Cash generation remains fundamentally broken, as evidenced by a $7.5 million share repurchase in 2026Q1 despite the firm suffering an $8.3 million operating cash outflow in the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -36.93M | -43.88M | -32.68M | -13.39M | -40.47M | 5.36M | 2.98M | 15.36M | -17.01M | 9.09M | 6.17M | -3.14M | 6.3M | 2.54M |
| Operating CF Margin % | - | -118.79% | -49.29% | -14.89% | -39.88% | 4.62% | 2.88% | 16.23% | -18.06% | 9.43% | 5.92% | -3.75% | 9.05% | 5.84% |
| Operating CF Growth % | 186.07% | -34.28% | -144.02% | 66.91% | -855.82% | 79.58% | -80.59% | 190.32% | -287.11% | 47.42% | 296.62% | -149.74% | 148.03% | - |
| Net Income | -16.34M | -18.44M | -34.24M | -25.9M | -10.68M | -1.09M | 595K | -7.82M | -9.23M | -21.54M | -8.44M | -17K | -6.94M | 349K |
| Depreciation & Amortization | 33K | -407K | 1.67M | 545K | 417K | 423K | 437K | 453K | 386K | 372K | 401K | 398K | 371K | 268K |
| Stock-Based Compensation | 54K | 56K | 78K | 190K | 211K | 218K | 706K | 959K | 970K | 895K | 856K | 303K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 328K | -9.4M | 0 | 0 | 0 | 0 | 0 | -147K | 0 | -302K | 4K |
| Other Non-Cash Items | -4.53M | -4.93M | 557K | -3.89M | -8.9M | -12.8M | -8.8M | -1.41M | -17K | -22K | -506K | 187K | 124K | -3.6M |
| Working Capital Changes | -16.07M | -20.16M | -745K | 15.34M | -12.12M | 18.61M | 10.04M | 23.18M | -9.12M | 29.39M | 14M | -4.01M | 13.05M | 5.52M |
| Change in Receivables | 26.93M | 25.95M | 11.23M | 1.69M | -48.21M | -16.15M | 1.69M | 11.36M | 0 | 0 | 0 | 0 | -2.92M | -1.56M |
| Change in Inventory | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Change in Payables | 3.79M | 5.06M | -18.27M | 5.48M | 2.17M | 3.95M | -895K | -1.46M | 3.01M | 302K | 1.64M | -4.99M | 6.25M | 1.45M |
| Cash from Investing | 37.87M | 28.09M | 70.29M | -272K | 56.5M | 1.38M | -7.34M | -25.01M | 12.22M | -25.95M | -10.75M | -15.29M | -47.7M | 3.67M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | -78K | -61K | -86K | -13K | -195K | -167K | -444K | -283K |
| CapEx % of Revenue | 0% | - | - | - | - | - | 0.08% | 0.06% | 0.09% | 0.01% | 0.19% | 0.2% | 0.64% | 0.65% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 10M | 0 | -7.18M | 2.33M | 0 | -71K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 14.25M | 15.5M | -21.09M | -3.25M | 2.09M | -5.01M | 5.08M | 6.32M | 3.71M | 16.24M | 4.38M | 12.64M | 48.59M | 1.15M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 7M | 15.5M | -6.4M | 6M | 5.01M | -12K | -36K | 4.32M | -636K | 5M | -625K | 29.79M | 34.53M | 50K |
| Dividends Paid | 0 | 0 | -439K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -384K | -191K | 0 |
| Share Repurchases | -7.5M | 0 | 0 | -3K | 0 | -12K | -36K | -676K | -636K | 0 | -625K | -6.28M | 0 | 0 |
| Other Financing | 7.25M | 0 | 0 | -2M | 0 | 0 | 0 | 0 | -1.45M | -1.01M | 0 | -1.95M | -182K | 0 |
| Net Change in Cash | 15.19M | -292K | 16.53M | -16.91M | 18.12M | 1.72M | 729K | -3.33M | -1.08M | -625K | -210K | -5.79M | 7.19M | 7.36M |
| Free Cash Flow | -36.93M | -43.88M | -32.68M | -13.39M | -40.47M | 5.36M | 2.9M | 15.3M | -17.09M | 9.08M | 5.97M | -3.3M | 5.86M | 2.26M |
| FCF Margin % | -113.57% | -118.79% | -49.29% | -14.89% | -39.88% | 4.62% | 2.81% | 16.17% | -18.15% | 9.42% | 5.73% | -3.95% | 8.41% | 5.19% |
| FCF Growth % | 34.19% | -34.28% | -144.02% | 66.91% | -855.82% | 84.4% | -81.02% | 189.51% | -288.32% | 52.02% | 280.78% | -156.36% | 159.45% | - |
| FCF per Share | -21.15 | -25.13 | -18.72 | -7.67 | -26.50 | 3.87 | 2.11 | 12.06 | -14.01 | 8.08 | 5.49 | -4.31 | 6.41 | 2.47 |
| FCF Conversion (FCF/Net Income) | 2.26x | 2.38x | -1.34x | 0.52x | 3.79x | -4.89x | 5.01x | -1.96x | 1.84x | -0.42x | -0.73x | -49.00x | -0.91x | 7.28x |
| Interest Paid | 0 | 2.35M | 4.26M | 3.08M | 2.98M | 2.88M | 0 | 2.55M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 143K | 1K | 1K | 0 | 163K | 0 | 35K | 0 | 0 | 0 | 0 | 0 | 0 |
Existential liquidity and underwriting failure
As reported in financial statements, the company exhibits a severe disconnect between net income and operating cash flow, with the most recent quarter showing a net income of $2.6M against an operating cash outflow of $8.3M, highlighting a fundamental lack of cash-generative quality in reported earnings.
The consistent inability to convert accounting profits into cash suggests that reported net income is likely bolstered by non-cash adjustments or reserve releases rather than operational success. Investors should monitor this divergence, as it indicates that the company's reported profitability may be illusory and disconnected from the actual cash requirements of the insurance underwriting business.
Based on recent SEC filings, the company's free cash flow trajectory remains deeply negative, with the firm burning cash in nine of the last ten quarters, including a significant $25.2M outflow in 2025Q4, which underscores the unsustainable nature of the current operational model.
The persistent negative free cash flow suggests that the company is consuming its capital base to fund ongoing operations and potential claim settlements. This trajectory warrants further investigation into how long the firm can sustain such cash burn before requiring external financing or facing a liquidity crisis.
According to historical data, working capital fluctuations have been highly erratic, with a massive $11.6M outflow in 2025Q1 followed by significant swings, suggesting that the company's cash position is heavily dependent on the timing of premium collections and the settlement of insurance claims.
The volatility in working capital appears to be a primary driver of the company's erratic cash flow profile, likely reflecting the unpredictable nature of claim payouts. This instability makes it difficult to forecast future liquidity needs and suggests that the company lacks a stable cash management process.
As indicated by the provided financial data, the company has engaged in share repurchases and acquisitions despite consistent operating cash outflows, such as the $7.5M buyback in 2026Q1, which appears to be a questionable use of capital given the firm's deteriorating cash position.
The decision to return capital to shareholders or pursue acquisitions while the core business is burning cash may indicate a lack of disciplined capital allocation. This strategy appears to prioritize short-term optics over the long-term preservation of the balance sheet, which may increase the risk profile for noteholders.
Based on the ten-quarter analysis, there is a stark cumulative gap between reported net income and operating cash flow, with the company reporting positive net income in several periods while simultaneously suffering from persistent, large-scale operating cash outflows that suggest a fundamental failure in cash generation.
This long-term divergence between accounting earnings and cash reality is a significant red flag that suggests the company's business model is not generating the cash necessary to support its operations. The cumulative nature of this gap implies that the reported earnings may be masking deeper, structural issues within the underwriting and claims management processes.
Quick answers to the most common questions about buying PRHIZ stock.
Presurance Holdings, Inc. 9.75% Senior Unsecured Notes due 2028 (PRHIZ) generated $-43.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Presurance Holdings, Inc. 9.75% Senior Unsecured Notes due 2028 (PRHIZ) reported negative free cash flow of $43.9M in 2025, indicating capital requirements exceeded cash from operations.
Presurance Holdings, Inc. 9.75% Senior Unsecured Notes due 2028 (PRHIZ) 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.