Free cash flow remains fundamentally unstable, characterized by a -176.3% FCF margin in 2025Q3 and an erratic OCF/NI ratio that reached -0.02 in 2026Q1.
| 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 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | -4.63M | -6.65M | -15.08M | -8.34M | -13.85M | -16.02M | -12.76M | -6.54M | -2.2M | -4.6M | -1.71M | -2.73M | -128.1K | -165.28K | -259.4K | -181.59K | -212.36K | -706.07K | -39.07K | -102.83K | -188.03K | -98.94K | -144.4K | -117.07K | -83.23K | -113.22K |
| Operating CF Margin % | - | -12.04% | -129.7% | -101.33% | -213.72% | -167.88% | -166.78% | -51.34% | -14.68% | -32.55% | -18.69% | -38.17% | -1.74% | - | -6.65% | - | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 1627.45% | 55.9% | -80.8% | 39.78% | 13.52% | -25.58% | -95.02% | -197.34% | 52.13% | -168.1% | 37.14% | -2028.77% | 22.5% | 36.28% | -42.85% | 14.49% | 69.92% | -1707.09% | 62% | 45.31% | -90.03% | 31.48% | -23.35% | -40.66% | 26.49% | - |
| Net Income | -31.43M | -7.19M | -25.27M | -12.93M | -15.3M | -30.11M | -17.35M | -7.78M | -8.46M | -4.02M | -1.61M | -2.27M | -873.03K | -1.13M | -1.53M | -890.33K | -314.09K | -481.12K | -220.96K | -841.69K | -599.98K | -136.42K | -142.31K | -168.18K | -678.05K | -108.67K |
| Depreciation & Amortization | -200.31K | 178.84K | 1.68M | 1.75M | 1.14M | 1.29M | 1.63M | 1.19M | 517.42K | 240.38K | 200.81K | 87.92K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 283.3K | 930.5K | 2.89M | 1.71M | 661.01K | 1.14M | 809.32K | 851.26K | 435.75K | 397.9K | 216.45K | 0 | 4.71K | 165.04K | 82.8K | 241.69K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 12.13M | 4.51M | 248.58K | 1.43M | -27.04K | 0 | -406.43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25.82K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.73M | 2M | 6.11M | 1.02M | -549.53K | 1.49M | 2.92M | 369.23K | 638.81K | 381.33K | 25.5K | 2.17M | 566.46K | 965.19K | 1.01M | 225.38K | 566 | -1.96K | -42.08K | 581.69K | 364.64K | 32.81K | 14.48K | 96.05K | 551.6K | 0 |
| Working Capital Changes | 867.84K | -1.65M | 2.11M | 884.77K | -2.04M | -2.52M | -5.13M | -1.71M | 2.86M | -2.02M | -767.18K | -2.71M | -37.98K | 4.51K | 265.26K | 318.32K | 18.36K | -464.67K | 223.97K | 157.16K | 73.13K | 4.67K | -16.57K | -44.93K | 43.22K | -4.55K |
| Change in Receivables | 10.62M | 6.56M | -229.85K | 345.85K | -40.89K | 512.2K | -3.53M | -1.1M | 2.21M | -922.02K | 0 | 0 | 0 | 1.41K | 0 | -4.46K | -18.67K | 0 | -2.35K | 2.49K | 2.06K | -1.91K | 0 | 0 | 1.99K | 0 |
| Change in Inventory | 0 | 0 | -628.69K | 0 | -1.87M | -3.92M | -872.05K | 285.26K | -353.31K | -1.35M | 657.81K | -2.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -9.78M | -7.94M | 2.05M | 0 | 0 | -202.52K | 0 | -861.22K | 290.2K | 0 | 0 | 0 | 0 | -1.26K | 0 | 330.89K | 8.18K | 0 | 226.32K | 154.67K | 71.07K | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 4.27M | 3.01M | -3.36M | -2.27M | -3.56M | -3.97M | -1.96M | -2.31M | -2.11M | -2.54M | -686.92K | -366.33K | 11.78K | 135.84K | -109.33K | -439.57K | -190.31K | 33.72K | 0 | -48.23K | -618.42K | -82.39K | -77.96K | 19.61K | -67.5K | -23.87K |
| Capital Expenditures | 3.1K | 0 | -18.38K | -3.74K | -3.42M | -3.82M | -1.96M | -2.11M | -1.52M | -2.42M | -538.12K | -116.02K | 0 | -23.48K | -155.03K | -186.36K | -181.93K | 0 | 0 | -31.02K | -163.65K | -82.39K | -62.39K | 0 | 0 | 0 |
| CapEx % of Revenue | 0.01% | 0% | 0.16% | 0.05% | 52.76% | 39.99% | 25.62% | 16.59% | 10.17% | 17.17% | 5.87% | 1.62% | 0% | - | 3.98% | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 294.43K | 294.43K | 181.58K | 147.1K | 150.19K | 214.33K | 273.83K | 200.81K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 4.26M | 3.01M | -2.04M | -2.27M | 17.98K | 0 | 0 | -199.35K | -590.98K | 0 | 0 | -250.31K | 11.78K | 159.32K | 45.7K | -258.65K | -8.39K | 31.75K | 0 | -17.2K | -454.77K | 0 | -15.57K | 19.61K | -64.32K | 0 |
| Cash from Financing | -3.06M | 0 | 17.72M | 9.6M | 17.57M | 1.28M | 32.37M | 12.62M | 3.99M | 10.13M | 2.03M | 3.39M | 251.49K | 10.33K | 276.43K | 582.64K | 351.81K | 869.66K | 41.08K | 119.7K | 832.99K | 114.95K | 288.24K | 96.39K | 77.42K | 76.95K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -5.02M | 0 | -353K | 5.78M | 24.07M | 3.85M | 35.97M | 2.29M | 1.59M | 8.27M | 2.17M | 3.01M | 292.65K | 0 | 0 | 660.03K | 292.95K | 1.11M | 0 | 19.49K | 768.92K | 114.95K | 288.24K | 96.39K | 84.32K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 146.81K | 0 | 16.46M | 4.06M | -2.2M | 3.02M | -4M | 6.53M | 2.17M | -1.56M | -385.77K | -313.99K | -541.65K | 0 | 276.43K | -3.93K | -13.89K | -243.53K | 41.08K | 100.21K | 64.07K | 0 | 0 | 0 | -6.9K | 76.95K |
| Net Change in Cash | 380.69K | -3.63M | -717.04K | -1.01M | 294K | -18.92M | 17.63M | 800.11K | -1.44M | 3.28M | -29.95K | 214.97K | 135.16K | -19.11K | -92.3K | -38.52K | -50.87K | 197.31K | 2.01K | -31.36K | 26.54K | -66.39K | 65.87K | -1.06K | -73.31K | -60.14K |
| Free Cash Flow | -3.88M | -6.65M | -17.11M | -10.62M | -17.27M | -19.83M | -14.72M | -8.65M | -3.72M | -7.02M | -2.25M | -2.84M | -128.1K | -188.76K | -414.43K | -367.95K | -394.29K | -706.07K | -39.07K | -133.86K | -351.68K | -181.34K | -206.79K | -117.07K | -83.23K | -113.22K |
| FCF Margin % | -6.87% | -12.04% | -147.09% | -128.96% | -266.48% | -207.88% | -192.4% | -67.92% | -24.85% | -49.72% | -24.56% | -39.8% | -1.74% | - | -10.63% | - | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | 78.9% | 61.12% | -61.11% | 38.53% | 12.91% | -34.79% | -70.04% | -132.47% | 46.97% | -211.68% | 20.78% | -2119.34% | 32.14% | 54.45% | -12.63% | 6.68% | 44.16% | -1707.09% | 70.81% | 61.94% | -93.94% | 12.31% | -76.64% | -40.66% | 26.49% | - |
| FCF per Share | -0.23 | -0.40 | -1675.10 | -13372.24 | -1321.58 | -6543.90 | -15857.20 | -17137.01 | -9057.79 | -20230.29 | -7820.44 | -25159.62 | -33.46 | -346.36 | -757.63 | -888.78 | -1378.63 | -3394.55 | -908.65 | -625.51 | -8178.56 | -4901.00 | -8271.48 | -10642.45 | -10403.25 | -37740.00 |
| FCF Conversion (FCF/Net Income) | 0.12x | 0.21x | 0.60x | 0.65x | 0.91x | 0.50x | 0.65x | 0.64x | 0.18x | 1.14x | 1.07x | 1.20x | 0.13x | 0.15x | 0.17x | 0.20x | 0.68x | 1.47x | 0.18x | 0.12x | 0.31x | 0.73x | 1.01x | 0.70x | 0.12x | 1.04x |
| Interest Paid | 0 | 0 | 2.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Existential liquidity and solvency
According to reported financial data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from -0.02 in 2026Q1 to 11.27 in 2024Q3, indicating that accounting losses are not consistently reconciled by actual cash generation from core operations.
The extreme volatility in the OCF/NI ratio suggests that the company's reported net losses are frequently decoupled from cash movements, likely due to significant swings in working capital rather than operational efficiency. Investors should interpret this lack of correlation as a sign that cash flow quality remains poor and highly unpredictable.
As evidenced by the quarterly cash flow statements, CHAI's free cash flow trajectory is characterized by persistent deficits, with the company recording a -176.3% FCF margin in 2025Q3, highlighting the inability of the current business model to generate self-sustaining cash flow despite aggressive top-line growth efforts.
The recurring negative FCF margins suggest that the company is effectively subsidizing its growth through external capital or balance sheet depletion. This trend warrants further investigation into whether the firm can ever reach a cash-flow-positive state without a fundamental restructuring of its unit economics.
Based on the provided figures, working capital changes have been a primary driver of cash flow fluctuations, with a $4.4M inflow in 2024Q4 contrasting sharply with a $2.4M outflow in 2025Q2, suggesting that the company relies on timing shifts in payables and receivables to manage liquidity.
The reliance on working capital swings to offset operational cash burn appears to be a temporary measure rather than a sustainable financial strategy. Analysts should monitor these shifts closely, as they may be masking the underlying cash-consuming nature of the company's aggressive user acquisition and publishing activities.
Data from recent filings reveals that stock-based compensation and depreciation adjustments have historically played a role in the cash flow statement, though these non-cash items appear insufficient to bridge the gap between the company's significant net losses and its ongoing operational cash requirements.
While SBC and D&A are standard adjustments, their presence in the context of a company with a $1.9M cash position suggests that management is attempting to minimize the appearance of cash burn. Investors should be wary of these adjustments, as they do not address the fundamental lack of cash-generating capability.
Quick answers to the most common questions about buying CHAI stock.
Core AI Holdings (CHAI) generated $-6.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Core AI Holdings (CHAI) reported negative free cash flow of $6.7M in 2025, indicating capital requirements exceeded cash from operations.
Core AI Holdings (CHAI) 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.