Liquidity is supported by a $24.5M cash position, yet operational cash flow remains volatile, with a 2025Q4 net loss of $4.4M contrasting with only $757.3K in operating cash generated.
| Cash from Operations | -1.31M | -3.33M | -1.19M | -17.37M | 979.16K | 4.91M | 4.73M | 5.44M | 3.15M |
| Operating CF Margin % | -3.7% | -9.15% | -3.28% | -51.13% | 2.82% | 13.04% | 12.27% | 14.55% | 9.13% |
| Operating CF Growth % | 60.75% | -179.06% | 93.14% | -1873.47% | -80.05% | 3.7% | -12.93% | 72.6% | - |
| Net Income | -5.29M | -5.84M | -29.61M | -18.56M | -5.48M | -3.13M | 285.97K | 73.72K | 1.27M |
| Depreciation & Amortization | 3.29M | 3.37M | 5.24M | 5.98M | 5.03M | 5.03M | 5.29M | 2.49M | 2.29M |
| Stock-Based Compensation | 1.35M | 1.85M | 1.1M | 252.09K | 0 | 100.94K | 0 | 0 | 0 |
| Deferred Taxes | -78.79K | -125.92K | 434.31K | 121.17K | -732.87K | -30.14K | 55.55K | 119.95K | 173.06K |
| Other Non-Cash Items | -570.01K | -618.95K | 21.56M | 8.62M | 1.09M | 2.35M | -26.01K | 4.31M | 5.8M |
| Working Capital Changes | -6.95K | -1.95M | 74.99K | -13.78M | 1.07M | 574.99K | -873.11K | 1.58M | -834.34K |
| Change in Receivables | -40.69K | -347.57K | -312.35K | -15.04M | 325.69K | 16.32K | 854.35K | -106.72K | -704.82K |
| Change in Inventory | -14.41K | 220.97K | 757.52K | -2.88M | -967.99K | -484.75K | 0 | 0 | 0 |
| Change in Payables | -46.13K | -937.17K | 622.82K | -18.77K | -437.09K | -561.77K | -827.78K | 1.94M | -262.81K |
| Cash from Investing | 231.59K | 200.39K | -2.13M | -9.41M | -5.22M | -1.43M | -451.51K | -2.22M | -1.73M |
| Capital Expenditures | -345.15K | -244.58K | -2.11M | -7.64M | -5.25M | -1.43M | -480.68K | -1.95M | -1.76M |
| CapEx % of Revenue | 0.98% | 0.67% | 5.81% | 22.51% | 15.14% | 3.8% | 1.25% | 5.21% | 5.12% |
| Acquisitions | 0 | 0 | 0 | -1.76M | 24.28K | 0 | 29.16K | 19.54K | 29.71K |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 653.84K | 444.97K | -18.48K | -3.24M | -13.23K | 0 | 0 | -293.4K | -68.61K |
| Cash from Financing | 3.3M | 4.71M | 17.12M | 20.94M | 10.65M | -1.13M | -1.47M | -2.31M | -4.34M |
| Debt Issued (Net) | -3.3M | -5.69M | -4.2M | -3.92M | -2.59M | -1.13M | -1.47M | -1.31M | -331.1K |
| Equity Issued (Net) | 6.6M | 10.4M | 20.87M | 20.35M | 13.24M | 0 | 0 | -1M | -4M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -49.66K | 0 | 0 | 0 | 0 | -1M | -4M |
| Other Financing | 0 | 0 | 457.03K | 4.51M | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 2.64M | 1.67M | 13.74M | -5.8M | 5.72M | 2.44M | 1.64M | 1.02M | -3.77M |
| Free Cash Flow | -1.65M | -3.63M | -3.32M | -26.84M | -5.2M | 3.23M | 4.25M | 3.49M | 1.38M |
| FCF Margin % | -4.69% | -9.99% | -9.14% | -79.01% | -14.99% | 8.57% | 11.02% | 9.34% | 4.02% |
| FCF Growth % | 54.49% | -9.49% | 87.64% | -416.48% | -260.96% | -24.08% | 21.83% | 152.02% | - |
| FCF per Share | -0.08 | -0.33 | -0.51 | -21.64 | -11.85 | 22.49 | 9.80 | 8.04 | 3.19 |
| FCF Conversion (FCF/Net Income) | 0.20x | 0.57x | 0.04x | 0.94x | -0.18x | -1.57x | 87.58x | 73.73x | 2.48x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operational Cash Burn
According to historical cash flow statements, GFAI's operating cash flow frequently diverges from net income, with the 2025Q4 period showing a net loss of $4.4M against a modest $757.3K in operating cash, suggesting that non-cash adjustments and accruals are masking the underlying cash-generative weakness of the business.
The persistent gap between net income and operating cash flow indicates that the company's reported losses are not merely accounting artifacts but reflect genuine operational challenges. Investors should monitor whether the reliance on non-cash items like stock-based compensation and depreciation is being used to bridge the widening chasm between accounting profitability and actual cash generation.
As reported in financial filings, GFAI's free cash flow trajectory has been consistently negative over the past decade, with the exception of a brief positive reading in 2025Q4, highlighting the difficulty of achieving sustainable cash self-sufficiency within the current high-overhead, low-margin secure logistics business model.
While the 2025Q4 positive FCF of $894.8K appears encouraging, it remains an outlier compared to the multi-year trend of significant cash outflows. This volatility suggests that the company's cash flow profile is highly sensitive to working capital fluctuations rather than a structural improvement in core operational efficiency.
Based on recent quarterly data, GFAI's capital expenditure has trended downward from a peak of 31.8% of revenue in 2022Q2 to just 0.8% in 2025Q4, which may indicate a strategic reduction in fleet investment or a potential deferral of necessary maintenance to preserve the company's cash position.
The sharp decline in capital intensity warrants further investigation, as it may signal that the company is under-investing in its armored fleet to offset operational losses. If this trend continues, it could lead to increased maintenance costs or service quality degradation in the long term.
As evidenced by the quarterly cash flow data, working capital changes have been a primary driver of liquidity, with a $1.2M inflow in 2025Q4 contrasting sharply with the $10.9M outflow observed in 2022Q2, illustrating the company's vulnerability to timing differences in collections and payables management.
The erratic nature of working capital changes suggests that GFAI lacks a stable cash conversion cycle, making short-term liquidity forecasting difficult for investors. This instability appears to be a structural feature of the business, likely tied to the payment terms of its large institutional banking and retail clients.
Based on reported figures, stock-based compensation has become a significant non-cash add-back, reaching $1.2M in 2025Q4, which effectively inflates operating cash flow and obscures the true economic cost of the company's ongoing efforts to pivot toward AI and robotics-driven service models.
The reliance on stock-based compensation as a mechanism to preserve cash warrants scrutiny, as it dilutes existing shareholders while failing to address the core issue of negative operating margins. This practice may be masking the true burn rate of the business by shifting compensation expenses away from the cash flow statement.
Quick answers to the most common questions about buying GFAI stock.
Guardforce AI Co., Limited (GFAI) generated $-1.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Guardforce AI Co., Limited (GFAI) reported negative free cash flow of $1.7M in 2025, indicating capital requirements exceeded cash from operations.
Guardforce AI Co., Limited (GFAI) 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.