Free cash flow margins deteriorated to -111.5% in 2025Q4, underscoring the significant cash burn required to support ongoing infrastructure deployments.
| Cash from Operations | -546.32M | -242.81M | -739.91M | -115.26M |
| Operating CF Margin % | -99.88% | -30.96% | -132.24% | -16.9% |
| Operating CF Growth % | -125% | 67.18% | -541.96% | - |
| Net Income | -628.96M | -479.92M | -633.96M | -41.88K |
| Depreciation & Amortization | 26.64M | 20.67M | 12.18M | 8.23M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 14.72M | 10.69M | 9.88M | 3.76M |
| Working Capital Changes | 41.28M | 205.75M | -128.01M | -127.21M |
| Change in Receivables | 139.44M | 48.07M | 4.04M | -158.42M |
| Change in Inventory | -57.89M | -22.74M | -114.06M | 30.14M |
| Change in Payables | -5.08M | 30K | 1.74M | -4.18M |
| Cash from Investing | -46.19M | -44.02M | -20.48M | -15.45M |
| Capital Expenditures | -46.19M | -18.81M | -20.48M | -3.56M |
| CapEx % of Revenue | 8.44% | 2.4% | 3.66% | 0.52% |
| Acquisitions | - | - | - | - |
| Investments | - | - | - | - |
| Other Investing | 0 | -25.21M | 0 | -11.89M |
| Cash from Financing | 670.95M | 315.65M | 925.26M | -6.59M |
| Debt Issued (Net) | - | - | - | - |
| Equity Issued (Net) | 945.98M | 138.72M | 862.03M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -128.05M | -77.7M | 0 |
| Net Change in Cash | 63.71M | 28.81M | 164.87M | -137.29M |
| Free Cash Flow | -592.51M | -286.84M | -760.39M | -130.71M |
| FCF Margin % | -108.32% | -36.57% | -135.9% | -19.16% |
| FCF Growth % | -106.57% | 62.28% | -481.76% | - |
| FCF per Share | -17.12 | -348.61 | -924.16 | -158.85 |
| FCF Conversion (FCF/Net Income) | 0.87x | 0.51x | 1.17x | 22.25x |
| Interest Paid | 0 | 6.16M | 3.51M | 1.31M |
| Taxes Paid | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
According to the most recent quarterly data, PicoCELA's operating cash flow to net income ratio reached 0.99 in 2025Q4, suggesting that while cash losses are tracking closely with accounting losses, the company lacks the operational efficiency to generate positive cash flow from its core business activities.
The near-parity between net income and operating cash flow indicates that the company's losses are primarily cash-based rather than driven by non-cash accounting charges. This suggests that the business model is currently unable to achieve the necessary scale to offset its high fixed-cost base, leaving little room for operational improvement without a fundamental change in revenue generation.
As reported in financial statements, PicoCELA's free cash flow margin plummeted to -111.5% in 2025Q4, reflecting a significant widening of the gap between cash outflows and revenue generation that warrants close monitoring by investors concerned with the company's long-term liquidity and capital preservation.
The consistent negative free cash flow trajectory highlights the company's reliance on its existing cash reserves to fund ongoing operations. This trend suggests that the firm is currently in a high-burn phase, where capital expenditure and operating costs significantly outpace the cash inflows from its specialized networking hardware and service offerings.
Based on PicoCELA's reported figures, the company's capital expenditure as a percentage of revenue reached 8.9% in 2025Q4, indicating that the firm is continuing to invest heavily in infrastructure despite the significant volatility and recent contraction observed in its top-line revenue performance.
The elevated capital intensity suggests that the company is prioritizing long-term asset development or maintenance over immediate cash flow optimization. Investors should consider whether these investments are effectively supporting the proprietary backhaul technology or if they represent an inefficient allocation of capital given the current lack of operating scale.
Data from recent filings shows that working capital changes have fluctuated significantly, moving from a $20.4M contribution in 2025Q1 to a $5.6M drain in 2025Q4, which suggests that the company's cash cycle is highly sensitive to the timing of project-based billings and inventory management.
The erratic nature of these working capital shifts implies that the company's cash position is susceptible to the lumpy revenue recognition typical of the Japanese construction sector. This volatility makes it difficult to discern underlying operational improvements, as cash flow is frequently distorted by the timing of large-scale infrastructure project payments.
Quick answers to the most common questions about buying PCLA stock.
PicoCELA Inc. (PCLA) generated $-546.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PicoCELA Inc. (PCLA) reported negative free cash flow of $592.5M in 2025, indicating capital requirements exceeded cash from operations.
PicoCELA Inc. (PCLA) spent $46.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.