Free cash flow generation remains inconsistent, with a significant historical outflow of $364.1 million in 2024Q4 highlighting severe challenges in converting revenue to liquidity.
| Cash from Operations | -371.09M | -31.73M | -376.18M | -15.14M | -20.86M | -2.52M | -17.12M | 325.56K | -5.97M |
| Operating CF Margin % | - | -12.64% | -218.51% | -7.55% | -7.57% | -1.02% | -8.87% | 0.92% | -9.94% |
| Operating CF Growth % | -3092.75% | 91.57% | -2384.98% | 27.45% | -727.65% | 85.28% | -5359.94% | 105.45% | - |
| Net Income | -714.46M | -668.49M | -62.21M | -90.02M | -39.33M | -16.63M | -21.7M | -1.62M | -2.89M |
| Depreciation & Amortization | 10.32M | 5.67M | 6.74M | 5.79M | 4.33M | 3.95M | 4.03M | 475.59K | 251.54K |
| Stock-Based Compensation | 116.87M | 111.03M | 8.89M | 9.27M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | -171K | -171K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 52.12M | 526.09M | 29.71M | 2.45M | 4.87M | -417.85K | -2.26M | -122.33K | -3.66M |
| Working Capital Changes | -381.57M | -6.03M | -359.13M | 5.83M | 10.07M | 2.57M | -223K | 1.6M | 329.65K |
| Change in Receivables | -60.02M | -22.31M | 4.12M | -27.56M | -5.72M | 21.48M | 16.57M | 1.15M | -2.92M |
| Change in Inventory | 5.14M | -5.17M | 4.46M | 20.63M | -4.63M | -10.93M | 1.05M | 1.37M | -1.08M |
| Change in Payables | 45.8M | 32.41M | -10.61M | 19.63M | 27.32M | -9.92M | -15.6M | 0 | 0 |
| Cash from Investing | 5.48M | 0 | 5.52M | -2.9M | -5.83M | -2.2M | -2.27M | -1.14M | -246.76K |
| Capital Expenditures | -1.01M | 0 | -971K | -2.9M | -5.86M | -2.2M | -4.88M | -3.37M | -418.12K |
| CapEx % of Revenue | 0.09% | - | 0.56% | 1.45% | 2.13% | 0.89% | 2.53% | 9.51% | 0.7% |
| Acquisitions | 0 | 0 | 0 | 0 | 28K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 6.49M | 0 | 6.49M | -44.7K | 0 | -335.9K | 116.06K | 2.23M | 171.36K |
| Cash from Financing | 579.29M | 51.95M | 372.16M | 18.3M | 86.89M | 14M | 12.85M | 928.24K | 1.01M |
| Debt Issued (Net) | 12.97M | 6.39M | 22.16M | 18.3M | 11.2M | 14M | -900K | 6.23M | 5.7M |
| Equity Issued (Net) | 177.8M | 47.37M | 0 | 0 | 88.26M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 388.52M | -1.81M | 350M | 8.7M | -12.57M | -1 | 13.75M | 0 | 634K |
| Net Change in Cash | 290.3M | 32.04M | 4.74M | 5.24M | 57.72M | 8.42M | -6.85M | 37.71K | -4.94M |
| Free Cash Flow | -372.1M | -31.73M | -377.15M | -18.04M | -26.72M | -4.72M | -22.01M | -3.05M | -6.39M |
| FCF Margin % | -32.5% | -12.64% | -219.07% | -8.99% | -9.7% | -1.91% | -11.4% | -8.59% | -10.64% |
| FCF Growth % | -1245.98% | 91.59% | -1990.85% | 32.5% | -465.93% | 78.54% | -622.12% | 52.32% | - |
| FCF per Share | -4502.14 | -1760.77 | -999999.00 | -80311.77 | -163648.19 | -26737.50 | -124605.15 | -17255.44 | -36187.33 |
| FCF Conversion (FCF/Net Income) | 0.52x | 0.05x | 6.18x | 0.17x | 0.54x | 0.15x | 0.79x | -0.20x | 2.07x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 1.48M | 779K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 820K | 30K | 1.43M |
Rapid liquidity depletion risk
As reported in financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 0.01 to 7.20, suggesting that reported earnings provide little insight into the company's actual ability to generate cash from its core manufacturing activities.
The extreme volatility in the conversion of net income to operating cash flow indicates that accruals and working capital swings are the primary drivers of cash movement rather than sustainable operational profitability. Investors should monitor this divergence as it suggests that reported accounting figures may be decoupled from the underlying cash reality of the business.
Based on historical cash flow statements, WTO has struggled to maintain positive free cash flow, with the company recording a significant $364.1 million outflow in 2024Q4 alone, highlighting a persistent inability to fund operations through internal cash generation despite reported revenue growth.
The recurring negative free cash flow trajectory suggests that the company's business model is currently structured to consume capital rather than generate it. This trend warrants further investigation into whether the company can reach a self-sustaining scale before its existing liquidity is exhausted.
According to recent SEC filings, working capital changes have been a major source of cash flow instability, including a massive $371.4 million outflow in 2024Q4, which indicates that the company's cash position is highly sensitive to fluctuations in inventory and accounts receivable management.
The erratic nature of working capital changes suggests that the company may be struggling to manage its supply chain and collection cycles effectively. Such swings often imply that the company is forced to tie up significant liquidity to support its growth, further straining its already limited cash reserves.
As disclosed in financial statements, the company utilized $108 million in stock-based compensation during 2025Q2, a figure that significantly impacts the reported cash flow profile and complicates the assessment of true operational performance relative to the company's actual cash burn.
The reliance on non-cash compensation suggests that the company may be attempting to preserve cash by utilizing equity-based incentives, which may not fully reflect the true cost of talent acquisition. This practice warrants further investigation to determine if it is masking the severity of the company's underlying cash-burning operational model.
Quick answers to the most common questions about buying WTO stock.
UTime Limited (WTO) generated $-31.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
UTime Limited (WTO) reported negative free cash flow of $31.7M in 2025, indicating capital requirements exceeded cash from operations.
UTime Limited (WTO) 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.