Operational sustainability is currently absent, evidenced by a 2026Q2 free cash flow margin of -111.0% and a persistent reliance on external financing to cover ongoing research expenses.
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 |
|---|
| Cash from Operations | -9.37M | -10.45M | -4.96M | -5.88M | -4.88M | -3.99M | -2.62M | -3.01M | -2.52M | -1.55M | -660.86K | -1.5M | 321K | 321K | 135.94K | 109.84K | -330.34K | -36.4K | 29.04K | -218.56K | -153.38K |
| Operating CF Margin % | - | -1480.39% | -1068.11% | -2599.92% | -1910.49% | -552.02% | -681.01% | -1350.14% | -581.13% | -2429.18% | -1623.01% | -10209.68% | 29.25% | 29.25% | 10.01% | 9.69% | -91.13% | -8.63% | 3.22% | -86.34% | -755.28% |
| Operating CF Growth % | -203.33% | -110.74% | 15.68% | -20.53% | -22.3% | -52.35% | 12.87% | -19.36% | -62.88% | -133.93% | 55.97% | -567.61% | 0% | 136.13% | 23.77% | 133.25% | -807.47% | -225.37% | 113.28% | -42.5% | - |
| Net Income | -9.53M | -11.91M | -5.81M | -6.71M | -7.38M | -4.19M | -4.08M | -4.16M | -6.61M | -1.93M | -1.28M | -1.93M | -343.55K | -343.55K | -251.51K | -538.23K | -552.46K | -753.57K | -978.49K | -1.06M | -508.26K |
| Depreciation & Amortization | 88.32K | 87.83K | 76.15K | 145.4K | 102.72K | 147.6K | 146.09K | 60.55K | 2.31K | 1.49K | 619 | 0 | 0 | 0 | 0 | 425 | 1.02K | 1.25K | 453.12K | 148.38K | 81.76K |
| Stock-Based Compensation | 742.65K | 859.49K | 492.24K | 170.38K | 752.59K | 410.01K | 1.14M | 626.69K | 2.6M | 113.04K | 122.02K | 256.05K | 820.89K | 21.28K | 11.34K | 179.79K | 161.37K | 56.91K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33.13K | 0 | 0 |
| Other Non-Cash Items | 315.48K | 318.15K | 174.71K | 372.25K | 2M | -424.66K | 374.83K | 385.93K | 1.86M | 570.15K | 155.79K | 223K | 362.36K | 362.36K | 457.68K | 438.73K | 156.57K | 444.56K | 586.41K | 708.53K | 264.86K |
| Working Capital Changes | -982.8K | 195.58K | 106.56K | 143.26K | -351.48K | 63.53K | -194.36K | 79.68K | -371.23K | -301.12K | 337.97K | -45.73K | 280.92K | 280.92K | -81.56K | 29.12K | -96.83K | 214.44K | 1.13K | -19.58K | 8.27K |
| Change in Receivables | 289.14K | -214.32K | -50.57K | 26.54K | -137.49K | 189.58K | -90.78K | -138.64K | -245.46K | -7.71K | -6.2K | 65.62K | 211.72K | 211.72K | -60.06K | -156K | -32.68K | -26.69K | 22.81K | -24.85K | -13.46K |
| Change in Inventory | 0 | 0 | 0 | 43.07K | -1.98K | 95.04K | 4.21K | -47.34K | -33.02K | -1.06K | -10.78K | -167.99K | -211.72K | 0 | 0 | 61.81K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 826.47K | 88.49K | 50.73K | 13.8K | -49.49K | 100.63K | 3.21K | -40.44K | 56.94K | -60.48K | 69.23K | 69.23K | -55.27K | 184.88K | -61.81K | 234.94K | 0 | 0 | 0 |
| Cash from Investing | -236.33K | -243.02K | -188.6K | -169.61K | -180.64K | 193.88K | -26.84K | -769.16K | -155.4K | -9.7K | -20.1K | 684.82K | -70.61K | -70.61K | -274.13K | -1M | -285.24K | -223.83K | -376.41K | -2.09M | -1.53M |
| Capital Expenditures | -45.91K | -24.65K | -43.01K | -33.75K | -49.19K | -79.49K | -33.65K | -646.18K | -85.4K | -9.7K | -3.09K | -36.99K | -91.61K | -91.61K | -274.13K | -1M | -285.24K | -223.83K | -582.43K | -2.09M | -1.53M |
| CapEx % of Revenue | 12.48% | 3.49% | 9.26% | 14.92% | 19.26% | 11% | 8.75% | 290.28% | 19.71% | 15.24% | 7.6% | 251.59% | 8.35% | 8.35% | 20.19% | 88.43% | 78.69% | 53.04% | 64.66% | 825.08% | 7533.79% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -70K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -190.41K | -218.37K | -145.59K | -135.86K | -131.45K | 273.37K | 0 | -122.98K | 0 | 0 | -17.01K | 721.81K | 21K | 21K | 0 | 0 | 0 | 0 | 206.02K | 0 | 0 |
| Cash from Financing | 8.21M | 6.05M | 10.32M | 1.59M | -44.6K | 13.42M | 2.65M | 3.33M | 1.87M | 4M | 514.29K | 373.25K | -365.36K | -365.36K | 287.5K | 861K | 348.4K | -79.24K | 938.95K | 1.1M | 2.1M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -44.6K | -66.69K | -13.83K | 0 | 0 | -50K | 95K | -98.74K | 0 | -365.36K | 287.5K | 366.81K | 165K | -84.01K | 693.95K | 50K | 2M |
| Equity Issued (Net) | 8.21M | 6.05M | 4.21M | 1.59M | 0 | 9.47M | 2.67M | 2.33M | 1.87M | 4.05M | 419.29K | 472K | 0 | 0 | 0 | 36.91K | 183.4K | 0 | 245K | 1.05M | 105K |
| Dividends Paid | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 6.11M | 0 | 0 | 4.02M | 0 | 1M | 0 | 0 | 0 | 0 | -365.36K | 0 | 0 | 457.29K | 0 | 4.78K | 0 | 0 | 0 |
| Net Change in Cash | -1.34M | -4.7M | 5.15M | -4.46M | -5.1M | 9.62M | 8.6K | -442.04K | -806.15K | 2.44M | -166.67K | -442.95K | -114.97K | 149.31K | -31.79K | -267.18K | -339.47K | 591.57K | -1.21M | 421.74K | 863.56K |
| Free Cash Flow | -9.47M | -10.48M | -5M | -6.05M | -4.93M | -4.07M | -2.65M | -3.77M | -2.6M | -1.56M | -680.96K | -1.54M | 229.39K | 229.39K | -138.19K | -892.79K | -615.58K | -260.23K | -553.4K | -2.31M | -1.68M |
| FCF Margin % | -2573.23% | -1483.88% | -1077.38% | -2674.9% | -1929.75% | -563.02% | -689.76% | -1695.67% | -600.84% | -2444.43% | -1672.38% | -10461.27% | 20.9% | 20.9% | -10.18% | -78.75% | -169.83% | -61.67% | -61.43% | -911.42% | -8289.07% |
| FCF Growth % | -25.61% | -109.42% | 17.33% | -22.77% | -21.12% | -53.41% | 29.73% | -44.99% | -67.35% | -128.44% | 55.72% | -770.49% | 0% | 266% | 84.52% | -45.03% | -136.55% | 52.98% | 76.01% | -37.07% | - |
| FCF per Share | -0.39 | -0.58 | -0.40 | -0.91 | -0.84 | -0.93 | -0.96 | -1.46 | -1.10 | -0.79 | -0.47 | -1.16 | 0.01 | 0.38 | -0.28 | -1.98 | -2.29 | -1.19 | -2.73 | -14.34 | -10.52 |
| FCF Conversion (FCF/Net Income) | 0.99x | 0.88x | 0.86x | 0.88x | 0.67x | 0.99x | 0.67x | 0.73x | 0.38x | 0.83x | 0.54x | 0.85x | -0.17x | -0.93x | -0.54x | -0.20x | 0.60x | 0.05x | -0.03x | 0.21x | 0.30x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 2.6K | 0 | 10.04K | 8.21K | 4.78K | 16.3K | 12.98K | 13.92K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
As reported in financial statements, Lexaria's operating cash flow consistently tracks net losses, with the OCF/NI ratio reaching 1.49 in 2026Q2, suggesting that the company's cash burn is driven by structural operational deficits rather than temporary accounting accruals or non-cash adjustments to the bottom line.
The persistent alignment between net losses and negative operating cash flow indicates that the company lacks a self-funding mechanism. Investors should note that the absence of meaningful positive accruals suggests the business is consuming cash at a rate that mirrors its accounting losses, leaving little room for operational error.
Based on Lexaria's reported figures, the company has failed to generate positive free cash flow in any of the last ten quarters, with the 2026Q2 FCF margin plummeting to -111.0%, reflecting a business model that is currently entirely dependent on external financing to sustain operations.
The trajectory of free cash flow shows no signs of stabilization, as the company continues to prioritize R&D spending over cash preservation. This trend implies that the firm remains in a high-risk development phase where cash outflows are dictated by clinical trial milestones rather than commercial revenue generation.
According to recent SEC filings, Lexaria's working capital changes have been highly erratic, including a significant $814.4K outflow in 2026Q2, which highlights the unpredictable nature of cash collections and the lack of a stable, recurring revenue cycle within the current licensing-heavy business model.
The sharp swings in working capital suggest that the company's cash position is highly sensitive to the timing of milestone payments and project-based inflows. This volatility complicates liquidity planning and may force management to maintain higher cash buffers than the current balance sheet can support.
As evidenced by historical cash flow data, Lexaria frequently utilizes stock-based compensation to preserve cash, with a notable $470.1K issuance in 2025Q3, which effectively shifts the burden of operational costs from the cash flow statement to the equity base of existing shareholders.
While this strategy mitigates immediate cash outflows, it obscures the true economic cost of talent acquisition and R&D operations. Analysts should interpret these non-cash charges as a form of hidden dilution that is necessary to keep the company afloat given its limited cash reserves.
Quick answers to the most common questions about buying LEXX stock.
Lexaria Bioscience Corp. (LEXX) generated $-10.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lexaria Bioscience Corp. (LEXX) reported negative free cash flow of $10.5M in 2025, indicating capital requirements exceeded cash from operations.
Lexaria Bioscience Corp. (LEXX) 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.