Cash conversion remains highly erratic, with free cash flow margins swinging from -28.9% in 2023Q4 to 15.3% in 2025Q2, largely driven by volatile working capital shifts.
| Cash from Operations | 2.49M | 1.36M | 2.48M | 10.81M | 8.96M | -1.5M | 6.91M | 9.78M | 5.16M | 7.68M | 2.31M | 2.95M |
| Operating CF Margin % | 1.5% | 0.94% | 2.12% | 7.83% | 6.25% | -1.66% | 7.43% | 11.5% | 7.45% | 12.37% | 4.4% | 6.88% |
| Operating CF Growth % | 82.78% | -45.08% | -77.01% | 20.57% | 698.11% | -121.68% | -29.28% | 89.31% | -32.74% | 231.73% | -21.52% | - |
| Net Income | 3.54M | -848.37K | -2.04M | 2.42M | 7.92M | 4.15M | 6.48M | 5.11M | 10.4M | 10.65M | 9.01M | 4.71M |
| Depreciation & Amortization | 3.66M | 3.27M | 3.3M | 3.42M | 2.95M | 2.55M | 1.99M | 1.26M | 1.22M | 1.32M | 1.01M | 726.6K |
| Stock-Based Compensation | 904.17K | 1.76M | 986.05K | 413.9K | 947.08K | 66.25K | 0 | 3.59M | 116.58K | 0 | 0 | 0 |
| Deferred Taxes | -47 | 0 | 0 | 198.72K | -203.93B | 0 | 0 | -81.46M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 163.28K | 1.92M | -187.76K | -198.72K | 203.93B | -124.89K | 279.11K | 81.46M | 10.48M | 6.3M | 52.29K | 3.97M |
| Working Capital Changes | -5.77M | -2.99M | 428.68K | 4.55M | -3.08M | -8.14M | -1.84M | -185.96K | -6.57M | -4.29M | -7.76M | -2.48M |
| Change in Receivables | -2.67M | 2.36M | -2.9M | 8.81M | 762.61K | -6.7M | -1.32M | 1.28M | -179.49K | -5.12M | 25.57K | 70.92K |
| Change in Inventory | -2.25M | -4.02M | 5.42M | -4.4M | -3.22M | -2.4M | -3.23M | -770.72K | -1.15M | -2.68M | -2.86M | -4.39M |
| Change in Payables | 659.71K | 167.07K | 557.67K | 942.35K | -3.08M | 1.55M | 3M | -1.4M | -5.47M | 4.11M | -4.64M | 4.03M |
| Cash from Investing | -5.79M | -2.37M | -5.14M | -13.78M | -8.67M | -894.26K | -4.93M | -1.6M | -541.2K | -828.57K | -2.36M | -1.24M |
| Capital Expenditures | -5.13M | -2.04M | -4.84M | -5.81M | -5.05M | -890.46K | -4.68M | -791K | -877.94K | -491.63K | -2.36M | -1.24M |
| CapEx % of Revenue | 3.08% | 1.4% | 4.13% | 4.21% | 3.53% | 0.99% | 5.03% | 0.93% | 1.27% | 0.79% | 4.5% | 2.9% |
| Acquisitions | 0 | 0 | 0 | -7.3M | -3.2M | 0 | 0 | -380K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -329.33K | 0 | -668.34K | -419.6K | 0 | 0 | -430.11K | 336.75K | -336.94K | 0 | 0 |
| Cash from Financing | 671.35K | 2.05M | -2.43M | -3.95M | 3.29M | -1.65M | -2.91M | 7.47M | 324.95K | -6M | 0 | 0 |
| Debt Issued (Net) | 3.21M | 4.51M | 0 | 0 | -612.7K | 612.47K | -648.43K | 0 | 980.4K | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | -1.17M | 6.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -2.54M | -2.46M | -2.46M | -2.48M | -2.37M | -2.27M | -2.27M | -1.13M | 0 | -5.31M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -1.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 31.36K | -300.17K | -1.76K | -1.76K | 0 | 8.6M | -655.45K | -692.5K | 0 | 0 |
| Net Change in Cash | -2.6M | 918.42K | -5.37M | -7.17M | 3.72M | -4.05M | -1.05M | 14.99M | 4.94M | 830.4K | -43.29K | 1.71M |
| Free Cash Flow | -2.63M | -675.97K | -2.36M | 5M | 3.91M | -2.39M | 2.23M | 8.98M | 4.29M | 7.19M | -48.67K | 1.71M |
| FCF Margin % | -1.58% | -0.46% | -2.01% | 3.62% | 2.73% | -2.65% | 2.4% | 10.57% | 6.18% | 11.58% | -0.09% | 3.98% |
| FCF Growth % | -289.69% | 71.33% | -147.15% | 27.89% | 263.66% | -206.92% | -75.13% | 109.64% | -40.36% | 14864.59% | -102.85% | - |
| FCF per Share | -0.20 | -0.05 | -0.19 | 0.39 | 0.33 | -0.21 | 0.20 | 0.79 | 0.38 | 0.55 | -0.00 | 0.13 |
| FCF Conversion (FCF/Net Income) | 0.71x | -1.61x | -1.24x | 4.47x | 1.13x | -0.36x | 1.07x | 1.91x | 0.50x | 0.72x | 0.25x | 0.62x |
| Interest Paid | 0 | 1.72M | 1.2M | 768.13K | 210.58K | 0 | 0 | 90.87K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.4M | 2.25M | 1.75M | 1.76M | 773.32K | 0 | 175K | 0 | 0 | 0 | 0 |
Geopolitical and Trade Policy
As reported in recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -20.33 in 2025Q1 to 14.72 in 2025Q2, indicating that reported earnings are a poor proxy for actual cash generation capabilities.
The extreme divergence between net income and operating cash flow suggests that accrual-based accounting significantly masks the underlying cash volatility inherent in the company's contract manufacturing model. Investors should interpret these swings as evidence of significant timing differences in working capital cycles rather than a reflection of sustainable operational profitability.
Based on the provided cash flow data, free cash flow margins have exhibited extreme instability over the last ten quarters, ranging from a low of -28.9% in 2023Q4 to a peak of 15.3% in 2025Q2, reflecting the company's difficulty in maintaining consistent cash conversion.
The inability to generate positive free cash flow on a consistent basis suggests that the business model is highly sensitive to order volume fluctuations and seasonal working capital requirements. This trajectory warrants caution, as the company appears to rely on periodic cash inflows to offset frequent periods of cash burn.
According to quarterly cash flow statements, working capital changes are the primary determinant of operating cash flow, with a notable $7.9M outflow in 2025Q1 followed by a $5.1M inflow in 2025Q2, highlighting the company's vulnerability to customer payment timing and inventory management.
The high correlation between working capital movements and operating cash flow suggests that the company lacks the scale to buffer against the payment cycles of its major retail customers. This reliance on working capital management implies that any disruption in the supply chain or customer demand could lead to immediate liquidity pressure.
As indicated by recent financial statements, capital expenditure has been inconsistent, peaking at 9.8% of revenue in 2025Q4, which suggests that the company is periodically forced to reinvest in its Jordanian facilities to maintain its competitive duty-free manufacturing capacity.
The lumpy nature of these capital expenditures indicates that maintenance and growth capex are not easily separable, potentially masking the true cost of sustaining the current production footprint. Analysts should monitor whether these investments are yielding commensurate improvements in operating margins or if they are merely defensive measures to retain key customers.
Based on reported figures, the company has maintained consistent dividend payments despite frequent periods of negative free cash flow, with $635.4K distributed in 2025Q4 even as the firm navigated significant operational volatility and capital expenditure requirements.
The decision to prioritize dividend distributions while free cash flow remains inconsistent suggests a management focus on shareholder returns that may not be fully supported by the underlying cash generation. This capital allocation strategy warrants further investigation into the sustainability of these payouts if operational cash flow remains erratic.
Quick answers to the most common questions about buying JRSH stock.
Jerash Holdings (US), Inc. (JRSH) generated $2.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Jerash Holdings (US), Inc. (JRSH) reported negative free cash flow of $2.6M in 2025, indicating capital requirements exceeded cash from operations.
Jerash Holdings (US), Inc. (JRSH) spent $5.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Jerash Holdings (US), Inc. (JRSH) returned $2.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.