Free cash flow remains deeply negative, with a $4.3 million outflow in 2026Q1, further exacerbated by the exhaustion of deferred revenue which dropped from $2.3 million in 2023Q4 to $133,000.
| Cash from Operations | -15.72M | -13.7M | -8.22M | -10.01M | -6.09M | -5.89M | -4.19M | -1.8M | -23.51K | -23.74K |
| Operating CF Margin % | - | -454.49% | -207.29% | -330% | -916.54% | -1520.93% | -852.75% | -582.2% | - | - |
| Operating CF Growth % | -289.22% | -66.76% | 17.9% | -64.22% | -3.55% | -40.58% | -132.74% | -7553.04% | 0.98% | - |
| Net Income | -17.95M | -17.04M | -11.77M | -9.45M | -9.47M | -8.99M | -4.67M | -1.83M | -27.98K | -64.31K |
| Depreciation & Amortization | 117K | 117K | 123K | 284K | 251K | 114K | 66K | 6K | 0 | 0 |
| Stock-Based Compensation | 2.27M | 3.08M | 2.39M | 1.66M | 1.64M | 2.03M | 1.11M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 916K | 35K | 101K | -158K | 178K | -168K | -81K | 842K | 0 | 0 |
| Working Capital Changes | -1.08M | 102K | 940K | -2.35M | 1.31M | 1.13M | -612K | 2K | 4.47K | 40.57K |
| Change in Receivables | 82K | 2.28M | 101K | -1.31M | 128K | -536K | -1.13M | -5K | 0 | 0 |
| Change in Inventory | -313K | 153K | 301K | 126K | -463K | 77K | 693K | -819K | 0 | 0 |
| Change in Payables | 19K | 56K | 155K | -10K | 194K | 24K | 44K | 16K | 0 | 0 |
| Cash from Investing | -35K | 254K | 7.64M | -5.11M | 7.88M | -11.6M | -276K | -55K | 0 | 0 |
| Capital Expenditures | -35K | -56K | -53K | -113K | -118K | -595K | -276K | -52K | 0 | 0 |
| CapEx % of Revenue | 3.39% | 1.86% | 1.34% | 3.73% | 17.74% | 153.75% | 56.21% | 16.83% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | 0 | 0 |
| Cash from Financing | 149K | 21.14M | 9.82M | 13.81M | 0 | 22.56M | 4.51M | 5.1M | 31K | 20K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -81K | 500K | 31K | 20K |
| Equity Issued (Net) | 72K | 21.14M | 9.82M | 13.81M | 0 | 19.12M | 2.86M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -42K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 77K | 0 | 0 | 0 | 0 | 3.44M | 1.73M | 4.6M | 0 | 0 |
| Net Change in Cash | -15.44M | 7.85M | 9.22M | -1.15M | 1.52M | 5.21M | 128K | 3.23M | 7.49K | -3.74K |
| Free Cash Flow | -15.76M | -13.76M | -8.27M | -10.12M | -6.21M | -6.48M | -4.46M | -1.85M | -23.51K | -23.74K |
| FCF Margin % | -1527.03% | -456.35% | -208.63% | -333.73% | -934.29% | -1674.68% | -908.96% | -599.03% | - | - |
| FCF Growth % | -69.85% | -66.37% | 18.3% | -62.92% | 4.14% | -45.22% | -141.11% | -7774.25% | 0.98% | - |
| FCF per Share | -0.96 | -0.87 | -0.67 | -1.05 | -0.87 | -1.04 | -1.27 | -1.03 | -0.08 | -0.08 |
| FCF Conversion (FCF/Net Income) | 0.88x | 0.80x | 0.70x | 1.06x | 0.64x | 0.65x | 0.90x | 0.98x | 0.84x | 0.37x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
As reported in financial statements, Odysight.ai consistently records operating cash flow deficits that track closely with net losses, with the OCF/NI ratio fluctuating between 0.39 and 1.99, suggesting that the company's cash burn is driven primarily by core operational losses rather than non-cash accounting adjustments.
The persistent gap between net income and operating cash flow indicates that the company is not generating sufficient cash from its core business activities to cover its operating expenses. Investors should monitor the high reliance on stock-based compensation, which appears to be a significant non-cash add-back that obscures the true magnitude of the cash-based operating deficit.
Based on the company's reported figures, free cash flow remains deeply negative across all observed periods, with the most recent quarter showing a $4.3 million outflow, highlighting a structural inability to achieve self-sustaining operations despite the company's focus on high-complexity visual sensing hardware and AI analytics.
The consistent negative FCF trajectory suggests that the company is in a perpetual state of capital consumption to fund its R&D and manufacturing overhead. Without a clear path to positive FCF margins, the company remains highly dependent on external financing to maintain its current operational footprint.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $1.5 million inflow in 2024Q1 to a $916,000 outflow in 2025Q2, which suggests that the company's cash position is significantly impacted by the timing of customer payments and inventory procurement cycles.
This volatility in working capital indicates that the company lacks a stable cash conversion cycle, likely due to the lumpy nature of its project-based revenue and NRE contracts. Such fluctuations make it difficult to forecast liquidity needs and may indicate challenges in managing supply chain costs relative to revenue recognition.
As evidenced by the quarterly data, stock-based compensation has been a recurring feature of the company's financial profile, reaching as high as $914,000 in 2025Q3, which effectively masks the true extent of the cash-based operating losses by inflating the reported cash flow from operations.
The reliance on equity-based compensation suggests that the company is attempting to preserve its limited cash reserves by paying for talent with stock. Investors should be wary of this dilution, as it does not address the underlying issue of negative operating leverage and the lack of commercial scale.
Quick answers to the most common questions about buying ODYS stock.
Odysight.ai Inc. (ODYS) generated $-13.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Odysight.ai Inc. (ODYS) reported negative free cash flow of $13.8M in 2025, indicating capital requirements exceeded cash from operations.
Odysight.ai Inc. (ODYS) 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.