Persistent negative free cash flow, including a $3.3 million outflow in 2026Q1, highlights an unsustainable burn rate that threatens the company's remaining $1.1 million in cash reserves.
| Cash from Operations | -9.71M | -9.07M | -8.98M | -12.98M | -12.27M | -19.52M | -11.92M |
| Operating CF Margin % | - | - | - | - | - | - | - |
| Operating CF Growth % | -251.27% | -0.99% | 30.85% | -5.79% | 37.13% | -63.66% | - |
| Net Income | -11.75M | -11.63M | -23.36M | -4M | -15.2M | -29.89M | -9.49M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 1.21M |
| Stock-Based Compensation | 2.09M | 2.17M | 1.66M | 3.05M | 695.19K | 90K | 2.86M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.22M | 2.01M | 13.64M | -12.85M | 3.01K | 15.46M | -6.53M |
| Working Capital Changes | -3.28M | -1.62M | -916.64K | 815.52K | 2.23M | -5.18M | 15.1K |
| Change in Receivables | 1.4K | -18.2K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.06M | -881.38K | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -7.99M | -8.42M | -6.1M | 1.85M | 6.91M | 19.85M | -8.76M |
| Capital Expenditures | -2.01M | -2.01M | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 1.38M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 1.11M |
| Cash from Financing | 18.76M | 18.3M | 12.57M | 13.07M | 5.55M | 73.53K | 38.67M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -1.12M | 1.43M |
| Equity Issued (Net) | 18.89M | 18.38M | 13.93M | 14.52M | 5.55M | 0 | 38.67M |
| Dividends Paid | -134.87K | -77.63K | -1.36M | -1.45M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 1.19M | -1.43M |
| Net Change in Cash | 1.05M | 813.84K | -2.51M | 1.93M | 193.12K | 407.68K | 18.1M |
| Free Cash Flow | -9.71M | -11.07M | -8.98M | -12.98M | -12.27M | -19.52M | -11.92M |
| FCF Margin % | - | - | - | - | - | - | - |
| FCF Growth % | 1.5% | -23.38% | 30.85% | -5.79% | 37.13% | -63.66% | - |
| FCF per Share | -1.21 | -6.40 | -368.34 | -841.59 | -948.15 | -1672.08 | -10148.89 |
| FCF Conversion (FCF/Net Income) | 0.83x | 0.78x | 0.38x | 3.25x | 0.81x | 0.65x | 1.26x |
| Interest Paid | 0 | 0 | 0 | 0 | 13.32K | 271.8K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency risk
As reported in financial statements, QCLS consistently exhibits a significant divergence between net losses and operating cash outflows, with OCF/NI ratios frequently exceeding 1.0, suggesting that accounting losses are being compounded by actual cash depletion rather than being mitigated by non-cash charges or accrual-based accounting adjustments.
The recurring gap between net income and operating cash flow indicates that the company's cash burn is not merely a function of accounting depreciation but reflects real-world operational expenditures. Investors should monitor this trend, as the inability to align cash outflows with reported losses suggests a lack of operational efficiency in managing core business costs.
Based on the provided cash flow data, QCLS has maintained a persistent negative free cash flow trajectory over the last ten quarters, with quarterly outflows often exceeding $2 million, highlighting the company's total reliance on external financing to sustain its pre-revenue photonic hardware development and administrative overhead.
The absence of positive free cash flow suggests that the company is currently in a capital-intensive phase without a clear path to self-funding. This trajectory warrants further investigation into how long the firm can continue to operate before its limited cash reserves are fully exhausted.
According to recent SEC filings, QCLS's working capital changes have been highly erratic, swinging from a $2.2 million outflow in 2024Q3 to a $589,800 inflow in 2024Q4, which implies significant instability in the company's ability to manage its short-term liabilities and operational cash requirements effectively.
Such volatility in working capital often indicates a lack of standardized procurement or payment processes, which is common in early-stage ventures. This inconsistency may exacerbate the company's liquidity risk, as management appears unable to predict or control the timing of cash outflows related to its operational needs.
As evidenced by the historical data, the company's cash flow statement is heavily impacted by stock-based compensation adjustments, such as the $8.4 million charge in 2024Q3, which masks the true economic cost of operations and complicates the assessment of the firm's actual cash-based burn rate.
The reliance on stock-based compensation to preserve cash suggests that the company is effectively diluting shareholders to fund its ongoing research and development. Analysts should be cautious, as these non-cash adjustments obscure the underlying reality that the business is consuming cash at a rate that may be unsustainable without further equity issuance.
Quick answers to the most common questions about buying QCLS stock.
Q/C Technologies, Inc. (QCLS) generated $-9.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Q/C Technologies, Inc. (QCLS) reported negative free cash flow of $11.1M in 2025, indicating capital requirements exceeded cash from operations.
Q/C Technologies, Inc. (QCLS) spent $2.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Q/C Technologies, Inc. (QCLS) returned $0.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.