QuickLogic Corporation (QUIK) Cash Flow Statement

The conversion ratio is not meaningful in the usual sense because net income was negative, so the positive operating cash flow reflects add-backs such as depreciation of $1.7M and stock-based compensation of $754K plus a working capital inflow of $720K. Over the ten-quarter window, operating cash flow has been erratic, swinging from $1.5M to negative $2.1M, which suggests cash generation is driven more by timing than by a durable earnings base. Investors should monitor whether the 2026Q2 operating inflow repeats, since a single quarter of working capital release is not evidence of sustained conversion.

The latest positive quarter sits within a history where free cash flow margins ranged from negative 98.7% to positive 18.2%, a spread that points to high sensitivity to revenue timing and capital outlays. The 2026Q1 reading of $63K and the 2026Q2 reading of $999K together suggest an early recovery, but two consecutive quarters is too short a window to separate a structural shift from a seasonal or working capital effect. The trend warrants further investigation before it can be treated as a reliable cash base.

Capex has ranged from 8.6% to 93.3% of revenue across the period, with a recent decline that coincides with depreciation of roughly $1.5M to $1.7M per quarter remaining well above current capital spending. Depreciation exceeding capex by a wide margin suggests the asset base is being consumed faster than it is being replaced, which may pressure future product capability if sustained. The mix between maintenance and growth spending is not separately disclosed in the supplied data, so the adequacy of current investment cannot be fully assessed.

The cumulative picture shows losses that are materially larger in accounting terms than in operating cash terms, indicating that depreciation and stock-based compensation account for a meaningful share of the divergence. Stock-based compensation of roughly $0.75M to $1.6M per quarter means part of the operating cost base is paid in equity rather than cash, which flatters cash flow relative to earnings. This pattern warrants further investigation into how much of the cash cushion depends on non-cash charges that do not require outlay.