Prenetics Global Limited (PRE) Cash Flow Statement

In 2026Q1, operating cash outflow of -$12.1M was materially less severe than the -$23.1M net loss, suggesting non-cash addbacks or other adjustments cushioned reported losses relative to cash burn — yet SBC of only $1.2M appears insufficient to explain the gap, warranting further investigation. Conversely, 2026Q2's OCF/NI of 1.72 with OCF at -$15.5M against NI of -$9.0M points to working capital deterioration absorbing cash beyond what the income statement captures. This instability means investors cannot treat reported net income as a reliable proxy for underlying cash generation at PRE.

The FCF margin deterioration from -33.7% to -60.2% between consecutive quarters suggests that PRE's cash burn is accelerating faster than its reported revenue base can absorb, despite the company's rapid topline growth trajectory. With multiple quarters showing $0 operating cash flow figures — likely reflecting unavailable data rather than breakeven — the observable trend remains unambiguously cash-negative. Investors should monitor whether the re-acceleration in revenue during 2026 can produce positive operating leverage on a cash basis, or whether losses will continue to widen with each incremental revenue dollar.

The 2025Q4 capex of $54.6M dwarfs that quarter's D&A of $3.8M by roughly 14x, suggesting PRE is either building out a new manufacturing or research infrastructure that will generate future depreciation burdens, or making non-recurring asset investments. The sharply lower 2026Q2 capex relative to revenue could signal completion of a growth capex cycle, but the extreme volatility in capital spending makes it difficult to estimate a sustainable maintenance capex level. If the 2025Q4 spending reflects structural investment, the resulting depreciation will become a permanent headwind to reported profitability.

The absence of dividends across all observed periods, combined with meaningful buyback activity while operations consumed cash, suggests management is recycling proceeds from asset sales into shareholder returns rather than retaining capital to fund the loss-making operating model. The $69.0M acquisition inflow in 2026Q1 followed by $37.8M in 2025Q4 indicates a pattern of periodic monetization that may not be sustainable indefinitely if the operating business cannot achieve self-funding status. Investors should evaluate whether these proceeds represent a strategic portfolio simplification or a dependence on non-recurring cash injections to maintain the capital allocation program.