Free cash flow remains deeply negative with a -76.1% margin in 2026Q2, highlighting an unsustainable burn rate that threatens liquidity.
| Cash from Operations | -1.12M | -135.63K | -716.6K | -56.51K | -737.11K | 1.42M |
| Operating CF Margin % | - | -37.5% | -130.67% | -9.95% | -176.23% | 935.31% |
| Operating CF Growth % | -868.08% | 81.07% | -1168% | 92.33% | -151.73% | - |
| Net Income | -2.43M | -1.1M | -582.27K | 172.09K | -125.76K | -83.2K |
| Depreciation & Amortization | 71.58K | 12.7K | 3.83K | 2.3K | 2.44K | 1.55K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.02M | 414.21K | 625.98K | 2.3K | 12.72K | 7.87K |
| Working Capital Changes | 215.07K | 533.03K | -764.14K | -233.2K | -626.5K | 1.5M |
| Change in Receivables | -542.66K | 440.13K | -308.52K | -146.83K | -24.28K | -14.19K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 747.64K | -11.42K | -157.84K | -120.04K | -602.48K | 1.52M |
| Cash from Investing | -56.44K | 36.83K | -175.86K | 28.7K | 14.64K | 45.27K |
| Capital Expenditures | -32.95K | -14.76K | -20.58K | -1.02K | -2.18K | -4.77K |
| CapEx % of Revenue | 2.49% | 4.08% | 3.75% | 0.18% | 0.52% | 3.13% |
| Acquisitions | 0 | - | - | - | - | - |
| Investments | 13.8M | 368K | 254K | 0 | 0 | 0 |
| Other Investing | 7.32K | 129.6K | -122.44K | 29.72K | 16.83K | 50.05K |
| Cash from Financing | 1.59M | 304.88K | 858.84K | -43.5K | 187.55K | -6.19K |
| Debt Issued (Net) | 0 | - | - | - | - | - |
| Equity Issued (Net) | 127.7K | 128.32K | 850.66K | -43.76K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.47M | 176.56K | 8.18K | 0 | 195.77K | -4.51K |
| Net Change in Cash | 1.13M | 219.87K | 28.21K | 120.47K | 55.04K | 69.72K |
| Free Cash Flow | -1.15M | -146.92K | -734.62K | -57.53K | -739.29K | 1.42M |
| FCF Margin % | -86.96% | -40.62% | -133.96% | -10.13% | -176.75% | 932.18% |
| FCF Growth % | -39.59% | 80% | -1176.93% | 92.22% | -152.06% | - |
| FCF per Share | -0.02 | -0.01 | -0.03 | -0.00 | -0.03 | 0.05 |
| FCF Conversion (FCF/Net Income) | 0.47x | 0.12x | 1.23x | -0.33x | 5.86x | -17.13x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity exhaustion from operations
According to the latest quarterly filings, AXG's operating cash flow to net income ratio of 0.96 suggests that while cash losses are tracking closely with accounting losses, the firm lacks the positive accrual profile necessary to demonstrate a sustainable path toward operational self-sufficiency in the near term.
The tight correlation between net income and operating cash flow indicates that the firm's losses are not merely accounting artifacts but represent actual cash outflows. This lack of divergence suggests that the business model is currently unable to generate the non-cash expenses or working capital benefits that might otherwise mask a deeper underlying cash burn.
As reported in financial statements, AXG's free cash flow margin has plummeted to -76.1% in 2026Q2, reflecting a persistent inability to convert its service-based revenue into positive cash generation while simultaneously struggling to contain the administrative costs inherent in its current regulatory and operational footprint.
The consistent negative free cash flow trajectory highlights a structural inability to scale the business, as revenue declines are not being met with proportional reductions in operating expenses. Investors should monitor whether the firm can achieve any meaningful margin expansion before its current cash reserves are fully depleted.
Based on AXG's reported figures, the erratic swings in working capital, including a $37.8K outflow in 2026Q2, suggest that the firm's cash position is highly sensitive to the timing of client settlements and regulatory compliance costs, which complicates the predictability of its short-term liquidity requirements.
The frequent shifts between positive and negative working capital changes indicate that the firm's cash management is heavily dependent on the timing of transactional inflows. This volatility creates an additional layer of risk, as the firm lacks a stable, recurring revenue base to smooth out these operational cash requirements.
Analysis of the cash flow statement reveals that AXG's minimal capital expenditure, which was only $383 in 2026Q2, suggests that the firm is deferring necessary infrastructure investment, potentially masking the true cost of maintaining its competitive position in the highly regulated Hong Kong financial services market.
The extremely low level of capital expenditure relative to revenue may indicate that the firm is under-investing in the technology required to support its virtual asset platform. This strategy appears to prioritize short-term cash preservation over the long-term operational upgrades needed to compete with better-capitalized regional peers.
Quick answers to the most common questions about buying AXG stock.
Solowin Holdings Ordinary Share (AXG) generated $-0.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solowin Holdings Ordinary Share (AXG) reported negative free cash flow of $0.1M in 2025, indicating capital requirements exceeded cash from operations.
Solowin Holdings Ordinary Share (AXG) 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.