Free cash flow remains structurally negative, with a 2025Q2 margin of negative 20.0% highlighting the company's inability to fund operations through internal cash generation.
| Cash from Operations | -8.68M | -5.03M | -8.4M | -15.94M | -20.65M | -8.42M | -453.82K |
| Operating CF Margin % | -59.84% | -8.46% | -11.04% | -47.71% | -229.93% | -7944.34% | - |
| Operating CF Growth % | -72.42% | 40.07% | 47.31% | 22.83% | -145.2% | -1755.58% | - |
| Net Income | -4.42M | -15.91M | -47.36M | -52.63M | -21.36M | -14.33M | -2.84M |
| Depreciation & Amortization | 582K | 768K | 2.48M | 2.63M | 765K | 113K | 25.86K |
| Stock-Based Compensation | 1.21M | 2.78M | 1.59M | 3.4M | 1.34M | 4.9M | 1.81M |
| Deferred Taxes | -47K | -177K | -1.62M | -1.54M | -98K | 0 | -1.88M |
| Other Non-Cash Items | -8.41M | 4.36M | 37.16M | 28.38M | 3.74M | 1.77M | 1.6M |
| Working Capital Changes | 2.42M | 3.15M | -661K | 3.82M | -5.04M | -876K | 837.13K |
| Change in Receivables | -346K | -685K | 1.52M | 143K | -5.69M | -472K | -18.69K |
| Change in Inventory | -51K | 1.32M | 576K | 1.22M | -1.14M | -55K | 0 |
| Change in Payables | 0 | 1.79M | 0 | 1.09M | 3.05M | 0 | 0 |
| Cash from Investing | -3.46M | 203K | -234K | -15.8M | -14.55M | -2.16M | -431.23K |
| Capital Expenditures | -127K | -134K | -234K | -1.29M | -3.98M | -234K | -140.17K |
| CapEx % of Revenue | 0.88% | 0.23% | 0.31% | 3.87% | 44.35% | 220.75% | - |
| Acquisitions | 461K | 64K | 0 | -14.51M | -8.09M | -730K | 98.97K |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -3.79M | 273K | 0 | 0 | 29K | -1.2M | -390.02K |
| Cash from Financing | 11.35M | 6.49M | 3.15M | 4.41M | 58.11M | 25.82M | 1M |
| Debt Issued (Net) | -1.31M | 259K | 808K | 1K | -302K | -1.07M | 0 |
| Equity Issued (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -255K | 0 | 0 | 0 |
| Other Financing | -3.41M | -1.27M | -396K | -333K | 15.79M | -3.11M | 1M |
| Net Change in Cash | 373K | 1.67M | -4.55M | -28.08M | 22.09M | 15.38M | 143.62K |
| Free Cash Flow | -8.8M | -5.17M | -8.56M | -17.23M | -24.63M | -8.65M | -593.99K |
| FCF Margin % | -60.71% | -8.68% | -11.25% | -51.58% | -274.29% | -8165.09% | - |
| FCF Growth % | -70.4% | 39.64% | 50.32% | 30.05% | -184.59% | -1357.09% | - |
| FCF per Share | -8.42 | -0.42 | -1.16 | -4.50 | -7.52 | -4.94 | -0.14 |
| FCF Conversion (FCF/Net Income) | 1.96x | 0.32x | 0.15x | 0.30x | 0.97x | 0.59x | 0.16x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and insolvency
According to recent financial filings, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio reaching 3.60 in 2025Q1, suggesting that reported losses are not consistently translating into equivalent cash outflows due to significant non-cash adjustments and working capital volatility.
The wide variance in the conversion ratio indicates that net income is a poor proxy for the company's actual cash-generating capacity. Investors should monitor whether these periodic disconnects are driven by recurring non-cash charges or temporary accounting timing differences that mask underlying operational cash burn.
As reported in quarterly statements, Flora Growth has struggled to achieve positive free cash flow, with the FCF margin reaching a negative 20.0% in 2025Q2, highlighting a structural inability to fund operations through internal cash generation despite various attempts to streamline the business model.
The consistent failure to generate positive free cash flow suggests that the company's current cost structure is fundamentally misaligned with its revenue scale. This trajectory implies that the business remains reliant on external capital to sustain its ongoing operations and corporate overhead.
Based on reported figures, working capital changes have been highly unstable, swinging from a $4.2 million inflow in 2025Q3 to a $1.2 million outflow in 2025Q1, which suggests significant challenges in managing inventory levels and collection cycles across the company's diverse brand portfolio.
This volatility in working capital often indicates difficulties in matching inventory procurement with actual consumer demand, potentially leading to future write-downs. The erratic nature of these shifts warrants further investigation into whether the company is relying on aggressive payables management to preserve its limited cash reserves.
Analysis of the cash flow statement reveals that stock-based compensation and acquisition-related adjustments, such as the $461,000 in 2025Q4, frequently obscure the true extent of the company's cash burn, complicating the assessment of core operational viability for external stakeholders.
These adjustments suggest that the reported cash flow figures may be flattering the company's actual performance by excluding costs that are essential to maintaining the current organizational structure. Investors should be wary of how these non-operating items impact the perceived sustainability of the company's cash runway.
Quick answers to the most common questions about buying FLGC stock.
Flora Growth Corp. (FLGC) generated $-8.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Flora Growth Corp. (FLGC) reported negative free cash flow of $8.8M in 2025, indicating capital requirements exceeded cash from operations.
Flora Growth Corp. (FLGC) 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.