Free cash flow remains highly inconsistent, swinging from a $28.6M outflow in 2025Q2 to a $15.0M inflow in 2025Q4, while the CapEx/Revenue ratio of 47.5% highlights significant capital intensity.
| Cash from Operations | 15.45M | 5.76M | 2.46M | 3.86M |
| Operating CF Margin % | 21.05% | 11.09% | 8.4% | 29.66% |
| Operating CF Growth % | 168.04% | 134.42% | -36.22% | - |
| Net Income | 6.71M | 7.17M | 4.66M | 2.36M |
| Depreciation & Amortization | 3.61M | 1.74M | 1.74M | 1.42M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 2.37M | 1.37M | 845.25K |
| Other Non-Cash Items | 4.68M | 328.26K | -147.66K | 134.31K |
| Working Capital Changes | 449.57K | -5.85M | -5.16M | -912.07K |
| Change in Receivables | -413.96K | -3.21M | -7.17M | -250.99K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 317.37K | -423.79K | -35.38K | -1.89M |
| Cash from Investing | -26.91M | -4.89M | -5.55M | -4.73M |
| Capital Expenditures | -27.7M | -4.89M | -5.52M | -4.73M |
| CapEx % of Revenue | 37.73% | 9.41% | 18.87% | 36.36% |
| Acquisitions | 789.17K | 0 | -27.62K | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 19.78M | -258.88K | 3.52M | 643.46K |
| Debt Issued (Net) | 1.57M | 296.16K | 2.26M | 77.96K |
| Equity Issued (Net) | 18.98M | 0 | 645.38K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | -771.59K | -555.04K | 612.77K | 565.5K |
| Net Change in Cash | 9.36M | 611.13K | 429.95K | -227.92K |
| Free Cash Flow | -12.25M | 870.01K | -3.07M | -871.38K |
| FCF Margin % | -16.68% | 1.67% | -10.47% | -6.7% |
| FCF Growth % | -1507.46% | 128.38% | -251.76% | - |
| FCF per Share | -0.62 | 0.07 | -0.24 | -0.08 |
| FCF Conversion (FCF/Net Income) | 2.30x | 0.83x | 0.55x | 1.56x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Hardware-heavy margin compression
As reported in recent financial filings, SAGT's OCF/NI ratio reached a volatile -43.51 in 2025Q4, indicating a significant divergence between accounting profits and actual cash generation that warrants deep scrutiny from investors regarding the sustainability of the company's current earnings quality and operational efficiency.
The extreme fluctuation in the OCF/NI ratio suggests that net income is currently a poor proxy for the company's underlying cash-generating capability. This disconnect appears to be driven by aggressive working capital swings, which may imply that revenue recognition is outpacing the actual collection of cash from the SME client base.
Based on the company's reported figures, the CapEx/Revenue ratio surged to 47.5% in 2025Q4, reflecting a heavy reliance on physical asset deployment that consumes a substantial portion of top-line revenue and limits the company's ability to generate consistent free cash flow.
The high capital intensity suggests that SAGT is effectively a hardware-tethered business rather than a scalable software entity. Investors should monitor whether these capital expenditures are truly growth-oriented or if they represent maintenance costs required to keep the existing kiosk and power-bank network operational.
According to quarterly data, working capital changes swung from a $22.0M inflow in 2025Q4 to a $22.3M outflow in 2025Q2, suggesting that the company's cash flow is highly susceptible to timing differences in inventory procurement and merchant payment cycles within the Malaysian market.
These erratic working capital movements indicate that the company's cash position is heavily dependent on managing the timing of hardware inventory purchases versus customer collections. Such volatility may suggest that the business lacks the predictable cash conversion cycle typically associated with mature software-as-a-service providers.
As indicated by the latest financial statements, SAGT's free cash flow margin fluctuated wildly from -61.9% in 2025Q2 to 52.4% in 2025Q4, highlighting a lack of operational predictability that complicates long-term valuation and suggests a business model currently in a state of significant transition.
The sharp swings in FCF margins appear to be a direct consequence of the company's lumpy hardware deployment schedule and inconsistent revenue recognition. This trajectory suggests that until the company can shift its revenue mix toward recurring software subscriptions, cash flow will likely remain hostage to the timing of individual hardware projects.
Quick answers to the most common questions about buying SAGT stock.
SAGTEC GLOBAL Ltd (SAGT) generated $15.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SAGTEC GLOBAL Ltd (SAGT) reported negative free cash flow of $12.2M in 2025, indicating capital requirements exceeded cash from operations.
SAGTEC GLOBAL Ltd (SAGT) spent $27.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.