Cash flow remains under pressure with a 2026Q1 OCF/NI ratio of 0.56, indicating that the company's $2.2M quarterly free cash flow outflow is increasingly reliant on equity-based incentives like the $991.4K in stock-based compensation recorded in the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -9.1M | -9.14M | -8.74M | -7.13M | -6.38M | -4.28M | -3.02M | -3.22M | -3.83M | -7.42M | -10.1M | -8.05M | -5.47M | -3.24M | -2.25M | -1.36M |
| Operating CF Margin % | - | -24214.06% | -10162.01% | -3586.03% | -3140.62% | -742.69% | -705.17% | - | - | -611.71% | -620.23% | -188.88% | -304.86% | -171.25% | -199.79% | -157.49% |
| Operating CF Growth % | -10.48% | -4.49% | -22.59% | -11.71% | -49.13% | -41.8% | 6.2% | 16.01% | 48.32% | 26.59% | -25.55% | -47.11% | -68.77% | -43.94% | -66.08% | - |
| Net Income | -11.51M | -10.58M | -10.42M | -9.95M | -7.19M | -4.77M | -7.79M | -3.12M | -4.27M | -10.34M | -10.98M | -10.44M | -6.9M | -9.55M | -4.65M | -1.75M |
| Depreciation & Amortization | 463.03K | 457.52K | 416.52K | 333.9K | 245.53K | 157.56K | 122.15K | 110.46K | 137.51K | 451.55K | 406.64K | 232.85K | 67.79K | 29.71K | 52.14K | 40.86K |
| Stock-Based Compensation | 1.05M | 729.17K | 1.6M | 2.32M | 1.08M | 352.31K | 868.65K | 184.34K | 730.8K | 1.11M | 1.52M | 1.38M | 944.1K | 458.98K | 64.6K | 54.64K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 296.89K | 217.81K | 5.38M | 1.47M | 176.98K |
| Other Non-Cash Items | 411.68K | 77.11K | 62.13K | 274.6K | 940 | 117.1K | 3.79M | -642.39K | 56.5K | 1.29M | 322.73K | 84.9K | 50K | 437.36K | 836.65K | 118.84K |
| Working Capital Changes | 475.81K | 179.14K | -399.67K | -107.43K | -516.93K | -137.57K | -7.46K | 248.46K | -485.47K | 71.93K | -1.37M | 395.02K | 150.97K | 5.79K | -30.56K | 3.97K |
| Change in Receivables | -15.46K | -23.31K | 69.31K | -4.06K | 167.33K | -62.98K | -170.29K | 0 | 5.62K | -35.12K | 408.84K | -523.7K | -218.89K | 233.27K | -382.31K | -103.36K |
| Change in Inventory | 11.72K | 50.72K | -14.96K | -81.45K | 0 | 0 | 0 | 0 | 0 | 233K | -679.99K | -412.7K | 205.47K | -325.44K | -87.85K | -130.02K |
| Change in Payables | 528.36K | 304.28K | -300.98K | 0 | 0 | 28.52K | -80.97K | 88.75K | -118.62K | 102.71K | -992.06K | 897.19K | -97.51K | -145.41K | 435.89K | 101.08K |
| Cash from Investing | -633.58K | -449.49K | -506.43K | -522.95K | -312.74K | -236.94K | -67.16K | -80.51K | -134.15K | -434.03K | -750.99K | -1.42M | -760.5K | -221.65K | -309.04K | -150.81K |
| Capital Expenditures | -250.25K | -119.48K | -197.27K | -240.82K | -182.65K | -44.27K | -13.94K | -104.1K | -134.15K | -434.03K | -750.99K | -1.42M | -760.5K | -221.65K | -329.04K | -130.81K |
| CapEx % of Revenue | 972.79% | 316.69% | 229.29% | 121.1% | 89.86% | 7.68% | 3.26% | - | - | 35.8% | 46.11% | 33.37% | 42.39% | 11.71% | 29.2% | 15.2% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -383.33K | -330.01K | -309.16K | -282.12K | -130.09K | -192.67K | -53.22K | 23.59K | -2.79M | -4.66M | -359.9K | -630.14K | -418.25K | -142.71K | 20K | -20K |
| Cash from Financing | 12.45M | -128.83K | 16.62M | -216.26K | -127.87K | 24.53M | 3.19M | 3.1M | -5.72K | 13.67M | 35.53K | 16.58M | 4.97K | 15.63M | 4.43M | 1.36M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 91.41K | 0 | 0 | 0 | 0 | 0 | 0 | 611.26K | 4.38M | 1.18M |
| Equity Issued (Net) | 12.49M | 110 | 15.72M | -216.26K | -127.87K | 21.2M | 0 | 3.1M | 0 | 13.66M | 0 | 15.92M | 0 | 15.02M | 52K | 185.34K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -89.49K | 0 | 0 | -216.26K | -127.87K | 0 | 0 | 0 | -5.72K | 0 | -3.26K | 0 | 0 | 0 | 0 | -2.66K |
| Other Financing | -34.15K | -128.94K | 892.21K | 0 | 0 | 3.33M | 3.09M | 0 | -5.72K | 9.57K | 32.27K | 653.83K | 4.97K | -4 | -80K | 0 |
| Net Change in Cash | 2.71M | -9.71M | 7.37M | -7.87M | -6.82M | 20.01M | 99.57K | -200.4K | -6.76M | 5.82M | -10.82M | 7.11M | -6.23M | 12.16M | 1.87M | -143.08K |
| Free Cash Flow | -9.42M | -9.25M | -9.25M | -7.37M | -6.57M | -4.52M | -3.09M | -3.32M | -3.97M | -7.85M | -10.85M | -9.47M | -6.23M | -3.46M | -2.58M | -1.49M |
| FCF Margin % | -36611.94% | -24530.75% | -10750.66% | -3707.13% | -3230.48% | -783.8% | -720.86% | - | - | -647.51% | -666.34% | -222.26% | -347.25% | -182.96% | -228.99% | -172.69% |
| FCF Growth % | -1.37% | -0.06% | -25.45% | -12.27% | -45.35% | -46.39% | 7.12% | 16.23% | 49.47% | 27.67% | -14.63% | -51.97% | -79.93% | -34.18% | -73.6% | - |
| FCF per Share | -0.84 | -1.01 | -1.13 | -1.19 | -1.07 | -0.76 | -0.87 | -2.01 | -2.83 | -5.94 | -11.37 | -11.14 | -8.88 | -17.75 | -17.61 | -10.78 |
| FCF Conversion (FCF/Net Income) | 0.82x | 0.86x | 0.84x | 0.72x | 0.89x | 0.90x | 0.39x | 0.82x | 0.48x | 0.72x | 0.92x | 0.77x | 0.79x | 0.34x | 0.48x | 0.77x |
| Interest Paid | 0 | 0 | 0 | 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 | 0 | 0 | 0 |
Liquidity and dilution risk
According to the provided financial data, the company's OCF/NI ratio consistently hovers below 1.0, with a 2026Q1 reading of 0.56, indicating that reported net losses are not fully capturing the actual cash outflows required to sustain the firm's current research and development-heavy operating model.
The consistent gap between net income and operating cash flow suggests that non-cash expenses, primarily stock-based compensation, are masking the true magnitude of the cash burn. Investors should monitor this divergence, as it implies that the company's accounting losses may actually understate the pressure on liquid reserves.
As reported in quarterly filings, the company has maintained a persistent negative free cash flow trajectory, with quarterly outflows frequently exceeding $2 million, reflecting a business model that remains entirely dependent on external financing to bridge the gap between R&D spending and commercial revenue generation.
The lack of positive FCF margins across all observed periods confirms that the company has yet to achieve a self-sustaining operational scale. This trajectory suggests that until the B-TRAN technology reaches mass-market adoption, the firm will continue to consume its cash balance at an unsustainable rate.
Based on reported figures, the company's capital expenditure remains negligible, with quarterly outlays often falling below $150,000, which indicates that the firm is currently avoiding heavy investment in internal manufacturing infrastructure in favor of a fabless model that relies on third-party foundry partners.
While low capital intensity preserves cash in the short term, it also suggests that the company lacks control over its own production capacity. This reliance on external foundries may introduce significant supply chain risks if the company eventually attempts to scale its B-TRAN production volumes.
As evidenced by the fluctuating working capital changes, which swung from a $509.3K inflow in 2026Q1 to a $497.1K outflow in 2024Q4, the company's cash flow is highly sensitive to the timing of project-based milestones and the irregular collection of payments from its sampling partners.
These erratic swings in working capital highlight the lack of a predictable revenue cycle, which is typical for a pre-commercial firm. The inability to stabilize these flows suggests that the company's cash position will remain subject to significant quarter-over-quarter volatility until commercial contracts become more standardized.
Based on the provided cash flow statements, stock-based compensation frequently accounts for a substantial portion of operating expenses, such as the $991.4K recorded in 2026Q1, which effectively serves as a non-cash substitute for salary expenses to preserve the company's dwindling cash and equivalents.
This reliance on equity-based compensation suggests that the company is attempting to manage its cash burn by diluting shareholders rather than reducing its underlying operational footprint. Analysts should treat the reported operating cash flow with caution, as it is artificially bolstered by these non-cash accounting adjustments.
Quick answers to the most common questions about buying IPWR stock.
Ideal Power Inc. (IPWR) generated $-9.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ideal Power Inc. (IPWR) reported negative free cash flow of $9.3M in 2025, indicating capital requirements exceeded cash from operations.
Ideal Power Inc. (IPWR) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.