Free cash flow margins swung from a positive 48.7% to a negative 5.2%, reflecting a transition toward unsustainable cash consumption.
| Cash from Operations | 1.38M | -180.3K | -39.38M | -1.65M | -207.31K | 3.77M | 184.22K |
| Operating CF Margin % | - | -16.12% | -1050.07% | -30.22% | -6.64% | 59.96% | 13.81% |
| Operating CF Growth % | -111.02% | 99.54% | -2292.02% | -694.17% | -105.49% | 1948.84% | - |
| Net Income | 435.68K | -3.34M | -8.68M | -2.55M | -771.48K | 2.31M | 339.97K |
| Depreciation & Amortization | 27.83K | 11.72K | 12.59K | 11.21K | 64.66K | 35.43K | 9.45K |
| Stock-Based Compensation | 0 | 0 | 1.77M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 16.24K | -121.11K | 0 | 0 |
| Other Non-Cash Items | -35.32K | 3.15M | 4.48M | -1.96K | 1.3M | 13.95K | 0 |
| Working Capital Changes | 954.45K | -3.29K | -36.97M | 875.83K | -677.97K | 1.42M | -165.2K |
| Change in Receivables | 283.06K | 39.17K | -568.12K | -300.27K | 678.42K | -209.98K | -705.48K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 427.18K | 31.8K | 122.9K | 272.48K | -588.41K | 550.89K | 258.82K |
| Cash from Investing | -86.48K | 65.37K | 335.12K | -4.06M | -6.78K | -151.54K | -129.59K |
| Capital Expenditures | -80.41K | -1.4K | -7.5K | -76.36K | -32.2K | -131.58K | -129.59K |
| CapEx % of Revenue | - | 0.13% | 0.2% | 1.4% | 1.03% | 2.09% | 9.71% |
| Acquisitions | 0 | - | - | - | - | - | - |
| Investments | 173 | 0 | 0 | 0 | 173 | 0 | 0 |
| Other Investing | -6.08K | 0 | 288.56K | -14.91K | 25.42K | -19.96K | 0 |
| Cash from Financing | 87.02K | 1.67M | 37.27M | 7.77M | 45.17K | 52.03K | 101.86K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 1.52M | 35.25M | 8.16M | 0 | 0 | 71.3K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 87.02K | 38.03K | 69.49K | -388.9K | 45.17K | 52.03K | 30.56K |
| Net Change in Cash | 1.65M | 1.49M | -1.83M | 1.99M | -229.4K | 3.72M | 166.9K |
| Free Cash Flow | 1.45M | -181.7K | -39.44M | -1.74M | -1.44M | 564.83K | 54.63K |
| FCF Margin % | - | -16.25% | -1051.51% | -31.9% | -46.17% | 8.97% | 4.1% |
| FCF Growth % | - | 99.54% | -2169.5% | -20.53% | -355.23% | 933.9% | - |
| FCF per Share | 2.45 | -0.20 | -66.84 | -2.95 | -2.44 | 0.96 | 0.09 |
| FCF Conversion (FCF/Net Income) | 3.32x | 0.05x | 4.54x | 0.65x | 0.27x | 1.63x | 0.54x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 611.51K | 0 | 422 | 0 | 480.26K | 398.04K | 1.36K |
Imminent liquidity depletion risk
According to recent financial filings, WAI's OCF/NI ratio plummeted to 0.26 in 2022Q4, signaling a profound inability to translate accounting earnings into actual cash inflows as the company's operational efficiency continues to deteriorate significantly compared to the 1.41 ratio observed in the prior year period.
The sharp decline in the OCF/NI ratio suggests that the company's reported net income is increasingly decoupled from its underlying cash generation capabilities. This divergence implies that accruals or non-cash adjustments are masking the severity of the operational cash burn, warranting extreme caution from investors regarding the quality of earnings.
As reported in historical financial statements, WAI's FCF margin swung from a positive 48.7% in 2021Q4 to a negative 5.2% by 2022Q4, illustrating a rapid transition from a cash-generative state to a model that is actively consuming its limited liquidity reserves to sustain operations.
The reversal in free cash flow trajectory highlights the structural instability of the current business model, which appears unable to cover its operating costs even at reduced activity levels. This trend suggests that the firm is currently in a state of cash depletion that may necessitate external financing to survive.
Based on the provided data, working capital changes shifted from a $443.1K contribution in 2021Q4 to a $511.4K inflow in 2022Q4, which appears to be a desperate attempt to manage liquidity by liquidating assets or delaying obligations rather than organic operational efficiency.
While the positive working capital change might appear beneficial on the surface, it likely reflects the aggressive collection of receivables or the deferral of payables in a shrinking revenue environment. Investors should monitor whether this source of cash is sustainable or if it represents a one-time liquidation of the balance sheet.
Data from recent filings indicates that WAI's CapEx/Rev ratio shifted from 2.8% in 2021Q4 to 1.2% in 2022Q4, suggesting that the company is aggressively curtailing capital expenditures in a likely effort to preserve cash amidst a severe and ongoing revenue contraction.
The reduction in capital intensity is consistent with a firm attempting to minimize cash outflows, but it also raises concerns about the long-term maintenance of the service infrastructure. If the company is under-investing in its core consulting platform, it may further impair its ability to recover market share.
Quick answers to the most common questions about buying WAI stock.
Top KingWin Ltd (WAI) generated $-0.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Top KingWin Ltd (WAI) reported negative free cash flow of $0.2M in 2025, indicating capital requirements exceeded cash from operations.
Top KingWin Ltd (WAI) 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.