Free cash flow remains deeply negative at -122.3% of revenue in 2026Q1, highlighting a persistent reliance on external financing to cover operational burn.
| 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 | 107.31K | 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 | 188.96K | 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 | -38.36K | 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 | 463.9K | 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 | 0 | -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 solvency crisis
According to the provided cash flow statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio fluctuating wildly from 0.14 in 2026Q1 to -1.01 in 2025Q3, indicating a fundamental disconnect between accounting profits and actual cash generation.
The extreme volatility in the OCF/NI ratio suggests that accruals and non-cash adjustments are masking the underlying cash burn of the business. Investors should monitor this divergence closely, as it implies that reported net income is not a reliable proxy for the company's ability to sustain its operations through internal cash flow.
As reported in financial statements, KIDZW's free cash flow margin has remained consistently negative, reaching -122.3% in 2026Q1, which highlights a persistent inability to fund operations through core business activities and suggests a deepening reliance on external financing to maintain the current platform scale.
The consistent negative FCF trajectory, coupled with the lack of meaningful growth, indicates that the company is effectively consuming its capital base to support a shrinking revenue model. This trend warrants further investigation into whether the current cost structure can be adjusted before the remaining cash reserves are fully exhausted.
Based on the reported figures, working capital changes have been highly inconsistent, swinging from a $340.2K inflow in 2023Q4 to a $2.1M outflow in 2025Q3, which suggests significant challenges in managing the timing of student payments and instructor compensation cycles effectively.
The erratic nature of these working capital swings may indicate that the company is struggling to align its cash collection cycles with its service delivery obligations. Such instability often precedes liquidity stress, as the company appears unable to maintain a predictable cash conversion cycle in its current operating environment.
As indicated by the cash flow data, the company's reliance on stock-based compensation, which reached $189.0K in 2026Q1, appears to be a mechanism for preserving cash, yet it fails to offset the massive operating losses that continue to erode the company's total cash position.
The use of non-cash compensation may be an attempt to manage the burn rate, but it does not address the fundamental issue of negative operating margins. Analysts should be wary of these adjustments, as they may obscure the true cost of talent retention in a business model that is currently failing to achieve scale.
Quick answers to the most common questions about buying KIDZW stock.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) generated $-3.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) reported negative free cash flow of $3.8M in 2025, indicating capital requirements exceeded cash from operations.
KIDZ AI Inc. Warrant 2025 - 04.03.30 on KIDZ AI (KIDZW) 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.