Cash flow generation remains highly volatile, evidenced by a 2025Q4 OCF/NI ratio of -0.24 and a precarious cash balance of only $3.8 million.
| Cash from Operations | 780.32K | -6.96M | -1.24M | -2.84M | -3.32M | 614.03K | 8.16M | -2.23M | 1.15M | -1.2M | -2.78M |
| Operating CF Margin % | 1.1% | -6.43% | -1.11% | -2.77% | -3.34% | 0.71% | 12.77% | -4.07% | 2.55% | -3.26% | -7.95% |
| Operating CF Growth % | 111.21% | -461.68% | 56.28% | 14.58% | -640.57% | -92.47% | 464.94% | -294.98% | 195.44% | 56.8% | - |
| Net Income | -4.02M | -2.78M | -61.06M | -6.08M | -3.8M | -825.61K | 8.11M | 7.02M | 5.87M | 5.25M | 5.01M |
| Depreciation & Amortization | 869.05K | 849.33K | 975.71K | 1.5M | 1.05M | 449.83K | 388.92K | 407.74K | 438.4K | 442.79K | 493.69K |
| Stock-Based Compensation | 1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 322.9K | 0 | 406.06K | -406.64K | -1.96K | -37.31K | -24.14K | 0 | 0 |
| Other Non-Cash Items | 933.8K | 1.03M | 55.22M | 5.15M | 885.35K | -1.14M | 139.75K | 371.55K | 220.36K | 757.56K | 705.79K |
| Working Capital Changes | 1.86M | -6.06M | 3.3M | -3.4M | -1.86M | 2.54M | -477.1K | -10M | -5.36M | -7.65M | -8.99M |
| Change in Receivables | -741.26K | -11.74M | 8.16M | -12.11M | 7.35M | -5.39M | 1.69M | -8.58M | 2.71M | -10.66M | -10.31M |
| Change in Inventory | 16.49M | -62.11M | 4.27M | 2.89M | -6.28M | 3.04M | -3.15M | -7.49M | -9.66M | -1.68M | 193.66K |
| Change in Payables | -639.82K | 513.88K | -7.45M | 8.8M | -8.66M | 5.58M | 2.59M | 861.19K | -417.45K | 796.19K | -277.62K |
| Cash from Investing | -651.99K | -2.35M | -2.29M | -2.11M | -27.15M | -1.16M | -8.57M | -710.27K | -161.86K | -108.64K | -289.96K |
| Capital Expenditures | -651.99K | -603.05K | -2.29M | -2.11M | -2.15M | -1.17M | -8.57M | -968.14K | -161.86K | -123.94K | -289.96K |
| CapEx % of Revenue | 0.92% | 0.56% | 2.06% | 2.06% | 2.16% | 1.35% | 13.42% | 1.76% | 0.36% | 0.34% | 0.83% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 6.28K | 5.96K | 0 | 0 | 15.31K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 257.86K | 0 | 0 | 0 |
| Cash from Financing | 434.54K | 7.31M | 1.4M | -206.97K | 40.08M | 607.46K | -3.74M | -986.03K | 9.97M | 825.2K | 2.74M |
| Debt Issued (Net) | 434.54K | 2.31M | 549.26K | -2.9M | 16.49M | 740.47K | -2.02M | -1.47M | -4.32M | -453.73K | 260.75K |
| Equity Issued (Net) | 0 | 5M | 0 | 0 | 26.1M | 0 | 0 | -380K | 5.58M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 852.54K | 2.7M | -2.51M | -133.01K | -1.72M | 867.18K | 8.7M | 1.28M | 2.48M |
| Net Change in Cash | -294.09K | -932.1K | -2.57M | -5.99M | 9.84M | 308.4K | -4.23M | -4.13M | 8.45M | -445.8K | 3.81M |
| Free Cash Flow | 191.77K | -7.57M | -2.83M | -3.36M | -3.48M | -554.29K | 7.28M | -2.7M | 991.13K | -1.33M | -3.07M |
| FCF Margin % | 0.27% | -6.99% | -2.53% | -3.28% | -3.5% | -0.64% | 11.39% | -4.92% | 2.2% | -3.6% | -8.78% |
| FCF Growth % | 102.53% | -167.65% | 15.76% | 3.62% | -528.1% | -107.62% | 369.28% | -372.63% | 174.8% | 56.84% | - |
| FCF per Share | 0.03 | -1.54 | -0.63 | -0.80 | -1.11 | -0.23 | 3.08 | -1.39 | 0.63 | -0.69 | -1.59 |
| FCF Conversion (FCF/Net Income) | -0.20x | 2.50x | 0.02x | 0.47x | 0.87x | -0.74x | 1.01x | -0.32x | 0.20x | -0.23x | -0.56x |
| Interest Paid | 708.62K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 13.77K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and demand contraction
As reported in recent financial filings, ZKIN's operating cash flow frequently diverges from net income, with the 2025Q4 period showing an OCF/NI ratio of -0.24, suggesting that reported accounting losses are not being fully reconciled by cash-generative operations within the company's core stainless steel business.
The persistent gap between net income and operating cash flow suggests that the company's earnings quality is heavily influenced by non-cash accruals and working capital volatility. Investors should monitor whether these discrepancies indicate aggressive revenue recognition practices or simply the inherent difficulty of collecting cash in the Chinese municipal infrastructure market.
Based on the company's reported figures, free cash flow has exhibited extreme instability, oscillating between positive and negative territory, with the 2025Q4 FCF margin of 0.6% highlighting a precarious inability to sustain consistent cash generation amidst the ongoing contraction in the firm's primary revenue segments.
The lack of a stable FCF trajectory implies that the business model is highly sensitive to project-based lumpy cash inflows rather than recurring operational success. This volatility makes it difficult to forecast the company's ability to self-fund future growth or maintain its current infrastructure without external capital injections.
According to historical cash flow statements, ZKIN's working capital changes have been highly erratic, with a $1.9 million inflow in 2025Q4 following periods of significant cash outflows, suggesting that the company's liquidity is heavily dependent on the timing of municipal project payments and inventory management.
The reliance on working capital swings to bolster cash flow suggests that the company may be struggling to manage its receivables effectively in a slowing construction environment. Such dependence on timing differences often masks underlying operational weaknesses and warrants further investigation into the aging of the company's accounts receivable.
As evidenced by the 2025Q4 data, the inclusion of $1.1 million in stock-based compensation significantly impacts the cash flow profile, effectively masking the true extent of the company's cash burn by inflating non-cash expenses that do not reflect the firm's actual operational cash-generating capacity.
The reliance on stock-based compensation as a primary adjustment in the cash flow statement suggests that management may be attempting to preserve cash by diluting shareholders. This practice warrants caution, as it obscures the true cost of operations and may not be a sustainable strategy for long-term value creation.
Quick answers to the most common questions about buying ZKIN stock.
ZK International Group Co., Ltd. (ZKIN) generated $0.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ZK International Group Co., Ltd. (ZKIN) generated $0.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ZK International Group Co., Ltd. (ZKIN) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.