Liquidity remains a primary concern as free cash flow margins swung to a negative 1.3% in 2026Q1, reflecting the company's struggle to maintain consistent cash generation.
| Cash from Operations | 2M | 673.22K | -7.43M | 1.39M | 980.26K | -3.22M | 5.8M | 1.29M |
| Operating CF Margin % | - | 0.52% | -5.63% | 1.19% | 0.61% | -1.77% | 4.3% | 1.02% |
| Operating CF Growth % | 314.56% | 109.07% | -634.31% | 41.77% | 130.47% | -155.47% | 348.47% | - |
| Net Income | -6.48M | -6.14M | -1.73M | 733.6K | 3.68M | 7.91M | 4.73M | 1.57M |
| Depreciation & Amortization | 2.36M | 2.91M | 3.18M | 2.02M | 218.66K | 287.08K | 352.47K | 525.13K |
| Stock-Based Compensation | 26.43K | 0 | 401.22K | 417.98K | 383.57K | 0 | 0 | 0 |
| Deferred Taxes | 3.21M | 2.45M | -1.5M | 96.71K | 213.05K | -215.19K | -322.35K | -183.62K |
| Other Non-Cash Items | 1.05M | 82.24K | -264.31K | -741.64K | -1.43M | 1.08M | 1.24M | -212.01K |
| Working Capital Changes | 2.13M | 1.37M | -7.51M | -1.13M | -2.09M | -12.28M | -202.11K | -407.36K |
| Change in Receivables | 5.3M | 6.27M | -4.93M | -1.13M | 13.49M | -11.12M | -2.03M | 2.06M |
| Change in Inventory | -1.68M | -1.33M | -4.03M | 3.37M | 7.97M | -12.96M | 985.03K | 381.76K |
| Change in Payables | 6.72M | 4.49M | 4.98M | 436.5K | -17.19M | 12.5M | 2.81M | -3.06M |
| Cash from Investing | -645.42K | -1.02M | -2.88M | -942.61K | -1.06M | -51.89K | -76.53K | -233.86K |
| Capital Expenditures | -615.59K | -885.74K | -2.21M | -840.39K | -1.06M | -57.84K | -76.53K | -233.86K |
| CapEx % of Revenue | 0.48% | 0.68% | 1.67% | 0.72% | 0.66% | 0.03% | 0.06% | 0.19% |
| Acquisitions | 0 | 0 | 0 | 0 | 400 | 5.95K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -29.83K | -130.11K | -669.76K | -102.23K | 0 | 0 | 0 | 0 |
| Cash from Financing | -27.87K | -2.63M | 7.54M | -2.84M | 7.01M | 3.32M | -4.25M | -1.98M |
| Debt Issued (Net) | 2.18M | 0 | 7.54M | -2.84M | -4.86M | 5.26M | 2.87M | 65.72K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 12.37M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -1.95M | -7.12M | -2.04M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.21M | -2.63M | 0 | 0 | -498K | 0 | 0 | 0 |
| Net Change in Cash | 1.43M | -2.66M | -3.22M | -2.29M | 6.18M | -134.66K | 1.6M | -689.01K |
| Free Cash Flow | 1.41M | -212.52K | -9.63M | 447.08K | -83.96K | -3.28M | 5.72M | 1.06M |
| FCF Margin % | 1.1% | -0.16% | -7.31% | 0.38% | -0.05% | -1.8% | 4.24% | 0.84% |
| FCF Growth % | 141.42% | 97.79% | -2254.26% | 632.51% | 97.44% | -157.23% | 440.25% | - |
| FCF per Share | 0.73 | -0.11 | -1.01 | 0.05 | -0.01 | -0.34 | 0.60 | 0.11 |
| FCF Conversion (FCF/Net Income) | -0.22x | -0.11x | 6.18x | 1.89x | 0.27x | -0.41x | 1.23x | 0.82x |
| Interest Paid | 286.86K | 0 | 1.23M | 749.65K | 600.04K | 406.86K | 0 | 0 |
| Taxes Paid | 21.3K | 0 | 1.11M | 552.16K | 1.84M | 545.1K | 0 | 0 |
Liquidity and housing sensitivity
As reported in financial statements, FGI's operating cash flow to net income ratio has fluctuated wildly, reaching a high of 20.12 in 2024Q1, which suggests that reported net income is a poor proxy for the company's actual ability to generate cash from its core operations.
The extreme divergence between net income and operating cash flow indicates that non-cash items and working capital swings are masking the underlying cash-generating capacity of the business. Investors should monitor whether this volatility is a structural feature of the company's reliance on third-party manufacturing or merely a symptom of inconsistent inventory management.
Based on FGI's reported figures, free cash flow margins have swung from a positive 10.7% in 2023Q4 to a negative 28.9% in 2024Q1, highlighting a precarious trajectory that leaves the company highly susceptible to even minor shifts in quarterly revenue or operational expenditure requirements.
The inability to maintain positive free cash flow suggests that the company's current business model is not yet self-sustaining. This inconsistency in cash generation may indicate that the firm is forced to prioritize liquidity preservation over strategic growth investments during periods of market contraction.
According to recent SEC filings, FGI's working capital changes have been a primary driver of cash flow variance, with a significant $8.8 million outflow in 2024Q1, suggesting that the company's cash position is heavily dependent on the timing of inventory procurement and retail channel collections.
The reliance on large, lumpy working capital adjustments implies that the company lacks the operational efficiency to smooth out cash flows across the fiscal year. This sensitivity to inventory cycles warrants further investigation into whether the company is effectively managing its supply chain or simply reacting to external demand shocks.
As indicated by the provided data, FGI maintains a low capital intensity with CapEx-to-revenue ratios consistently below 2.3%, which aligns with its asset-light, virtual manufacturing model that avoids the heavy fixed-cost burdens typically associated with traditional industrial players in the bathroom fixture space.
While the low capital expenditure requirements preserve cash, they also suggest that the company may lack the proprietary manufacturing infrastructure needed to drive long-term margin expansion. The current level of investment appears focused on maintenance rather than significant capacity expansion, which may limit future competitive positioning.
Quick answers to the most common questions about buying FGI stock.
FGI Industries Ltd. (FGI) generated $0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
FGI Industries Ltd. (FGI) reported negative free cash flow of $0.2M in 2025, indicating capital requirements exceeded cash from operations.
FGI Industries Ltd. (FGI) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.