Operational inefficiency is highlighted by a 2026Q2 OCF/NI ratio of 2.73, confirming that cash burn is driven by core business activities rather than accounting adjustments.
| Cash from Operations | -9.55M | -4.73M | -5.08M | -1.23M | -1.71M | -551.33K |
| Operating CF Margin % | - | -166.14% | - | -153.97% | -38.01% | -18.36% |
| Operating CF Growth % | -813.88% | 6.83% | -312.17% | 28.05% | -210.44% | - |
| Net Income | -3.96M | -7.08M | -3.25M | -3.9M | -1.01M | -106K |
| Depreciation & Amortization | 0 | 0 | 87.12K | 113.25K | 33.14K | 4.33K |
| Stock-Based Compensation | 1.14M | 2.19M | 146.33K | 41.67K | 300K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 499.9K | 2.13M | 365.61K | 1.14M | -120.26K | -230K |
| Working Capital Changes | -7.23M | -1.96M | -2.42M | 1.37M | -915.77K | -219.66K |
| Change in Receivables | 97K | 0 | 10.5K | 568.89K | -1.37M | -537.1K |
| Change in Inventory | -783.39K | -2.11M | 61.22K | -64.39K | -44.79K | -145.85K |
| Change in Payables | 0 | 0 | -966.48K | 359.28K | 930.29K | 1.6K |
| Cash from Investing | -4.96M | -3.28M | -547.06K | -244.9K | -684.82K | -60.55K |
| Capital Expenditures | 14.1K | 0 | -559.63K | -244.9K | -695.82K | -60.55K |
| CapEx % of Revenue | 0.31% | - | - | 30.62% | 15.45% | 2.02% |
| Acquisitions | -2.2M | -3.6M | 0 | 0 | 11K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -26.85K | -26.85K | 12.57K | 0 | 0 | 0 |
| Cash from Financing | 42.56M | 17.06M | 7.14M | 1.43M | 2.35M | 236.97K |
| Debt Issued (Net) | 0 | 0 | -789.39K | 38.42K | 924.87K | 156.26K |
| Equity Issued (Net) | 42.56M | 17.06M | 8.45M | 900K | 1.5M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -516.37K | 492.14K | -74.74K | 80.71K |
| Net Change in Cash | 28.05M | 9.05M | 1.52M | -45.73K | -46.23K | -374.91K |
| Free Cash Flow | -9.57M | -4.73M | -5.64M | -1.48M | -2.41M | -611.88K |
| FCF Margin % | -209.79% | -166.14% | - | -184.6% | -53.47% | -20.37% |
| FCF Growth % | -78.98% | 16.08% | -281.7% | 38.68% | -293.44% | - |
| FCF per Share | -1.17 | -0.88 | -2.79 | -0.81 | -1.40 | -0.38 |
| FCF Conversion (FCF/Net Income) | 2.42x | 0.67x | 1.58x | 0.32x | 1.70x | 5.20x |
| Interest Paid | -11.42K | 0 | 23.7K | 43.91K | 10.11K | 93.68K |
| Taxes Paid | 0 | 0 | 800 | 3.5K | 23.72K | 12.77K |
Rapid liquidity depletion
As reported in quarterly filings, INHD consistently records negative operating cash flow that significantly exceeds net losses, with the OCF/NI ratio reaching 2.73 in 2026Q2, suggesting that the company's cash burn is driven by fundamental operational inefficiencies rather than non-cash accounting adjustments or accruals.
The consistent divergence between net income and operating cash flow indicates that the company is struggling to convert its business model into tangible liquidity. This pattern suggests that the reported losses are not merely accounting artifacts but reflect a structural inability to manage cash-based operational expenses.
Based on the provided financial data, INHD has failed to generate positive free cash flow in any of the last ten quarters, with the 2026Q2 FCF margin of -3.2% highlighting a persistent inability to fund operations through internal cash generation despite the company's mobile factory model.
The lack of a positive FCF trajectory implies that the company remains entirely dependent on external financing or existing cash reserves to sustain its current footprint. Investors should monitor whether this trend is a temporary byproduct of growth investment or a permanent feature of the company's cost structure.
According to recent SEC filings, INHD's working capital management is highly erratic, with a significant cash outflow of $2.4 million in 2026Q2 alone, which underscores the difficulty of managing inventory and receivables within a project-based, cyclical construction environment that lacks predictable cash conversion cycles.
The frequent, large swings in working capital suggest that the company may be struggling with either delayed collections or inefficient inventory procurement. This volatility creates an unpredictable cash profile that complicates the company's ability to maintain a stable liquidity position.
As evidenced by the cash flow statements, the company's reliance on stock-based compensation, which peaked at $1.1 million in 2025Q3, masks the true extent of the cash burn by shifting compensation costs away from the cash flow statement while still diluting shareholder value over time.
The use of non-cash compensation appears to be a mechanism to preserve limited cash reserves, yet it does not address the underlying operational deficits. Analysts should be wary of interpreting these adjustments as a sign of improved cash efficiency, as they do not improve the company's core ability to generate profit.
Quick answers to the most common questions about buying INHD stock.
Inno Holdings Inc. (INHD) generated $-4.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Inno Holdings Inc. (INHD) reported negative free cash flow of $4.7M in 2025, indicating capital requirements exceeded cash from operations.
Inno Holdings Inc. (INHD) 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.