Free cash flow remains deeply negative, with quarterly outflows reaching $10.0 million in 2026Q1, indicating a structural inability to fund operations through internal cash generation.
| Cash from Operations | -28.79M | -22.91M | -11.71M | -11.39M | -9.43M | -9.38M | -1M | -1.41M | -62.57K | 410K |
| Operating CF Margin % | - | -289.93% | -163.42% | -100.11% | -100.86% | -349.27% | -93.91% | -101.88% | -4.72% | 30.99% |
| Operating CF Growth % | -983.97% | -95.6% | -2.85% | -20.74% | -0.57% | -835% | 28.87% | -2153.51% | -115.26% | - |
| Net Income | -39.39M | -38.48M | -17M | -18.06M | -18.35M | -40.29M | -5.95M | -2.81M | -103.93K | -321K |
| Depreciation & Amortization | 962K | 815K | 862K | 1.03M | 786K | 251K | 213K | 205K | 83K | 76K |
| Stock-Based Compensation | 14.93M | 20.36M | 0 | 5.32M | 4.87M | 843K | 601K | 64K | 33.35K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 16.84K | 418.51K | 0 | 0 |
| Other Non-Cash Items | 2.95M | -670K | 6.93M | -228K | 254K | 30.89M | 3.21M | 1.22M | 0 | -68K |
| Working Capital Changes | -7.92M | -4.92M | -2.51M | 547K | 3.01M | -1.08M | 908K | -511K | 8.02K | 723K |
| Change in Receivables | -6.81M | -5.03M | -468K | 1.81M | 990K | -661K | 35K | 65K | -105K | 139K |
| Change in Inventory | -4.78M | -3.11M | -546K | 125K | 690K | -1.13M | 19K | 1K | 8K | 30K |
| Change in Payables | 3.89M | 3.01M | 92K | -482K | 860K | 448K | 43K | -151K | 0 | 0 |
| Cash from Investing | -32.05M | -57.02M | -140K | -320K | -1.56M | -280K | -425K | -26K | 110K | -168K |
| Capital Expenditures | -757.35K | -452K | -140K | -174K | -727K | -412K | -233K | -26K | -75K | -41K |
| CapEx % of Revenue | 7.83% | 5.72% | 1.95% | 1.53% | 7.77% | 15.34% | 21.82% | 1.88% | 5.65% | 3.1% |
| Acquisitions | -83.5K | -47K | 0 | 0 | -879K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -834.21K | -878K | 0 | -69K | 47K | 1.16K | 10.14K | -2K | 185K | -127K |
| Cash from Financing | 53.35M | 81.31M | 22.81M | 10.89M | 6.1M | 12.36M | 7.2M | 1.67M | 310.25K | -62K |
| Debt Issued (Net) | -510.57K | -1.55M | -484K | -645K | 615K | -131K | 351K | -28K | 0 | -36K |
| Equity Issued (Net) | 54.95M | 84.71M | 25.01M | 10.32M | 3.89M | 8.36M | 8.25M | 0 | 341.4K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26K |
| Share Repurchases | -3.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.09M | -1.85M | -1.72M | 1.22M | 1.59M | 4.13M | -1.4M | 1.86M | -31.16K | 0 |
| Net Change in Cash | 1.06M | -1K | 11.39M | -349K | -5.85M | 3.07M | 5.04M | 123K | 247.68K | 130K |
| Free Cash Flow | -30.18M | -24M | -11.85M | -11.56M | -10.16M | -9.79M | -1.24M | -1.44M | -137.57K | 369K |
| FCF Margin % | -312.07% | -303.71% | -165.38% | -101.64% | -108.63% | -364.62% | -115.73% | -103.76% | -10.37% | 27.89% |
| FCF Growth % | -162.72% | -102.48% | -2.51% | -13.81% | -3.76% | -692.07% | 13.93% | -943.84% | -137.28% | - |
| FCF per Share | -0.68 | -0.65 | -0.55 | -0.31 | -0.37 | -0.42 | -0.07 | -0.11 | -0.19 | 0.27 |
| FCF Conversion (FCF/Net Income) | 0.77x | 0.61x | 0.69x | 0.71x | 0.57x | 0.24x | 0.17x | 0.48x | 0.60x | -1.28x |
| Interest Paid | 11K | 29K | 0 | 0 | 49K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 74K | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
Based on quarterly financial data, A2Z consistently reports negative net income alongside operating cash outflows, with the OCF/NI ratio frequently failing to provide a meaningful signal of cash generation, as seen in the 2025Q1 period where the company burned $3.8M despite a $6.4M net loss.
The persistent gap between net income and operating cash flow suggests that the company's accounting losses are not merely non-cash accounting artifacts but reflect actual cash-consuming operational activities. Investors should monitor the inability of the business to bridge this gap, as it indicates that the core retail automation model is currently unable to generate self-sustaining cash flows.
As reported in recent filings, A2Z's free cash flow trajectory remains firmly in negative territory, with quarterly outflows reaching as high as $10.0M in 2026Q1, underscoring a structural inability to fund operations through internal cash generation despite ongoing efforts to scale the Cust2Go smart cart platform.
The consistent negative free cash flow suggests that the company is in a perpetual state of capital consumption, likely driven by the high costs of hardware deployment and R&D. This trajectory warrants further investigation into how long the current cash position can support these outflows before additional dilutive financing becomes necessary.
According to historical cash flow statements, working capital changes have been a significant drag on liquidity, with a $3.6M outflow in 2026Q1 alone, suggesting that the company is struggling to manage the cash conversion cycle as it attempts to ramp up hardware production and inventory levels.
The erratic nature of working capital changes appears to be a symptom of the company's hardware-heavy business model, where inventory build-up and collection cycles are likely creating significant cash pressure. This volatility suggests that management may lack the operational maturity to optimize cash flow, potentially exacerbating the company's existing liquidity risks.
Based on the provided cash flow statements, the company has utilized significant stock-based compensation, including $11.7M in 2025Q4, which effectively obscures the true extent of the cash burn by substituting equity for cash-based operational expenses that would otherwise further deplete the company's limited cash reserves.
The reliance on stock-based compensation suggests that the company is attempting to preserve cash by diluting shareholders, a strategy that may not be sustainable if the market loses confidence in the long-term value of the equity. Analysts should interpret these adjustments as a signal that the company's underlying cash-generating capacity is even weaker than the headline operating cash flow figures might imply.
Quick answers to the most common questions about buying AZ stock.
A2Z Cust2Mate Solutions Corp. (AZ) generated $-22.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
A2Z Cust2Mate Solutions Corp. (AZ) reported negative free cash flow of $24.0M in 2025, indicating capital requirements exceeded cash from operations.
A2Z Cust2Mate Solutions Corp. (AZ) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.