Free cash flow generation is highly inconsistent, with margins fluctuating between -22.1% and 18.0% due to significant working capital swings as large as $5.6 million.
| Cash from Operations | 2.27M | -4.73M | 2.76M | -1.74M | -2M | -5.29M | -1.67M | 872.66K |
| Operating CF Margin % | - | -4.07% | 3.34% | -2.29% | -3.46% | -13.33% | -4.42% | 2.88% |
| Operating CF Growth % | 115.62% | -271.49% | 258.35% | 12.85% | 62.21% | -217.39% | -291.06% | - |
| Net Income | 390K | -747K | -4.14M | -385K | -3.5M | 235.24K | 1.03M | 389.86K |
| Depreciation & Amortization | 832K | 1.11M | 824K | 773K | 420K | 446.71K | 222.09K | 174.38K |
| Stock-Based Compensation | 31K | 0 | 128K | 0 | 331K | 153.21K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 217K | -113K | 0 | 0 |
| Other Non-Cash Items | 2.68M | 1.74M | 470K | 794K | 859K | -776.44K | 0 | 0 |
| Working Capital Changes | -1.03M | -6.83M | 5.48M | -2.92M | -327K | -5.24M | -2.92M | 308.41K |
| Change in Receivables | 767K | 640K | -411K | -1.53M | -3.01M | -3.3M | -563.05K | -1.72M |
| Change in Inventory | -897K | -2.23M | 333K | 2.03M | -945K | -2.73M | -390.88K | -515.25K |
| Change in Payables | 1M | -354K | 60K | 104K | -1.9M | 1.72M | -934.28K | 1.06M |
| Cash from Investing | 2.18M | 3.23M | -533K | -3.74M | -12.28M | -388.95K | -176.47K | -117.88K |
| Capital Expenditures | -703K | -823K | -601K | -999K | -626K | -388.95K | -176.47K | -117.88K |
| CapEx % of Revenue | 0.59% | 0.71% | 0.73% | 1.31% | 1.08% | 0.98% | 0.47% | 0.39% |
| Acquisitions | 0 | 0 | -1.47M | -2.12M | -1.88M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -1.16M | -1.17M | -928K | -909K | -2.69M | 37.26M | 375.91K | -326.44K |
| Debt Issued (Net) | -457K | -462K | -100K | -218K | -668.73K | -2.34M | 419.96K | -326.44K |
| Equity Issued (Net) | -554K | -554K | 0 | -50K | -3.33M | 37.72M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -554K | -554K | 0 | -50K | -3.33M | 0 | 0 | 0 |
| Other Financing | -151K | -151K | -828K | -641K | 1.31M | 1.88M | -44.05K | 0 |
| Net Change in Cash | 3.41M | -2.6M | 1.3M | -7.2M | -16.97M | 31.58M | -1.79M | 428.34K |
| Free Cash Flow | 1.56M | -5.56M | 2.16M | -2.74M | -2.63M | -5.68M | -1.84M | 754.78K |
| FCF Margin % | 1.32% | -4.78% | 2.61% | -3.61% | -4.54% | -14.31% | -4.88% | 2.49% |
| FCF Growth % | 128.77% | -357.34% | 178.74% | -4.42% | 53.77% | -208.11% | -344.28% | - |
| FCF per Share | 0.08 | -0.30 | 0.12 | -0.15 | -0.14 | -0.27 | -0.12 | 0.05 |
| FCF Conversion (FCF/Net Income) | 4.01x | 6.34x | -0.67x | 4.53x | 0.57x | -22.49x | -1.62x | 2.24x |
| Interest Paid | 0 | 0 | 95K | 0 | 4K | 136.66K | 0 | 109.12K |
| Taxes Paid | 0 | 0 | 5K | 0 | 76K | 360.91K | 0 | 29.15K |
Operating cash flow volatility
As reported in quarterly financial statements, the relationship between net income and operating cash flow is highly inconsistent, with OCF/NI ratios swinging from -3.94 to 13.66, suggesting that accrual-based accounting figures provide little reliable insight into the company's actual ability to generate cash from operations.
The extreme variance in the conversion ratio indicates that working capital swings, rather than core operational profitability, are the primary drivers of cash flow. Investors should monitor this disconnect, as it implies that reported net income is currently a poor proxy for the underlying cash-generating capacity of the business.
Based on the provided cash flow data, Stran's free cash flow trajectory is characterized by significant quarterly swings, with FCF margins fluctuating between -22.1% and 18.0%, indicating that the company has yet to establish a predictable or sustainable pattern of cash generation from its core business activities.
The inability to maintain positive free cash flow across consecutive periods suggests that the company's growth initiatives are consuming cash at a rate that frequently outpaces operational inflows. This volatility warrants further investigation into whether the business model can achieve self-funding status without recurring external capital support.
According to recent SEC filings, working capital changes have been the dominant force behind cash flow fluctuations, with quarterly shifts as large as $5.6 million, highlighting the company's sensitivity to inventory management and the timing of client payments within its promotional products fulfillment model.
The massive swings in working capital suggest that the company's cash position is highly vulnerable to the timing of large program-based orders and the associated inventory buildup. This dependency implies that operational cash flow is more a function of logistical timing than consistent, high-margin service delivery.
As indicated by financial data, the company maintains a low capital intensity with CapEx/Revenue ratios consistently below 2%, suggesting that the business model is not asset-heavy, though this low investment level may limit the company's ability to automate fulfillment and improve long-term operating margins.
While the low capital expenditure requirements preserve cash, it may also indicate a lack of investment in the proprietary technology needed to scale efficiently. Analysts should consider whether this under-investment in infrastructure is a strategic choice or a constraint imposed by the company's persistent cash flow volatility.
Quick answers to the most common questions about buying SWAG stock.
Stran & Company, Inc. (SWAG) generated $-4.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Stran & Company, Inc. (SWAG) reported negative free cash flow of $5.6M in 2025, indicating capital requirements exceeded cash from operations.
Stran & Company, Inc. (SWAG) spent $0.8M 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, Stran & Company, Inc. (SWAG) spent $0.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.