Free cash flow remains consistently negative, evidenced by a $4.8 million outflow in 2026Q1, highlighting the ongoing difficulty in achieving operational self-sufficiency.
| Cash from Operations | -17.81M | -16.51M | -11.04M | -10.42M | -14.31M | -13.39M | -11.74M | -21M | -19.62M | -19.32M | -7.94M | -6.32M | -348.7K |
| Operating CF Margin % | - | -274.46% | -2123.27% | -1617.39% | -1818.3% | -2564.75% | -1775.79% | -1403.68% | -4104.81% | - | - | - | - |
| Operating CF Growth % | -237.68% | -49.57% | -6% | 27.21% | -6.89% | -14.06% | 44.1% | -7.02% | -1.53% | -143.47% | -25.57% | -1712.83% | - |
| Net Income | -136.85M | -40.89M | -11.74M | -8.85M | -14.07M | -18.13M | -14.13M | -9.78M | -28.62M | -28.02M | -6.88M | -9.84M | -1.07M |
| Depreciation & Amortization | 672K | 680K | 60K | 162K | 306K | 374K | 482K | 191K | 59K | 17K | 0 | 0 | 0 |
| Stock-Based Compensation | 8.72M | 9.25M | 2.52M | 1.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 109.56M | 14.22M | -1.87M | -3.05M | 762K | 4.24M | 2.93M | -9.13M | 9.96M | 6.85M | -1.21M | 3.26M | 808.5K |
| Working Capital Changes | 90K | 230K | -8K | -311K | -1.31M | 127K | -1.02M | -2.28M | -1.02M | 1.84M | 156.02K | 260.29K | -89.92K |
| Change in Receivables | -133K | 0 | -5K | -291K | -103K | 1K | 222K | -716K | 429K | -479K | -390.27K | -8.95K | 0 |
| Change in Inventory | -3K | -85K | -607K | 137K | -111K | -87K | 4K | -206K | -392K | 0 | 0 | 0 | 0 |
| Change in Payables | 841K | 1.02M | 344K | -103K | -418K | 369K | -635K | -1.12M | -1.09M | 1.32M | 0 | 0 | 210.09K |
| Cash from Investing | -421.06M | -426.53M | -5K | -29K | -11K | -56K | -9K | -769K | -440K | -190K | 378K | -378K | 0 |
| Capital Expenditures | 0 | 0 | -5K | -29K | -17K | -56K | -63K | -278K | -440K | -190K | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | 744.21% | 0.96% | 4.5% | 2.16% | 10.73% | 9.53% | 18.58% | 92.05% | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 6K | 0 | 61K | -416K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -426.53M | -426.53M | 0 | 0 | 0 | 0 | -7K | -75K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 442.16M | 449.24M | 6.95M | 1.08M | 17.87M | 21.13M | 9.64M | 1.65M | 40.03M | 22.22M | 9.69M | 7.48M | 364.45K |
| Debt Issued (Net) | 0 | -680K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 782.08K | 364.45K |
| Equity Issued (Net) | 440.1M | 467.03M | 2.96M | 1.08M | 17.87M | 21.13M | 9.64M | 1.65M | 40.03M | 22.22M | 7.69M | 6.68M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.05M | -17.11M | 3.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.9K | 0 |
| Net Change in Cash | 3.29M | 6.19M | -4.09M | -9.37M | 3.54M | 7.67M | -2.13M | -20.12M | 20.02M | 2.92M | 2.23M | 402.93K | 15.75K |
| Free Cash Flow | -17.81M | -61.29M | -11.05M | -10.45M | -14.33M | -13.44M | -11.8M | -21.28M | -20.06M | -19.52M | 0 | 0 | -348.7K |
| FCF Margin % | -185.72% | -1018.66% | -2124.23% | -1621.89% | -1820.46% | -2575.1% | -1785.33% | -1422.26% | -4196.86% | - | - | - | - |
| FCF Growth % | -53.84% | -454.89% | -5.75% | 27.1% | -6.58% | -13.91% | 44.54% | -6.06% | -2.8% | - | - | 100% | - |
| FCF per Share | -0.23 | -2.78 | -4.08 | -8.59 | -26.54 | -136.79 | -246.32 | -706.50 | -770.39 | -916.46 | - | - | -762.78 |
| FCF Conversion (FCF/Net Income) | 0.13x | 0.40x | 0.94x | 1.18x | 1.02x | 0.74x | 0.83x | 2.15x | 0.69x | 0.69x | 1.15x | 0.64x | 0.33x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and reimbursement dependence
As reported in recent financial statements, the wide variance between net income and operating cash flow, highlighted by the 2025Q4 net income of $325.6 million against a $6.2 million cash outflow, suggests that reported earnings are heavily influenced by non-cash accounting adjustments rather than operational cash generation.
The extreme divergence between net income and operating cash flow indicates that the company's bottom line is not a reliable proxy for its underlying cash health. Investors should monitor the extent to which stock-based compensation and other non-cash items inflate earnings while the core business continues to consume liquidity at an unsustainable rate.
Based on the company's reported figures, free cash flow has remained consistently negative over the last ten quarters, with the most recent 2026Q1 outflow of $4.8 million underscoring the ongoing challenge of achieving self-sustaining operations despite the company's aggressive revenue growth trajectory in the US market.
The inability to generate positive free cash flow suggests that the current commercialization strategy is highly capital-intensive and reliant on external funding. This trajectory warrants further investigation into whether the company can reach a breakeven point before its current cash reserves are fully depleted.
According to recent SEC filings, Solana Company's capital deployment has been characterized by significant share repurchases, such as the $3.5 million outflow in 2026Q1, which appears counterintuitive given the company's precarious cash position and the urgent need to fund ongoing clinical research and commercial expansion efforts.
The decision to allocate cash toward share repurchases while operating cash flow remains deeply negative may indicate a management focus on supporting equity valuation over preserving liquidity. This strategy appears to increase the risk of future dilutive capital raises, as the company continues to burn through its limited cash pile.
As indicated by the provided cash flow data, the company's operating cash flow is frequently bolstered by working capital fluctuations, such as the $224,000 inflow in 2026Q1, which may obscure the true underlying cash burn rate associated with the company's specialized sales force and clinical research initiatives.
The reliance on working capital changes to mitigate cash outflows suggests that the company's core operational efficiency is weaker than it appears on the surface. Analysts should be wary of these temporary inflows, as they do not represent sustainable improvements in the company's ability to generate cash from its primary business activities.
Quick answers to the most common questions about buying HSDT stock.
Solana Company (HSDT) generated $-16.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solana Company (HSDT) reported negative free cash flow of $61.3M in 2025, indicating capital requirements exceeded cash from operations.
Solana Company (HSDT) 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.