Free cash flow remains persistently negative, with a $7.9M outflow in 2026Q3, highlighting a fundamental disconnect between accounting results and the company's ability to generate self-sustaining cash.
| Cash from Operations | -20.18M | -18.14M | -19.22M | -7.55M | -4.07M | -4.71M |
| Operating CF Margin % | - | -40.96% | -41.13% | -55.65% | -40.71% | -404.21% |
| Operating CF Growth % | -433.92% | 5.6% | -154.66% | -85.6% | 13.64% | - |
| Net Income | -15.4M | -73.06M | -99.86M | -14.2M | -9.81M | -15.66M |
| Depreciation & Amortization | 2.23M | 2.02M | 2.19M | 1.62M | 1.37M | 1.15M |
| Stock-Based Compensation | 456.45K | 47.21M | 56.3M | 0 | 0 | 0 |
| Deferred Taxes | 27.87K | -193.26K | -86.02K | -131.38K | -37.09K | -24.05K |
| Other Non-Cash Items | -1.83M | 8.32M | 25.43M | 1.93M | 3.82M | 13.26M |
| Working Capital Changes | -5.61M | -2.44M | -3.19M | 3.23M | 586.67K | -3.44M |
| Change in Receivables | -449.84K | 780.88K | 5.87M | -943.47K | -318.88K | -25.28K |
| Change in Inventory | -60.1K | -131.87K | -11.69K | -9.35K | -55.99K | -181 |
| Change in Payables | -4.17M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.25M | -115.62K | -6.71M | -841.36K | -1.15M | -2.8M |
| Capital Expenditures | -1.2M | -424.91K | -455.92K | -842.04K | -1.08M | -389.82K |
| CapEx % of Revenue | 2.39% | 0.96% | 0.98% | 6.21% | 10.83% | 33.47% |
| Acquisitions | 0 | 0 | -5.75M | 0 | -72.09K | -2.41M |
| Investments | - | - | - | - | - | - |
| Other Investing | -28.21K | 0 | 0 | 686 | 782 | 3K |
| Cash from Financing | 20.48M | 11.74M | 25.36M | 8.36M | 851.94K | -24.19K |
| Debt Issued (Net) | 1.85M | 3.67M | 15.47M | 7.89M | 307.77K | -24.19K |
| Equity Issued (Net) | 11.08M | 7.07M | 6.08M | 468K | 544.17K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.55M | 1M | 3.82M | 0 | 0 | 0 |
| Net Change in Cash | -465.38K | -6.51M | 10.43M | 45.41K | -3.67M | -7.55M |
| Free Cash Flow | -21.38M | -18.57M | -19.67M | -8.39M | -5.15M | -5.1M |
| FCF Margin % | -42.51% | -41.92% | -42.11% | -61.86% | -51.53% | -437.67% |
| FCF Growth % | -39.2% | 5.63% | -134.53% | -62.97% | -0.96% | - |
| FCF per Share | -0.27 | -0.27 | -0.45 | -0.13 | -0.08 | -0.20 |
| FCF Conversion (FCF/Net Income) | 1.39x | 0.25x | 0.19x | 0.54x | 0.42x | 0.30x |
| Interest Paid | 4.59M | 1.32M | 623.52K | 457.18K | 16.82K | 0 |
| Taxes Paid | 0 | 0 | 0 | 141.23K | 65.83K | 27.28K |
Critical liquidity and burn
As reported in financial statements, Roadzen exhibits a chronic inability to convert net income into operating cash flow, with the most recent quarter showing a net loss of $9.1M and a corresponding operating cash outflow of $7.5M, highlighting a fundamental misalignment between accounting results and cash generation.
The consistent gap between net income and operating cash flow suggests that the company's reported losses are not merely accounting artifacts but reflect actual cash consumption. Investors should monitor whether this divergence persists, as it indicates that the business model requires significant external capital to sustain its current operating structure.
Based on recent SEC filings, Roadzen's free cash flow trajectory remains firmly in negative territory, with the company reporting a $7.9M outflow in 2026Q3, underscoring the ongoing challenge of achieving self-sustaining operations while managing high fixed costs and a shrinking revenue base.
The lack of a clear path toward positive free cash flow suggests that the company is currently reliant on external financing to fund its daily operations. This trajectory warrants further investigation into whether management can implement cost-rationalization measures before the current cash reserves are fully exhausted.
According to the company's reported figures, working capital fluctuations have become a significant drag on cash, with a $4.3M outflow in 2026Q3 alone, indicating that the timing of collections and payables is creating additional pressure on an already thin liquidity position.
The erratic nature of working capital changes suggests potential inefficiencies in the company's cash conversion cycle, possibly stemming from delayed payments from insurance partners or OEM clients. Such volatility complicates cash flow forecasting and increases the risk of sudden liquidity crunches during periods of operational stress.
As indicated by historical financial data, Roadzen has historically utilized significant stock-based compensation, which reached $27.3M in 2024Q3, effectively obscuring the true magnitude of the company's cash burn by inflating non-cash expenses that do not reflect the underlying economic reality of the business.
While stock-based compensation is a non-cash expense, its historical prevalence suggests that the company has relied on equity dilution to manage its cost structure rather than operational efficiency. Analysts should be wary of this reliance, as it may mask the true cost of talent acquisition and retention in a competitive market.
Quick answers to the most common questions about buying RDZN stock.
Roadzen, Inc. (RDZN) generated $-18.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Roadzen, Inc. (RDZN) reported negative free cash flow of $18.6M in 2025, indicating capital requirements exceeded cash from operations.
Roadzen, Inc. (RDZN) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.