The firm's cash-generative capacity remains weak, evidenced by a negative 10.6% FCF margin and an OCF/NI ratio of 0.90, which indicates an inability to fund operations internally.
| Cash from Operations | -1.66M | -417K |
| Operating CF Margin % | - | -0.43% |
| Operating CF Growth % | 0% | - |
| Net Income | -1.83M | -2.51M |
| Depreciation & Amortization | 9K | 19K |
| Stock-Based Compensation | 503K | 3.78M |
| Deferred Taxes | 0 | 0 |
| Other Non-Cash Items | -337K | -1.71M |
| Working Capital Changes | 0 | 0 |
| Change in Receivables | 0 | 0 |
| Change in Inventory | 58K | 11K |
| Change in Payables | 1.16M | 3.19M |
| Cash from Investing | -1.25M | -8.98M |
| Capital Expenditures | -1.1M | -8.47M |
| CapEx % of Revenue | 4.23% | 8.79% |
| Acquisitions | 0 | 0 |
| Investments | - | - |
| Other Investing | -155K | -509K |
| Cash from Financing | -1.06M | 111.91M |
| Debt Issued (Net) | 0 | 0 |
| Equity Issued (Net) | 0 | 0 |
| Dividends Paid | 0 | 0 |
| Share Repurchases | 328K | 0 |
| Other Financing | -1.06M | 111.91M |
| Net Change in Cash | -3.97M | 102.51M |
| Free Cash Flow | -2.76M | -8.89M |
| FCF Margin % | -10.63% | -9.22% |
| FCF Growth % | - | - |
| FCF per Share | -0.09 | -0.46 |
| FCF Conversion (FCF/Net Income) | 1.50x | 0.17x |
| Interest Paid | 0 | 0 |
| Taxes Paid | 0 | 0 |
Operating cash flow insolvency
According to the 2026Q1 financial statements, the company reported an OCF/NI ratio of 0.90, indicating that operating cash flow is failing to track net income, which suggests that the firm's reported losses are being compounded by a lack of cash-generative capacity within its core operations.
The proximity of operating cash flow to net income in a loss-making environment implies that there is little to no non-cash buffer shielding the company from its operational deficits. Investors should monitor whether this tight correlation persists, as it suggests that the company's accounting losses are effectively translating into immediate cash outflows.
As reported in the 2026Q1 filing, the company generated a negative FCF margin of 10.6%, highlighting a structural inability to fund its own operations through internal cash generation while simultaneously attempting to maintain its current capital expenditure requirements during a period of significant net losses.
The negative FCF margin confirms that the business is currently consuming capital rather than creating it, which may necessitate future external financing. This trajectory warrants further investigation into whether the company can achieve positive cash flow before its existing liquidity reserves are exhausted.
Based on the 2026Q1 data, the company maintained a CapEx/Rev ratio of 4.2%, which appears disproportionately high given the firm's inability to generate positive operating cash flow, suggesting that capital investments are currently being funded entirely through external sources or existing cash balances.
The commitment to capital expenditure during a period of negative operating cash flow may indicate a strategic attempt to build infrastructure, yet it simultaneously accelerates the depletion of the company's cash position. Analysts should evaluate whether these investments are likely to yield returns that justify the current cash burn.
Data from the 2026Q1 report reveals that stock-based compensation of $503.0K is being utilized alongside share buybacks of $328.0K, a combination that appears to mask the true extent of the company's cash burn by diluting shareholders while simultaneously reducing the firm's available cash reserves.
The simultaneous use of stock-based compensation and share buybacks is an unusual capital allocation strategy for a company currently reporting negative operating cash flow. This behavior may indicate a misalignment between management's capital deployment and the underlying reality of the firm's deteriorating cash position.
Quick answers to the most common questions about buying PEW-WT stock.
GrabAGun Digital Holdings Inc. WT (PEW-WT) generated $-0.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GrabAGun Digital Holdings Inc. WT (PEW-WT) reported negative free cash flow of $8.9M in 2025, indicating capital requirements exceeded cash from operations.
GrabAGun Digital Holdings Inc. WT (PEW-WT) spent $8.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.