Operational cash flow remains disconnected from accounting results, highlighted by a 2026Q2 OCF/NI ratio of -0.03, which underscores the company's inability to convert revenue into sustainable liquidity.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Dec'06 |
|---|
| Cash from Operations | -6.77M | -8.34M | -2.78M | -7.88M | -29.4M | -2.8M | -2.54M | -1.08M | 2.45M | 1.7M | 5.87M | -12.97M | 7.04M | -16.93M | -9.84M | -2.7M | -192.52K | 3.36M | 5.11M | 0 |
| Operating CF Margin % | - | -95.54% | -98.23% | - | -177.99% | -41.33% | - | - | 5.36% | 3.78% | 10.93% | -23.38% | 14.46% | -22.73% | -6.78% | -1.96% | -0.21% | 8.46% | 18.54% | - |
| Operating CF Growth % | -2073.68% | -199.85% | 64.71% | 73.2% | -948.62% | -10.6% | -135.58% | -143.92% | 44.06% | -71.01% | 145.22% | -284.26% | 141.57% | -72.09% | -264.36% | -1302.85% | -105.73% | -34.24% | - | - |
| Net Income | -145.85M | -43M | -26.86M | -37.85M | -77.21M | -9.64M | -5.17M | -6.66M | -7.4M | -11.04M | -15.81M | -4.16M | -16.65M | -23.6M | -6.23M | 17.07M | 12.05M | 12.07M | 4.95M | -10.93K |
| Depreciation & Amortization | 13.43M | 5.4M | 4.26M | 5.86M | 5.9M | 3.72M | 0 | 0 | 1.24M | 1.18M | 1.95M | 2.13M | 2.4M | 3.3M | 4.39M | 3.9M | 2.92M | 2.36M | 1.19M | 3.43K |
| Stock-Based Compensation | 835.74K | 1.68M | 3.87M | 3.49M | 4.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.74M | 764.49K | 1.65M | -254.37K | -3.87M | 131.05K | -127.19K | 0 | 0 | 0 |
| Other Non-Cash Items | 136.51M | 35.51M | 17.01M | 19.21M | 51.91M | 5.79M | 3.65M | 4.52M | 3.57M | 3.64M | 7.36M | -2.24M | 8.94M | 25.13M | 26.53M | 6.61M | 4.02M | -11.07M | -1.03M | 0 |
| Working Capital Changes | -6.03M | -7.92M | -1.06M | 1.41M | -14.73M | -2.68M | -1.01M | 1.06M | 5.04M | 7.92M | 10.61M | -9.46M | 10.7M | -21.52M | -30.65M | -30.4M | -19.06M | 0 | 0 | 7.5K |
| Change in Receivables | -531.87K | -2.17M | -13.02M | 1.48M | 692.63K | -3.2M | 0 | 0 | -3.19M | -6.01M | -30.64M | -8.13M | 20.75M | 5.37M | -44.52M | -53.56M | -26.16M | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.38M | 218.25K | 374.68K | -60.84K | 156.41K | -433.78K | 857.6K | -528.8K | 780.31K | -938.09K | 0 | 0 | 0 |
| Change in Payables | 0 | -3.27M | 0 | -500K | 3.77M | 0 | 0 | 10.42M | -12.83M | 11.78K | 33.11M | 13.71M | -1.44M | -7.76M | 14.77M | 23.46M | 5.63M | 0 | 0 | 0 |
| Cash from Investing | -5.4M | -3.4M | 0 | 0 | -14.22M | -65.52M | -1.39M | -135.71K | -138.15K | -210.96K | 4.92M | 9.39M | -9.93M | -5.75M | 13M | -13.27M | -7.1M | -1.77M | -8.7M | 0 |
| Capital Expenditures | -3.4M | -3.4M | 0 | 0 | -39.6K | -66.92M | -2M | 0 | -138.15K | -210.96K | -208.11K | -43.63K | -392.01K | -331.16K | -398.26K | -2.14M | -2.68M | -1.77M | -8.7M | 0 |
| CapEx % of Revenue | 12.41% | 38.96% | - | - | 0.24% | 986.49% | - | - | 0.3% | 0.47% | 0.39% | 0.08% | 0.81% | 0.44% | 0.27% | 1.55% | 2.88% | 4.46% | 31.57% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 5.27K | 0 | 0 | 0 | 0 | 57.02K | 0 | 675.86K | 960.62K | 753.02K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2M | 0 | 0 | 0 | -14.18M | 1.4M | 600K | -135.71K | 0 | 0 | 0 | 0 | 0 | -999.4K | 0 | 0 | -4.5M | 0 | 0 | 0 |
| Cash from Financing | 13.88M | 12.78M | 2.56M | 7.25M | 44.32M | 67.51M | 4.8M | 522.67K | -5.8M | -2.06M | -18.58M | -11.67M | 14.39M | 24.18M | -2.36M | 14.12M | 6.94M | 136.57K | 5.29M | 0 |
| Debt Issued (Net) | -8.05M | 12.78M | 1.18M | 217.12K | 352.17K | 0 | 300K | 0 | -6.4M | -2.06M | -18.79M | -12.96M | 23.4M | 24.05M | 3.18M | 14.95M | -4.51M | 0 | 0 | 0 |
| Equity Issued (Net) | 19M | 0 | 1.38M | 2.01M | 43.94M | 67.51M | 4.5M | 950K | 600K | 0 | 0 | 1.17M | 0 | 0 | 0 | 0 | 11.88M | 0 | 6.4M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -543.63K | -472.85K | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.94M | 0 | 0 | 5.02M | 31.48K | 0 | -7.29K | -427.33K | 0 | 0 | 207.45K | 118.3K | -9.01M | 123.5K | -5.54M | -832.67K | 112.71K | 609.42K | -1.11M | 0 |
| Net Change in Cash | 1.65M | 1.04M | -219.25K | -632.84K | 698.12K | -814.51K | 669.18K | -779.18K | -3.33M | -671.15K | -8.65M | -15.09M | 18.4M | 1.5M | 6.41M | -819.5K | 2.91M | -459.9K | 913.09K | 0 |
| Free Cash Flow | -9.56M | -11.74M | -2.78M | -7.88M | -44.62M | -4.82M | -4.54M | -1.08M | 2.31M | 1.49M | 5.66M | -13.01M | 6.65M | -17.27M | -10.24M | -4.84M | -2.87M | 1.59M | -3.59M | 0 |
| FCF Margin % | -34.89% | -134.51% | -98.23% | - | -270.13% | -71.11% | - | - | 5.05% | 3.31% | 10.54% | -23.46% | 13.65% | -23.18% | -7.05% | -3.51% | -3.09% | 4% | -13.02% | - |
| FCF Growth % | 25.92% | -322.13% | 64.71% | 82.34% | -825.02% | -6.37% | -321.43% | -146.55% | 55.19% | -73.67% | 143.47% | -295.79% | 138.5% | -68.63% | -111.39% | -68.48% | -280.9% | 144.27% | - | - |
| FCF per Share | -16.76 | -3048.62 | -13303.60 | -123105.14 | -999999.00 | -708413.92 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| FCF Conversion (FCF/Net Income) | 0.07x | 0.19x | 0.10x | 0.21x | 0.38x | 0.29x | 0.15x | 0.07x | -0.33x | -0.15x | -0.37x | 3.11x | -0.42x | 0.72x | 1.58x | -0.16x | -0.01x | 0.28x | 1.03x | - |
| Interest Paid | 0 | 12.44K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
According to reported financial statements, ZNB's operating cash flow consistently fails to track with net income, as evidenced by the 2026Q2 OCF/NI ratio of -0.03, highlighting a fundamental inability to convert accounting losses into meaningful cash generation despite recent, highly volatile revenue scaling efforts.
The persistent gap between net income and operating cash flow suggests that the company's accrual-based accounting may be obscuring the underlying cash burn. Investors should monitor whether this divergence is driven by non-cash charges or an aggressive recognition of revenue that has yet to materialize in the bank account.
Based on ZNB's historical filings, the free cash flow trajectory is characterized by extreme volatility, with the company swinging from a $2.4M inflow in 2026Q2 to a $22.4M outflow in 2022Q4, indicating that cash generation is highly dependent on non-recurring or lumpy operational events.
The lack of a stable FCF trend suggests that the business model has not yet achieved the scale necessary to self-fund operations. This inconsistency makes it difficult to project future liquidity needs and raises concerns about the sustainability of the current entertainment and consulting platform.
As reported in recent financial disclosures, ZNB's working capital changes have fluctuated wildly, including a significant $7.9M outflow in 2025Q4, which suggests that the company struggles to manage its cash conversion cycle effectively amidst its rapid and unpredictable business pivots.
These erratic swings in working capital may indicate difficulties in collecting receivables or managing inventory related to its peripheral product sales. Such instability often precedes liquidity crunches, particularly when the company lacks a robust cash buffer to absorb these operational shocks.
Based on the provided data, ZNB's cash flow statement appears to mask the true extent of its operational burn through significant depreciation and amortization charges, which totaled $5.8M in 2026Q2, potentially distracting from the underlying weakness in the core digital entertainment business model.
The reliance on high D&A to offset reported losses warrants further investigation into the nature of the company's capitalized assets. If these assets are not generating sufficient traffic or revenue, the company may face future impairment charges that could further erode its already strained equity base.
Quick answers to the most common questions about buying ZNB stock.
Zeta Network Group (ZNB) generated $-8.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zeta Network Group (ZNB) reported negative free cash flow of $11.7M in 2025, indicating capital requirements exceeded cash from operations.
Zeta Network Group (ZNB) spent $3.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.