Liquidity remains under severe pressure as evidenced by a free cash flow margin of -58.6% in 2026Q2 and a historical operating cash flow to net income ratio that reached -2.22 in 2025Q2.
| Cash from Operations | -96.13M | -62.35M | -18.74M | 49.71M | 2.93M | 16.39M |
| Operating CF Margin % | - | -16.49% | -58.18% | 461.26% | 2.03% | 22.44% |
| Operating CF Growth % | -662.64% | -232.8% | -137.69% | 1596.65% | -82.12% | - |
| Net Income | -31.99M | 2.44M | 19.63M | 7.46M | 19.16M | 4.5M |
| Depreciation & Amortization | 9.51M | 5.51M | 4.85M | 1.39M | 33.72K | 12.1K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -7.92M | 16.8M | 8.52M | 1.75M | 700.54K | 74.36K |
| Working Capital Changes | -65.74M | -87.11M | -51.73M | 39.12M | -16.97M | 11.8M |
| Change in Receivables | -13.01M | -43.88M | -57.12M | -6.86M | -19.82M | -1.75M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 16.71M | 1.55M | 6.04M | 2.4M | 1.48M | 6.34M |
| Cash from Investing | -9.24M | -8.75M | -12.83M | 9.66M | -134.65K | -21K |
| Capital Expenditures | -6.55M | -3.92M | -517.7K | -473.77K | -142.07K | -21K |
| CapEx % of Revenue | 1.51% | 1.04% | 1.61% | 4.4% | 0.1% | 0.03% |
| Acquisitions | 4.86M | -1.06M | -1M | 3.14M | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -6.85M | -3.78M | -11.31M | 7M | 7.42K | 0 |
| Cash from Financing | 105.66M | 91.88M | 9.4M | -21.41M | -4.85M | -7.3M |
| Debt Issued (Net) | 42.39M | 38.28M | 22.45M | 2.47M | 3.64M | 1.42M |
| Equity Issued (Net) | 65.64M | 67.41M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -10.7M | -8M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.37M | -13.81M | -13.05M | -23.88M | 2.21M | -717.32K |
| Net Change in Cash | 2.19M | 20.77M | -22.16M | 37.97M | -2.05M | 9.07M |
| Free Cash Flow | -98.38M | -66.27M | -19.25M | 49.24M | 2.79M | 16.37M |
| FCF Margin % | -22.75% | -17.52% | -59.79% | 456.87% | 1.93% | 22.41% |
| FCF Growth % | -121.56% | -244.19% | -139.1% | 1666.11% | -82.96% | - |
| FCF per Share | -1.58 | -1.06 | -0.32 | 0.82 | 0.04 | 0.26 |
| FCF Conversion (FCF/Net Income) | 3.08x | -7.92x | -7.42x | 33.32x | 1.19x | 28.20x |
| Interest Paid | 261.5K | 2.69M | 1.49M | 220.2K | 167.29K | 11.51K |
| Taxes Paid | 0 | 3.09M | 2.75M | 827.02K | 1.49M | 401.73K |
Project-based cash flow volatility
According to recent financial filings, RITR's operating cash flow to net income ratio has frequently turned negative, with a 2025Q2 reading of -2.22, indicating that reported accounting profits are failing to translate into actual liquidity for the firm's ongoing engineering and construction operations.
The persistent divergence between net income and operating cash flow suggests that the company's revenue recognition practices may be significantly outpacing its ability to collect cash from clients. This disconnect implies that the firm's earnings quality is currently low, as the reported profits are largely comprised of non-cash accruals rather than realized inflows.
As reported in quarterly statements, RITR's free cash flow margin has deteriorated significantly, reaching -58.6% in 2026Q2, which highlights a severe inability to generate self-sustaining cash flows from its core business activities during the current period of operational contraction.
The trajectory of free cash flow suggests that the company is currently in a cash-burning phase, with no clear path to positive margins given the current project-based revenue model. Investors should monitor whether this trend is a temporary result of project timing or a structural issue with the firm's cost-to-revenue conversion.
Based on the provided cash flow data, working capital changes have been highly volatile, including a massive $90.2 million outflow in 2025Q2, which underscores the extreme sensitivity of the company's cash position to the timing of project-related receivables and payables management.
The erratic nature of these working capital movements suggests that the firm lacks a stable cash conversion cycle, likely due to the lumpy nature of large-scale engineering contracts. This volatility creates significant liquidity risk, as the company appears to rely heavily on the timing of client payments to fund its operations.
Analysis of the cash flow statement reveals that RITR's reported figures are heavily influenced by non-operating items, such as the $5.9 million in net acquisition cash flows in 2026Q2, which may mask the underlying weakness in the firm's core engineering and consultancy cash generation.
The reliance on acquisition-related cash flows to supplement the statement of cash flows warrants further investigation into the sustainability of the firm's capital allocation strategy. It appears that the company may be using inorganic activities to offset the cash drain caused by its primary construction management business.
Quick answers to the most common questions about buying RITR stock.
Reitar Logtech Holdings Limited Ordinary shares (RITR) generated $-62.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Reitar Logtech Holdings Limited Ordinary shares (RITR) reported negative free cash flow of $66.3M in 2025, indicating capital requirements exceeded cash from operations.
Reitar Logtech Holdings Limited Ordinary shares (RITR) spent $3.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.