Operational cash flow remains concerningly negative at -$115.0K, driven by a $1.8M working capital outflow that effectively nullifies the company's reported net income.
| Cash from Operations | -182.55K | 558.96K | 2.02M | 219.54K |
| Operating CF Margin % | -4.96% | 17.02% | 30.88% | 4.98% |
| Operating CF Growth % | -132.66% | -72.35% | 820.98% | - |
| Net Income | 892.35K | 1.21M | 1.62M | 1.56M |
| Depreciation & Amortization | 35.7K | 32.05K | 20.93K | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.65K | 171 | 2.4K | 0 |
| Other Non-Cash Items | 18.12K | 25.91K | 4.13K | 0 |
| Working Capital Changes | -1.13M | -705.69K | 378.6K | -1.34M |
| Change in Receivables | -1.32M | -2.26M | 876.79K | -889.82K |
| Change in Inventory | -40.29K | 0 | -2.84K | -6.71K |
| Change in Payables | -58.07K | 161.73K | -297.02K | 289.07K |
| Cash from Investing | -4.98K | 672.51K | -2.1M | -72.27K |
| Capital Expenditures | -4.98K | -23.8K | -91.2K | 0 |
| CapEx % of Revenue | 0.14% | 0.72% | 1.39% | - |
| Acquisitions | 0 | 0 | -1.38M | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 696.31K | -633.7K | -72.27K |
| Cash from Financing | 173.37K | -1.22M | -970.78K | 879.18K |
| Debt Issued (Net) | 141.41K | 132.45K | -4.51K | 0 |
| Equity Issued (Net) | -11.88K | 0 | 0 | 720.5K |
| Dividends Paid | 0 | -833.14K | -846.52K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 43.84K | -516.68K | -119.75K | 158.68K |
| Net Change in Cash | -13.81K | 13.67K | -1.02M | 1.02M |
| Free Cash Flow | -187.54K | 535.16K | 1.93M | 219.54K |
| FCF Margin % | -5.1% | 16.3% | 29.48% | 4.98% |
| FCF Growth % | -135.04% | -72.28% | 779.42% | - |
| FCF per Share | -173.01 | 493.69 | 1781.07 | 202.53 |
| FCF Conversion (FCF/Net Income) | -0.20x | 0.46x | 1.25x | 0.14x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Extreme liquidity concentration risk
According to the latest quarterly filings, RPGL reported a net income of $1.9M in 2022Q4, yet operating cash flow remained negative at -$115.0K, highlighting a significant disconnect between accounting profitability and the actual cash generated from core business operations during the period.
The stark divergence between net income and operating cash flow suggests that reported earnings are heavily reliant on non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this pattern indicates aggressive revenue booking or if the company is struggling to convert its high-margin software sales into realized liquidity.
Based on the provided financial statements, RPGL experienced a substantial working capital outflow of $1.8M in 2022Q4, which directly offset the company's net income and contributed to the negative operating cash flow observed during that specific reporting interval.
This massive swing in working capital suggests that the company may be facing challenges with either delayed customer collections or an inefficient management of its payables cycle. Such volatility in working capital is atypical for a mature software-services firm and warrants further investigation into the underlying contractual terms with its client base.
As reported in recent financial data, RPGL maintains a negligible capital expenditure profile, with CapEx/Revenue ratios consistently near 0% to 3.5%, reflecting a business model that requires very little physical asset investment to support its localized software service delivery.
The low capital intensity confirms that the firm's high operating margins are not being eroded by heavy infrastructure or hardware replacement costs. While this supports profitability, it also suggests that the company may be under-investing in the technological upgrades necessary to maintain its competitive moat against evolving regional software standards.
Based on the reported figures for 2022Q4, RPGL generated negative free cash flow of -$116.4K, representing a -3.2% FCF margin that stands in sharp contrast to the company's strong reported net income and high gross margin profile.
The inability to generate positive free cash flow despite high profitability suggests that the company's cash generation is currently insufficient to support its operational scale. This trajectory implies that the business may be reliant on external financing or parent-company support to maintain its day-to-day operations.
Quick answers to the most common questions about buying RPGL stock.
Republic Power Group Ltd (RPGL) generated $-0.2M in net cash from operating activities in 2022. This reflects the cash generated directly from core business operations.
Republic Power Group Ltd (RPGL) reported negative free cash flow of $0.2M in 2022, indicating capital requirements exceeded cash from operations.
Republic Power Group Ltd (RPGL) spent $0.0M on capital expenditures in 2022. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.