The company exhibits a persistent cash burn, evidenced by a -63.6% free cash flow margin in 2025Q2 and an OCF/NI ratio of 0.11 that indicates poor earnings quality.
| Cash from Operations | -7M | -992.44K | -11.15M | -9.66M | -9.76M | 1.05M | -2.87M | 2.29M | 1.33M | 5.13M |
| Operating CF Margin % | - | -8.55% | -66.29% | -92.12% | -30.42% | 3.94% | -14.27% | 9.88% | 6.16% | 24.23% |
| Operating CF Growth % | 127.97% | 91.1% | -15.49% | 1.07% | -1028.12% | 136.66% | -225.46% | 71.62% | -74.03% | - |
| Net Income | -144.75M | -83.83M | -109.6M | -21.55M | -9.48M | -18.36M | -10.79M | 1.55M | 3.98M | 3.45M |
| Depreciation & Amortization | 5.88M | 6.45M | 5.63M | 2.21M | 2.02M | 1.45M | 952.2K | 643.26K | 313.55K | 134.35K |
| Stock-Based Compensation | 12.36M | 5.83M | 6.06M | 5.98M | 6.34M | 1.47M | 2.35M | 0 | 0 | 0 |
| Deferred Taxes | 0 | -122.34K | -66.69K | -435.74K | -174.08K | -80.64K | -224.51K | 0 | 0 | 0 |
| Other Non-Cash Items | 122.47M | 70.24M | 88.72M | 7.48M | 2.84M | 15.45M | 3.31M | 4.73M | 55.85K | 15.85K |
| Working Capital Changes | -2.95M | 446.91K | -1.9M | -3.35M | -11.3M | 1.12M | 1.53M | -4.64M | -3.02M | 1.53M |
| Change in Receivables | -3.24M | 259K | -6.41M | 2.98M | -10.46M | -2M | 711.41K | -3.52M | -7.33M | -3.12M |
| Change in Inventory | 0 | 0 | 0 | 924.72K | 2.67M | -317.86K | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -1.59M | 6.08M | -6.85M | -3.72M | 3.01M | 3.77M | 4.95M | 4.02M | 4.08M |
| Cash from Investing | -1.37M | -1.51M | -2.43M | -234.26K | -3.24M | -65.9M | -3.59M | -1.32M | -2.22M | -1.41M |
| Capital Expenditures | -958.62K | -723.98K | -679.15K | -2.63M | -4.89M | -1.62M | -2.9M | -2.16M | -1.84M | -1.24M |
| CapEx % of Revenue | 3.86% | 6.24% | 4.04% | 25.05% | 15.25% | 6.09% | 14.44% | 9.34% | 8.49% | 5.87% |
| Acquisitions | 46.09K | 47.37K | 58.05K | 45.67K | 2.15K | 161 | 129 | 0 | 53.87K | 486 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -452.5K | -834.25K | -1.81M | 2.35M | 1.65M | -64.28M | -692.23K | 844.55K | -439.41K | -171.26K |
| Cash from Financing | 4.93M | 2.18M | 9.29M | 12.4M | 11.46M | 70.04M | 7.42M | 1.24M | -530.13K | -735.31K |
| Debt Issued (Net) | -7.04M | 1.55M | 714.36K | 6.05M | 7.02M | 52.75M | 72.34K | 1.85M | 221.97K | 0 |
| Equity Issued (Net) | 10.61M | 598.2K | 8.53M | 7.03M | 5.13M | 17.6M | 8.02M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.32K | -3.44K | -3.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.36M | 28.59K | 40.48K | -671.87K | -681.23K | -308.19K | -675.65K | -606.02K | -752.09K | -735.31K |
| Net Change in Cash | -3.45M | -450.94K | -4.66M | 2.32M | -1.33M | 2.45M | 853.32K | 2.06M | -1.34M | 2.75M |
| Free Cash Flow | -7.96M | -2.62M | -13.07M | -13.53M | -14.66M | -571.57K | -5.77M | 767.91K | -503.39K | 3.89M |
| FCF Margin % | -32.03% | -22.57% | -77.69% | -129.07% | -45.67% | -2.14% | -28.72% | 3.32% | -2.33% | 18.36% |
| FCF Growth % | 59.76% | 79.96% | 3.39% | 7.68% | -2464.15% | 90.09% | -851.44% | 252.55% | -112.95% | - |
| FCF per Share | -9.34 | -3.89 | -170.08 | - | -4760.13 | - | -0.64 | 0.11 | - | - |
| FCF Conversion (FCF/Net Income) | 0.05x | 0.01x | 0.10x | 0.45x | 1.04x | -0.06x | 0.27x | 1.48x | 0.33x | 1.49x |
| Interest Paid | 286.61K | 286.61K | 144.08K | 203.38K | 211.2K | 203.29K | 123.28K | 19.39K | 22.13K | 3.67K |
| Taxes Paid | 0 | 172 | 14.14K | 718 | 3.84K | 15.71K | 107.07K | 0 | 106.45K | 41.33K |
Liquidity and operational viability
As reported in recent financial statements, XTKG's operating cash flow consistently fails to track with net losses, with the 2025Q2 OCF/NI ratio of 0.11 highlighting a structural inability to convert accounting results into tangible liquidity, further exacerbated by significant non-cash stock-based compensation adjustments.
The persistent gap between net income and operating cash flow suggests that the company's reported losses are not merely accounting artifacts but reflect genuine cash outflows. Investors should monitor the reliance on stock-based compensation, which appears to be masking the severity of the underlying cash burn.
Based on historical cash flow data, XTKG's free cash flow remains deeply negative, with a -63.6% FCF margin in 2025Q2, indicating that the company's pivot into capital-intensive sectors has failed to generate the self-sustaining cash flow necessary to support its ongoing operational requirements.
The consistent negative FCF trajectory suggests that the business model is currently incapable of funding its own growth or maintenance. This trend warrants further investigation into how long the company can sustain operations without recurring external capital injections.
According to quarterly cash flow filings, XTKG's working capital changes have been erratic, with a $1.8M inflow in 2025Q2 providing a temporary, non-recurring reprieve from the underlying operational cash burn that has characterized the company's performance over the last several reporting periods.
The reliance on working capital fluctuations to mitigate cash outflows suggests that the company may be aggressively managing payables or collections to preserve liquidity. Such tactics are typically unsustainable and may indicate mounting pressure on the company's short-term financial flexibility.
As indicated by the company's cash flow statements, stock-based compensation of $4.0M in 2025Q2 represents a significant non-cash add-back that effectively hides the true magnitude of the company's operational cash deficit from casual observation of the headline net income figures.
The high level of SBC relative to operating cash flow suggests that management is utilizing equity-based incentives to preserve cash, which may lead to significant shareholder dilution. This practice appears to be a primary mechanism for sustaining operations in the absence of positive cash generation.
Quick answers to the most common questions about buying XTKG stock.
X3 Holdings Co., Ltd. (XTKG) generated $-1.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
X3 Holdings Co., Ltd. (XTKG) reported negative free cash flow of $2.6M in 2024, indicating capital requirements exceeded cash from operations.
X3 Holdings Co., Ltd. (XTKG) spent $0.7M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, X3 Holdings Co., Ltd. (XTKG) spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.