The firm's cash conversion efficiency has deteriorated significantly, evidenced by a FCF margin of -89.5% and a CapEx/Rev ratio of 59.8% in 2026Q2.
| Cash from Operations | -3.87M | -946.82K | -1.71M | -2.12M | -1.83M | 668.55K | 159.93K |
| Operating CF Margin % | - | -31.7% | -63.53% | -84.57% | -50.96% | 4.15% | 4.42% |
| Operating CF Growth % | -1638.89% | 44.57% | 19.27% | -15.32% | -374.46% | 318.04% | - |
| Net Income | -28.32M | -3.64M | -4.1M | -2.81M | -2.81M | -234.68K | 141.81K |
| Depreciation & Amortization | 900.35K | 675.05K | 838.84K | 441.16K | 211.76K | 55.55K | 24.44K |
| Stock-Based Compensation | 0 | 235.01K | 0 | 33.09K | 723.22K | 567.94K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 24.08M | 899.14K | 468.06K | 83.46K | 32.02K | 267.83K | 57.87K |
| Working Capital Changes | -539.99K | 882.45K | 1.09M | 135.22K | 8.16K | 11.93K | -7.53K |
| Change in Receivables | -102.35K | 14.48K | 603.76K | 44.47K | -37.77K | -53.53K | -7.77K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -432.73K | 999.68K | 0 | 0 | 382.29K | 235.67K | 0 |
| Cash from Investing | -19.7M | -944.19K | -1.12M | -1.36M | -1.05M | -101.35K | 0 |
| Capital Expenditures | -14.7M | -944.19K | -4.99K | -62.07K | -249.32K | -61.64K | 0 |
| CapEx % of Revenue | 153.48% | 31.61% | 0.19% | 2.48% | 6.92% | 0.38% | - |
| Acquisitions | 0 | - | - | - | - | - | - |
| Investments | 9.93K | 9.73K | 10.04K | 10.01K | 38.21K | 39.71K | 0 |
| Other Investing | -5M | 0 | -1.11M | -1.3M | -803.61K | 0 | 0 |
| Cash from Financing | 40.42M | 3.45M | 2.91M | 349.01K | -61.47K | 6.27M | -24.89K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - |
| Equity Issued (Net) | 22.23M | 3.52M | 2.75M | 0 | 0 | 7.33M | 4 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -487.31K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -93.02K | -487.31K | 290.79K | 430.1K | 0 | -1M | -24.89K |
| Net Change in Cash | 17.4M | 1.54M | -140.01K | -3.18M | -3.11M | 6.64M | 135.04K |
| Free Cash Flow | -4.15M | -1.89M | -2.83M | -3.48M | -2.89M | 606.92K | 159.93K |
| FCF Margin % | -43.29% | -63.31% | -105.08% | -139.01% | -80.2% | 3.77% | 4.42% |
| FCF Growth % | -100.06% | 33.08% | 18.77% | -20.45% | -575.82% | 279.5% | - |
| FCF per Share | -3.08 | -2.84 | -0.40 | -0.48 | -0.40 | 0.08 | 0.02 |
| FCF Conversion (FCF/Net Income) | 0.15x | 0.26x | 0.42x | 0.75x | 0.65x | -2.85x | 0.84x |
| Interest Paid | 0 | 0 | 35.28K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 61.83K | 0 |
Liquidity and operational burn
According to recent financial filings, Pineapple Financial's OCF/NI ratio has fluctuated wildly, reaching 0.17 in 2026Q2, which highlights a persistent disconnect between reported net losses and the actual cash required to sustain the company's underlying brokerage and technology operations during this aggressive expansion phase.
The significant gap between net income and operating cash flow suggests that accounting losses are not merely non-cash items but are reflective of real cash outflows required to support the business. Investors should monitor whether this conversion ratio stabilizes, as the current volatility implies that the company's earnings quality remains highly compromised by its ongoing cash burn.
As reported in quarterly statements, the company's FCF margin plummeted to -89.5% in 2026Q2, signaling a sharp deterioration in the firm's ability to generate self-sustaining cash flow as it continues to prioritize platform development and market share acquisition over immediate operational profitability.
The trajectory of free cash flow indicates that the company is consuming capital at an accelerating rate, which may necessitate further external financing. This trend warrants investigation into whether the current cash burn is a temporary investment in the MyPineapple platform or a structural inability to reach break-even status.
Based on reported figures, Pineapple Financial's CapEx/Rev ratio spiked to 59.8% in 2026Q2, reflecting a massive surge in capital expenditure that appears to be heavily tied to the development of the proprietary technology stack rather than traditional maintenance of brokerage assets.
This high level of capital intensity suggests that the company is treating its technology platform as a primary growth engine, yet the lack of corresponding revenue growth raises questions about the return on these investments. Analysts should scrutinize whether these capitalized costs are masking operating expenses that would otherwise further depress the company's already negative margins.
As indicated by historical cash flow data, working capital changes have been inconsistent, swinging from a $794.6K inflow in 2024Q3 to a $1.1M outflow in 2026Q2, which suggests that the company's cash cycle is highly sensitive to the timing of mortgage originations and agent commission payouts.
The erratic nature of these working capital movements implies that the company lacks a predictable cash conversion cycle, likely due to the inherent seasonality and regulatory delays in the mortgage industry. This instability adds another layer of risk to the company's liquidity position, as cash inflows are not reliably offsetting the ongoing operational burn.
Quick answers to the most common questions about buying PAPL stock.
Pineapple Financial Inc. (PAPL) generated $-0.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pineapple Financial Inc. (PAPL) reported negative free cash flow of $1.9M in 2025, indicating capital requirements exceeded cash from operations.
Pineapple Financial Inc. (PAPL) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.