Cash burn remains a critical concern, as the firm failed to achieve a positive free cash flow margin in nine of the last ten quarters, further exacerbated by $8.7 million in stock-based compensation during 2025Q4.
| Cash from Operations | -8.36M | -5.68M | -9.04M | -7.16M | -6.57M | -5.83M | 9.5M |
| Operating CF Margin % | - | -132.74% | -406.99% | -169.17% | -589.4% | - | - |
| Operating CF Growth % | -1157.29% | 37.11% | -26.21% | -8.97% | -12.68% | -161.39% | - |
| Net Income | -21.39M | -21.27M | 11.6M | -7.71M | -5.88M | -15.67M | -1.27M |
| Depreciation & Amortization | 21.34K | 22K | 229.92K | 196.94K | 147.75K | 48.21K | 46.51K |
| Stock-Based Compensation | 14.15M | 11.77M | 14.44M | 4.41M | 218.35K | 200.67K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 120.79K | 0 | 0 | 0 |
| Other Non-Cash Items | 95.52K | 2.58M | -32.73M | -5.73M | -1.06M | 10M | 10.29M |
| Working Capital Changes | -1.22M | 1.21M | -2.57M | 1.55M | -7.13K | -413.09K | 436.71K |
| Change in Receivables | -101K | -49K | 818.56K | 0 | -341.18K | -317.07K | -64.84K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.75M | 1.48M | 518.48K | -120.79K | 122.29K | 145.04K | 357.31K |
| Cash from Investing | 872.43K | -49K | 22.89M | -8.2M | -16.38M | -423.39K | -62.13K |
| Capital Expenditures | -118K | -49K | 546.08K | -438.78K | -193.25K | -423.39K | -62.13K |
| CapEx % of Revenue | 2.26% | 1.14% | 24.59% | 10.37% | 17.33% | - | - |
| Acquisitions | 0 | - | - | - | - | - | - |
| Investments | 41.6M | 40.35M | 44.29M | 27.46M | 17.23M | 0 | 0 |
| Other Investing | 0 | 0 | -2.85M | -797.94K | 0 | 0 | 0 |
| Cash from Financing | 0 | 0 | 69.3K | 17.76M | 21.68M | 0 | 250.96K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 20M | 25.29M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -2.72M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 69.3K | -2.24M | -884.8K | 0 | 0 |
| Net Change in Cash | -7.49M | -5.73M | 13.92M | 2.41M | -1.27M | -6.26M | 9.69M |
| Free Cash Flow | -8.48M | -5.73M | -8.49M | -7.6M | -6.77M | -6.26M | 9.44M |
| FCF Margin % | -162.05% | -133.89% | -382.4% | -179.53% | -606.73% | - | - |
| FCF Growth % | -33.39% | 32.49% | -11.74% | -12.34% | -8.14% | -166.28% | - |
| FCF per Share | -0.83 | -0.57 | -1.92 | -0.94 | -0.80 | -0.74 | 1.12 |
| FCF Conversion (FCF/Net Income) | 0.40x | 0.27x | -0.77x | 1.03x | 1.24x | 0.39x | -13.16x |
| Interest Paid | 0 | 0 | 0 | 0 | 9 | 9.51K | 1.12K |
| Taxes Paid | 11K | 11K | 2.14K | 127.92K | 0 | 0 | 40.07K |
Persistent operating cash deficit
According to historical financial data, MDBH consistently reports negative net income alongside operating cash outflows, with the OCF/NI ratio frequently failing to provide a positive signal, suggesting that the firm's accounting losses are matched by actual cash depletion rather than non-cash accounting adjustments.
The persistent gap between net income and operating cash flow indicates that the firm's losses are not merely paper-based impairments but reflect real-world cash burn. Investors should monitor this relationship closely, as the lack of positive cash conversion suggests that the core business model is currently unable to generate self-sustaining liquidity.
As reported in quarterly filings, MDBH's free cash flow remains consistently negative, with the firm failing to achieve a positive FCF margin in nine of the last ten quarters, highlighting a structural inability to fund operations through internal cash generation.
The trajectory of free cash flow suggests that the company is in a perpetual state of capital consumption. Without a clear path to positive FCF, the firm appears increasingly reliant on external financing to maintain its dual-track operations, which may lead to future shareholder dilution.
Based on the provided cash flow statements, MDBH exhibits significant volatility in working capital changes, with fluctuations ranging from a $1.9 million outflow in 2026Q1 to a $1.1 million inflow in 2024Q1, indicating inconsistent efficiency in managing receivables and payables.
These erratic swings in working capital suggest that the firm's cash management is highly sensitive to the timing of transactional deal closures. Such instability complicates cash flow forecasting and may indicate underlying challenges in maintaining a predictable liquidity buffer for the broker-dealer segment.
Analysis of recent financial statements reveals that Stock-Based Compensation (SBC) has reached as high as $8.7 million in a single quarter, which effectively obscures the true magnitude of the firm's cash-based operating expenses and complicates the assessment of underlying operational efficiency.
The reliance on equity-based incentives appears to be a mechanism to preserve cash, yet it does not address the fundamental lack of operational profitability. Analysts should adjust for these non-cash charges to understand the true economic cost of the firm's human capital and its impact on long-term shareholder value.
Quick answers to the most common questions about buying MDBH stock.
MDB Capital Holdings, LLC Class A common (MDBH) generated $-5.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MDB Capital Holdings, LLC Class A common (MDBH) reported negative free cash flow of $5.7M in 2025, indicating capital requirements exceeded cash from operations.
MDB Capital Holdings, LLC Class A common (MDBH) 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.