Share | -4.81 | -6.00 | -27.93 | -16.16 | -49.01 | -35.42 | -177.54 | -236.93 | -6.25 | -0.41 | -17.62 | -9.66 | 30.37 | -28.74 | -8.23 | -70.59 | -15.52 | 13.30 | -7.16 |
| FCF Conversion (FCF/Net Income) | 0.79x | 0.88x | 0.87x | -0.27x | 1.49x | 0.26x | 1.25x | 0.44x | 0.23x | 0.01x | 0.48x | -9.86x | 623.66x | 5.73x | 0.22x | -2.69x | -0.40x | 0.53x | -0.40x |
| Interest Paid | 1.07M | 659.47K | 1.2M | 1.43M | 1.68M | 1.4M | 1.54M | 868.04K | 571.04K | 903.37K | 1.06M | 939.42K | 1.36M | 442.72K | 401.53K | 6K | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 494.09K | 3.7M | 2.22M | 9.58M | 379.71K | 398.2K |
Persistent operational cash burn
As reported in recent financial statements, RCON's operating cash flow consistently tracks net losses, with the OCF/NI ratio fluctuating significantly, reaching 0.96 in 2025Q4, which suggests that the company's accounting losses are largely reflective of actual cash outflows rather than non-cash accounting adjustments.
The tight correlation between net income and operating cash flow indicates that the company lacks the non-cash depreciation or amortization shields that typically soften the impact of net losses. This suggests that the business model is fundamentally cash-consumptive, with little evidence of accrual-based accounting masking a more robust underlying cash generation capability.
Based on the provided quarterly data, RCON's free cash flow remains deeply negative, with the most recent 2025Q4 period showing a cash burn of $12.6 million, representing a -104.3% FCF margin that underscores the company's inability to achieve self-sustaining operations despite its significant cash reserves.
The consistent negative FCF trajectory suggests that the company is currently unable to fund its operations through internal cash generation. Investors should monitor whether this trend is a result of temporary project-based lulls or a structural inability to align operating expenses with the revenue generated from its SOE-focused service contracts.
According to the latest quarterly filings, RCON's capital intensity has trended upward, with the CapEx/Revenue ratio reaching 17.1% in 2025Q4, a notable increase from the 0.2% level observed in 2024Q2, which may indicate a shift toward more asset-heavy service delivery or necessary equipment upgrades.
The increase in capital expenditure during a period of revenue contraction warrants further investigation into whether these investments are truly growth-oriented or merely maintenance-heavy requirements for aging equipment. This rising intensity, when paired with negative operating margins, suggests that the company is deploying capital into a business model that is not yet yielding a return on invested capital.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $9.2 million outflow in 2024Q4 to a $1.1 million outflow in 2025Q4, reflecting the inherent lumpiness of managing large-scale, project-based contracts with state-owned enterprise clients.
The volatility in working capital suggests that RCON remains highly susceptible to the payment cycles of its primary customers, which may be creating periodic liquidity crunches. This dynamic appears to force the company to maintain a large cash buffer, not for growth, but to bridge the gap between project completion and final cash settlement.
Quick answers to the most common questions about buying RCON stock.
Recon Technology, Ltd. (RCON) generated $-33.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Recon Technology, Ltd. (RCON) reported negative free cash flow of $43.7M in 2025, indicating capital requirements exceeded cash from operations.
Recon Technology, Ltd. (RCON) spent $9.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.