Operational cash flow is severely strained, evidenced by a negative $7.7M cash flow in 2026Q2 and a negative free cash flow margin of -18.8% despite minimal capital expenditure.
| Cash from Operations | -17.79M | -6.49M | -693.96K | 1.03M | 2.62M |
| Operating CF Margin % | - | -9.08% | -1.19% | 2.09% | 8.69% |
| Operating CF Growth % | -1010.73% | -835.14% | -167.41% | -60.71% | - |
| Net Income | 9.17M | 4.02M | 4.57M | 4.9M | 3.35M |
| Depreciation & Amortization | 218.56K | 110.41K | 93.38K | 88.75K | 76.35K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -121.61K | -64.28K | 21.16K | 42.57K | 7.44K |
| Other Non-Cash Items | 284.92K | 280.79K | -137.83K | -195.9K | 158.37K |
| Working Capital Changes | -27.34M | -10.84M | -5.24M | -3.81M | -973.76K |
| Change in Receivables | -25.33M | -11.55M | -4.93M | -249.04K | -3.82M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.79M | 744.48K | 545.9K | -4.08M | 4.19M |
| Cash from Investing | 1.73M | 1.94M | -228.18K | -1.98M | -124.85K |
| Capital Expenditures | -168.47K | -167.93K | -1.38K | 0 | -124.85K |
| CapEx % of Revenue | 0.12% | 0.24% | 0% | 0% | 0.41% |
| Acquisitions | 0 | 0 | 0 | -513.21K | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 517 | 0 |
| Cash from Financing | 10.75M | 7.25M | 1.99M | 482.47K | 1.51M |
| Debt Issued (Net) | 5.86M | 2.18M | 2.11M | -345.59K | 637.36K |
| Equity Issued (Net) | 5.07M | 5.07M | 0 | 828.06K | 877.4K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -179.43K | 0 | -119.1K | 0 | 0 |
| Net Change in Cash | 319.1K | 2.82M | 897.41K | -763.65K | 4.05M |
| Free Cash Flow | -17.96M | -6.66M | -695.34K | 1.03M | 2.5M |
| FCF Margin % | -12.92% | -9.32% | -1.19% | 2.09% | 8.28% |
| FCF Growth % | - | -857.43% | -167.54% | -58.75% | - |
| FCF per Share | -0.77 | -0.30 | -0.03 | 0.05 | 0.11 |
| FCF Conversion (FCF/Net Income) | -1.96x | -1.61x | -0.15x | 0.21x | 0.78x |
| Interest Paid | 0 | 159.3K | 139.75K | 83.54K | 89.31K |
| Taxes Paid | 0 | 29.97K | 36.59K | 24.52K | 8.64K |
Working capital liquidity mismatch
According to the latest quarterly data, YSXT reported a net income of $2.7M while simultaneously generating an operating cash outflow of $7.7M, resulting in a deeply negative OCF/NI ratio of -2.87 that highlights a significant disconnect between accounting profits and actual cash realization.
The persistent inability to convert reported net income into positive operating cash flow suggests that the company's earnings are heavily reliant on non-cash accruals or delayed collections. Investors should monitor whether this divergence is a temporary timing issue or a structural feature of the company's B2B insurance service model.
As reported in financial statements, YSXT experienced a substantial $10.5M negative working capital change in 2026Q2, which appears to be the primary driver behind the company's inability to generate positive cash flow despite maintaining a consistent trajectory of revenue growth in recent periods.
This significant cash outflow suggests that the company is likely extending generous payment terms to its institutional insurance clients or facing delays in the settlement of service-related receivables. The reliance on working capital to fund operations may indicate limited bargaining power within the insurance ecosystem.
Based on YSXT's reported figures, the company has consistently posted negative free cash flow margins, reaching -18.8% in 2026Q2, which indicates that the business model currently requires external liquidity or existing cash reserves to sustain its ongoing operations and service fulfillment obligations.
The trend of negative FCF, despite the company's reported profitability, warrants further investigation into the sustainability of its current growth strategy. If this trajectory persists, the company may eventually face liquidity constraints that could force a shift in its capital allocation or operational focus.
Data from recent filings indicates that YSXT maintains a negligible capital expenditure profile, with CapEx/Revenue ratios consistently near 0.0%, suggesting that the company's cash flow issues are not driven by heavy investment in physical infrastructure but rather by operational and working capital inefficiencies.
While the lack of capital intensity is a positive indicator for scalability, it also implies that the company's cash burn is entirely operational in nature. This suggests that the business is highly sensitive to the timing of cash inflows from its insurance partners rather than long-term asset depreciation.
Quick answers to the most common questions about buying YSXT stock.
YSX Tech. Co., Ltd (YSXT) generated $-6.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
YSX Tech. Co., Ltd (YSXT) reported negative free cash flow of $6.7M in 2025, indicating capital requirements exceeded cash from operations.
YSX Tech. Co., Ltd (YSXT) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.