Liquidity is rapidly depleting, with the firm recording a $2.2 million free cash flow burn in 2026Q1, further exacerbated by inefficient historical capital allocation like the $4.5 million share repurchase in 2025Q4.
| Cash from Operations | -7.82M | -5.53M | 201.02M | -2.47M | -589K |
| Operating CF Margin % | - | -71.69% | 36.82% | -33.26% | -8.56% |
| Operating CF Growth % | -2905.97% | -102.75% | 8225.26% | -320.03% | - |
| Net Income | 261.9K | -928K | 26.3M | -6.76M | -751K |
| Depreciation & Amortization | 355K | 277K | 25.65M | 253K | 168K |
| Stock-Based Compensation | 0 | 0 | 27.79M | 2.15M | 0 |
| Deferred Taxes | -2K | -2K | -505K | 0 | 0 |
| Other Non-Cash Items | -8.27M | -4.67M | 117.39M | 973K | 125K |
| Working Capital Changes | -170.6K | -212K | 4.39M | 908K | -131K |
| Change in Receivables | 47.7K | 133K | -925K | -340K | -384K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -179.67K | -200K | 3.71M | 560K | 105K |
| Cash from Investing | 39.68K | -165K | -68.45M | -294K | -221K |
| Capital Expenditures | -221K | -165K | -9.16M | -160K | -186K |
| CapEx % of Revenue | 2.3% | 2.14% | 1.68% | 2.15% | 2.7% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | -59.28M | -134K | -35K |
| Cash from Financing | 9.13M | 9.42M | -76.61M | 2.14M | 1.08M |
| Debt Issued (Net) | -462K | -178K | 4.66M | 2.25M | 181K |
| Equity Issued (Net) | 10.43M | 10.43M | -2M | -149.49M | 901K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -2M | -149.49M | 0 |
| Other Financing | -836K | -836K | -79.27M | 149.38M | 0 |
| Net Change in Cash | 1.77M | 3.72M | 55.96M | -637K | 310K |
| Free Cash Flow | -7.9M | -5.58M | 191.86M | -2.77M | -810K |
| FCF Margin % | -82.33% | -72.37% | 35.14% | -37.21% | -11.78% |
| FCF Growth % | -107.7% | -102.91% | 7031.21% | -241.73% | - |
| FCF per Share | -0.27 | -0.48 | 7.24 | -0.10 | -0.03 |
| FCF Conversion (FCF/Net Income) | -30.16x | 5.96x | -13.07x | 0.37x | 0.78x |
| Interest Paid | 0 | 0 | 26K | 248K | 35K |
| Taxes Paid | 0 | 0 | 10K | 14K | 11K |
Terminal Liquidity Depletion Risk
According to reported financial data, the relationship between net income and operating cash flow is highly erratic, with the 2024Q3 period showing a massive $60.3 million operating cash inflow despite a net loss, suggesting that accounting adjustments are significantly distorting the company's true cash-generating capability.
The extreme volatility in the OCF/NI ratio indicates that GAAP earnings are not a reliable proxy for the company's underlying cash health. Investors should monitor these discrepancies, as they often mask the impact of non-recurring items or aggressive accounting treatments that fail to translate into sustainable operational liquidity.
As reported in recent filings, FUSE's free cash flow has shifted from positive peaks in 2024 to consistent quarterly outflows, with the most recent 2026Q1 period recording a $2.2 million burn, highlighting a fundamental inability to sustain operations without external capital or further asset liquidation.
The transition from positive FCF to persistent cash burn suggests that the business model is currently unable to cover its own operating and maintenance costs. This trajectory warrants further investigation into whether the company can reach a cash-flow-neutral state before its remaining liquidity is fully exhausted.
Based on the provided cash flow statements, working capital changes have been highly inconsistent, swinging from a $1.6 million contribution in 2024Q4 to a $1.3 million drain in 2025Q4, which suggests significant challenges in managing receivables and payables amidst a rapidly shrinking revenue base.
Such erratic swings in working capital often indicate poor control over the cash conversion cycle or the impact of one-off settlements with vendors and clients. This instability complicates cash flow forecasting and suggests that the company's operational efficiency is currently compromised by its broader structural decline.
As evidenced by historical financial statements, FUSE has engaged in sporadic share repurchases, including a $4.5 million outflow in 2025Q4, despite facing severe operating losses, which appears to be an inefficient use of capital that has failed to provide long-term value for shareholders.
The decision to deploy cash toward buybacks while the core business is burning through its reserves suggests a misalignment between capital allocation and operational reality. Investors should monitor whether management shifts toward preserving liquidity rather than attempting to support the stock price through non-core financial activities.
Quick answers to the most common questions about buying FUSE stock.
Fusemachines Inc. (FUSE) generated $-5.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Fusemachines Inc. (FUSE) reported negative free cash flow of $5.6M in 2025, indicating capital requirements exceeded cash from operations.
Fusemachines Inc. (FUSE) 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.