Liquidity is under extreme pressure, evidenced by a $14.4M free cash flow burn in 2026Q1 and an operating cash flow to net income ratio of 0.85 that highlights poor cash conversion.
| Cash from Operations | -45.51M | -50.28M | -72.22M | -54.9M | -81.62M | -51.85M | -16.64M | -6.67M |
| Operating CF Margin % | - | -3176.5% | -1147.24% | -728.06% | -9129.75% | - | - | - |
| Operating CF Growth % | 144.23% | 30.37% | -31.56% | 32.74% | -57.42% | -211.5% | -149.36% | - |
| Net Income | -61.34M | -63.44M | -86.22M | -77.58M | -77.97M | -477.12M | -30.42M | -11.55M |
| Depreciation & Amortization | 6.58M | 5.74M | 4.72M | 6.51M | 1.52M | 572K | 436K | 260K |
| Stock-Based Compensation | 5.26M | 5.43M | 11.57M | 10.63M | 11.89M | 7.92M | 310K | 175K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 11.31M | 8.37M | 4.18M | 7.18M | -25.52M | 414.69M | 12.98M | 2.05M |
| Working Capital Changes | -7.32M | -6.39M | -6.47M | -1.65M | 8.46M | 2.09M | 47K | 2.38M |
| Change in Receivables | 197K | 202K | 1.55M | 3.63M | -1.89M | 0 | 0 | 0 |
| Change in Inventory | 5.24M | 4.83M | -8.63M | -14.66M | 0 | 0 | 0 | 0 |
| Change in Payables | -6.07M | -3.84M | 4.24M | -229K | 1.46M | 886K | -221K | 0 |
| Cash from Investing | -5M | 7.53M | 64.76M | 15.07M | -117.88M | -2.77M | -502K | -851K |
| Capital Expenditures | -3.56M | -3.39M | -7.29M | -5.79M | -14.18M | -2.77M | -502K | -851K |
| CapEx % of Revenue | 319.69% | 213.96% | 115.87% | 76.79% | 1586.13% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -3.1M | 0 | 72.05M | 20.86M | 0 | 0 | 0 | 0 |
| Cash from Financing | 57.52M | 43.46M | 174K | 25.65M | -4.07M | 288.45M | 4.72M | 22.25M |
| Debt Issued (Net) | 13.2M | 5.67M | 0 | -1.73M | -1.9M | -1.07M | 4.71M | 2.46M |
| Equity Issued (Net) | 53.49M | 37.79M | -297K | 26.82M | -2.81M | 27.02M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -33K | -50K | -297K | -310K | -2.81M | 0 | 0 | 0 |
| Other Financing | -9.17M | 0 | 471K | 564K | 635K | 262.5M | 7K | 19.79M |
| Net Change in Cash | 7.02M | 706K | -7.29M | -14.17M | -203.58M | 233.84M | -12.43M | 18.82M |
| Free Cash Flow | -49.06M | -53.67M | -79.51M | -60.69M | -95.8M | -54.62M | -17.15M | -7.53M |
| FCF Margin % | -4411.87% | -3390.46% | -1263.11% | -804.85% | -10715.88% | - | - | - |
| FCF Growth % | 37.62% | 32.5% | -31.02% | 36.65% | -75.41% | -218.52% | -127.84% | - |
| FCF per Share | -1.67 | -3.68 | -0.45 | -0.38 | -0.63 | -0.66 | -4.37 | -1.07 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.79x | 0.84x | 0.71x | 1.05x | 0.11x | 0.55x | 0.58x |
| Interest Paid | 0 | 0 | 0 | 0 | 154K | 1.8M | 111K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Critical liquidity and burn
According to the latest quarterly data, GWH's operating cash flow to net income ratio of 0.85 suggests that cash generation is failing to keep pace with accounting losses, indicating that non-cash charges and working capital adjustments are not sufficient to bridge the gap between reported earnings and actual liquidity.
The persistent gap between net income and operating cash flow highlights the company's inability to convert its operational activities into tangible cash. Investors should monitor this relationship closely, as the reliance on non-cash items to soften the impact of net losses may be reaching a point of diminishing returns.
As reported in financial statements, GWH's free cash flow remains consistently negative, with a quarterly burn rate that reached $14.4M in 2026Q1, underscoring the company's ongoing struggle to achieve self-sustaining operations while navigating a high-cost, early-stage manufacturing environment that consumes capital faster than it generates revenue.
The trajectory of free cash flow indicates that the company is far from reaching a break-even point, with margins remaining deeply negative across the observed period. This trend suggests that the current business model requires significant external capital to fund basic operations, leaving little room for error in project execution.
Based on the provided cash flow data, GWH experienced a $3.5M outflow from working capital in 2026Q1, which reflects the inherent difficulties in managing inventory and receivables within a project-based revenue model that lacks the stability of a recurring sales cycle.
The erratic nature of working capital changes suggests that the company is struggling to optimize its cash conversion cycle, likely due to the timing of milestone-based payments and the accumulation of inventory for future projects. This volatility adds an extra layer of risk to the company's already strained liquidity position.
Analysis of the cash flow statement reveals that stock-based compensation of $1.1M in 2026Q1 continues to be a significant non-cash add-back, which effectively masks the true economic cost of talent retention while the company simultaneously burns through its limited cash reserves to fund core manufacturing operations.
While stock-based compensation is a standard accounting practice, its consistent presence in the cash flow reconciliation suggests that the company is relying on equity-based incentives to preserve cash. This practice warrants further investigation, as it may lead to significant shareholder dilution without a corresponding improvement in the underlying cash flow profile.
Quick answers to the most common questions about buying GWH stock.
ESS Tech, Inc. (GWH) generated $-50.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ESS Tech, Inc. (GWH) reported negative free cash flow of $53.7M in 2025, indicating capital requirements exceeded cash from operations.
ESS Tech, Inc. (GWH) spent $3.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ESS Tech, Inc. (GWH) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.