Operating cash flow remains deeply distressed, evidenced by a $2.2 million negative free cash flow in 2026Q1 and a reliance on volatile working capital adjustments to mask underlying cash burn.
| Cash from Operations | -2.67M | -1.06M | -536K | -3.43M | -6.51M | -9.38M | -6.55M | -2.17M | -7.85M | -1.59M | 627.06K | -620.73K | -337K |
| Operating CF Margin % | - | -16.83% | -3.84% | -22.43% | -40.53% | -55.52% | -72.51% | -8.74% | -32.64% | -11.01% | 2.75% | -9.07% | -6.48% |
| Operating CF Growth % | -265.37% | -97.95% | 84.37% | 47.29% | 30.63% | -43.25% | -202.21% | 72.39% | -394.46% | -353.11% | 201.02% | -84.19% | - |
| Net Income | -8.05M | -9.13M | -4.68M | -6.55M | -5.58M | -1.41M | -10.87M | -4.04M | -848.25K | -777.58K | 4.4M | -33.34K | 575.25K |
| Depreciation & Amortization | 66K | 67K | 167K | 387K | 507K | 549K | 1.25M | 1.29M | 385.58K | 255.63K | 207.86K | 143.57K | 95K |
| Stock-Based Compensation | 8K | 8K | 0 | 0 | 515K | 0 | 0 | 79K | 327.47K | 8.24K | 0 | 581.89K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -6.06M | 0 | 0 | -79K | 0 | 160.64K | 44.36K | -15K | 0 |
| Other Non-Cash Items | 2M | 2.42M | 900K | 450K | 6.06M | -5.71M | 3.4M | 348.94K | 327.47K | -160.64K | 37.5K | 581.89K | 152.85K |
| Working Capital Changes | 3.31M | 5.58M | 3.07M | 2.28M | -1.95M | -2.8M | -323K | 240.3K | -7.71M | -1.07M | -4.02M | -1.31M | -1.01M |
| Change in Receivables | 176K | 1.82M | 2.31M | 554K | 2.01M | -3.05M | -256K | 6.79M | -4.67M | 1.35M | -2.91M | -868.42K | -489.13K |
| Change in Inventory | 1.66M | 1.5M | 2.73M | 450K | -6.44M | 77K | 1.42M | -5.71M | -2.98M | -727.46K | -2.75M | -1.19M | 150.88K |
| Change in Payables | 1.32M | 1.52M | -1.35M | 1.53M | -98K | 16K | -264K | -491.9K | 308.66K | 98.4K | 476.47K | 104.82K | -120.56K |
| Cash from Investing | 0 | 0 | -19K | -194K | -25K | -71K | -19K | -338.19K | -574.99K | -342.12K | -296.3K | -403.42K | -218.14K |
| Capital Expenditures | 0 | 0 | -19K | -194K | -25K | -71K | -19K | -338.19K | -574.99K | -342.12K | -165.09K | -223.42K | -85.14K |
| CapEx % of Revenue | 0% | - | 0.14% | 1.27% | 0.16% | 0.42% | 0.21% | 1.36% | 2.39% | 2.37% | 0.72% | 3.26% | 1.64% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -25K | -71K | -19K | -338.19M | -574.99K | -342.12K | -131.22K | -180K | -133K |
| Cash from Financing | 2.63M | 763K | 504K | 3.96M | 1.64M | 12.91M | 5.37M | -295.09K | -138.4K | -111.74K | 15.65M | 734.08K | 1.01M |
| Debt Issued (Net) | -554K | 6K | 504K | 2.41M | 1.64M | -267K | 1.39M | -255K | -138.4K | -111.74K | -1.31M | 234.08K | -152.15K |
| Equity Issued (Net) | 3.18M | 757K | 0 | 1.56M | 0 | 12.47M | 2.81M | -40K | 0 | 0 | 16.96M | 500K | 1.17M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -40K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 707K | 1.17M | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -41K | -298K | -51K | 338K | -4.89M | 3.46M | -1.19M | -2.8M | -8.56M | -2.04M | 15.98M | -290.07K | 457.71K |
| Free Cash Flow | -2.67M | -1.06M | -555K | -3.62M | -6.53M | -9.45M | -6.57M | -2.5M | -8.42M | -1.93M | 461.97K | -844.15K | -422.14K |
| FCF Margin % | -42.29% | -16.83% | -3.97% | -23.7% | -40.68% | -55.94% | -72.72% | -10.1% | -35.03% | -13.38% | 2.03% | -12.33% | -8.12% |
| FCF Growth % | -1.02% | -91.17% | 84.69% | 44.52% | 30.89% | -43.92% | -162.17% | 70.26% | -336.58% | -517.62% | 154.73% | -99.97% | - |
| FCF per Share | -0.77 | -0.42 | -0.22 | -0.28 | -0.51 | -0.74 | -0.61 | -0.25 | -0.83 | -0.19 | 0.06 | -0.09 | -0.06 |
| FCF Conversion (FCF/Net Income) | 0.33x | 0.12x | 0.11x | 0.52x | 1.17x | 2.91x | 0.60x | 0.52x | 9.25x | 2.04x | 0.14x | 18.62x | -0.59x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.19K | 112.55K | 50.97K | 44.93K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.42M | -1.89M | 31.2K | 16.93K |
Imminent liquidity depletion risk
According to the provided cash flow statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 12.31 in 2026Q1 to -45.38 in 2024Q3, suggesting that accruals and non-cash adjustments are masking the underlying cash-generative capacity of the business.
The extreme variance in the OCF/NI ratio indicates that reported net income is a poor proxy for the company's actual cash position. Investors should interpret these fluctuations as a sign of significant working capital volatility rather than stable operational performance.
As reported in financial statements, Polar Power has struggled to maintain positive free cash flow, with the most recent 2026Q1 period showing a negative $2.2 million outflow, reflecting a trajectory that remains deeply entrenched in cash-burning territory despite occasional, isolated quarterly improvements in working capital.
The consistent inability to generate positive free cash flow suggests that the current business model is fundamentally incapable of self-funding its operations. This persistent cash drain necessitates constant monitoring of the company's limited liquidity reserves.
Based on reported figures, working capital changes have been the primary driver of cash flow volatility, evidenced by a $3.0 million inflow in 2025Q4 followed by a $1.6 million outflow in 2026Q1, indicating that the company is highly dependent on timing-sensitive inventory and receivable management.
These large, erratic swings in working capital suggest that the company lacks a predictable cash conversion cycle. Such instability may indicate that management is relying on aggressive inventory liquidation or delayed payables to manage its precarious cash position.
Analysis of the cash flow statement reveals that the company's minimal capital expenditure, often near zero, suggests a lack of investment in growth, while the reliance on working capital adjustments to offset operating losses highlights a business model that is currently struggling to survive.
The absence of meaningful capital investment implies that the company is not prioritizing future capacity, but rather focusing on immediate survival. This lack of investment, combined with negative operating cash flows, warrants further investigation into the sustainability of the firm's core operations.
Quick answers to the most common questions about buying POLA stock.
Polar Power, Inc. (POLA) generated $-1.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Polar Power, Inc. (POLA) reported negative free cash flow of $1.1M in 2025, indicating capital requirements exceeded cash from operations.
Polar Power, Inc. (POLA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.