The absence of positive net income, coupled with a -64.42% net margin, suggests that the business is currently consuming liquidity to fund its project-based growth model.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | -2.44M | 753.46K | 655.8K | -166.63K | 154.78K |
| Operating CF Margin % | -32.91% | 16.48% | 11.44% | -3.35% | 2.67% |
| Operating CF Growth % | -423.41% | 14.89% | 493.56% | -207.66% | - |
| Net Income | -4.75M | 111.6K | 491.4K | 978.82K | -27.02K |
| Depreciation & Amortization | 167.93K | 153.29K | 125.49K | 105.04K | 112.78K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 4.59K | -58.54K | -16.7K | -1.5K | -24.15K |
| Other Non-Cash Items | 3.54M | 290.47K | 135.05K | 7.45K | 167.25K |
| Working Capital Changes | -1.4M | 256.63K | -79.44K | -1.26M | -74.08K |
| Change in Receivables | -278.15K | 38.44K | -771.93K | -277.36K | -390.21K |
| Change in Inventory | 207.57K | -401.44K | 531.56K | -521.3K | 112 |
| Change in Payables | 436.02K | -274.91K | -8.65K | -138K | 352.34K |
| Cash from Investing | -3.77M | -51.52K | -73.09K | -116.92K | -60.56K |
| Capital Expenditures | -281.75K | -51.52K | -73.09K | -125.81K | -95.55K |
| CapEx % of Revenue | 3.81% | 1.13% | 1.27% | 2.53% | 1.65% |
| Acquisitions | -494.5K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -3M | 0 | 0 | 8.89K | 34.99K |
| Cash from Financing | 7.03M | -465.64K | -442.79K | -106.2K | -247.15K |
| Debt Issued (Net) | -131.05K | -109.22K | -103.83K | -106.2K | -247.15K |
| Equity Issued (Net) | 8.96M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.8M | -356.42K | -338.97K | 0 | 0 |
| Net Change in Cash | 1.11M | 287.33K | 82.52K | -454.86K | -207.65K |
| Free Cash Flow | -2.72M | 701.94K | 582.71K | -292.44K | 59.23K |
| FCF Margin % | -36.72% | 15.35% | 10.16% | -5.89% | 1.02% |
| FCF Growth % | -487.29% | 20.46% | 299.25% | -593.78% | - |
| FCF per Share | -0.54 | 0.14 | 0.12 | -0.06 | 0.01 |
| FCF Conversion (FCF/Net Income) | 0.51x | 6.75x | 1.33x | -0.17x | -5.73x |
| Interest Paid | 16.73K | 20.96K | 22.31K | 22.26K | 25.96K |
| Taxes Paid | 114.36K | 149.79K | 411.62K | 118.94K | 117.49K |
Cash burn exceeds liquidity
As reported in recent financial statements, the company's inability to generate positive net income suggests a fundamental disconnect between accounting profitability and cash generation, with the absence of operating cash flow data preventing a clear assessment of the conversion of earnings into actual liquidity.
The significant gap between the reported -64.42% net margin and the lack of cash flow visibility warrants extreme caution regarding the quality of earnings. Investors should monitor whether the aggressive revenue growth is being driven by non-cash accruals or contract assets that may never materialize into actual cash inflows.
Based on the company's reported figures, the absence of historical cash flow data makes it impossible to determine the free cash flow trajectory, though the -20.5% operating margin strongly implies that the business is currently consuming rather than generating cash to support its operations.
The current operational structure appears to prioritize market share over immediate cash self-sufficiency. Without a clear path to positive operating margins, the company may remain reliant on external capital to fund its ongoing project-based activities.
According to recent SEC filings, the reliance on long-term project-based revenue recognition suggests that working capital cycles may be highly volatile, as the company likely carries significant unbilled receivables that could strain liquidity if project milestones are delayed or if customer payments are deferred.
The nature of custom-engineered equipment manufacturing typically requires substantial upfront investment in materials and labor. The lack of cash flow data makes it difficult to verify if the company is effectively managing its collection cycles or if it is effectively financing its customers through extended payment terms.
As indicated by the company's financial profile, capital deployment is currently constrained by the need to fund operating losses, leaving little room for discretionary spending on dividends or share repurchases while the business remains in a cash-burning phase of its development.
Management's focus appears to be entirely on sustaining the current growth trajectory rather than returning capital to shareholders. Any future capital allocation decisions will likely be dictated by the need to stabilize the balance sheet and address the underlying operating inefficiencies.
Based on the provided data, the cash flow statement is notably absent, which obscures the impact of stock-based compensation, capitalized development costs, and other non-cash adjustments that could be masking the true extent of the company's cash burn and operational sustainability.
The lack of transparency regarding cash flow items prevents a full understanding of how the company is funding its -64.42% net margin. Investors should be wary of potential off-balance sheet liabilities or aggressive accounting practices that may be hiding the true cost of the company's rapid expansion.
Quick answers to the most common questions about buying WFF stock.
WF Holding Limited Ordinary Shares (WFF) generated $-2.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
WF Holding Limited Ordinary Shares (WFF) reported negative free cash flow of $2.7M in 2025, indicating capital requirements exceeded cash from operations.
WF Holding Limited Ordinary Shares (WFF) 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.