Cash flow generation remains highly erratic, highlighted by an OCF/NI ratio that swung from 15.11 in 2024Q3 to a negative 3.39 in 2025Q2.
| Cash from Operations | 46.22M | 38.92M | 55.34M | 50.67M | -47.37K |
| Operating CF Margin % | - | 22.42% | 26.94% | 26.18% | -0.03% |
| Operating CF Growth % | 1093.11% | -29.67% | 9.22% | 107069.37% | - |
| Net Income | 40.79M | 50.99M | 46.61M | 38.56M | 5.55M |
| Depreciation & Amortization | 2.66M | 2.68M | 3.8M | 12.25M | 5.93M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.78M | 5.33M | -14.42M | 4.11M | -3.9M |
| Other Non-Cash Items | 1.38M | -7.79M | 31.47M | 3.4M | 2.96M |
| Working Capital Changes | 4.17M | -12.28M | -12.13M | -7.65M | -10.59M |
| Change in Receivables | -727.39K | 4.47M | 13.1M | -6.01M | -9.6M |
| Change in Inventory | 396.75K | -170.17K | 1.12M | -1.83M | -666.64K |
| Change in Payables | 1.36M | 2.67M | -8.91M | 12.2M | 172.61K |
| Cash from Investing | -20.52M | -20.97M | -10.1M | 1.79M | -32.65M |
| Capital Expenditures | -2.59M | -2.79M | -3.41M | -9.52M | -24.95M |
| CapEx % of Revenue | 1.53% | 1.61% | 1.66% | 4.92% | 14.32% |
| Acquisitions | -15.79M | -15.46M | -5.07M | 722.55K | -6.49M |
| Investments | - | - | - | - | - |
| Other Investing | 18.27M | 18.34M | -1.29M | 8.6M | 1.43M |
| Cash from Financing | 22.48M | 24.04M | -11.79M | 6.14M | -7.98M |
| Debt Issued (Net) | 17.07M | 18.83M | -23.53M | 3.58M | -5.08M |
| Equity Issued (Net) | -5M | -5M | 31.37K | 10 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5M | -5M | 0 | 0 | 0 |
| Other Financing | 10.41M | 10.21M | 11.71M | 2.56M | -2.89M |
| Net Change in Cash | 35.25M | 38.73M | 22.02M | 51.28M | -52.77M |
| Free Cash Flow | 44.06M | 36.55M | 51.93M | 39.46M | -24.99M |
| FCF Margin % | 26.02% | 21.05% | 25.28% | 20.39% | -14.35% |
| FCF Growth % | -14.62% | -29.62% | 31.6% | 257.9% | - |
| FCF per Share | 0.43 | 0.35 | 0.54 | 0.42 | -1.66 |
| FCF Conversion (FCF/Net Income) | 1.08x | 0.76x | 1.19x | 1.29x | -0.01x |
| Interest Paid | 0 | 0 | 0 | 45.29K | 31.44K |
| Taxes Paid | 0 | 0 | 0 | 17.84M | 30.82M |
High Working Capital Volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a peak of 15.11 in 2024Q3 to a negative 3.39 in 2025Q2, indicating significant disconnects between accounting profits and actual cash generation.
The extreme variance in the OCF/NI ratio suggests that reported net income is heavily influenced by non-cash items or timing differences rather than recurring operational performance. Investors should monitor whether this volatility stems from aggressive revenue recognition practices or the lumpy nature of the company's procurement-based business model.
Based on the company's quarterly filings, free cash flow trajectory has been inconsistent, oscillating between a high of $65.3M in 2025Q4 and a low of -$21.1M in 2025Q3, reflecting a lack of stability in the firm's ability to convert core operations into sustainable cash reserves.
The erratic FCF margins suggest that the business model is susceptible to significant cash outflows that are not fully captured by headline net income figures. This instability may indicate that the company's cash generation is highly sensitive to the timing of franchisee payments and inventory procurement cycles.
According to recent SEC filings, working capital changes have been the primary driver of cash flow volatility, with a massive $56.6M inflow in 2025Q4 followed by a $35.8M outflow in 2025Q3, highlighting the significant impact of timing differences on the company's liquidity position.
These dramatic fluctuations in working capital suggest that the company's cash flow is heavily dependent on the management of receivables and payables within its franchisee network. Such swings warrant further investigation into whether the company is extending credit terms to franchisees to maintain its growth narrative.
As indicated by historical data, the company maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently remaining below 5.3% over the last ten quarters, suggesting that the core management platform does not require heavy ongoing investment to maintain its existing infrastructure.
The low capital intensity supports the view that SBCWW operates as a high-margin service platform rather than a traditional asset-heavy medical provider. However, the lack of significant reinvestment may also suggest limited internal opportunities to deploy capital for organic growth, potentially explaining the recent revenue contraction.
Quick answers to the most common questions about buying SBCWW stock.
SBC Medical Group Holdings Incorporated (SBCWW) generated $38.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SBC Medical Group Holdings Incorporated (SBCWW) generated $36.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SBC Medical Group Holdings Incorporated (SBCWW) spent $2.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SBC Medical Group Holdings Incorporated (SBCWW) spent $5.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.