Cash generation remains erratic, with a significant $90.1M working capital outflow in 2026Q1 contributing to a negative free cash flow of $12.3M.
| Cash from Operations | -17.91M | -7.16M | 1.78M | 1.46M | -3.06M | -5.29M | -617K |
| Operating CF Margin % | - | -28.81% | 14.18% | - | - | -13.22% | -1.82% |
| Operating CF Growth % | -7059.45% | -502.76% | 21.46% | 147.86% | 42.23% | -757.7% | - |
| Net Income | -613.14M | -341.49M | -6.25M | -17.09M | 8.02M | -16.89M | -8.5M |
| Depreciation & Amortization | 3.04M | 3.39M | 3.43M | 1.45M | 2K | 4.17M | 4.12M |
| Stock-Based Compensation | 5.9M | 5.9M | 1.66M | 14K | 5K | 303K | 578K |
| Deferred Taxes | -86.95M | -86.95M | -3.23M | 444K | -4.59M | 0 | -270K |
| Other Non-Cash Items | 750.13M | 402.15M | 2.38M | 17.74M | -2.89M | 6.97M | -263K |
| Working Capital Changes | -79.91M | 9.84M | 3.78M | -1.09M | -3.6M | 153K | 3.71M |
| Change in Receivables | 4.74M | 4.83M | 1.88M | -367K | -5.18M | -424K | 2.86M |
| Change in Inventory | 0 | 0 | 0 | 0 | 738K | 421K | -282K |
| Change in Payables | -589K | -2.23M | 1.65M | -1.05M | 0 | 0 | 0 |
| Cash from Investing | -706.61M | -706.61M | 5.85M | -155K | -1.51M | -1.72M | -834K |
| Capital Expenditures | 5K | -11K | 0 | 0 | -808K | -1.66M | -507K |
| CapEx % of Revenue | 0.02% | 0.04% | - | - | - | 4.15% | 1.5% |
| Acquisitions | 122K | 122K | 5.85M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 4.69M | -706.72M | 0 | -155K | -701K | -62K | -327K |
| Cash from Financing | 723.77M | 716.8M | 6.09M | -1.44M | 3.98M | 7.37M | 1.4M |
| Debt Issued (Net) | 6.39M | -657K | 4.75M | -274K | -14K | 1.8M | 1.4M |
| Equity Issued (Net) | 2K | 0 | 851K | 792K | 0 | 5.54M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 717.37M | 717.45M | 497K | -1.95M | 3.99M | 27K | 0 |
| Net Change in Cash | -289K | -955K | 7.17M | -110K | -644K | 326K | -102K |
| Free Cash Flow | -19.9M | -725.88M | 1.78M | 1.46M | -3.06M | -7.02M | -1.45M |
| FCF Margin % | -82.79% | -2922.24% | 14.18% | - | - | -17.53% | -4.28% |
| FCF Growth % | -2658.1% | -40948.9% | 21.46% | 147.86% | 56.43% | -383.53% | - |
| FCF per Share | -0.16 | -12.45 | 0.16 | 0.33 | -0.97 | -2.64 | -0.78 |
| FCF Conversion (FCF/Net Income) | 0.03x | 0.02x | -0.28x | -0.19x | -0.28x | 0.31x | 0.07x |
| Interest Paid | 1.27M | 1.39M | 296K | 133K | 407K | 475K | 129K |
| Taxes Paid | 0 | 0 | 17K | 0 | 108K | 40K | 30K |
Liquidity and Solvency Constraints
Based on reported quarterly filings, the persistent gap between net income and operating cash flow, highlighted by the 2026Q1 net loss of $271.5M against an operating cash outflow of $12.3M, suggests that accounting accruals and non-cash adjustments are masking the underlying cash-generative capacity of the business.
The extreme divergence between bottom-line results and cash flow indicates that reported earnings are not reflective of the company's actual ability to generate liquidity. Investors should monitor this disconnect, as it implies that the core business model may be struggling to convert transactional activity into tangible cash reserves.
As reported in financial statements, ALTS has struggled to maintain a consistent free cash flow trajectory, with quarterly figures swinging from a positive $6.3M in 2025Q4 to a negative $12.3M in 2026Q1, indicating a highly unstable cash generation profile that remains sensitive to operational volatility.
The inability to sustain positive free cash flow suggests that the company's current scale is insufficient to cover its operational requirements. This erratic performance warrants further investigation into whether the business can achieve self-sustaining growth without recurring external capital injections.
According to recent SEC filings, working capital fluctuations have become a primary driver of cash flow volatility, most notably evidenced by the $90.1M outflow in 2026Q1, which significantly outpaced the company's ability to generate cash from its core trading and payment processing operations.
These large working capital swings suggest that the company's cash position is highly vulnerable to timing differences in settlement and client receivables. Such instability may indicate that the firm's internal controls over cash management are currently insufficient to mitigate the risks inherent in its transactional business model.
Based on the provided data, the company's cash flow statement appears to obscure the true extent of its operational burn, as non-cash items like the $897K in depreciation and amortization in 2026Q1 fail to account for the massive underlying net losses reported during the same period.
The reliance on non-cash adjustments to reconcile the gap between net income and operating cash flow suggests that the company's financial health is more fragile than headline figures might imply. Analysts should be wary of the potential for future impairments or write-downs that could further deplete the company's limited cash position.
Quick answers to the most common questions about buying ALTS stock.
ALT5 Sigma Corporation (ALTS) generated $-7.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ALT5 Sigma Corporation (ALTS) reported negative free cash flow of $725.9M in 2025, indicating capital requirements exceeded cash from operations.
ALT5 Sigma Corporation (ALTS) 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.