Cash conversion efficiency is currently negative, with a $2.2 billion working capital outflow in 2026Q2 driving a free cash flow margin of -15.9%.
| Cash from Operations | -2.66B | 804.64M | -2.08B | -3.66B |
| Operating CF Margin % | - | 3.9% | -14.75% | -27.56% |
| Operating CF Growth % | -26938.14% | 138.62% | 43.01% | - |
| Net Income | 893.85M | 753.62M | 323.61M | 354.02M |
| Depreciation & Amortization | 188.37M | 144.09M | 127.81M | 81.64M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 24.3M | 91.91M | 76.05M | 117.73M |
| Other Non-Cash Items | 111.93M | 168.98M | 0 | 17.49M |
| Working Capital Changes | -3.88B | -353.96M | -2.61B | -4.23B |
| Change in Receivables | -100.9M | 107.07M | 195.99M | -313.3M |
| Change in Inventory | -2.89B | -93.93M | -2.94B | -2.91B |
| Change in Payables | 39.07M | -40.41M | -194.32M | -502.19M |
| Cash from Investing | -199.92M | -475.86M | -13.54M | 17.85M |
| Capital Expenditures | -114.83M | -37.46M | -42.15M | -24.98M |
| CapEx % of Revenue | 0.55% | 0.18% | 0.3% | 0.19% |
| Acquisitions | 0 | - | - | - |
| Investments | - | - | - | - |
| Other Investing | -108.51M | -25.16M | -6.79M | -5.18M |
| Cash from Financing | 3.36B | 572.07M | 2.91B | 3.58B |
| Debt Issued (Net) | 0 | - | - | - |
| Equity Issued (Net) | 0 | 1.38B | 270M | 301.54M |
| Dividends Paid | -81M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 2.34B | -302.54M | -78.84M | -48.51M |
| Net Change in Cash | -948M | 902.27M | 805.89M | -57.76M |
| Free Cash Flow | -2.78B | 747.61M | -2.13B | -3.69B |
| FCF Margin % | -13.37% | 3.62% | -15.07% | -27.8% |
| FCF Growth % | -5204.69% | 135.12% | 42.27% | - |
| FCF per Share | -116.19 | 34.48 | -103.40 | -18.10 |
| FCF Conversion (FCF/Net Income) | -3.11x | 1.07x | -6.44x | -10.33x |
| Interest Paid | 222.25M | 476.65M | 497.73M | 391.36M |
| Taxes Paid | 0 | 127.86M | 179.89M | 87.91M |
Negative operating cash flow
As reported in recent financial statements, LGPS exhibits a significant divergence between net income and operating cash flow, with the most recent quarter showing an OCF/NI ratio of -3.12, indicating that accounting profits are not currently being converted into realized cash inflows for the business.
The persistent negative relationship between net income and operating cash flow suggests that the company's reported profitability is heavily reliant on non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this gap represents a temporary investment in inventory or a structural inability to collect cash from its development projects.
Based on the company's latest quarterly filings, the free cash flow margin has plummeted to -15.9%, reflecting a sharp deterioration in cash generation as the firm aggressively scales its property renovation and development pipeline across its core Japanese urban markets.
The trajectory of free cash flow indicates that the company is currently consuming significant capital to fuel its expansion, which may be unsustainable if the underlying property market experiences a liquidity contraction. This trend warrants further investigation into whether the current cash burn is a strategic choice or a symptom of rising operational costs.
According to the provided cash flow data, working capital changes have become a massive drain on liquidity, with a $2.2 billion outflow in 2026Q2 alone, highlighting the intense capital requirements needed to sustain the company's current pace of real estate acquisition and renovation.
The substantial negative working capital movement suggests that the company is aggressively building its inventory of properties, likely in anticipation of future sales. However, this strategy ties up significant liquidity and leaves the firm vulnerable to any sudden shifts in the Japanese real estate market's absorption rate.
As indicated by the latest quarterly data, LGPS maintains a relatively low capital expenditure to revenue ratio of 1.0%, suggesting that the firm's primary cash outflows are directed toward property inventory rather than long-term fixed asset investments or heavy infrastructure maintenance.
The low capital intensity relative to revenue implies that the company operates as a capital-light service and development platform rather than a traditional asset-heavy developer. This structure appears to prioritize flexibility, though it necessitates constant, high-volume property turnover to maintain the current growth trajectory.
Quick answers to the most common questions about buying LGPS stock.
LogProstyle Inc. (LGPS) generated $804.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LogProstyle Inc. (LGPS) generated $747.6M 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.
LogProstyle Inc. (LGPS) spent $37.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.