Cash flow generation is severely impaired, characterized by a negative 89.4% free cash flow margin and a $7.8M working capital outflow in the most recent quarter.
| Cash from Operations | -5.05M | -9.51M | 1.12M | -1.31M | -2.06M | 6.12M | 13.2M | 4.46M |
| Operating CF Margin % | -28.29% | -41.29% | 3.47% | -3.27% | -4.28% | 19.92% | 39.74% | 15.63% |
| Operating CF Growth % | 46.86% | -948.75% | 185.35% | 36.17% | -133.62% | -53.69% | 196.34% | - |
| Net Income | -3.67M | -8.73M | -6.58M | -7.91M | 11.32M | 7.56M | 7.55M | 7.6M |
| Depreciation & Amortization | 517.43K | 485.73K | 508.79K | 533.95K | 446.88K | 410.08K | 418.43K | 452.73K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 606.7K | 1.57M | -542.38K | -668.34K | -9.89K | -39.63K | 17.54K |
| Other Non-Cash Items | 370.6K | 186.19K | -45.74K | 5.97K | -468.17K | 22.71K | 112.79K | -85.19K |
| Working Capital Changes | -2.27M | -2.06M | 5.67M | 6.6M | -12.69M | -1.87M | 5.16M | -3.53M |
| Change in Receivables | 3.13M | -1.71M | 4.72M | -1.55M | -3.87M | -4.11M | 665.49K | -2.82M |
| Change in Inventory | -474.63K | 1.64M | -1.18M | 16.59K | -451.63K | 888.61K | 5.59M | -327.26K |
| Change in Payables | -3.13M | 143.75K | 1.64M | -1.9M | 2.46M | 639.43K | -924.44K | 265.17K |
| Cash from Investing | -341.81K | -361.29K | -44.17K | -3.91M | -27.06M | -51.8K | -86.03K | -145.09K |
| Capital Expenditures | -266.77K | -245.8K | -44.17K | -93.7K | -13.53M | -51.8K | -86.32K | -145.09K |
| CapEx % of Revenue | 1.49% | 1.07% | 0.14% | 0.23% | 28.2% | 0.17% | 0.26% | 0.51% |
| Acquisitions | 0 | 0 | 0 | -3.81M | 26.62M | 0 | 291 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -75.04K | -115.49K | 0 | 523 | -26.62M | 0 | 0 | 0 |
| Cash from Financing | 9.73M | 33.95M | -1.39M | 3.32M | 26.58M | 470.14K | -16M | -4.91M |
| Debt Issued (Net) | -5.27M | 8.95M | -1.39M | 3.32M | 624.35K | 911.2K | 1.14K | -1.85M |
| Equity Issued (Net) | 15M | 25M | 0 | 0 | 28.75M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -16M | -3.06M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | -2.79M | -441.06K | 0 | 0 |
| Net Change in Cash | 4.09M | 24.21M | -426.21K | -2.37M | -1.98M | 6.88M | -3.01M | -793.24K |
| Free Cash Flow | -5.4M | -9.87M | 1.08M | -1.41M | -15.59M | 6.06M | 13.12M | 4.31M |
| FCF Margin % | -30.23% | -42.87% | 3.33% | -3.5% | -32.49% | 19.75% | 39.48% | 15.12% |
| FCF Growth % | 45.29% | -1017.34% | 176.52% | 90.98% | -357.07% | -53.78% | 204.31% | - |
| FCF per Share | -1552.47 | -1624.12 | 181.65 | -237.39 | -2956.58 | 1039.49 | 2248.83 | 738.99 |
| FCF Conversion (FCF/Net Income) | 1.38x | 1.09x | -0.18x | 0.15x | -0.18x | 0.81x | 1.75x | 0.59x |
| Interest Paid | 289.38K | 304.52K | 190.18K | 199.85K | 149.3K | 157.53K | 135.72K | 183.07K |
| Taxes Paid | 0 | 0 | 863.8K | 2.75M | 3.27M | 2.17M | 2.26M | 1.7M |
Persistent Operating Cash Burn
According to recent financial filings, Universe Pharmaceuticals exhibits a profound disconnect between net income and operating cash flow, as evidenced by the 2025Q4 period where the company reported a net loss of $387.3K while simultaneously suffering an operating cash outflow of $7.6M, signaling poor earnings quality.
The persistent inability to convert accounting results into positive cash flow suggests that the company's accrual-based earnings are not representative of its underlying economic reality. Investors should monitor this divergence, as it indicates that operational expenses are consistently outpacing the cash-generating capacity of the core business model.
As reported in financial statements, the company's free cash flow trajectory has turned sharply negative, with the most recent quarter recording an FCF margin of -89.4%, a significant deterioration from the positive margins observed in earlier periods like 2025Q2, which reached 26.9% before collapsing.
This extreme volatility in free cash flow suggests that the company lacks a stable, self-sustaining operational foundation. The rapid swing from positive to deeply negative cash generation implies that the business is highly sensitive to working capital fluctuations and lacks the scale to absorb operational shocks.
Based on reported figures, working capital changes have become a primary driver of cash flow instability, with a massive $7.8M outflow in 2025Q4 alone, which directly offset any potential benefits from the company's lean capital expenditure profile and contributed to the current cash burn.
The erratic nature of these working capital swings suggests significant inefficiencies in inventory management or collection cycles within the regional distribution network. Such instability warrants further investigation into whether the company is forced to extend unfavorable credit terms to maintain its market position in Jiangxi Province.
Data from recent quarterly reports indicates that Universe Pharmaceuticals maintains a minimal capital expenditure profile, with CapEx/Revenue ratios consistently below 3% in most periods, suggesting that the company is not currently investing in significant infrastructure or capacity expansion to reverse its top-line contraction.
While the low capital intensity preserves cash in the short term, it may also indicate a lack of strategic investment in modernization or digital distribution capabilities. This approach appears to prioritize liquidity preservation over the long-term asset development required to compete effectively in a shifting healthcare market.
Quick answers to the most common questions about buying UPC stock.
Universe Pharmaceuticals Inc. (UPC) generated $-5.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Universe Pharmaceuticals Inc. (UPC) reported negative free cash flow of $5.4M in 2025, indicating capital requirements exceeded cash from operations.
Universe Pharmaceuticals Inc. (UPC) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.