Operational liquidity is under significant pressure, as evidenced by a cash position that has fallen to $808.0 thousand from a $6.2 million peak in 2025Q3.
| Cash from Operations | -5.14M | -3.57M | -853.38K | 205.1K | 117.51K |
| Operating CF Margin % | - | -258.56% | -59.26% | 13.19% | 7.41% |
| Operating CF Growth % | -2002.82% | -318.37% | -516.07% | 74.54% | - |
| Net Income | -4.76M | -3.14M | -939.44K | -295.75K | -21.41K |
| Depreciation & Amortization | 37.45K | 1.06K | 2.09K | 2.32K | 3.2K |
| Stock-Based Compensation | 0 | 0 | 222.92K | 434.89K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -928.03K | 0 | 0 | 0 | 0 |
| Working Capital Changes | -495.9K | -430.07K | -138.96K | 63.64K | 135.72K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 99.08K | 91.92K | -109.07K | 126.97K | 3.23K |
| Cash from Investing | -1.93M | -250.67K | 0 | 0 | 0 |
| Capital Expenditures | -1.49M | -1.82K | 0 | 0 | 0 |
| CapEx % of Revenue | 109.69% | 0.13% | - | 0% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -442.83K | -248.85K | 0 | 0 | 0 |
| Cash from Financing | 7.68M | 7.68M | 1.31M | -367.26K | -122.94K |
| Debt Issued (Net) | -20K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 7.7M | 7.68M | 1.51M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -71.19K | -30.51K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -192.56K | -296.06K | -92.43K |
| Net Change in Cash | 614.69K | 3.86M | 459.72K | -162.15K | -5.43K |
| Free Cash Flow | -6.86M | -3.57M | -853.38K | 205.1K | 117.51K |
| FCF Margin % | -504.47% | -258.69% | -59.26% | 13.19% | 7.41% |
| FCF Growth % | -618.67% | -318.59% | -516.07% | 74.54% | - |
| FCF per Share | -0.56 | -0.32 | -0.07 | 0.02 | 0.01 |
| FCF Conversion (FCF/Net Income) | 1.44x | 1.14x | 0.91x | -0.74x | -7.84x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
As reported in financial statements, ATHR's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating wildly, including a 0.89 reading in 2026Q2, which suggests that the company's accounting losses are being compounded by a persistent inability to generate positive cash from core operations.
The recurring gap between net income and operating cash flow indicates that the company's accruals are not providing the expected cash conversion benefits. Investors should monitor whether this divergence stems from aggressive revenue recognition or simply the high cash-based overhead required to sustain the platform's operations.
Based on recent SEC filings, ATHR's free cash flow has remained negative for nine consecutive quarters, reaching a trough of -$2.6 million in 2026Q1, which highlights a structural inability to fund operations through internal cash generation despite the company's established software-as-a-service business model.
The consistent negative FCF margins suggest that the business model is currently incapable of self-funding its own growth or maintenance requirements. This trajectory warrants further investigation into whether the company's cash burn is accelerating as it attempts to scale or if it reflects a fundamental lack of product-market fit.
According to the provided data, ATHR's capital expenditure reached 21.3% of revenue in 2026Q2, a significant increase from the near-zero levels observed in 2025, suggesting that the company is shifting toward higher capital intensity to maintain its aging data infrastructure or support new product development initiatives.
The sudden spike in capital intensity appears to be a defensive move to preserve the platform's competitive moat rather than a strategic expansion. Analysts should consider whether this increased spending is truly growth-oriented or if it represents necessary maintenance capex to prevent further subscriber churn.
As indicated by quarterly cash flow data, ATHR's working capital changes have been highly erratic, swinging from a $266.7K inflow in 2026Q1 to a $16.6K inflow in 2026Q2, which suggests that the company's cash management processes are not yet optimized for a stable subscription-based revenue stream.
The volatility in working capital movements may imply inconsistent collection cycles or unpredictable timing of deferred revenue recognition. This lack of predictability in cash inflows makes it difficult to forecast the company's runway and suggests that management may be struggling to manage its short-term liquidity effectively.
Quick answers to the most common questions about buying ATHR stock.
Aether Holdings, Inc. Common Stock (ATHR) generated $-3.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Aether Holdings, Inc. Common Stock (ATHR) reported negative free cash flow of $3.6M in 2025, indicating capital requirements exceeded cash from operations.
Aether Holdings, Inc. Common Stock (ATHR) 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.