Liquidity is under severe pressure as evidenced by a $13.0M free cash flow outflow in 2026Q1 and a capital expenditure intensity that spiked to 61.1% of revenue.
| Cash from Operations | -17.91M | -16.52M | -1.08M | -2.15M | -5.35M | -7.11M | -734.67K | 3.97M |
| Operating CF Margin % | - | -118.95% | -9.24% | -6.48% | -11.67% | -20.16% | -2.34% | 13.81% |
| Operating CF Growth % | -1258.87% | -1428.49% | 49.74% | 59.82% | 24.73% | -868.05% | -118.52% | - |
| Net Income | -13.97M | -9.48M | -5.97M | -8.69M | -14.36M | -5.95M | 2.35M | 1.17M |
| Depreciation & Amortization | 1.5M | 705K | 889K | 1.57M | 2.94M | 1.42M | 803.19K | 776.13K |
| Stock-Based Compensation | 415K | 451K | 87K | 166K | 257K | 52K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.54M | 488K | 1.22M | 1.81M | 2.06M | 1.31M | 0 | 0 |
| Working Capital Changes | -8.39M | -8.69M | 2.69M | 3M | 3.75M | -3.95M | -3.89M | 2.02M |
| Change in Receivables | -3.54M | -913K | 2.12M | 3.04M | 3.33M | -3.65M | -2.23M | 212.99K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -280K | -1.49M | 0 | 0 | 0 | 0 | -750.38K | 3.42M |
| Cash from Investing | -7.77M | -1.75M | 0 | -12K | -1.13M | -7.63M | -477.46K | -3.65M |
| Capital Expenditures | -6.24M | 0 | 0 | -12K | -1.13M | -3.13M | -477.46K | -3.65M |
| CapEx % of Revenue | 31.13% | 0.04% | - | 0.04% | 2.47% | 8.87% | 1.52% | 12.7% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -4.5M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -1.53M | -1.75M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 23.08M | 25.88M | -133K | 2.06M | 6.06M | 15.11M | 1.64M | 0 |
| Debt Issued (Net) | 11.54M | 9.41M | -1.09M | 1.56M | 282K | 888K | 1.64M | 0 |
| Equity Issued (Net) | 9.51M | 17.03M | 0 | 500K | 5.75M | 14.22M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -141K | 0 | 0 | 0 |
| Other Financing | 2.02M | -567K | 956K | 0 | 29K | 0 | 0 | 0 |
| Net Change in Cash | -2.51M | 7.61M | -1.21M | -107K | -429K | 367K | 427.87K | 974.83K |
| Free Cash Flow | -25.44M | -16.52M | -1.08M | -2.16M | -6.49M | -10.24M | -734.67K | 3.97M |
| FCF Margin % | -126.93% | -118.95% | -9.24% | -6.51% | -14.14% | -29.04% | -2.34% | 13.81% |
| FCF Growth % | -286.14% | -1428.49% | 50.02% | 66.66% | 36.66% | -1293.96% | -118.52% | - |
| FCF per Share | -41096.93 | -26693.05 | -3059.73 | -7732.50 | -26203.69 | -51991.73 | -3119.58 | 16848.21 |
| FCF Conversion (FCF/Net Income) | 1.82x | 1.74x | 0.18x | 0.25x | 0.37x | 1.20x | -0.31x | 3.39x |
| Interest Paid | -413K | 0 | 121K | 968K | 212K | 567K | 0 | 0 |
| Taxes Paid | 0 | 0 | 12K | 35K | 357K | 24K | 0 | 0 |
Liquidity and capital exhaustion
As reported in quarterly financial statements, HCTI consistently exhibits a negative relationship between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 3.27 in 2025Q1, suggesting that accounting losses are being compounded by significant cash outflows from core operations.
The recurring divergence between net income and operating cash flow indicates that the company's reported losses do not capture the full extent of its cash burn. Investors should monitor this trend closely, as the inability to align operational cash generation with earnings suggests a fundamental struggle to manage working capital and overhead costs effectively.
Based on the provided cash flow data, HCTI's free cash flow has trended sharply negative, culminating in a $13.0M outflow in 2026Q1, which represents a significant deterioration from the positive cash flow periods observed in 2024, according to the company's historical filings.
The shift from intermittent positive free cash flow to deep, sustained outflows indicates that the company's growth initiatives are currently consuming capital at an unsustainable rate. This trajectory suggests that the business model is not yet self-funding, necessitating a reliance on external financing to maintain operations.
According to recent SEC filings, HCTI's capital expenditure intensity surged to 61.1% of revenue in 2026Q1, a marked departure from the negligible capital spending levels seen in previous quarters, which warrants further investigation into the nature of these sudden asset investments.
The sudden spike in capital expenditures during a period of deep operating losses may indicate either a necessary investment in infrastructure or a potential misallocation of scarce cash resources. Analysts should scrutinize whether these expenditures are truly growth-oriented or merely maintenance costs required to keep legacy systems operational.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, with a $4.1M outflow in 2026Q1 following periods of both positive and negative fluctuations, suggesting that the company lacks a stable mechanism for managing its cash conversion cycle.
The volatility in working capital suggests that the company may be struggling with the timing of client collections or the management of payables, both of which are critical for a service-heavy business. This inconsistency in cash management appears to exacerbate the company's liquidity risks during periods of high operational burn.
Quick answers to the most common questions about buying HCTI stock.
Healthcare Triangle, Inc. (HCTI) generated $-16.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Healthcare Triangle, Inc. (HCTI) reported negative free cash flow of $16.5M in 2025, indicating capital requirements exceeded cash from operations.
Healthcare Triangle, Inc. (HCTI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.