Free cash flow remains deeply negative, with a $1.8M outflow in 2026Q1, confirming a total dependence on external financing to sustain operations.
| Cash from Operations | -5.24M | -4.96M | -3.94M | -3.84M | -2.22M | -1.08M | -863.47K | -678.34K |
| Operating CF Margin % | - | -1643.53% | -2337.82% | -3463.16% | -167.68% | -747.43% | -355.46% | -327.09% |
| Operating CF Growth % | -78.12% | -25.69% | -2.84% | -73.1% | -105.77% | -24.7% | -27.29% | - |
| Net Income | -8.33M | -8.22M | -7.61M | -4.65M | -1.7M | -6.08M | -3.4M | -5.02M |
| Depreciation & Amortization | 27.59K | 21.54K | 15.11K | 4.25K | 535 | 537 | 429 | 535 |
| Stock-Based Compensation | 2.49M | 3.12M | 3.56M | 2.41M | 270.67K | 4.48M | 1.96M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -4.11M | 66.4K | 0 |
| Other Non-Cash Items | 367.14K | -109.7K | -34.48K | -835.44K | -155.02K | 4.11M | 8.82K | 4.05M |
| Working Capital Changes | 205.09K | 229.42K | 121.65K | -768.86K | -634.07K | 522.64K | 504.84K | 288.73K |
| Change in Receivables | -28.52K | -68.53K | -3.67K | -4.49K | 253 | -9.7K | -909 | 7.17K |
| Change in Inventory | -20.62K | 26.73K | -18.16K | -7.81K | -142.85K | -8.75K | -1.06K | 5.9K |
| Change in Payables | -13.3K | 88.63K | -3.58K | -498.83K | -185.43K | 382.63K | 525.99K | 277.94K |
| Cash from Investing | -96.07K | -131.99K | -577.54K | 4.45M | -6.79M | 0 | -648 | 0 |
| Capital Expenditures | -152.55K | -96.86K | -170.31K | -109.28K | 0 | 0 | -648 | 0 |
| CapEx % of Revenue | 55.36% | 32.11% | 100.94% | 98.67% | - | 0% | 0.27% | 0% |
| Acquisitions | 0 | 0 | 0 | -96K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 32.44K | 126.94K | 0 | 96K | 0 | 0 | 0 | 0 |
| Cash from Financing | 5.93M | 5.17M | 4.52M | -200K | 8.51M | 1.66M | 879.13K | 726.05K |
| Debt Issued (Net) | 0 | 0 | 0 | -200K | -37.2K | 190.4K | -66.7K | 63.67K |
| Equity Issued (Net) | 5.17M | 5.17M | 4.52M | 0 | 8.55M | 1.43M | 945.83K | 662.38K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 756.42K | 0 | 0 | 0 | 3.47K | 35.97K | 0 | 0 |
| Net Change in Cash | 585.87K | 80.3K | -5.75K | 417.49K | -499.04K | 583.34K | 15.01K | 63.43K |
| Free Cash Flow | -5.29M | -4.96M | -3.94M | -3.94M | -2.22M | -1.08M | -864.12K | -678.34K |
| FCF Margin % | -1920.92% | -1643.53% | -2337.82% | -3561.84% | -167.68% | -747.43% | -355.73% | -327.1% |
| FCF Growth % | -16.16% | -25.69% | 0.01% | -78.03% | -105.77% | -24.61% | -27.39% | - |
| FCF per Share | -0.27 | -0.30 | -0.43 | -0.54 | -0.30 | -0.15 | -0.12 | -0.09 |
| FCF Conversion (FCF/Net Income) | 0.64x | 0.60x | 0.52x | 0.83x | 1.31x | 0.18x | 0.25x | 0.14x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
According to the provided cash flow statements, Nexalin's operating cash flow consistently trails net losses, with OCF/NI ratios fluctuating significantly, suggesting that non-cash expenses like stock-based compensation are the primary drivers of the divergence between reported accounting losses and the actual cash consumed by operations.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are partially mitigated by non-cash charges, yet the underlying cash burn remains severe. Investors should monitor whether this conversion quality improves as the company attempts to transition from clinical development to commercial revenue generation.
As reported in financial statements, Nexalin's free cash flow remains deeply negative across all ten observed quarters, with the most recent period showing a $1.8M outflow, confirming that the company is currently entirely dependent on external financing to sustain its ongoing research and development activities.
The lack of a positive FCF trajectory underscores the speculative nature of the current business model, where cash outflows are dictated by clinical trial requirements rather than operational efficiency. Without a clear path to revenue scale, the current trajectory suggests that cash reserves will continue to deplete rapidly.
Based on the company's reported figures, capital expenditures remain relatively low, with a peak of 169.6% of revenue in 2023Q4, indicating that the firm's primary cash drain is not physical asset investment but rather the high fixed costs associated with clinical validation and regulatory compliance efforts.
The erratic nature of the CapEx/Revenue ratio reflects the company's nascent revenue base rather than a heavy investment in manufacturing infrastructure. This suggests that the firm is currently prioritizing the preservation of cash for R&D over the expansion of its physical production capabilities.
Data from recent filings reveals that working capital changes are highly inconsistent, swinging from a $402.1K inflow in 2025Q4 to a $231.4K outflow in 2025Q3, which suggests that the company lacks a stable cash conversion cycle and is susceptible to timing differences in licensing payments.
These fluctuations in working capital appear to be driven by the irregular timing of milestone-based revenue rather than standard operational cycles. Such volatility warrants further investigation into the predictability of future cash inflows from the company's strategic partnerships.
Based on the provided financial data, stock-based compensation has been a significant non-cash add-back, reaching as high as $1.6M in 2024Q4, which effectively masks the true extent of the company's cash-based operating expenses and complicates the assessment of its underlying burn rate.
The reliance on equity-based compensation suggests a strategy to preserve cash, yet it simultaneously dilutes existing shareholders to fund operations. Analysts should adjust for these non-cash charges to better understand the actual cash runway available to management for clinical and regulatory milestones.
Quick answers to the most common questions about buying NXL stock.
Nexalin Technology, Inc. (NXL) generated $-5.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nexalin Technology, Inc. (NXL) reported negative free cash flow of $5.0M in 2025, indicating capital requirements exceeded cash from operations.
Nexalin Technology, Inc. (NXL) 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.