Operational cash flow remains deeply negative with a -122.3% FCF margin in 2026Q1, highlighting a chronic inability to convert revenue into sustainable cash generation.
| 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 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | -4.14M | -3.83M | -781.26K | -57.77K | -934.88K | -892.01K | 256.98M | -1.21M | -2.11M | -1.64M | -2.48M | -2.38M | -902.5K | -224.19M | -475.41M | -603.85M | -1.65B | -837.87M | -877.17M | -1.4B | -762.03M | -51.72M |
| Operating CF Margin % | - | -113.67% | -21.26% | -1.87% | -49.24% | - | 3595.09% | -26.79% | -1971.24% | -1753.24% | -887.96% | -2135.15% | -2779.48% | -11.56% | -26.92% | -42.63% | -90.97% | -14.38% | -15.53% | -58.97% | -29.96% | -2.61% |
| Operating CF Growth % | -1486.87% | -389.82% | -1252.28% | 93.82% | -4.81% | -100.35% | 21331.59% | 42.6% | -28.68% | 33.83% | -3.93% | -164.05% | 99.6% | 52.84% | 21.27% | 63.46% | -97.26% | 4.48% | 37.23% | -83.38% | -1373.32% | - |
| Net Income | -10.94M | -7.04M | -843.05K | -433.06K | -2.33M | 6.38M | 14.87K | -14.65M | -2.59M | -1.74M | -3.16M | -2.97M | 5.06M | -787.86M | -46.23M | -689.02M | -878.97M | -1.19B | -1.16B | -1.43B | -667.09M | 120.79M |
| Depreciation & Amortization | 765.47K | 658.15K | 348.35K | 310.05K | 59.24K | 0 | 564.63M | 546.27K | 5.61K | 4.07K | 485.58K | 485.48K | 485.48K | 4.69M | 4.75M | 7.77M | 35.24M | 73.12M | 58.13M | 61.89M | 0 | 45.94M |
| Stock-Based Compensation | 591.67K | 402.71K | 25.12K | 0 | 0 | 0 | 158.88M | 15.89K | 595.58K | 43.21K | 257.29K | 0 | 0 | 0 | 60.01M | 0 | 68.97M | 63.68M | 86.54M | 122.07M | 113.45M | 0 |
| Deferred Taxes | 701.96K | 0 | 0 | 0 | 0 | 0 | 0 | 752.21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.71M | 3.14M | 164.99K | 0 | 0 | -6.56M | -467.43M | 10.6M | -434.55K | -275.45K | 377.27K | 2.5M | -10.12M | 459.78M | -416.19M | 36.24M | -950.71M | -104.92M | 970.82M | -442.46M | 285.38M | -713.82M |
| Working Capital Changes | -972.35K | -987.08K | -476.67K | 65.23K | 1.33M | -702.77K | 879.04K | 1.53M | 317.39K | 331.29K | -440.55K | -2.4M | 3.67M | 99.21M | -77.75M | 41.15M | 72.68M | 318.3M | -835.88M | 293.4M | -493.77M | 495.37M |
| Change in Receivables | 6.06K | -37.24K | 0 | -4.3K | -4.3K | 0 | -1.54B | -963.13K | 2.92K | 2.17K | 27.75K | 77.11K | 159.2K | 81.61M | -216.06M | -90.23M | -75.31M | -284K | 99.95M | 64.81M | -258.58M | -109.95M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 559K | 305K |
| Change in Payables | -17.06K | 3.77K | 7.14K | -484 | 544 | 0 | 896.24M | 694.66K | -67.57K | 61.4K | -80.81K | 37.52K | -30.26K | 83.36M | 9.32M | -41.15M | -70.11M | 93.34M | 45.2M | -68.98M | -31.43M | 23.16M |
| Cash from Investing | -2.36M | -2.33M | -185.71K | 310.22M | -88.71K | -351.9M | -21.54M | 130.61K | -12.15K | -3.64K | -7.4K | -512 | 1.88M | -1.06B | -336.11M | -5.01M | 241.93M | -2.64M | -64.15M | 94.71M | 72.65M | -14.77M |
| Capital Expenditures | -32.58K | -1.25M | -185.71K | 0 | -88.71K | 0 | 0 | -6.51K | -12.15K | -3.64K | -7.4K | -512 | -4.97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 1.06% | 37.13% | 5.05% | 0% | 4.67% | - | - | 0.14% | 11.36% | 3.89% | 2.65% | 0.46% | 15.3% | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.3M | 0 | 0 | 0 | 0 | 0 | -21.54M | 137.13K | 0 | 0 | 0 | 0 | 1.88M | -1.06B | -336.11M | -5.01M | 241.93M | -2.64M | -64.15M | 94.71M | 72.65M | -14.77M |
| Cash from Financing | 8.53M | 8.85M | 230K | 200K | 1.45M | 353.72M | 23.39M | 1.41M | 2.28M | 2.06M | 1.97M | 77.25K | 1.41M | 900M | 900M | 5.38M | 2.25B | 985.75M | 608.73M | 1.53B | 139.5M | 1.06B |
| Debt Issued (Net) | 2.76M | 3.07M | 100K | 200K | 1.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 5.78M | 4.7M | 0 | -311.47M | 300 | 354.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -311.47M | 0 | 0 | 0 | -967.21K | -641.54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 1.08M | 130K | 311.47M | 0 | -682.23K | 23.39M | 1.41M | 2.28M | 2.06M | 1.97M | 77.25K | 1.41M | 900M | 900M | 5.38M | 2.25B | 985.75M | 608.73M | 1.53B | 139.5M | 1.06B |
| Net Change in Cash | 2.04M | 2.7M | -736.97K | 787.65K | 426.71K | 925.76K | 258.83M | 325.68K | 163.14K | 0 | 0 | 0 | 0 | -384.8M | 88.48M | -608.86M | 839.13M | 145.25M | -332.59M | 223.39M | -549.88M | 997.06M |
| Free Cash Flow | -4.17M | -3.83M | -966.97K | -57.77K | -1.02M | -892.01K | 256.98M | -1.22M | -2.12M | -1.64M | -2.48M | -2.38M | -907.47K | -224.19M | -475.41M | -603.85M | -1.65B | -837.87M | -877.17M | -1.4B | -762.03M | -51.72M |
| FCF Margin % | -135.96% | -113.67% | -26.31% | -1.87% | -53.91% | - | 3595.09% | -26.94% | -1982.6% | -1757.13% | -890.61% | -2135.61% | -2794.78% | -11.56% | -26.92% | -42.63% | -90.97% | -14.38% | -15.53% | -58.97% | -29.96% | -2.61% |
| FCF Growth % | -292.1% | -295.75% | -1573.71% | 94.36% | -14.75% | -100.35% | 21217.93% | 42.63% | -29.13% | 33.88% | -4.22% | -162.66% | 99.6% | 52.84% | 21.27% | 63.46% | -97.26% | 4.48% | 37.23% | -83.38% | -1373.32% | - |
| FCF per Share | -7.98 | -7.77 | -2.18 | -0.13 | -2.32 | -1.03 | 97.99 | -0.50 | -1.47 | -1.33 | -2.13 | -2.14 | -0.65 | -166.90 | -370.51 | -472.66 | -1510.33 | -1034.55 | -1249.81 | -2131.26 | -1396.91 | -99.21 |
| FCF Conversion (FCF/Net Income) | 0.38x | 0.54x | 0.93x | 0.13x | 0.40x | -0.14x | 17282.80x | 0.08x | 0.81x | 0.94x | 0.78x | 0.80x | 0.34x | 0.28x | 4.87x | 0.90x | 1.44x | 0.64x | 0.76x | 0.98x | 1.14x | -0.80x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and operational sustainability
As evidenced by the latest quarterly data, KIDZ exhibits a chronic inability to convert net income into operating cash flow, with the 2026Q1 OCF/NI ratio of 0.14 highlighting a significant divergence between accounting losses and actual cash outflows that warrants investor caution regarding earnings quality.
The consistent failure to align net income with operating cash flow suggests that the company's reported losses are exacerbated by cash-intensive operational requirements. This gap implies that the business model lacks the necessary scale to cover its fixed cost base, forcing a reliance on cash reserves that are rapidly depleting.
Based on historical financial statements, KIDZ's free cash flow trajectory has remained deeply negative, culminating in a -122.3% FCF margin in 2026Q1, which underscores the structural difficulty of achieving self-sustaining operations within the current live-instruction service framework.
The persistent negative FCF trajectory indicates that the company is consuming capital at an unsustainable rate relative to its revenue generation. Investors should monitor whether management can implement cost-rationalization measures, as the current burn rate appears to be accelerating rather than stabilizing.
According to reported quarterly figures, working capital fluctuations have become a primary source of cash volatility, most notably seen in the $2.1M outflow during 2025Q3, which suggests that the company's cash management is highly sensitive to timing differences in student enrollment and service delivery.
The erratic nature of working capital changes implies that KIDZ lacks a predictable cash conversion cycle, likely due to the seasonality of its academic offerings. This unpredictability complicates liquidity planning and increases the risk that short-term cash needs will outpace available liquid assets.
Financial disclosures indicate that stock-based compensation of $189.0K in 2026Q1 serves to mask the true extent of operational cash burn, effectively diluting shareholders while the company continues to exhaust its limited cash position to fund ongoing service delivery costs.
The reliance on non-cash adjustments to manage the optics of the income statement obscures the underlying reality that the company is fundamentally cash-negative. This practice warrants further investigation into whether the current compensation structure is aligned with the company's precarious financial position.
Quick answers to the most common questions about buying KIDZ stock.
KIDZ AI Inc. (KIDZ) generated $-3.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KIDZ AI Inc. (KIDZ) reported negative free cash flow of $3.8M in 2025, indicating capital requirements exceeded cash from operations.
KIDZ AI Inc. (KIDZ) spent $1.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.