Free cash flow remains highly unstable, swinging from a positive $2.8 million in 2024Q4 to a negative $2.8 million in 2026Q1, indicating a lack of consistent cash generation.
Capstone Holding Corp. (CAPS) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -3.6M | -4.41M | 3.82M | 1.65M | -2.89M | 3.72M | 642K | -1.68M | 66K | -1.56M | -1.26M | -2.15M | -4.09M | -3.95M |
| Operating CF Margin % | - | -9.41% | 8.51% | 3.41% | -4.69% | 5.58% | 1.41% | - | - | - | - | - | - | - |
| Operating CF Growth % | -160.32% | -215.47% | 131.58% | 157.09% | -177.6% | 480.06% | 138.24% | -2643.94% | 104.23% | -23.99% | 41.52% | 47.41% | -3.62% | - |
| Net Income | -22.1M | -21.23M | -2.56M | -3.82M | 2.31M | 3.92M | 11.1M | -2.71M | -380K | -1.75M | -1.61M | -2.77M | -4.17M | -3.92M |
| Depreciation & Amortization | 485K | 391K | 517K | 461K | 241K | 386K | 245K | 39K | 157K | 205K | 179K | 157K | 160K | 173K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35K | 174K | 53K | 34K |
| Deferred Taxes | 0 | 7.18M | 419K | 32K | 525K | 524K | -8.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 16.67M | 7.63M | 0 | 800K | 0 | -780K | 68K | 262K | 253K | 68K | 0 | 488K | 36K | -338K |
| Working Capital Changes | 1.34M | 1.62M | 5.45M | 4.18M | -5.97M | -327K | -2.09M | 734K | 36K | -79K | 136K | 287K | -176K | 101K |
| Change in Receivables | -1.32M | 292K | 4.26M | 3.92M | -4.87M | -1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 505K | -1.28M | 4.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 3.63M | 83K | 624K | 0 | 0 | 0 | 0 | 863K | 48K | -52K | -5K | 0 | 0 | 0 |
| Cash from Investing | -7.04M | -6.91M | -120K | -208K | -173K | -931K | -3K | 0 | 0 | 0 | 0 | 0 | 0 | 4K |
| Capital Expenditures | -229K | -122K | -120K | -208K | -173K | -1.17M | -3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0.38% | 0.26% | 0.27% | 0.43% | 0.28% | 1.76% | 0.01% | - | - | - | - | - | - | - |
| Acquisitions | -6.79M | -6.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -22K | -38K | 0 | 0 | 0 | 242K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K |
| Cash from Financing | 10.18M | 12.12M | -3.74M | -1.41M | 3.04M | -2.74M | -697K | 396K | 0 | 2.14M | 946K | 1M | 0 | 0 |
| Debt Issued (Net) | 9.7M | 9.42M | -3.53M | -1.01M | 3.04M | 1.21M | -1.48M | 350K | 0 | 1.14M | 0 | 1M | 0 | 0 |
| Equity Issued (Net) | -1.49M | 5.03M | 0 | -778K | 0 | -3.95M | 0 | 0 | 0 | 998K | 946K | 0 | 0 | 0 |
| Dividends Paid | -80K | 0 | 0 | 0 | 0 | -3.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -389K | 0 | -3.95M | 0 | 0 | 0 | -15K | 0 | 0 | 0 | 0 |
| Other Financing | 2.04M | -2.33M | -212K | 377K | 0 | 3.95M | 780K | 46K | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -548K | 716K | -41K | 29K | -27K | 50K | -58K | -1.28M | 66K | 577K | -313K | -1.15M | -4.09M | -3.95M |
| Free Cash Flow | -3.83M | -4.57M | 3.7M | 1.44M | -3.06M | 2.55M | 639K | -1.68M | 66K | -1.56M | -1.26M | -2.15M | -4.09M | -3.95M |
| FCF Margin % | -6.36% | -9.75% | 8.25% | 2.98% | -4.98% | 3.82% | 1.41% | - | - | - | - | - | - | - |
| FCF Growth % | -447.28% | -223.53% | 156.66% | 147.08% | -220.07% | 299.22% | 138.06% | -2643.94% | 104.23% | -23.99% | 41.52% | 47.41% | -3.62% | - |
| FCF per Share | -9.10 | -25.77 | 704.46 | 274.47 | -583.02 | 965.35 | 241.81 | -926.31 | 36.41 | -992.73 | -923.81 | -52.66 | -100.13 | -96.64 |
| FCF Conversion (FCF/Net Income) | 0.17x | 0.21x | -1.49x | -0.43x | -1.25x | 0.95x | 0.06x | 0.81x | -0.17x | 0.89x | 1.90x | 0.78x | 0.98x | 1.01x |
| Interest Paid | 428K | 873K | 1.48M | 1.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 29K | 29K | 31K | 378K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CAPS stock.
Capstone Holding Corp. (CAPS) generated $-4.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Capstone Holding Corp. (CAPS) reported negative free cash flow of $4.6M in 2025, indicating capital requirements exceeded cash from operations.
Capstone Holding Corp. (CAPS) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Imminent liquidity exhaustion
Metrics are mathematically derived from official filings.
Earnings Quality Lacks Cash Support
As reported in recent quarterly filings, the persistent disconnect between net income and operating cash flow, exemplified by the 2026Q1 OCF/NI ratio of 1.46, suggests that the company's reported losses are not being mitigated by underlying cash generation, indicating a fundamental weakness in earnings quality.
The erratic relationship between net income and operating cash flow suggests that accounting accruals are masking the true cash-burning nature of the business. Investors should monitor this divergence, as it implies that the company's reported bottom-line figures may not accurately reflect the actual cash depletion occurring within the core operations.
Free Cash Flow Remains Volatile
Based on the provided financial data, the company's free cash flow trajectory is highly unstable, oscillating between a positive $2.8 million in 2024Q4 and a negative $2.8 million in 2026Q1, which highlights the extreme difficulty in achieving sustainable cash flow self-sufficiency at current scale.
The lack of a consistent positive FCF trend suggests that the business model is currently unable to cover its operational and capital requirements through internal generation. This volatility warrants further investigation into whether the periodic positive cash flows are driven by sustainable operational improvements or merely temporary timing differences in working capital.
Working Capital Swings Mask Instability
According to the quarterly cash flow statements, working capital changes have been the primary driver of cash flow variance, with a significant $3.3 million inflow in 2024Q4 followed by a $1.1 million outflow in 2026Q1, suggesting that liquidity is highly sensitive to timing of receivables and payables.
The reliance on working capital fluctuations to manage cash flow suggests that the company lacks a stable, organic source of liquidity. This pattern appears to indicate that management is struggling to maintain a predictable cash conversion cycle, which increases the risk of sudden liquidity crunches during periods of operational stress.
Capital Deployment Lacks Strategic Focus
As indicated by the reported financial figures, the company has engaged in sporadic capital deployment, including small dividend payments and acquisitions, despite a clear lack of consistent operating cash flow, which may indicate a misallocation of scarce resources during a period of significant financial distress.
The decision to pay dividends while simultaneously burning cash through operations appears counterintuitive and suggests a potential disconnect between capital allocation strategy and the company's actual financial health. Investors should monitor whether these outflows are sustainable or if they represent a depletion of the remaining cash runway.