Operational cash conversion remains structurally impaired, highlighted by a 2025Q4 FCF margin of -120.7% and a dwindling cash balance of only $250,008.
ReTo Eco-Solutions, Inc. (RETO) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | -4.34M | 3.08M | -11.59M | -9.96M | -2.76M | 247.95K | 86.83K | -903.88K | 2.53M | 3.94M | -990.53K | -1.48M |
| Operating CF Margin % | -128.78% | 168.25% | -107510.85% | -153.88% | -76.78% | 2.97% | 0.29% | -3.09% | 7.13% | 12.15% | -5.7% | -10.74% |
| Operating CF Growth % | -241.07% | 126.55% | -16.35% | -260.38% | -1214.85% | 185.54% | 109.61% | -135.66% | -35.63% | 497.56% | 33.02% | - |
| Net Income | -12.61M | -8.31M | -6.53M | -6.47M | -19.51M | -4.16M | -12M | 2.57M | 5.98M | 4.1M | 2.31M | 650.39K |
| Depreciation & Amortization | 413.73K | 40.8K | 8.78K | 1.1M | 1.05M | 869.73K | 2.37M | 1.61M | 1.57M | 1.36M | 1.09M | 966.59K |
| Stock-Based Compensation | 0 | 2.35M | 4.91M | 4.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | -16.69K | -17.56K | 366.37K | 0 | 492.24K | -224.88K | -194.04K | -44.69K | -45.45K | 19.16K |
| Other Non-Cash Items | 9.7M | 3.58M | -10.49M | -4.67M | 12.98M | 969.19K | 12.26M | 1.84M | 1.55M | 1.5M | 352.6K | 59.82K |
| Working Capital Changes | -1.84M | 5.41M | 521.37K | -2.83M | 2.35M | 2.57M | -3.04M | -6.69M | -6.36M | -2.98M | -4.71M | -3.17M |
| Change in Receivables | -220.64K | -258.18K | 0 | -2.74M | 724.53K | 3.88M | -5.59M | 1.76M | -3.17M | -7.45M | -5.29M | 1.17M |
| Change in Inventory | 15.81K | 0 | 44.59K | 108.19K | 1.36M | -1.25M | 218.72K | -2.11M | -207.18K | -1.02M | 1.56M | 99.39K |
| Change in Payables | 54.9K | 629 | 78.36K | 671.11K | 1.02M | -1.83M | 1.14M | 44.02K | -2.11M | 231.01K | -888.19K | -3.68M |
| Cash from Investing | -2.15M | -33.58M | 351.68K | 2.31M | -1.74M | 944.4K | -73.64K | -11.55M | -7.37M | -7.08M | 3.07M | -2.95M |
| Capital Expenditures | -113.13K | -7.39M | -46.83K | -1.45M | -17.69K | -64.76K | -1.45M | -9.27M | -4.64M | -11.05M | 0 | -2.95M |
| CapEx % of Revenue | 3.36% | 404.21% | 434.38% | 22.45% | 0.49% | 0.78% | 4.92% | 31.64% | 13.05% | 34.09% | - | 21.47% |
| Acquisitions | -1.43M | -18.44M | 0 | 3.76M | 2.67M | 3.84M | 9.26K | 0 | -2.73M | 1.65M | 3.07M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -608.36K | -7.75M | 398.51K | 0 | -4.4M | -184.74K | -3.52K | -2.28M | 0 | 2.32M | 0 | 0 |
| Cash from Financing | 6.04M | 29.78M | 12.47M | 6.69M | 4.05M | -1.18M | -547.48K | 3.46M | 14.24M | 4.43M | -1.03M | 5.29M |
| Debt Issued (Net) | 4.61M | 334.61K | -35.16K | 3.89M | -378.94K | -1.51M | -188.24K | 3.46M | -4.65M | 3.53M | -1.03M | 5.29M |
| Equity Issued (Net) | 1.43M | 29.4M | 6.6M | 4.4M | 0 | 0 | 0 | 0 | 17.87M | 4.46M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.83M | 0 | 0 | 0 |
| Other Financing | 0 | 47.46K | 5.9M | -1.6M | 4.43M | 328.97K | -359.24K | 0 | 1.02M | -3.56M | 0 | 0 |
| Net Change in Cash | -415.37K | -742.31K | 1.3M | -343.6K | -600.64K | 76.62K | -562.26K | -9.32M | 9.04M | 1.14M | -1.34M | 2.03M |
| Free Cash Flow | -4.45M | -4.32M | -11.64M | -11.42M | -2.78M | 183.19K | -1.37M | -10.17M | -2.1M | -5.43M | -990.53K | -4.43M |
| FCF Margin % | -132.14% | -235.96% | -107948.9% | -176.34% | -77.27% | 2.2% | -4.63% | -34.73% | -5.92% | -16.76% | -5.7% | -32.21% |
| FCF Growth % | -3.21% | 62.92% | -1.95% | -310.34% | -1618.6% | 113.39% | 86.55% | -383.51% | 61.28% | -448.61% | 77.66% | - |
| FCF per Share | -1.87 | -5.26 | -144.68 | -294.21 | -106.34 | 7.59 | -59.80 | -446.99 | -109.99 | -243.25 | -154.29 | -690.58 |
| FCF Conversion (FCF/Net Income) | 0.35x | -0.37x | 0.74x | 0.68x | 0.13x | -0.02x | -0.01x | -0.20x | 0.42x | 0.96x | -0.43x | -2.27x |
| Interest Paid | 82.63K | 3.18K | 0 | 195.32K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying RETO stock.
ReTo Eco-Solutions, Inc. (RETO) generated $-4.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ReTo Eco-Solutions, Inc. (RETO) reported negative free cash flow of $4.5M in 2025, indicating capital requirements exceeded cash from operations.
ReTo Eco-Solutions, Inc. (RETO) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Severe liquidity and solvency
Persistent Disconnect Between Earnings Reality
According to reported financial data, the company consistently fails to convert net income into positive operating cash flow, with the 2025Q4 OCF/NI ratio of 0.25 highlighting a structural inability to generate cash from operations despite the reported revenue growth observed in recent quarterly filings.
The recurring gap between net losses and operating cash outflows suggests that the company's accrual-based accounting does not reflect the underlying cash-burning nature of its business model. Investors should monitor this divergence as it indicates that reported losses are not merely accounting artifacts but represent actual cash depletion.
Negative Free Cash Flow Trajectory
As indicated by historical cash flow statements, RETO has maintained a consistently negative free cash flow trajectory, with the 2025Q4 FCF margin of -120.7% underscoring the company's reliance on external financing to cover its operational and capital requirements during periods of intense project-based activity.
The lack of positive free cash flow over the observed ten-quarter period suggests that the business model is not yet self-sustaining. This trend warrants further investigation into whether the company can ever achieve the scale necessary to reach cash flow break-even without continuous capital injections.
Working Capital Volatility Impairs Liquidity
Based on the provided cash flow tables, working capital changes have been highly erratic, including a significant $1.6 million outflow in 2025Q4, which suggests that the company struggles to manage its collection cycles effectively while executing its municipal infrastructure and construction projects.
The volatility in working capital movements often points to difficulties in converting receivables into cash, a common challenge for firms operating within the Chinese municipal sector. This inefficiency exacerbates the company's liquidity constraints, as cash is frequently trapped in long-duration project cycles.
Capital Intensity Amidst Operational Losses
As reported in financial statements, the company's capital expenditure remains relatively low, with a 2.6% CapEx/Revenue ratio in 2025Q4, yet even this modest investment level appears difficult to fund given the company's persistent inability to generate positive cash flow from its core industrial operations.
While the low capital intensity might suggest a lack of heavy investment, it also raises questions about the company's ability to maintain or upgrade its proprietary manufacturing equipment. The inability to fund even these small expenditures internally suggests a precarious financial position that limits future operational flexibility.