Liquidity remains precarious with cash balances as low as $0.49 million in 2023Q2, while free cash flow margins have shown extreme volatility, ranging from -6.2% to 8.8% over the observed period.
| Cash from Operations | 2.87M | -212K | 2.21M | -4.7M | -1.99M | -150K |
| Operating CF Margin % | - | -0.41% | 5.11% | -13.56% | -6.15% | -0.63% |
| Operating CF Growth % | 550.12% | -109.59% | 147.06% | -136.32% | -1225.33% | - |
| Net Income | -4.02M | -6.46M | -14.73M | -6.97M | -3.6M | -3.26M |
| Depreciation & Amortization | 762K | 1.34M | 1.15M | 4.4M | 634K | 586K |
| Stock-Based Compensation | 4.46M | 2.75M | 3.19M | 1M | 2.53M | 205K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.28M | 330K | 9.44M | 544K | -1.04M | 681K |
| Working Capital Changes | 2.94M | 1.83M | 3.16M | -3.68M | -503K | 1.64M |
| Change in Receivables | -2.36M | -218K | 962K | 1.03M | -4.07M | 218K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 3.69M | -1.2M | 182K | -94K | 1.84M | 0 |
| Cash from Investing | -21K | -154K | -1.33M | -219K | -283K | 1.2M |
| Capital Expenditures | -21K | -154K | -318K | -219K | -283K | -88K |
| CapEx % of Revenue | 0.03% | 0.3% | 0.73% | 0.63% | 0.87% | 0.37% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 1.29M |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -1.01M | 0 | 0 | 0 |
| Cash from Financing | 0 | 0 | -3M | 7.38M | 0 | 1.07M |
| Debt Issued (Net) | 0 | 0 | -3M | 7.38M | 0 | 1.07M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 2.84M | -366K | -2.12M | 2.46M | -2.27M | 2.12M |
| Free Cash Flow | 2.84M | -366K | 883K | -4.92M | -2.27M | -238K |
| FCF Margin % | 4.73% | -0.7% | 2.04% | -14.19% | -7.02% | -1% |
| FCF Growth % | 441.42% | -141.45% | 117.96% | -116.51% | -854.2% | - |
| FCF per Share | 0.11 | -0.02 | 0.04 | -0.04 | -0.02 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.71x | 0.03x | -0.15x | 0.67x | 0.55x | 0.05x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
High talent payout obligations
As reported in recent financial statements, PodcastOne consistently generates positive operating cash flow despite persistent net losses, with the OCF/NI ratio frequently reflecting a significant divergence that suggests non-cash expenses and working capital shifts are the primary drivers of the company's reported liquidity position.
The persistent gap between negative net income and positive operating cash flow indicates that the company's accounting earnings are heavily impacted by non-cash charges, most notably stock-based compensation. Investors should monitor whether this cash generation is sustainable or merely a byproduct of aggressive accounting adjustments that do not reflect true operational profitability.
Based on the provided quarterly data, free cash flow margins have fluctuated wildly between -6.2% and 8.8%, illustrating a lack of consistent cash generation that warrants further investigation into the company's ability to self-fund its operations without recurring reliance on external financing or parent support.
The erratic nature of FCF suggests that the business model is highly sensitive to timing differences in ad revenue collection and talent payout cycles. This volatility makes it difficult to project long-term cash availability, especially given the company's thin cash reserves and ongoing operational losses.
According to historical cash flow data, working capital changes have been a volatile component of operating cash flow, with quarterly fluctuations as high as $2.3 million, suggesting that the company's liquidity is heavily dependent on the timing of accounts receivable collections and talent-related payables.
The reliance on working capital management to bolster cash flow may indicate that the company is stretching payables or accelerating collections to manage its tight liquidity. Such tactics may provide temporary relief but do not address the underlying structural issue of negative operating margins.
As evidenced by the quarterly cash flow statements, stock-based compensation consistently represents a substantial portion of the company's non-cash expenses, often exceeding $1 million in a single quarter, which effectively masks the true economic cost of talent acquisition and corporate overhead.
By relying heavily on equity-based incentives, the company avoids immediate cash outflows but creates significant dilution for shareholders. Analysts should consider whether this reliance on SBC is a permanent feature of the compensation structure or a temporary measure to preserve cash in a capital-constrained environment.
Quick answers to the most common questions about buying PODC stock.
PodcastOne, Inc. (PODC) generated $-0.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
PodcastOne, Inc. (PODC) reported negative free cash flow of $0.4M in 2024, indicating capital requirements exceeded cash from operations.
PodcastOne, Inc. (PODC) spent $0.2M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.