Persistent free cash flow burn remains a primary concern, with quarterly outflows ranging between $3.1 million and $5.6 million over the last ten quarters.
| 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 | -14.32M | -13.75M | -15.55M | -12.24M | -10.53M | -10.3M | -4.87M | -4.77M | -4.4M | -4.41M | -3.15M | -3.44M | -3.14M | -2.84M | -2.37M | -1.68M | -1.44M | -1.11M | -1.25M | -1.43M | -742.67K | -775.3K |
| Operating CF Margin % | - | -5804.9% | -16265.38% | -30210.91% | - | - | - | - | - | - | - | - | -125608.12% | - | - | - | -44896.28% | - | - | - | - | - |
| Operating CF Growth % | -3.5% | 11.58% | -27.09% | -16.18% | -2.21% | -111.41% | -2.27% | -8.29% | 0.2% | -39.84% | 8.35% | -9.57% | -10.65% | -19.83% | -40.78% | -17.1% | -29.67% | 11.24% | 12.99% | -93.18% | 4.21% | - |
| Net Income | -21.92M | -20.31M | -22.54M | -21.04M | -17.23M | -18.63M | -6.72M | -6.73M | -5.77M | -5.75M | -4.41M | -4.85M | -4.41M | -3.91M | -4.56M | -3.48M | -3.71M | -2.72M | -4.34M | -4.22M | -2.6M | -1.72M |
| Depreciation & Amortization | 2.66M | 2.11M | 1.88M | 1.3M | 1.22M | 1.05M | 784.42K | 698.69K | 465.8K | 325.95K | 195.61K | 179.91K | 151.18K | 126.77K | 79.22K | 35.39K | 30.17K | 16.97K | 15.76K | 1.57M | 330.71K | 10.22K |
| Stock-Based Compensation | 2.14M | 551.47K | 4.44M | 6.46M | 5.81M | 1.02M | 539.41K | 600.73K | 387.69K | 794.74K | 436.23K | 1.34M | 824.73K | 674.9K | 1.82M | 882.64K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 88.47K | 416.93K | 173.72K | 91.26K | 148.68K | 135.85K | 291.33K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.61M | 4.53M | 814.28K | 720.77K | 354.64K | 5.07M | 212.14K | 487.93K | 172.19K | 270.34K | 295.88K | 48.96K | 41.36K | 212.16K | 132.42K | 727.37K | 2.32M | 1.54M | 3.13M | 1.32M | 560.91K | 1.68M |
| Working Capital Changes | -409.72K | -622.24K | -145K | 317.88K | -692.89K | 1.19M | 305.73K | 173.77K | 257.84K | -468.27K | 152.48K | -255.15K | 103.64K | -75.38K | -131.32K | 154.85K | -73.98K | 57.1K | -53.72K | -101.05K | 962.23K | -745.41K |
| Change in Receivables | -197K | -145.19K | -15.19K | -30.38K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 111.95K | -38.02K | -1.04M | 869.24K | 643.92K | 28.88K | 115.82K | -61.34K | 101.59K | -55.18K | 32.66K | -150.57K | 74.26K | -37.76K | -58.06K | 96.24K | -16.63K | 58.03K | -33.6K | 0 | 0 | 0 |
| Cash from Investing | -1.54M | -1.82M | -2.7M | -2.96M | -2.21M | -1.12M | -217.98K | -305.67K | -1.43M | -265.53K | -173.76K | -309.48K | -294.54K | -179.15K | -348.88K | -111.67K | -108.44K | -108.13K | 80.32K | -182.38K | 166.87K | -238.69K |
| Capital Expenditures | -1.95M | -1.33M | -2.27M | -3.29M | -1.31M | -1.1M | -158.06K | -223.47K | -1.43M | -265.53K | -193.26K | -309.48K | -294.54K | -179.15K | -348.88K | -111.67K | -108.44K | -108.13K | -48.2K | -182.38K | -8.51K | -38.69K |
| CapEx % of Revenue | 803.43% | 562.27% | 2371.63% | 8128.55% | - | - | - | - | - | - | - | - | 11781.56% | - | - | - | 3388.78% | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.5K | 0 | 19.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -17.86M | -19.27M | -430.5K | 335.02K | -902.53K | -18.65K | -59.92K | -82.19K | 2.5K | -183.79K | 19.5K | -279.9K | -81.35K | -69.88K | -83 | 0 | 0 | 0 | 100K | 0 | 0 | 0 |
| Cash from Financing | 65.92M | 56.92M | 14.48M | 22.52M | 13.41M | 31.55M | 6.16M | 5.13M | 4.53M | 6.2M | 1.55M | 4.32M | 4.33M | 2.35M | 5.29M | 1.2M | 2.04M | 1.59M | 776.77K | 2.1M | 426.3K | 995.62K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -13.11K | -669.65K | -505.73K | -499.41K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.07K | -5.2K | -4.38K |
| Equity Issued (Net) | 43.81M | 38.31M | 14.15M | 19.99M | 12.78M | 30.35M | 5.17M | 5.64M | 0 | 6.22M | 1.55M | 0 | 4.18M | 2.28M | 4.85M | 1.2M | 2.04M | 1.58M | 776.77K | 2.1M | 425K | 1M |
| 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K | 0 | 0 |
| Other Financing | 22.11M | 18.6M | 337.35K | 2.53M | 635.69K | 1.21M | 1.66M | 0 | 5.03M | -23.85K | 0 | 4.32M | 153.83K | 72.51K | 444.4K | 0 | 0 | 12.5K | 0 | -1.47K | 6.5K | 0 |
| Net Change in Cash | 50.06M | 41.35M | -3.76M | 7.33M | 669.54K | 20.13M | 1.07M | 61.72K | -1.31M | 1.53M | -1.77M | 564.76K | 895.24K | -666.17K | 2.58M | -594.04K | 493.88K | 371.76K | -391.23K | 478.92K | -149.5K | -18.36K |
| Free Cash Flow | -15.2M | -15.08M | -18.25M | -15.84M | -12.1M | -11.42M | -5.09M | -5.07M | -5.84M | -4.68M | -3.35M | -3.75M | -3.43M | -3.02M | -2.72M | -1.79M | -1.55M | -1.22M | -1.3M | -1.62M | -751.19K | -813.99K |
| FCF Margin % | -6253.7% | -6367.17% | -19087.3% | -39099.14% | - | - | - | - | - | - | - | - | -137389.68% | - | - | - | -48285.06% | - | - | - | - | - |
| FCF Growth % | 10.77% | 17.36% | -15.23% | -30.88% | -5.95% | -124.28% | -0.4% | 13.1% | -24.82% | -39.7% | 10.76% | -9.19% | -13.84% | -11.03% | -51.46% | -16.11% | -27.05% | 6.2% | 19.82% | -115.27% | 7.71% | - |
| FCF per Share | -0.10 | -0.12 | -0.15 | -0.14 | -0.11 | -0.11 | -0.06 | -0.06 | -0.08 | -0.07 | -0.05 | -0.06 | -0.06 | -0.06 | -0.06 | -0.04 | -0.04 | -0.03 | -0.04 | -0.05 | -0.03 | -0.03 |
| FCF Conversion (FCF/Net Income) | 0.69x | 0.68x | 0.69x | 0.58x | 0.61x | 0.55x | 0.73x | 0.71x | 0.76x | 0.77x | 0.72x | 0.71x | 0.71x | 0.73x | 0.52x | 0.48x | 0.39x | 0.41x | 0.29x | 0.34x | 0.29x | 0.45x |
| 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 |
Binary commercialization failure risk
According to quarterly financial data, the company consistently reports operating cash flow deficits that track closely with net losses, as evidenced by an OCF/NI ratio that has fluctuated between 0.47 and 0.84 over the last ten quarters, confirming the absence of meaningful non-cash earnings contributions.
The tight correlation between net income and operating cash flow suggests that the company's losses are primarily cash-based rather than driven by significant non-cash accounting charges. Investors should monitor this relationship, as it indicates that the current burn rate is a direct reflection of ongoing R&D and operational expenditures rather than accounting artifacts.
As reported in recent financial statements, Lightwave Logic maintains a consistent free cash flow burn, with quarterly outflows ranging between $3.1 million and $5.6 million, underscoring the company's status as a pre-revenue entity that remains entirely dependent on external capital to fund its development cycle.
The negative FCF margins, which frequently exceed 100%, highlight the lack of a self-sustaining business model at this stage of the company's lifecycle. This trajectory suggests that the company will continue to require significant capital infusions until it can successfully transition from prototype development to high-volume commercial licensing.
Based on the provided cash flow tables, capital expenditures have remained volatile, with the CapEx-to-revenue ratio spiking as high as 157.6% in 2025Q2, illustrating the heavy investment required for specialized laboratory equipment and prototype fabrication relative to the company's nominal top-line revenue generation.
The erratic nature of these capital outlays suggests that spending is tied to specific R&D milestones or equipment upgrades rather than a steady-state manufacturing process. Analysts should interpret these fluctuations as a sign of the company's ongoing efforts to refine its polymer synthesis and modulator testing capabilities.
Analysis of the cash flow statement reveals that stock-based compensation, which reached $2.4 million in 2025Q4, frequently serves as a significant non-cash adjustment that obscures the true economic cost of retaining the specialized technical talent required to maintain the company's competitive position in organic photonics.
While SBC is a standard tool for preserving cash in development-stage firms, it represents a real dilution risk for shareholders that is not captured in the headline operating cash flow figures. Investors should consider the impact of this equity-based compensation on future earnings per share as the company attempts to scale its operations.
Quick answers to the most common questions about buying LWLG stock.
Lightwave Logic, Inc. (LWLG) generated $-13.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lightwave Logic, Inc. (LWLG) reported negative free cash flow of $15.1M in 2025, indicating capital requirements exceeded cash from operations.
Lightwave Logic, Inc. (LWLG) 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.