Persistent cash burn remains a primary concern, with the firm failing to generate positive free cash flow in any of the last ten quarters, including a $7.5 million outflow in 2026Q1.
| Cash from Operations | -30.15M | -30.68M | -30.96M | -8.83M | -18.09M | -17.74M |
| Operating CF Margin % | - | -1070.31% | -339.14% | -55.07% | -108.51% | -69.5% |
| Operating CF Growth % | -249.76% | 0.91% | -250.71% | 51.2% | -1.96% | - |
| Net Income | -46.27M | -43.37M | -12.38M | -22.47M | -26.41M | -26.81M |
| Depreciation & Amortization | 1.55M | 1.45M | 1.32M | 1.79M | 1.55M | 1.29M |
| Stock-Based Compensation | 5.82M | 6.33M | 2.7M | 43K | 17K | 20K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 9.14M | 1.96M | -13.77M | 2.52M | 1.04M | 4.84M |
| Working Capital Changes | -403K | 2.96M | -8.84M | 9.29M | 5.72M | 2.92M |
| Change in Receivables | -1.41M | 330K | -2.01M | -4.12M | 633K | -1.91M |
| Change in Inventory | 1.57M | 2.03M | -1.49M | 1.99M | -1.77M | 320K |
| Change in Payables | -736K | -402K | -2.56M | 296K | 6.14M | 5.89M |
| Cash from Investing | -2.36M | -2.41M | -542K | -331K | -903K | -637K |
| Capital Expenditures | -2.36M | -2.41M | -542K | -331K | -623K | -503K |
| CapEx % of Revenue | 54.97% | 84.12% | 5.94% | 2.07% | 3.74% | 1.97% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -280K | -134K |
| Cash from Financing | 38.69M | 32.25M | 36.47M | 8.15M | 19.27M | 10.57M |
| Debt Issued (Net) | 14.31M | 19.94M | 8.45M | 8.13M | 19.22M | 10.52M |
| Equity Issued (Net) | 25.23M | 12.31M | 10.77M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -853K | -11K | 17.25M | 23K | 51K | 48K |
| Net Change in Cash | 6.15M | -845K | 1.18M | -1.14M | 147K | -7.27M |
| Free Cash Flow | -32.51M | -33.09M | -31.5M | -9.16M | -18.99M | -18.38M |
| FCF Margin % | -757.83% | -1154.43% | -345.08% | -57.14% | -113.92% | -72% |
| FCF Growth % | -29.24% | -5.04% | -243.95% | 51.77% | -3.34% | - |
| FCF per Share | -0.49 | -0.63 | -0.69 | -0.21 | -0.43 | -0.42 |
| FCF Conversion (FCF/Net Income) | 0.70x | 0.71x | 2.50x | 0.39x | 0.68x | 0.66x |
| Interest Paid | 1.83M | 0 | 5.15M | 2.26M | 4.17M | 3.61M |
| Taxes Paid | 10K | 0 | 269K | 116K | 333K | 122K |
Imminent insolvency and liquidity
According to the provided cash flow data, GCTS consistently reports negative operating cash flow that frequently exceeds net losses, as evidenced by the 2024Q2 period where the company recorded a $9.6 million cash outflow despite a relatively smaller $1.0 million net loss.
The recurring gap between net income and operating cash flow suggests that the company's accounting losses are being compounded by significant cash-based working capital drains. Investors should interpret this as a sign that the firm's operational model is not only unprofitable on an accrual basis but is also actively consuming cash at a rate that outpaces its reported bottom-line performance.
As reported in financial statements, GCTS has failed to generate positive free cash flow in any of the last ten quarters, with the cumulative cash burn reaching levels that appear to threaten the company's ability to fund ongoing research and development initiatives.
The consistent negative free cash flow trajectory indicates that the business is unable to self-fund its operations, necessitating constant external capital injections. This trend suggests that the company remains in a state of perpetual cash consumption, which warrants extreme caution regarding the sustainability of its current business model.
Based on the reported figures, GCTS exhibits highly erratic working capital movements, including a $5.8 million inflow in 2023Q4 followed by a $5.4 million outflow in 2024Q1, which complicates the assessment of underlying operational efficiency and cash collection cycles.
These sharp swings in working capital suggest that the company's cash position is highly sensitive to the timing of inventory procurement and customer payments. Such volatility may indicate a lack of control over the cash conversion cycle, potentially exacerbating the firm's already precarious liquidity position.
Analysis of the cash flow statement reveals that GCTS utilizes stock-based compensation, such as the $3.4 million recorded in 2025Q4, to manage its cash burn, effectively diluting shareholders to offset the lack of internally generated cash flow from core operations.
While stock-based compensation is a non-cash expense, its reliance suggests that the company is using equity as a substitute for cash to retain talent. This practice warrants further investigation, as it may mask the true extent of the company's cash-based operating deficits and the long-term cost of its human capital.
Quick answers to the most common questions about buying GCTS stock.
GCT Semiconductor Holding, Inc. (GCTS) generated $-30.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GCT Semiconductor Holding, Inc. (GCTS) reported negative free cash flow of $33.1M in 2025, indicating capital requirements exceeded cash from operations.
GCT Semiconductor Holding, Inc. (GCTS) spent $2.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.