Free cash flow remains deeply negative at -$21.8 million, reflecting a persistent inability to convert operational activities into self-sustaining cash generation.
| Cash from Operations | -47.5M | -16.29M | -20.66M | -57.8M | -18.3M | -12.58M | -19.89M |
| Operating CF Margin % | -133.36% | -14.8% | -19.24% | -218.71% | -55.41% | -26.57% | -104.21% |
| Operating CF Growth % | -191.68% | 21.17% | 64.26% | -215.81% | -45.45% | 36.73% | - |
| Net Income | -53.01M | -97.96M | -55.08M | -18.91M | -87.64M | -10.28M | -12.05M |
| Depreciation & Amortization | 10.17M | 6.7M | 4.85M | 4.34M | 3.48M | 1.64M | 573K |
| Stock-Based Compensation | 0 | 3.87M | 1.45M | 2.77M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.17M | 89.07M | 1.14M | -20.07M | 61.36M | 2.21M | 1.03M |
| Working Capital Changes | -1.48M | -17.96M | 26.98M | -25.93M | 4.49M | -6.15M | -9.44M |
| Change in Receivables | 38.42K | 7.01M | -1.62M | -6.72M | -10.54M | 1.38M | 42K |
| Change in Inventory | 11.35M | -24.36M | 13.2M | -40.2M | 8.57M | 13.89M | -18.27M |
| Change in Payables | -13.8M | 12.93M | 5.99M | 3.69M | 785K | 5.94M | -1.34M |
| Cash from Investing | -3.13M | -1.3M | -9.92M | -10.87M | -5.58M | -6.62M | -5.85M |
| Capital Expenditures | -3.15M | -958K | -2.3M | -11.07M | -5.58M | -6.62M | -6.09M |
| CapEx % of Revenue | 8.85% | 0.87% | 2.14% | 41.88% | 16.91% | 13.98% | 31.91% |
| Acquisitions | 19.21K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | -338K | -7.62M | 196K | 0 | 0 | 241K |
| Cash from Financing | 35.07M | 10.6M | 25.49M | -8.65M | 125.95M | 9.9M | 13.52M |
| Debt Issued (Net) | 1.13M | 1.75M | 10.42M | -8.23M | -17.77M | 9.9M | 13.52M |
| Equity Issued (Net) | 35.17M | 776K | 6.74M | 0 | 245.4M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -19.98M | 0 | 0 |
| Other Financing | -1.22M | 8.08M | 8.33M | -427K | -101.67M | 0 | 0 |
| Net Change in Cash | -13.16M | -6.3M | -5.28M | -67.37M | 101.8M | -9.31M | -12.22M |
| Free Cash Flow | -50.27M | -17.69M | -30.58M | -68.88M | -23.89M | -19.21M | -25.98M |
| FCF Margin % | -141.14% | -16.08% | -28.48% | -260.59% | -72.31% | -40.55% | -136.12% |
| FCF Growth % | -184.2% | 42.16% | 55.6% | -188.31% | -24.38% | 26.07% | - |
| FCF per Share | -0.84 | -0.35 | -0.63 | -1.41 | -0.94 | -0.39 | -0.53 |
| FCF Conversion (FCF/Net Income) | 0.76x | 0.17x | 0.38x | 3.06x | 0.21x | 1.22x | 1.65x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and solvency crisis
According to recent financial disclosures, ADSE exhibits a persistent gap between net income and operating cash flow, with the most recent quarter showing an OCF/NI ratio of 0.42, suggesting that accounting losses are not fully capturing the underlying cash burn required to sustain current operations.
The consistent inability to align net income with operating cash flow indicates that the company's accrual-based losses are compounded by significant cash outflows. Investors should monitor whether this divergence reflects aggressive inventory management or simply the high cost of supporting a negative-margin hardware business.
As reported in quarterly filings, ADSE's free cash flow trajectory remains firmly in negative territory, with the most recent period recording a $21.8 million outflow, highlighting the extreme difficulty the company faces in achieving self-sustaining operations amidst a broader trend of contracting revenue.
The persistent negative FCF margins, which reached -110.6% in the latest quarter, suggest that the company is consuming capital at an unsustainable rate relative to its output. This trajectory implies that without a fundamental shift in unit economics, the company will continue to rely on external financing to bridge its operational gap.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $20.3 million drain in 2024Q4 to a $9.7 million source in 2025Q4, which complicates the assessment of the company's underlying cash conversion efficiency.
These fluctuations suggest that the company is struggling to manage its inventory and receivables cycle effectively, likely due to the lumpy nature of its project-based revenue. Such volatility in working capital often masks the true extent of the core business's cash-burning nature, warranting further investigation into collection cycles.
As indicated by historical financial data, ADSE's capital deployment has been characterized by significant cash outflows, including substantial share repurchases in 2021 totaling over $100 million, which appears highly questionable given the company's subsequent inability to generate positive operating cash flow.
The decision to prioritize share buybacks during a period of negative cash generation suggests a potential misalignment in capital allocation strategy. Current cash reserves are now insufficient to support such activities, forcing a pivot toward survival-focused liquidity management rather than growth-oriented investment.
Quick answers to the most common questions about buying ADSE stock.
ADS-TEC Energy PLC (ADSE) generated $-47.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ADS-TEC Energy PLC (ADSE) reported negative free cash flow of $50.3M in 2025, indicating capital requirements exceeded cash from operations.
ADS-TEC Energy PLC (ADSE) spent $3.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.