Free cash flow remains highly unstable, reaching a low of -159.7% margin in 2025Q2, while stock-based compensation of $215,700 per quarter continues to dilute equity holders.
| Cash from Operations | -4.53M | -4.21M | -5.79M | -8.47M | -5.93M | -3.82M | -1.07M | -17.27M | 27.6M | 14.47M | 597.6K |
| Operating CF Margin % | -34.69% | -30.64% | -33.94% | -32.72% | -27.61% | -1044.4% | -30.11% | -82.68% | 94.53% | 77.73% | 6.14% |
| Operating CF Growth % | -7.73% | 27.36% | 31.63% | -42.83% | -55.28% | -256.43% | 93.8% | -162.55% | 90.75% | 2321.49% | - |
| Net Income | -7.9M | -5.6M | -9.33M | -8.19M | -8.2M | -9.08M | -62M | -3.82M | 24.05M | 13.89M | 5.61M |
| Depreciation & Amortization | 449.37K | 430.41K | 404.6K | 243.33K | 302.1K | 1.18K | 62.36K | 59.91K | 39.31K | 9.98K | 8.26K |
| Stock-Based Compensation | 883.33K | 981.02K | 1.15M | 1M | 235.4K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 1.79M | -1.73M | -38.89K | 0 | 53.75K |
| Other Non-Cash Items | 1.1M | -1.63M | 233.01K | 1.15M | 3.12M | 4.8M | 56.24M | 9.49M | 0 | 0 | -454.48K |
| Working Capital Changes | 941.85K | 1.61M | 1.75M | -2.68M | -1.39M | 455.51K | 2.83M | -21.26M | 3.55M | 572.08K | -4.62M |
| Change in Receivables | 606.71K | 1.45M | 1.12M | -2.6M | -1.53M | 621.83K | 1.72M | -16.58M | 1.89M | -3.69M | -5.08M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 68.16K | -272.32K | -181.88K | -292.52K | 526.38K | 0 | 0 | -70.24K | 66.56K | 0 | 0 |
| Cash from Investing | -302.31K | -345.72K | -363.37K | -380.58K | -470.4K | -108.09K | -200K | -7.72M | -22.31M | 2.49M | -24.14M |
| Capital Expenditures | -309.16K | -345.72K | -363.37K | -380.58K | -470.4K | -108.09K | 0 | -175.97K | -191.69K | 0 | -46.43K |
| CapEx % of Revenue | 2.37% | 2.52% | 2.13% | 1.47% | 2.19% | 29.56% | - | 0.84% | 0.66% | - | 0.48% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.47M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -200K | -7.55M | -20.64M | 0 | 0 |
| Cash from Financing | 4.81M | 4.24M | 6.8M | 6.57M | 6.83M | 4.28M | -31.2K | -128.41K | 19.64M | -15.75M | 24.44M |
| Debt Issued (Net) | 1.54M | 1.4M | 7.15M | 1.62M | 6.66M | 0 | 0 | -128.41K | 1.09M | -64K | -87.29K |
| Equity Issued (Net) | 3.46M | 3.08M | 0 | 8.36M | 191.46K | 4.28M | 0 | 0 | 18.55M | -15.68M | 24.52M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -3M | 0 | 0 | 0 | 0 | -418K | -15.68M | 0 |
| Other Financing | -180.41K | -236.08K | -346.52K | -3.4M | -18.95K | 0 | -31.2K | 0 | 0 | 0 | 0 |
| Net Change in Cash | 142.69K | -1.36M | 547.11K | -2.31M | 53.71K | 3.26M | -1.57M | -25.59M | 25.28M | 1.43M | 455.2K |
| Free Cash Flow | -4.54M | -4.55M | -6.15M | -8.85M | -6.4M | -3.93M | -1.07M | -17.44M | 27.41M | 14.47M | 555.28K |
| FCF Margin % | -34.74% | -33.16% | -36.07% | -34.19% | -29.8% | -1073.97% | -30.11% | -83.52% | 93.88% | 77.73% | 5.71% |
| FCF Growth % | 0.32% | 26.03% | 30.46% | -38.28% | -62.99% | -266.51% | 93.86% | -163.63% | 89.43% | 2506.04% | - |
| FCF per Share | -40.06 | -99.73 | -2571.69 | -11332.01 | -48485.88 | -67702.76 | -26784.50 | -436058.75 | 721364.47 | 401967.50 | 15424.44 |
| FCF Conversion (FCF/Net Income) | 0.57x | 0.75x | 0.62x | 1.03x | 0.72x | 0.42x | 0.02x | 4.52x | 1.15x | 1.04x | 0.11x |
| Interest Paid | 705.96K | 675.63K | 816.82K | 392.02K | 263.79K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency risk
As reported in financial statements, FRGT exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a -2.99 reading in 2025Q2, which suggests that accounting earnings provide little insight into the company's actual ability to generate cash.
The extreme volatility in the relationship between net income and operating cash flow indicates that accruals and non-cash adjustments are masking the underlying cash burn. Investors should interpret this divergence as a sign that the company's reported losses are not fully capturing the severity of its cash-based operational deficits.
Based on the company's reported figures, free cash flow margins have remained consistently volatile and largely negative, reaching a low of -159.7% in 2025Q2, which highlights the structural inability of the current business model to self-fund operations through core logistics activities.
The erratic FCF trajectory suggests that the company is highly dependent on working capital swings to temporarily stabilize its cash position. This pattern implies that the business lacks a predictable path to positive free cash flow, leaving it perpetually reliant on external capital injections.
According to recent SEC filings, FRGT's operating cash flow is heavily influenced by working capital fluctuations, such as the $3.7 million inflow in 2025Q3, which appears to be a temporary relief rather than a sustainable improvement in the company's underlying cash collection efficiency.
The reliance on working capital changes to offset operating losses suggests that the company may be aggressively managing payables or accelerating collections to survive. This strategy is inherently finite and may indicate that the company is nearing the limit of its ability to extract liquidity from its current operational cycle.
Data from financial statements reveals that stock-based compensation, which averaged over $200,000 per quarter recently, continues to dilute shareholders while the company burns cash, effectively obscuring the true cost of talent acquisition in a business model that is failing to achieve operational break-even.
The consistent use of stock-based compensation during periods of negative cash flow suggests that the company is prioritizing non-cash expense management to preserve its dwindling cash reserves. This practice warrants further investigation into whether the current compensation structure aligns with the long-term interests of equity holders.
Quick answers to the most common questions about buying FRGT stock.
Freight Technologies, Inc. (FRGT) generated $-4.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Freight Technologies, Inc. (FRGT) reported negative free cash flow of $4.5M in 2025, indicating capital requirements exceeded cash from operations.
Freight Technologies, Inc. (FRGT) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.