Free cash flow remains structurally negative, with a -9.8% margin in 2026Q1 and capital expenditures consuming 28.8% of revenue, signaling an unsustainable reliance on external financing.
| Cash from Operations | -26.31M | -23.61M | -17.53M | -14.83M | -17.51M | -11.51M | -9.86M |
| Operating CF Margin % | - | -60.4% | -655.42% | -711.76% | -520.48% | -175.94% | -410.11% |
| Operating CF Growth % | -123.24% | -34.71% | -18.21% | 15.35% | -52.19% | -16.73% | - |
| Net Income | -122.56M | -78.99M | -51.41M | -18.72M | -16.15M | -11.82M | -12.71M |
| Depreciation & Amortization | 11M | 10.34M | 70K | 98K | 122K | 79K | 94K |
| Stock-Based Compensation | 14.36M | 6.26M | 2.98M | 2.06M | 2.03M | 1.35M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 28.25M | 46.69M | 30.38M | -2.82M | -1.93M | 363K | 3.3M |
| Working Capital Changes | 5.52M | -7.9M | 457K | 4.56M | -1.59M | -1.48M | -549K |
| Change in Receivables | -30.9M | -31.95M | -55K | -21K | -59K | -129K | 23K |
| Change in Inventory | 788K | 1.15M | 1.12M | 4.33M | -2.29M | -2.07M | -42K |
| Change in Payables | 22.21M | 7.44M | -228K | 278K | 493K | 877K | -882K |
| Cash from Investing | -20.71M | -7.88M | -1.56M | -50K | -43K | -99K | -52K |
| Capital Expenditures | -592K | -380K | -35K | -50K | -43K | -99K | -52K |
| CapEx % of Revenue | 1.5% | 0.97% | 1.31% | 2.4% | 1.28% | 1.51% | 2.16% |
| Acquisitions | -19.45M | -6.5M | -1M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -671K | -1M | -522K | 0 | 0 | 0 | 0 |
| Cash from Financing | 49.06M | 30.16M | 22M | 12.39M | 7.35M | 17.3M | 17.03M |
| Debt Issued (Net) | 16.72M | 23.27M | -67K | -1.77M | 928K | -29K | 92K |
| Equity Issued (Net) | 29.59M | 4.14M | 21.36M | 14.16M | 6.42M | 9.03M | 16.95M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1K | -623K | 0 | -2.32M | 0 | 0 | 0 |
| Other Financing | 2.75M | 2.75M | 714K | 0 | 0 | 8.3M | -9K |
| Net Change in Cash | 2.03M | -1.33M | 2.92M | -2.49M | -10.21M | 5.69M | 7.12M |
| Free Cash Flow | -26.91M | -23.99M | -17.66M | -14.88M | -17.56M | -11.61M | -9.91M |
| FCF Margin % | -68.33% | -61.37% | -660.43% | -714.16% | -521.75% | -177.45% | -412.27% |
| FCF Growth % | -33.26% | -35.84% | -18.71% | 15.27% | -51.26% | -17.11% | - |
| FCF per Share | -0.05 | -0.16 | -4.21 | -4.28 | -7.92 | -187.19 | -378.63 |
| FCF Conversion (FCF/Net Income) | 0.22x | 0.30x | 0.34x | 0.79x | 1.08x | 0.97x | 0.78x |
| Interest Paid | 0 | 0 | 274K | 256K | 229K | 3K | 0 |
| Taxes Paid | 0 | 0 | 4K | 4K | 2K | 2K | 0 |
Liquidity-driven insolvency risk
As reported in financial statements, DVLT's operating cash flow to net income ratio has fluctuated significantly, reaching a low of 0.13 in 2024Q2, which suggests that reported earnings are frequently decoupled from actual cash generation and heavily influenced by non-cash accruals and stock-based compensation adjustments.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not translating into liquid resources. Investors should monitor this divergence, as it suggests that the firm's aggressive growth is being supported by accounting treatments rather than sustainable operational cash inflows.
Based on the company's reported figures, free cash flow margins have remained consistently negative, bottoming out at -9.8% in 2026Q1, which highlights a structural inability to fund operations through internal cash generation despite the reported triple-digit revenue growth observed in recent periods.
The trajectory of free cash flow suggests that the business model is currently capital-consumptive rather than self-sustaining. This trend implies that the company remains entirely dependent on external financing to bridge the gap between its high operating costs and its inability to convert revenue into free cash.
According to recent SEC filings, DVLT's capital expenditure as a percentage of revenue spiked to 28.8% in 2026Q1, indicating that the firm is aggressively reinvesting in infrastructure to support its platform expansion, which may be straining its already limited liquidity position.
The high capital intensity relative to revenue suggests that the company is in a heavy build-out phase, likely prioritizing asset acquisition or platform development over immediate cash preservation. This level of spending warrants further investigation into whether these investments will yield the necessary returns to justify the current cash burn.
As evidenced by the quarterly data, working capital changes have been highly erratic, swinging from a $13.9M inflow in 2026Q1 to an $8.8M outflow in 2025Q4, which suggests that the company's cash cycle is highly sensitive to the timing of large, lumpy project-based contract payments.
This volatility in working capital management implies that the company lacks a predictable cash conversion cycle, likely due to its reliance on project-based monetization. Such instability makes it difficult to forecast liquidity needs and suggests that the firm may face periodic cash crunches depending on client payment schedules.
Based on the provided financial data, stock-based compensation reached $5.2M in 2026Q1, which significantly masks the true economic cost of operations and suggests that the company is relying on equity dilution to compensate for its inability to generate positive operating cash flow.
The reliance on stock-based compensation as a primary tool for talent retention effectively shifts the burden of operational costs onto shareholders through dilution. This practice obscures the true cash burn rate and suggests that the company's current operational structure is not yet viable without continuous equity-based support.
Quick answers to the most common questions about buying DVLT stock.
Datavault AI Inc. (DVLT) generated $-23.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Datavault AI Inc. (DVLT) reported negative free cash flow of $24.0M in 2025, indicating capital requirements exceeded cash from operations.
Datavault AI Inc. (DVLT) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Datavault AI Inc. (DVLT) spent $0.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.