Free cash flow remains structurally negative, highlighted by a peak outflow of $7.4M in 2026Q2 and an OCF/NI ratio of 24.26 in 2026Q3 that underscores a disconnect between reported earnings and cash generation.
| Cash from Operations | -9.96M | -9.86M | -4.45M | -3.51M | -3.56M | -3.05M | -2.93M |
| Operating CF Margin % | - | -45.86% | -18.22% | -14.98% | -21.67% | -31.28% | -27.72% |
| Operating CF Growth % | 248.74% | -121.45% | -26.87% | 1.52% | -17.01% | -3.89% | - |
| Net Income | -12.89M | -15.94M | -8.72M | -10.3M | -12.17M | -6.14M | -3.4M |
| Depreciation & Amortization | 324K | 342K | 555K | 547K | 374K | 110K | 25K |
| Stock-Based Compensation | 1.54M | 2.24M | 924K | 5.52M | 4.48M | 3.2M | 290K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 6.02M | 3.48M | 963K | 2.49M | 1.95M | -281K | 388K |
| Working Capital Changes | -4.95M | 16K | 1.83M | -1.76M | 1.8M | 67K | -231K |
| Change in Receivables | -2.62M | 160K | -238K | -519K | -502K | -225K | 77K |
| Change in Inventory | -4.28M | -937K | -349K | -812K | 496K | -275K | -552K |
| Change in Payables | 2.38M | 903K | 295K | -759K | 1.41M | 242K | 0 |
| Cash from Investing | -219K | -302K | -211K | -249K | -920K | -734K | -74K |
| Capital Expenditures | -219K | -302K | -211K | -249K | -929K | -725K | -74K |
| CapEx % of Revenue | 0.96% | 1.4% | 0.86% | 1.06% | 5.65% | 7.45% | 0.7% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -1.43M | 0 | 0 | 0 | 0 | -9K | 0 |
| Cash from Financing | 7.65M | 9.69M | 8.16M | 6.93M | 226K | 8.53M | 2.17M |
| Debt Issued (Net) | -362K | 4.54M | -26K | 1.73M | 226K | 5.01M | 2.17M |
| Equity Issued (Net) | 1.08M | 1000K | 1000K | 1000K | 0 | 1000K | 0 |
| Dividends Paid | -475K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.86M | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -2.56M | -401K | 3.2M | 3.14M | -4.5M | 5.04M | -894K |
| Free Cash Flow | -10.18M | -10.16M | -4.66M | -3.76M | -4.49M | -3.78M | -3.01M |
| FCF Margin % | -44.41% | -47.27% | -19.08% | -16.04% | -27.32% | -38.82% | -28.42% |
| FCF Growth % | 2.65% | -117.9% | -24.08% | 16.34% | -18.86% | -25.75% | - |
| FCF per Share | -0.29 | -0.63 | -0.72 | -0.24 | -0.29 | -0.24 | -0.19 |
| FCF Conversion (FCF/Net Income) | 0.79x | 0.62x | 0.51x | 0.34x | 0.29x | 0.50x | 0.86x |
| Interest Paid | 742K | 154K | 107K | 139K | 151K | 79K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
According to recent financial disclosures, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio reaching 24.26 in 2026Q3, suggesting that reported earnings are frequently decoupled from the actual cash generation capabilities of the underlying business model.
The extreme volatility in the OCF/NI ratio indicates that accruals and non-cash adjustments are significantly distorting the company's reported profitability. Investors should monitor this divergence closely, as it suggests that the firm's accounting earnings may not be a reliable proxy for its ability to fund operations internally.
As reported in financial statements, PMNT's free cash flow trajectory is consistently negative, with a peak outflow of $7.4M in 2026Q2, highlighting a structural inability to generate positive cash flow even during periods of seasonal activity, excluding the anomalous 2026Q3 result.
The persistent negative FCF margins underscore the company's reliance on external financing to sustain its current operating structure. This trend suggests that the business model has yet to reach the necessary scale to cover its fixed costs, leaving the company vulnerable to liquidity constraints.
Based on the company's reported figures, working capital changes are a primary source of cash flow instability, evidenced by a $6.6M outflow in 2026Q2 followed by a $3.0M inflow in 2025Q4, reflecting the inherent difficulty in managing inventory and receivables in a seasonal luxury model.
These sharp swings in working capital suggest that the company's cash position is highly sensitive to the timing of wholesale shipments and inventory build-ups. Such volatility warrants further investigation into the effectiveness of the firm's inventory management and its ability to convert seasonal stock into cash.
Data from recent filings indicates that stock-based compensation, which reached $906K in 2024Q4, frequently obscures the true extent of the company's cash burn, as these non-cash expenses are added back to reconcile net income to operating cash flow in the provided statements.
By adjusting for these non-cash equity expenses, the underlying cash burn appears even more severe than the headline net income figures might suggest. This practice warrants caution, as it may mask the true cost of talent acquisition and retention relative to the company's limited cash reserves.
Quick answers to the most common questions about buying PMNT stock.
Perfect Moment Ltd. Common Stock (PMNT) generated $-9.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Perfect Moment Ltd. Common Stock (PMNT) reported negative free cash flow of $10.2M in 2025, indicating capital requirements exceeded cash from operations.
Perfect Moment Ltd. Common Stock (PMNT) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.