Operational sustainability is currently compromised by a persistent negative free cash flow, which reached an outflow of $513,000 in 2026Q1.
| Cash from Operations | -1.42M | -1.31M | -3.87M | -3.24M | -2.99M | -2.75M | -1.8M | -1.81M | -1.54M | -777K | -1.32M |
| Operating CF Margin % | - | -11.48% | -44.51% | -79.14% | -146.09% | -177.5% | -267.21% | -253% | -69.77% | -39.01% | -61.2% |
| Operating CF Growth % | 184.01% | 66.1% | -19.5% | -8.16% | -8.68% | -52.86% | 0.72% | -17.49% | -98.71% | 41% | - |
| Net Income | -3.21M | -2.89M | -3.28M | -3.16M | -4.75M | -4.31M | -2.26M | -1.92M | -1.89M | -953K | -1.78M |
| Depreciation & Amortization | 786K | 740K | 478K | 443K | 301K | 113K | 50K | 67K | 322K | 316K | 324K |
| Stock-Based Compensation | 631K | 654K | 367K | 217K | 298K | 285K | 232K | 4K | 206K | 7K | 12K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -225K | 2K | 0 | 0 | -16K | -63K |
| Other Non-Cash Items | -212K | -280K | -260K | -318K | 1.39M | 1.98M | 2K | -1K | -14K | -8K | -9K |
| Working Capital Changes | 432K | 468K | -1.17M | -421K | -234K | -593K | 177K | 39K | 36K | -123K | 195K |
| Change in Receivables | 344K | 260K | -300K | -411K | -13K | -137K | 29K | -68K | 66K | -27K | 212K |
| Change in Inventory | -417K | -360K | -432K | -760K | -211K | -58K | -99K | -12K | -3K | 60K | 46K |
| Change in Payables | 327K | -3K | 182K | 968K | 11K | -405K | 137K | 203K | 94K | -84K | -35K |
| Cash from Investing | -77K | -68K | -775K | 4.46M | -5.59M | -269K | -312K | 0 | 0 | -7K | 0 |
| Capital Expenditures | -9K | -68K | -443K | -696K | -96K | -269K | -312K | 0 | 0 | -7K | 0 |
| CapEx % of Revenue | 0.08% | 0.6% | 5.1% | 17.02% | 4.69% | 17.34% | 46.29% | - | - | 0.35% | - |
| Acquisitions | 0 | 0 | -400K | -547K | 96K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -68K | 0 | 0 | -500K | -96K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 2.42M | 630K | 3.75M | 379K | -3.66M | 16.34M | 1.88M | 2.08M | 1.54M | 784K | 1.32M |
| Debt Issued (Net) | 1.61M | -156K | 218K | 379K | -3.66M | 2.98M | 514K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 963K | 3.77M | 0 | 0 | 13.47M | 1.37M | 730K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 808K | -177K | -241K | 0 | 0 | -115K | 0 | 1.34M | 1.54M | 784K | 1.32M |
| Net Change in Cash | 930K | -749K | -893K | 1.6M | -12.25M | 13.32M | -229K | 261K | 0 | 0 | 0 |
| Free Cash Flow | -1.42M | -1.38M | -4.31M | -3.93M | -3.09M | -3.02M | -2.11M | -1.81M | -1.54M | -784K | -1.32M |
| FCF Margin % | -12.64% | -12.07% | -49.61% | -96.16% | -150.78% | -194.84% | -313.5% | -253% | -69.77% | -39.36% | -61.2% |
| FCF Growth % | 58.92% | 68% | -9.61% | -27.33% | -2.18% | -43.02% | -16.48% | -17.49% | -96.94% | 40.47% | - |
| FCF per Share | -0.17 | -0.18 | -0.66 | -0.69 | -0.55 | -0.54 | -0.38 | -0.33 | -0.28 | -0.14 | -0.24 |
| FCF Conversion (FCF/Net Income) | 0.44x | 0.44x | 1.18x | 1.03x | 0.63x | 0.64x | 0.80x | 0.94x | 0.82x | 0.82x | 0.74x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution risk
As reported in recent financial filings, NEXGEL consistently records net losses that exceed operating cash outflows, with the 2026Q1 net loss of $927,000 compared to an operating cash burn of $504,000, suggesting that non-cash charges are masking the true extent of the company's ongoing operational cash depletion.
The persistent gap between net income and operating cash flow suggests that stock-based compensation and depreciation are significant non-cash add-backs that flatter the cash flow statement. Investors should monitor whether this conversion quality improves as the company attempts to scale its branded product portfolio.
Based on the provided quarterly data, NEXGEL's free cash flow remains deeply negative, with a 2026Q1 outflow of $513,000, indicating that the company has yet to achieve the self-sustaining cash generation required to fund its operations without relying on external capital or balance sheet erosion.
The trajectory of free cash flow appears highly volatile, reflecting the lumpy nature of contract manufacturing revenue and the high fixed-cost burden of the E-beam facility. This trend suggests that the company is currently in a cash-burning phase that necessitates a rapid pivot toward higher-margin branded sales.
According to historical cash flow statements, working capital changes have been highly erratic, swinging from a $840,000 source of cash in 2025Q4 to a $448,000 use of cash in 2025Q3, which complicates the assessment of the company's underlying ability to manage its inventory and receivables efficiently.
Such significant swings in working capital suggest that the company may be struggling with inventory management or the timing of customer payments for its CDMO services. This instability in cash conversion cycles warrants further investigation into the company's credit terms and inventory turnover ratios.
Analysis of the cash flow statement reveals that stock-based compensation, which reached $205,000 in 2025Q3, serves as a critical non-cash expense that effectively subsidizes the company's operations while simultaneously diluting existing shareholders, as noted in the most recent quarterly disclosures regarding the firm's limited cash reserves.
The reliance on stock-based compensation appears to be a strategic choice to preserve the minimal cash balance, yet it obscures the true cost of talent acquisition and retention. Investors should be wary that this practice may not be sustainable if the share price fails to support further equity-based incentives.
Quick answers to the most common questions about buying NXGL stock.
NEXGEL, Inc. (NXGL) generated $-1.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NEXGEL, Inc. (NXGL) reported negative free cash flow of $1.4M in 2025, indicating capital requirements exceeded cash from operations.
NEXGEL, Inc. (NXGL) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.