Free cash flow remains deeply negative, with the company burning $903.6K in 2025Q4, highlighting the absence of a self-sustaining business model.
| Cash from Operations | -1.68M | -4.89M | -2.94M | -1.97M | -985.9K | -829.35K |
| Operating CF Margin % | -554.53% | -524.51% | -473.53% | -352% | -136.1% | -108.78% |
| Operating CF Growth % | 65.58% | -66.4% | -49.03% | -99.98% | -18.88% | - |
| Net Income | -1.57M | -11.05M | -3.77M | -1.65M | -615.38K | -1.94M |
| Depreciation & Amortization | 8.46K | 6.16K | 4.63K | 18.5K | 17.63K | 16.92K |
| Stock-Based Compensation | 0 | 75.36K | 14.81K | 52.29K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -231.56K | 0 | 0 |
| Other Non-Cash Items | -135.73K | 6.02M | 1.19M | 12.51K | -402.37K | 1.02M |
| Working Capital Changes | 13.65K | 62.42K | -374.84K | -170.33K | 14.22K | 73.29K |
| Change in Receivables | -20.56K | -92.19K | 43.84K | -176.86K | 28.59K | 32.05K |
| Change in Inventory | -1.34K | -244.34K | 1.9K | 34.2K | 6.74K | -43.72K |
| Change in Payables | -19.64K | 127.56K | 2.55K | 10.14K | -35.76K | -36.7K |
| Cash from Investing | -591.59K | -148.74K | -25.76K | -9.72K | -5.57K | -695 |
| Capital Expenditures | -8.06K | -80.74K | -25.76K | -9.72K | -5.57K | -695 |
| CapEx % of Revenue | 2.66% | 8.66% | 4.15% | 1.74% | 0.77% | 0.09% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | -68K | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.69M | 1.82M | 10.3M | 2.04M | 910.56K | 868.74K |
| Debt Issued (Net) | 0 | 0 | -500K | 2.12M | 281.89K | 868.74K |
| Equity Issued (Net) | 1.32M | 0 | 10.8M | 450.88K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 364.95K | 1.82M | 0 | -535.66K | 628.66K | 0 |
| Net Change in Cash | -469.37K | -3.25M | 7.34M | 56.78K | -80.91K | 39.83K |
| Free Cash Flow | -1.69M | -4.97M | -2.96M | -1.98M | -991.47K | -830.05K |
| FCF Margin % | -557.19% | -533.17% | -477.68% | -353.74% | -136.87% | -108.87% |
| FCF Growth % | 65.98% | -67.67% | -49.6% | -99.84% | -19.45% | - |
| FCF per Share | -0.10 | -0.45 | -0.61 | -0.33 | -0.17 | -0.14 |
| FCF Conversion (FCF/Net Income) | 1.07x | 0.44x | 0.78x | 1.19x | 1.60x | 0.43x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent Liquidity and Regulatory Risk
According to recent financial disclosures, ParaZero's operating cash flow consistently tracks net losses, with an OCF/NI ratio that fluctuates wildly, suggesting that the company's reported earnings are heavily impacted by non-cash items and do not reflect a stable or predictable cash-generating capability for the business.
The tight correlation between net income and operating cash flow indicates that the company is not generating meaningful accrual-based earnings that differ from its cash reality. This suggests that the business is currently in a pure cash-burn phase where accounting adjustments provide little insight into the underlying operational health.
As reported in quarterly filings, ParaZero's free cash flow remains deeply negative, with the company consistently burning through capital to fund operations, a trend that highlights the absence of a self-sustaining business model in the current high-cost, low-revenue environment for its safety systems.
The persistent negative FCF margins indicate that the company's current scale is insufficient to cover its fixed operating costs. Investors should monitor whether the company can achieve a pivot to positive cash flow before its limited liquidity reserves are exhausted.
Based on the provided cash flow statements, ParaZero maintains a very low capital intensity, with CapEx/Revenue ratios often remaining in the low single digits, which suggests that the company is not prioritizing heavy investment in manufacturing infrastructure or long-term asset replacement at this stage.
The low level of capital expenditure implies that the company's primary costs are likely concentrated in R&D and regulatory compliance rather than physical production capacity. This strategy may be necessary to preserve cash, but it also limits the company's ability to scale production if demand were to suddenly materialize.
Analysis of recent cash flow statements reveals that working capital changes are highly inconsistent, with periodic swings that suggest the company struggles to manage its inventory and receivables effectively in a business environment characterized by lumpy, project-based sales and significant revenue volatility.
The erratic nature of working capital adjustments may indicate difficulties in aligning inventory procurement with actual customer demand. This volatility warrants further investigation into whether the company is accumulating obsolete inventory that may eventually require significant write-downs.
As indicated by the cash flow data, the company's reliance on stock-based compensation and other non-cash adjustments masks the true extent of its operational burn, suggesting that the reported cash flow figures may understate the actual cost of maintaining the company's regulatory and engineering moat.
The use of stock-based compensation to preserve cash is a common strategy for early-stage firms, but it effectively dilutes shareholders to fund ongoing operations. This practice suggests that the company's survival is currently dependent on equity markets rather than operational cash generation.
Quick answers to the most common questions about buying PRZO stock.
ParaZero Technologies Ltd. (PRZO) generated $-1.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ParaZero Technologies Ltd. (PRZO) reported negative free cash flow of $1.7M in 2025, indicating capital requirements exceeded cash from operations.
ParaZero Technologies Ltd. (PRZO) 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.