Liquidity is under extreme pressure as evidenced by the decline in cash reserves to $5.7 million in 2026Q1, while free cash flow remains deeply negative, including a -2316.0% margin recorded in 2025Q3.
| Cash from Operations | -17.78M | -17.85M | -16.04M | -29.57M | -33.65M | -24.16M |
| Operating CF Margin % | - | -1830.7% | -397.25% | -906.72% | -740.04% | -5383.13% |
| Operating CF Growth % | -64.66% | -11.29% | 45.76% | 12.12% | -39.27% | - |
| Net Income | -233M | -148.57M | -45.51M | -45.07M | -34.24M | -40.13M |
| Depreciation & Amortization | 683.45K | 0 | 759.12K | 618.98K | 1.19M | 585.62K |
| Stock-Based Compensation | 17.81M | 0 | 310.96K | 2.63M | 3.26M | 14.63M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 198M | 134.82M | 28.6M | 18.31M | 4.56M | 6.49M |
| Working Capital Changes | -1.27M | -4.1M | -198.25K | -6.05M | -8.42M | -5.74M |
| Change in Receivables | -2.43M | -264.59K | 85.5K | 555.97K | -839.37K | -25.59K |
| Change in Inventory | 230.84K | 844.52K | -933.84K | -7.61M | -5.13M | -4.16M |
| Change in Payables | 3.6M | 360.14K | -445.86K | -205.44K | -417.48K | 1.37M |
| Cash from Investing | -378.88M | -453.75M | -230.31K | -860.72K | -799.41K | -838.03K |
| Capital Expenditures | -26.83K | -204.93K | -312.09K | -949.72K | -799.41K | -824.9K |
| CapEx % of Revenue | 5.77% | 21.02% | 7.73% | 29.12% | 17.58% | 183.79% |
| Acquisitions | 74.69M | 134.75K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -453.55M | -453.68M | 81.78K | 89K | 0 | -13.13K |
| Cash from Financing | 384.79M | 478.37M | 10.37M | 27.08M | 40.41M | 30.03M |
| Debt Issued (Net) | 44.59M | 99.59M | -735.02K | 3.83M | 15.11M | -909.16K |
| Equity Issued (Net) | 338.42M | 378.78M | 10.97M | 4.83M | 18.09M | 28.73M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -140.1M | -96.28M | 0 | 0 | 0 | 0 |
| Other Financing | 1.78M | 0 | 134.02K | 18.43M | 7.22M | 2.21M |
| Net Change in Cash | -21.72M | 6.77M | -5.89M | -3.34M | 5.97M | 5.04M |
| Free Cash Flow | -469.44M | -18.05M | -16.35M | -30.52M | -34.45M | -25M |
| FCF Margin % | -101034.56% | -1851.72% | -404.98% | -935.85% | -757.62% | -5569.85% |
| FCF Growth % | -2938.35% | -10.42% | 46.43% | 11.41% | -37.79% | - |
| FCF per Share | -14.22 | -0.98 | -422.21 | -190736.34 | -999999.00 | -999999.00 |
| FCF Conversion (FCF/Net Income) | 2.01x | 0.12x | 0.35x | 0.66x | 0.98x | 0.60x |
| Interest Paid | -88.21K | 0 | 88.71K | 15.94K | 6.48K | 23.05K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and Capital Exhaustion
As reported in recent financial filings, Empery Digital's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating wildly, including a 0.04 reading in 2026Q1, which suggests that reported earnings are failing to capture the true, persistent cash burn inherent in the company's current operations.
The persistent gap between net income and operating cash flow indicates that the company is struggling to convert its business activities into actual liquidity. This divergence suggests that accounting losses are being compounded by cash-based outflows that are not being offset by operational efficiency, raising concerns about the sustainability of the current business model.
Based on the company's reported figures, free cash flow remains deeply negative across all observed periods, with the 2025Q3 margin plummeting to -2316.0%, highlighting a structural inability to generate self-sustaining cash flow as the firm pivots away from its core powersports manufacturing operations.
The consistent negative free cash flow trajectory suggests that the company is effectively consuming its capital base to fund ongoing losses rather than investing in growth. Investors should monitor whether the recent shift toward a Bitcoin treasury strategy is intended to mask this underlying cash flow deficiency through asset appreciation rather than operational improvement.
According to quarterly statements, Empery Digital has directed significant capital toward share repurchases and acquisitions, such as the $74.7 million acquisition in 2026Q1, despite the company's core mobility business generating minimal cash and suffering from severe, ongoing operational losses that threaten its long-term viability.
The allocation of capital toward acquisitions and buybacks while the core business is burning cash appears to be a high-risk strategy that may prioritize short-term financial optics over long-term operational stability. This deployment pattern warrants further investigation into whether these moves are designed to stabilize the stock price or if they represent a fundamental misallocation of limited liquidity.
As indicated by the provided financial statements, working capital changes have been highly erratic, swinging from a $1.6 million inflow in 2026Q1 to a $1.4 million outflow in 2025Q3, which suggests that the company is struggling to manage its inventory and payables amidst a collapsing revenue base.
The instability in working capital management likely reflects the difficulty of winding down a manufacturing business while simultaneously attempting to pivot to a new treasury-focused model. This volatility suggests that the company's cash position is highly sensitive to timing differences in collections and payments, which may exacerbate liquidity risks during periods of low revenue.
Quick answers to the most common questions about buying EMPD stock.
Empery Digital Inc. (EMPD) generated $-17.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Empery Digital Inc. (EMPD) reported negative free cash flow of $18.1M in 2025, indicating capital requirements exceeded cash from operations.
Empery Digital Inc. (EMPD) spent $0.2M 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, Empery Digital Inc. (EMPD) spent $96.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.