The company continues to burn cash at an alarming rate, evidenced by a $25.7M free cash flow deficit in 2025Q2 and an OCF/NI ratio of 7.20, highlighting a chronic inability to convert earnings into liquidity.
| Cash from Operations | -113.36M | -139.33M | -133.47M | -274.94M | 71.73M | -3.03M | 8.57M |
| Operating CF Margin % | - | -343.21% | -170.39% | -27.96% | 181.87% | -142.38% | - |
| Operating CF Growth % | 141.05% | -4.39% | 51.45% | -483.28% | 2469.06% | -135.32% | - |
| Net Income | -63.01M | -119.54M | -254.35M | 31.12M | -174.94M | -37.7M | -11.03M |
| Depreciation & Amortization | 12.42M | 11.63M | 10.18M | 9.43M | 5.53M | 622.87K | 131.69K |
| Stock-Based Compensation | 178.35K | 401.52K | 718.41K | 9.35M | 19.34K | 214.88K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 26.75M | -34.05M | 0 |
| Other Non-Cash Items | -19.21M | 26.55M | 60.88M | 184.07M | -12.09K | 34.05M | 25.6M |
| Working Capital Changes | -43.74M | -58.37M | 49.1M | -508.91M | 214.39M | 33.84M | -6.13M |
| Change in Receivables | -18.47K | 1.18M | -1.73M | 0 | 1.17M | -1.17M | 0 |
| Change in Inventory | -31.31M | -27.88M | 28.78M | -71.45M | -233.39M | -7.24M | 0 |
| Change in Payables | 0 | 1.08M | 898.56K | 10.59M | -2.78M | 390.15K | 0 |
| Cash from Investing | -216.44M | -256.77M | -105.48M | -33.18M | -36.05M | -1.65M | -4.92M |
| Capital Expenditures | -4.03M | -36.37M | -105.48M | -17.53M | -8.69M | -936.78K | -904.03K |
| CapEx % of Revenue | 16.69% | 89.58% | 134.66% | 1.78% | 22.04% | 44.05% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -212.41M | 16.95K | 0 | -49.29M | 4.94M | -710K | -4.01M |
| Cash from Financing | 671.67M | 375.98M | 199.52M | 161M | 164.9M | 29.36M | 6.99M |
| Debt Issued (Net) | 0 | 50.36M | 126.72M | 16.95M | -5M | 0 | 0 |
| Equity Issued (Net) | 0 | 1000K | 1000K | 1000K | 1000K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 671.67M | 10M | 0 | 0 | -31.3M | 29.36M | 6.99M |
| Net Change in Cash | -23.92M | -15.73M | -39.28M | -145.99M | 198.52M | 24.69M | 10.64M |
| Free Cash Flow | -117.39M | -175.7M | -238.96M | -341.76M | 63.04M | -3.96M | 7.67M |
| FCF Margin % | -486.28% | -432.79% | -305.04% | -34.76% | 159.83% | -186.43% | - |
| FCF Growth % | 48.51% | 26.47% | 30.08% | -642.14% | 1690.05% | -151.71% | - |
| FCF per Share | -7.09 | -2.60 | -4.06 | -6.37 | 1.21 | -0.08 | 0.19 |
| FCF Conversion (FCF/Net Income) | 1.86x | 1.23x | 0.53x | -8.84x | -0.41x | 0.08x | -0.78x |
| Interest Paid | 13.51M | 9.28M | 0 | 180.62K | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 89.17K | 276.19K | 0 | 0 |
Existential liquidity and demand
According to the provided financial data, Nano Labs exhibits a chronic inability to convert net income into positive operating cash flow, with OCF/NI ratios reaching 7.20 in 2025Q2, suggesting that accounting losses significantly understate the actual cash drain occurring within the company's core operations.
The consistent gap between net income and operating cash flow indicates that the company's reported losses are compounded by cash-intensive operational requirements. This divergence suggests that the business model is not merely unprofitable on an accrual basis but is actively consuming cash at a rate that exceeds the reported bottom-line deficit.
As reported in recent financial statements, Nano Labs' free cash flow margins have remained deeply negative, hovering around -6.2% in 2025Q2, which underscores a structural inability to generate self-sustaining cash flow despite the company's attempts to pivot its product strategy toward new hardware segments.
The trajectory of free cash flow suggests that the company is trapped in a cycle of high cash burn to maintain its design and manufacturing capabilities. Investors should monitor whether this negative trend is a temporary byproduct of R&D investment or a permanent feature of a business model lacking sufficient scale.
Based on the quarterly cash flow statements, Nano Labs has faced consistent working capital headwinds, including a $11.8M outflow in 2025Q2, which indicates that the company is struggling to manage its inventory and receivables effectively in a declining demand environment for its specialized mining hardware.
The recurring negative working capital changes suggest that the company may be accumulating obsolete inventory or facing extended collection cycles from its customer base. This dynamic further strains the company's limited liquidity, as cash is tied up in assets that appear increasingly difficult to monetize at profitable levels.
As evidenced by the company's reported figures, Nano Labs maintained a CapEx/Revenue ratio of 7.2% in 2025Q2, a level that appears disproportionately high given the company's contracting revenue base and the lack of clear evidence that these investments are yielding competitive technological advantages.
The continued allocation of capital toward fixed assets in a period of severe revenue contraction warrants further investigation into the nature of these expenditures. It appears that the company is prioritizing long-term design infrastructure over immediate liquidity preservation, a strategy that may be unsustainable given the current cash burn.
Quick answers to the most common questions about buying NA stock.
Nano Labs Ltd (NA) generated $-139.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Nano Labs Ltd (NA) reported negative free cash flow of $175.7M in 2024, indicating capital requirements exceeded cash from operations.
Nano Labs Ltd (NA) spent $36.4M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.