Cash flow generation remains erratic, highlighted by a free cash flow margin that swung from a negative 36.0% in 2025Q2 to a positive 5.1% in 2025Q4 due to significant working capital volatility.
| Cash from Operations | -21.03M | -11.93M | -6.96M | 25.62M | 6.13M |
| Operating CF Margin % | -12.41% | -7.77% | -5.93% | 19.85% | 3.8% |
| Operating CF Growth % | -76.22% | -71.56% | -127.14% | 317.94% | - |
| Net Income | -19.78M | -2.66M | -3.39M | 3.65M | 2.81M |
| Depreciation & Amortization | 3.11M | 2.94M | 3.18M | 4.41M | 4.29M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 224.2K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.75M | -112.17K | 5.25M | 1.36M | 363.99K |
| Working Capital Changes | -2.83M | -12.1M | -12M | 16.2M | -1.33M |
| Change in Receivables | -5.62M | 8.26M | -16.96M | 34.7M | -20.31M |
| Change in Inventory | -1.09M | -3.48M | -2.86M | 11.32M | -2.79M |
| Change in Payables | -1.67M | 7.28M | 6.35M | -28.86M | 21.97M |
| Cash from Investing | -8.7M | -10.44M | -3.35M | -3.05M | -1.61M |
| Capital Expenditures | -11.2M | -10.65M | -3.1M | -3.41M | -3.94M |
| CapEx % of Revenue | 6.61% | 6.94% | 2.64% | 2.64% | 2.44% |
| Acquisitions | 2.5M | 26.77K | 167.44K | 45.29K | 2.34M |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 208.86K | 1.31M | 354.63K | -7.34K |
| Cash from Financing | 16.77M | 57.86M | -2.5M | -8.74M | -13.13M |
| Debt Issued (Net) | 16.91M | -3.04M | -3.54M | -8.09M | -4.81M |
| Equity Issued (Net) | 0 | 63.95M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -7.2M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -145.93K | -3.04M | 1.04M | -658.27K | -1.13M |
| Net Change in Cash | -13.1M | 41.83M | -1.74M | 24.88M | -1.77M |
| Free Cash Flow | -25.05M | -22.59M | -10.05M | 22.22M | 2.19M |
| FCF Margin % | -14.78% | -14.71% | -8.57% | 17.21% | 1.35% |
| FCF Growth % | -10.93% | -124.71% | -145.24% | 916.24% | - |
| FCF per Share | -6.17 | -28.23 | -12.56 | 27.09 | 2.67 |
| FCF Conversion (FCF/Net Income) | 1.06x | 4.49x | 2.05x | 7.02x | 2.18x |
| Interest Paid | 0 | 1.25M | 1.47M | 1.69M | 1.67M |
| Taxes Paid | 0 | 2.1K | 8K | 2.28M | 720.29K |
Working capital volatility risk
As reported in recent financial filings, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio swinging from -0.16 in 2025Q4 to 13.75 in 2024Q2, suggesting that accruals and timing differences dominate the company's reported bottom-line performance.
The extreme divergence between net income and operating cash flow indicates that reported earnings are not currently reflective of actual cash generation capabilities. Investors should monitor whether these swings represent genuine operational shifts or merely the aggressive timing of project-based revenue recognition.
Based on the latest quarterly data, free cash flow margins have exhibited severe instability, ranging from a positive 5.1% in 2025Q4 to a deeply negative 36.0% in 2025Q2, highlighting the company's inability to maintain consistent cash generation amidst fluctuating project-based revenue cycles.
The lack of a stable free cash flow trajectory suggests that the business model is highly sensitive to the timing of international publishing orders. This volatility makes it difficult to forecast future liquidity, as cash flow appears to be a function of project completion rather than steady-state operational efficiency.
According to historical cash flow statements, working capital changes have been the primary driver of cash flow volatility, with shifts ranging from a $22.1 million inflow in 2022Q4 to a $21.6 million outflow in 2024Q4, indicating significant sensitivity to inventory and receivables management.
The massive swings in working capital suggest that the company's cash position is heavily dependent on the timing of client payments and inventory build-ups for novelty projects. This reliance on working capital management creates a precarious liquidity profile that warrants further investigation into the company's collection cycles.
As indicated by reported figures, capital expenditure as a percentage of revenue has remained relatively contained, peaking at 8.2% in 2025Q2, which suggests that the company is not currently engaged in a heavy investment cycle despite the ongoing operational challenges in its manufacturing footprint.
The relatively low capital intensity implies that the company is not aggressively reinvesting in automation or capacity expansion. This may indicate a defensive posture, where management is prioritizing cash preservation over the long-term modernization of its labor-intensive assembly lines.
Quick answers to the most common questions about buying SFHG stock.
Samfine Creation Holdings Group Limited (SFHG) generated $-21.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Samfine Creation Holdings Group Limited (SFHG) reported negative free cash flow of $25.1M in 2025, indicating capital requirements exceeded cash from operations.
Samfine Creation Holdings Group Limited (SFHG) spent $11.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.