Cash generation remains severely compromised, with a free cash flow margin of -154.2% in 2025Q4 and an operating cash flow to net income ratio of 0.02, highlighting a persistent inability to convert operations into liquidity.
| Cash from Operations | -3.55M | -15.14M | -15.79M | -10.92M | -11.89M | -3.46M |
| Operating CF Margin % | -28.77% | -21.53% | -26.69% | -22.67% | -36.55% | -24.99% |
| Operating CF Growth % | 76.58% | 4.12% | -44.55% | 8.11% | -243.25% | - |
| Net Income | -101.49M | -14.55M | -26.46M | -6.01M | 3.37M | -7.06M |
| Depreciation & Amortization | 170.71K | 1.14M | 1.31M | 895.11K | 1.26M | 1.55M |
| Stock-Based Compensation | 0 | 1.56M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 3.78M | 660.65K | 534.67K | -235.85K |
| Other Non-Cash Items | 71.09M | 10.74M | -4.97M | 2.16M | 1.75M | 932.26K |
| Working Capital Changes | 26.68M | -14.03M | 10.55M | -8.63M | -18.8M | 1.35M |
| Change in Receivables | 3.34M | -30.54M | 11.15M | -15.01M | -23.39M | -701.26K |
| Change in Inventory | 14.4K | 52.41K | 122.76K | -2.13M | -495.4K | 256.51K |
| Change in Payables | 12.1M | 14.08M | 4.76M | 4.12M | 3.39M | -614.2K |
| Cash from Investing | 42.2K | -468.57K | -20.06M | -2.86M | 77.26K | -25.82K |
| Capital Expenditures | -41.85K | -368.17K | -2.16M | -107.12K | -18.85K | -41.08K |
| CapEx % of Revenue | 0.34% | 0.52% | 3.66% | 0.22% | 0.06% | 0.3% |
| Acquisitions | 84.05K | 0 | 0 | -2.75M | 96.24K | 15.28K |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | -100.4K | -17.9M | -2.75M | -127 | -26 |
| Cash from Financing | 5.58M | 15.84M | 36.47M | 13.51M | 12.19M | 1.79M |
| Debt Issued (Net) | 5.58M | 14.86M | 2.07M | 5.89M | 12.19M | 1.79M |
| Equity Issued (Net) | 0 | 980K | 34.37M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 29.9K | 7.62M | 0 | 0 |
| Net Change in Cash | 1.59M | -717.95K | 538.3K | -285.6K | 484.82K | -2.49M |
| Free Cash Flow | -3.59M | -15.51M | -18M | -11.03M | -11.91M | -3.5M |
| FCF Margin % | -29.1% | -22.06% | -30.41% | -22.89% | -36.61% | -25.29% |
| FCF Growth % | 76.87% | 13.81% | -63.14% | 7.35% | -239.77% | - |
| FCF per Share | -5.19 | -33.87 | -45.66 | -29.93 | -31.94 | -9.51 |
| FCF Conversion (FCF/Net Income) | 0.04x | 1.04x | 0.60x | 1.85x | -3.23x | 0.51x |
| Interest Paid | 0 | 1.61M | 0 | 609.45K | 0 | 747.53K |
| Taxes Paid | 0 | 0 | 0 | 2 | 0 | 52.38K |
Imminent liquidity and solvency
As reported in financial statements, AIXI's operating cash flow to net income ratio of 0.02 in 2025Q4 highlights a profound disconnect between accounting profitability and actual cash generation, suggesting that reported earnings provide little insight into the company's underlying ability to sustain its operations through internal cash flows.
The persistent gap between net income and operating cash flow suggests that the company's accrual-based accounting may be masking significant cash-burn realities. Investors should monitor whether this divergence stems from aggressive revenue recognition on long-term government contracts that fail to materialize into actual cash receipts.
Based on the company's reported figures, the free cash flow margin of -154.2% in 2025Q4 indicates a rapid depletion of resources, confirming that the business model is currently unable to cover its operational and capital requirements without relying on external financing or existing cash reserves.
The negative FCF trajectory appears to be accelerating as revenue streams contract, leaving the company with limited flexibility. This trend suggests that the current cost structure is fundamentally misaligned with the company's ability to generate cash, warranting further investigation into the sustainability of its current operating model.
According to recent SEC filings, the fluctuation in working capital, including a $5.4M inflow in 2025Q4 following a $21.3M inflow in 2025Q2, suggests that AIXI's cash position is highly sensitive to the timing of project-based collections rather than consistent, predictable operational efficiency.
The reliance on large, lumpy working capital swings to manage liquidity may indicate that the company is struggling to collect on its receivables in a timely manner. This volatility creates significant uncertainty regarding the company's ability to meet short-term obligations as they fall due.
As indicated by the historical data, the persistent negative operating cash flow across multiple periods, despite occasional positive net income, suggests a structural inability to convert accounting gains into tangible cash, which may indicate that the company's business model is inherently cash-intensive and difficult to scale.
The long-term divergence between net income and operating cash flow warrants deep skepticism regarding the quality of the company's reported earnings. This pattern often precedes liquidity crises in project-based technology firms where costs are front-loaded and revenue recognition is decoupled from the actual cash collection cycle.
Quick answers to the most common questions about buying AIXI stock.
Xiao-I Corporation (AIXI) generated $-3.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Xiao-I Corporation (AIXI) reported negative free cash flow of $3.6M in 2025, indicating capital requirements exceeded cash from operations.
Xiao-I Corporation (AIXI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.