Operational liquidity remains under pressure, as evidenced by the 2023Q4 period where the company burned $877.2K in cash despite a net loss of $546.8K.
| Cash from Operations | -3.51M | -1.49M | -7.25M | -2.05M | -1.49M | -659.08K |
| Operating CF Margin % | -46.72% | -18.03% | -90.69% | -22.67% | -105.86% | -7.23% |
| Operating CF Growth % | -136.27% | 79.48% | -254.03% | -37.33% | -126.16% | - |
| Net Income | -8.61M | -7.29M | -6.59M | -1.82M | -351.69K | -262.11K |
| Depreciation & Amortization | 29.94K | 3.83K | 12.42K | 94.6K | 76.02K | 87.27K |
| Stock-Based Compensation | 478.84K | 946.44K | 861.55K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.69M | 2.29M | 84.84K | 182.08K | 61.71K | 38.93K |
| Working Capital Changes | 897.42K | 2.57M | -1.61M | -504.6K | -1.28M | -523.17K |
| Change in Receivables | 612.71K | 748.18K | -213.64K | 479.24K | -295.85K | -758.67K |
| Change in Inventory | 0 | 0 | 0 | 8.78K | 65.39K | -88.41K |
| Change in Payables | -141.47K | -825.36K | 801K | -247.42K | 47.35K | -157.35K |
| Cash from Investing | -5.19M | -71.87K | -2.81K | 2.17M | -40.59K | -102.5K |
| Capital Expenditures | -16.04K | -4.89K | -2.81K | 0 | -40.59K | -102.5K |
| CapEx % of Revenue | 0.21% | 0.06% | 0.04% | 0% | 2.88% | 1.13% |
| Acquisitions | 0 | 33.46K | 0 | 2.17M | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -5.17M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 9.06M | 971.48K | 7.66M | -372.88K | 1.49M | 1.08M |
| Debt Issued (Net) | -358.77K | -240.85K | -390.66K | -879.88K | 816.51K | 1.08M |
| Equity Issued (Net) | 9.18M | 1M | 8.05M | 500K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 243.18K | 207.89K | 5.46K | 6.99K | 676.61K | 4.25K |
| Net Change in Cash | 300.8K | -724.9K | 679.58K | 34.98K | -67.91K | 212.37K |
| Free Cash Flow | -3.53M | -1.49M | -7.25M | -2.05M | -1.53M | -761.58K |
| FCF Margin % | -46.94% | -18.09% | -90.72% | -22.67% | -108.74% | -8.36% |
| FCF Growth % | -136.57% | 79.42% | -254.17% | -33.69% | -101.05% | - |
| FCF per Share | -1.28 | -3.73 | -50.75 | -2.05 | -1.33 | -0.66 |
| FCF Conversion (FCF/Net Income) | 0.41x | 0.20x | 1.10x | -0.58x | 6.41x | 2.51x |
| Interest Paid | 163.01K | 409.88K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
According to recent financial disclosures, VSME consistently reports negative operating cash flow that frequently exceeds net losses, as evidenced by the 2023Q4 period where the company burned $877.2K in cash despite a net loss of $546.8K, highlighting a fundamental inability to convert operations into liquidity.
The recurring gap between net income and operating cash flow suggests that the company's accrual-based accounting does not capture the full extent of its cash-burning operational reality. Investors should monitor this divergence as it indicates that the business model requires significant cash outlays that are not being offset by timely collections or efficient working capital management.
As reported in quarterly filings, VSME's free cash flow margins remain deeply negative, reaching a low of -153.6% in 2023Q4, which underscores the company's inability to generate self-sustaining cash flows while maintaining its current operational footprint in the competitive Hong Kong digital advertising market.
The consistent negative free cash flow trajectory suggests that the company is effectively subsidizing its operations through its dwindling cash reserves. Without a structural shift in revenue generation or a drastic reduction in fixed costs, the current trajectory appears unsustainable for long-term viability.
Based on the provided cash flow statements, VSME exhibits extreme volatility in working capital changes, with swings ranging from a $271.1K inflow in 2025Q2 to a $450.1K outflow in 2023Q4, suggesting that the company's cash position is highly sensitive to the timing of creator payouts and client receivables.
This erratic working capital behavior implies that the company lacks a predictable cash conversion cycle, which complicates liquidity planning. The reliance on these fluctuations to manage short-term obligations warrants further investigation into the underlying credit terms extended to clients versus those demanded by the talent network.
Analysis of the cash flow statement reveals that the company's reported cash position is heavily impacted by non-operating adjustments, as seen in the 2022Q2 period where acquisition-related cash flows of $277.8K masked the underlying operational burn, potentially misleading investors regarding the true health of the core business.
The inclusion of acquisition-related items and other non-recurring cash movements often obscures the core operational cash burn, making it difficult to assess the company's underlying performance. Investors should be cautious of these adjustments, as they may be used to smooth over the persistent weakness in the primary agency business.
Quick answers to the most common questions about buying VSME stock.
VS Media Holdings Limited Class A Ordinary Shares (VSME) generated $-3.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
VS Media Holdings Limited Class A Ordinary Shares (VSME) reported negative free cash flow of $3.5M in 2025, indicating capital requirements exceeded cash from operations.
VS Media Holdings Limited Class A Ordinary Shares (VSME) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.