Liquidity is under pressure as evidenced by a negative $865,000 free cash flow in 2026Q1, exacerbated by the consistent use of over $200,000 in quarterly stock-based compensation.
| 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 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -2.27M | -3.68M | -1.49M | -206K | 194K | -4.27M | -1.13M | 570.71K | 506.54K | -2.38M | 8.85M | 1.87M | 1.55M | -1.07M | -182.16K | 4.19M | 3.81M | -2.02M | 1.96M | 204.38K | 70.54K | 1.4M | -792.38K | 592.48K | -1.04M | 1.8M | 463.23K | 218.89K | 31.16K | 437.55K | 530.2K |
| Operating CF Margin % | - | -14.26% | -5.54% | -0.85% | 0.75% | -25.98% | -6.69% | 2.9% | 2.08% | -5.79% | 42.25% | 4.81% | 5.52% | -5.97% | -0.82% | 13.51% | 23.42% | -19.13% | 10.81% | 1.51% | 0.53% | 12.43% | -8.03% | 6.05% | -11.28% | 16.56% | 4.87% | 4.13% | 1.03% | 11.54% | 10.57% |
| Operating CF Growth % | 4037.25% | -147.01% | -622.82% | -206.19% | 104.54% | -277.22% | -298.48% | 12.67% | 121.29% | -126.88% | 372.45% | 21.26% | 244.78% | -485.93% | -104.35% | 9.99% | 288.19% | -203.09% | 860.2% | 189.74% | -94.94% | 276.08% | -233.74% | 156.86% | -158.03% | 287.62% | 111.63% | 602.46% | -92.88% | -17.47% | - |
| Net Income | -3.61M | -1.58M | -1.9M | -4.18M | -224K | 4.75M | -6.07M | -6.33M | -5.2M | 5.26M | -149.12K | 3.2M | -2.47M | -560.32K | 435.59K | 3.78M | 531.77K | 179.02K | 631.78K | 777.09K | 604.33K | 390.91K | 70.72K | -336.95K | 168.2K | 874.14K | 928.68K | 160.54K | 84.2K | 633.91K | 1.14M |
| Depreciation & Amortization | 621K | 683K | 684K | 792K | 867K | 742K | 1.39M | 1.04M | 1.14M | 867.28K | 813.66K | 826.53K | 797.93K | 646.42K | 515.22K | 597.04K | 588.99K | 580.24K | 522.92K | 436.17K | 358.05K | 350.14K | 356.88K | 351.58K | 294.72K | 265.67K | 269.45K | 232.75K | 148.73K | 165.42K | 313.49K |
| Stock-Based Compensation | 898K | 942K | 1.06M | 908K | 435K | 315K | 242.68K | 572.18K | 939.71K | 932.74K | 775.76K | 750.76K | 515.93K | 461.19K | 234.86K | 290.6K | 172.49K | 166.62K | 313.84K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -631K | 0 | 0 | 0 | 1.43M | -495.23K | 831.15K | -435.5K | 1.63M | -1.48M | -1.4M | -178.31K | 433.18K | 76.94K | -263.14K | -506.44K | -296.52K | 272.43K | 58.76K | 139.62K | 0 | -75.45K | 38K | 42.15K | -208.69K | 57.25K | -129.6K | -67.74K |
| Other Non-Cash Items | 99K | 145K | 869K | 904K | 0 | -9.34M | 3.74M | -200K | 159.82K | -78.77K | -16.39K | -30.83K | -66.01K | -795.83K | 697.07K | 6.45K | -37.68K | -29.13K | 324.79K | 259.53K | 167.88K | -15.13K | 4.43K | -95.05K | -10.95K | -33.13K | 41.47K | 82.22K | -35.65K | -238.42K | -971.53K |
| Working Capital Changes | -278K | -3.86M | -2.21M | 2M | -884K | -740K | -428.99K | 4.06M | 3.96M | -10.19M | 7.86M | -4.51M | 4.25M | 577.6K | -1.89M | -918.62K | 2.47M | -2.66M | 675.59K | -971.88K | -1.33M | 610.57K | -1.36M | 672.9K | -1.42M | 650.85K | -818.51K | -47.93K | -223.38K | 6.24K | 120.84K |
| Change in Receivables | 823K | -1.31M | -256K | 3.94M | -2.79M | -2.44M | 1.36M | 1.52M | -2.03M | -1.45M | 2.5M | 3.4M | -3.52M | 1.56M | -858.08K | -2.17M | -741.3K | 541.61K | -947.07K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 604K | 365K | 646K | -1.92M | -1.31M | -101K | 585.87K | 152.16K | 967.93K | 345.92K | -290.11K | 1.86M | -344.71K | -1.75M | 464.17K | 760.39K | -211.72K | -883.56K | -276.68K | -311.13K | -552.35K | -243.8K | -397.6K | 597.64K | -1.19M | -24.14K | 258.86K | -291.48K | -286.47K | -96.05K | 120.84K |
| Change in Payables | -428K | -37K | -524K | -154K | 293K | 343K | 282.54K | -177.8K | -461.77K | 431.84K | 435.13K | -1.37M | 1.21M | -419.99K | 106K | 141.22K | -232.8K | -467.2K | 822.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 492K | -99K | 144K | -133K | -708K | 22.84M | -1.58M | -2.69M | -2.53M | -15.32M | -410.94K | -47.34K | -208.14K | 1.56M | -9.67M | -1.56M | -373.73K | -231.23K | -2.96M | -987.1K | -238.66K | -485.96K | -47.89K | -67.4K | -1.98M | 18.49K | 53.21K | -929.01K | -963.44K | -129.59K | -134.36K |
| Capital Expenditures | -16K | -48K | -106K | -418K | -665K | -236K | -1.58M | -2.69M | -2.54M | -14.89M | -112.49K | -248.31K | -617.76K | -2.07M | -11.8M | -204.94K | -373.73K | -232.08K | -3.38M | -575.56K | -224.9K | -485.96K | -47.89K | -67.4K | -1.98M | -126.78K | -277.29K | -1.57M | -683.44K | -121.7K | -134.36K |
| CapEx % of Revenue | 0.08% | 0.19% | 0.39% | 1.73% | 2.58% | 1.43% | 9.32% | 13.68% | 10.43% | 36.2% | 0.54% | 0.64% | 2.21% | 11.58% | 53.24% | 0.66% | 2.3% | 2.19% | 18.63% | 4.24% | 1.68% | 4.33% | 0.48% | 0.69% | 21.43% | 1.17% | 2.92% | 29.72% | 22.5% | 3.21% | 2.68% |
| Acquisitions | 556K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -419.81K | -500K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -51K | 250K | 285K | -43K | 23.08M | 0 | 0 | 3.26K | -10.5K | 201.55K | 200.96K | 409.62K | 3.63M | 2.13M | -1.36M | 0 | 850 | 425.31K | -411.55K | -13.76K | 0 | 0 | 0 | 2.5K | 145.28K | 0 | 0 | 720K | -7.89K | 0 |
| Cash from Financing | -247K | -87K | -82K | -1K | -1.77M | -9.62M | 1.75M | -657.59K | -743.7K | 10.23M | 162K | -720K | -617.8K | -2.96M | 5.44M | 9.26M | -304.18K | -347.29K | 1.6M | 5.64M | 160.01K | -815.29K | 690.24K | -527.12K | 982.83K | -53.5K | -7.53K | 674.35K | 820.29K | -135.69K | -569.47K |
| Debt Issued (Net) | -247K | -87K | -82K | -77K | -1.77M | -9.62M | 1.75M | -657.59K | -743.7K | 10.09M | -300K | -580K | -720K | -3.04M | 5.15M | -597.04K | -368.03K | -347.29K | 1.58M | -311.95K | -28.06K | -963.39K | 690.24K | -527.12K | 973.03K | -97.81K | -17.78K | 674.35K | 321.14K | -135.69K | -569.47K |
| Equity Issued (Net) | 0 | 0 | 0 | 76K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.39M | 63.85K | 0 | 0 | 5.95M | 188.07K | 148.1K | 0 | 0 | 9.8K | 44.31K | 10.25K | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 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 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146.22K | 462K | 0 | 102.2K | 75.73K | 286.55K | 473.97K | 0 | 0 | 21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 499.15K | 0 | 0 |
| Net Change in Cash | -2.02M | -3.86M | -1.43M | -340K | -2.29M | 8.95M | -964.92K | -2.78M | -2.77M | -7.47M | 8.6M | 1.11M | 719.3K | -2.47M | -4.42M | 11.89M | 3.13M | -2.6M | 610.92K | 4.85M | -8.11K | 93.99K | -150.03K | -2.05K | -2.04M | 1.76M | 508.91K | -35.77K | -111.99K | 172.26K | -173.63K |
| Free Cash Flow | -2.28M | -3.73M | -1.59M | -624K | -524K | -4.51M | -2.71M | -2.12M | -2.03M | -17.27M | 8.74M | 1.63M | 927.49K | -3.14M | -11.98M | 3.98M | 3.43M | -2.26M | -1.42M | -371.18K | -154.36K | 909.28K | -840.27K | 525.08K | -3.02M | 1.67M | 185.94K | -1.36M | -652.28K | 315.85K | 395.84K |
| FCF Margin % | -11.83% | -14.45% | -5.93% | -2.59% | -2.03% | -27.42% | -16.02% | -10.78% | -8.35% | -41.99% | 41.71% | 4.17% | 3.31% | -17.55% | -54.06% | 12.85% | 21.12% | -21.33% | -7.82% | -2.73% | -1.16% | 8.1% | -8.51% | 5.36% | -32.71% | 15.39% | 1.96% | -25.59% | -21.48% | 8.33% | 7.89% |
| FCF Growth % | -27.67% | -133.6% | -155.61% | -19.08% | 88.38% | -66.39% | -27.98% | -4.25% | 88.24% | -297.59% | 437.7% | 75.26% | 129.55% | 73.8% | -400.76% | 16% | 252.25% | -58.94% | -282.28% | -140.46% | -116.98% | 208.21% | -260.03% | 117.37% | -281.15% | 797.47% | 113.72% | -107.77% | -306.52% | -20.21% | - |
| FCF per Share | -0.33 | -0.54 | -0.23 | -0.09 | -0.08 | -0.67 | -0.41 | -0.32 | -0.31 | -2.70 | 1.39 | 0.26 | 0.15 | -0.52 | -1.95 | 0.71 | 0.71 | -0.47 | -0.30 | -0.10 | -0.05 | 0.28 | -0.28 | 0.17 | -0.97 | 0.51 | 0.06 | -0.45 | -0.22 | 0.11 | 0.14 |
| FCF Conversion (FCF/Net Income) | 0.63x | 2.32x | 0.78x | 0.05x | -0.87x | -0.90x | 0.19x | -0.09x | -0.10x | -0.45x | -59.37x | 0.58x | -0.62x | 1.90x | -0.42x | 1.11x | 7.16x | -11.30x | 3.11x | 0.26x | 0.12x | 3.57x | -11.20x | -1.76x | -6.20x | 2.05x | 0.50x | 1.36x | 0.37x | 0.69x | 0.47x |
| Interest Paid | 10K | 13K | 19K | 24K | 8K | 261K | 445.11K | 365.25K | 463.85K | 71.26K | 79.86K | 92.1K | 0 | 163.74K | 204.87K | 182.97K | 226.56K | 248.72K | 229K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 21K | 27K | 3K | 8K | 1K | 28K | 3.04K | 2.8K | 472.54K | 601.8K | 101.35K | 427.08K | 0 | 25 | 451.52K | 813.34K | 40.05K | 95.42K | 514.22K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational cash flow volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is erratic, with the OCF/NI ratio swinging from a negative 6.28 in 2025Q1 to a positive 17.05 in 2024Q4, indicating significant distortions from non-cash items and working capital fluctuations.
The extreme variance in the conversion of net income to operating cash flow suggests that headline earnings are poor indicators of the company's actual liquidity generation. Investors should monitor this divergence closely, as it implies that accounting accruals and timing differences in project-based revenue recognition are currently masking the underlying cash burn.
Based on the provided cash flow data, the company's free cash flow trajectory is highly inconsistent, alternating between periods of cash generation and significant outflows, such as the negative $3.2 million FCF recorded in 2025Q2, reflecting the lumpy nature of its capital equipment project cycles.
The inability to maintain a positive free cash flow margin suggests that the business model is currently unable to self-fund its operations. This instability warrants further investigation into whether the company can achieve a sustainable cash-flow inflection point without recurring reliance on its existing cash reserves.
According to quarterly cash flow filings, working capital changes have been the primary driver of liquidity volatility, with a notable $3.1 million outflow in 2025Q1 followed by a $1.1 million inflow in 2025Q4, highlighting the sensitivity of cash balances to project-based billing and collection cycles.
These sharp swings in working capital suggest that the company's cash position is highly dependent on the timing of milestone payments from its research and industrial clients. The reliance on these inflows to offset operational losses appears to be a structural vulnerability that could exacerbate liquidity risks during project delays.
As indicated by the cash flow statements, the company consistently utilizes stock-based compensation, averaging over $200,000 per quarter, which effectively obscures the true magnitude of the operational cash burn by reducing the reported cash impact of employee-related expenses on the bottom line.
While stock-based compensation is a non-cash expense, its persistent use suggests that the company is managing its cash burn by diluting shareholders rather than achieving operational efficiency. This practice may indicate that the underlying cost structure is not yet aligned with the current revenue-generating capacity of the business.
Quick answers to the most common questions about buying CVV stock.
CVD Equipment Corporation (CVV) generated $-3.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CVD Equipment Corporation (CVV) reported negative free cash flow of $3.7M in 2025, indicating capital requirements exceeded cash from operations.
CVD Equipment Corporation (CVV) 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.