Persistent operational deficits are highlighted by quarterly free cash flow outflows of $26.2 million, which significantly pressure the company's $54.7 million cash balance.
REE Automotive Ltd. (REE) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | -68.71M | -68.98M | -89.27M | -112.58M | -59.14M | -13.06M |
| Operating CF Margin % | -5297.61% | -37696.72% | -5551.8% | - | -985650% | -3366.49% |
| Operating CF Growth % | 0.4% | 22.73% | 20.71% | -90.37% | -352.76% | - |
| Net Income | -55.81M | -111.75M | -114.21M | -107.42M | -505.33M | -67.71M |
| Depreciation & Amortization | 3.09M | 3.18M | 5.8M | 1.68M | 484K | 166K |
| Stock-Based Compensation | 5.07M | 9.59M | 16.28M | 26.89M | 448.08M | 52.76M |
| Deferred Taxes | 0 | 0 | -29.7M | 0 | -10.9M | 1.61K |
| Other Non-Cash Items | -23.16M | 33.37M | 28.44M | -18.56M | 2.89M | -1.61K |
| Working Capital Changes | 2.1M | -3.37M | 4.11M | -15.18M | 5.64M | 1.72M |
| Change in Receivables | 5.26M | 920K | -455K | -4.48M | 55K | -20K |
| Change in Inventory | 3.08M | -3.41M | -463K | 0 | 271K | 107K |
| Change in Payables | -4.28M | 1.91M | -901K | -1.11M | 3.78M | 368K |
| Cash from Investing | -6.21M | 35.97M | 49.62M | -106.83M | -748K | -2.26M |
| Capital Expenditures | -6.3M | -7.53M | -3.75M | -11.06M | -2.42M | -595K |
| CapEx % of Revenue | 486.12% | 4115.3% | 232.9% | - | 40250% | 153.35% |
| Acquisitions | 100K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 16.36M | 63.55M | 23.97M | 2.43M | 291.3M | 33.12M |
| Debt Issued (Net) | -18M | 3M | 15.56M | 0 | 0 | 0 |
| Equity Issued (Net) | 34.36M | 45.53M | 467K | 2.43M | 3.72M | 25.82M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 15.01M | 7.94M | 0 | 287.58M | 7.29M |
| Net Change in Cash | -58.02M | 30.53M | -15.69M | -216.99M | 231.41M | 17.8M |
| Free Cash Flow | -75.02M | -76.52M | -93.02M | -123.64M | -61.55M | -13.66M |
| FCF Margin % | -5783.73% | -41812.02% | -5784.7% | - | -1025900% | -3519.85% |
| FCF Growth % | 1.96% | 17.74% | 24.77% | -100.87% | -350.71% | - |
| FCF per Share | -2.33 | -4.80 | -9.22 | -12.64 | -7.84 | -1.78 |
| FCF Conversion (FCF/Net Income) | 1.23x | 0.62x | 0.78x | 1.05x | 0.12x | 0.19x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 995K | 590K | 0 | 0 |
Quick answers to the most common questions about buying REE stock.
REE Automotive Ltd. (REE) generated $-68.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
REE Automotive Ltd. (REE) reported negative free cash flow of $75.0M in 2025, indicating capital requirements exceeded cash from operations.
REE Automotive Ltd. (REE) spent $6.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Imminent liquidity and dilution
Persistent Free Cash Flow Deficits
As reported in recent financial statements, REE's free cash flow remains deeply negative, with quarterly outflows consistently exceeding $20 million, a trend that underscores the company's inability to generate self-sustaining capital while it navigates the high-cost transition from prototype development to commercial-scale vehicle production.
The consistent FCF margin of -285.2% in the most recent periods highlights a business model that is currently consuming cash at a rate far outpacing its revenue generation. Investors should monitor whether the recent achievement of regulatory certifications can catalyze a shift toward positive cash flow, though current data suggests the company remains in a high-burn phase.
Earnings Disconnect and Cash Quality
Based on the provided quarterly data, the relationship between net income and operating cash flow is highly distorted, with OCF/NI ratios frequently exceeding 1.0, suggesting that non-cash expenses and working capital adjustments are masking the true extent of the company's underlying operational cash consumption.
The divergence between accounting losses and actual cash outflows indicates that the company's reported net income does not fully capture the severity of its cash burn. This pattern warrants further investigation into the sustainability of current operating activities, as the reliance on non-cash adjustments to bridge the gap may be reaching its limit.
Volatile Working Capital Management
According to historical filings, REE's working capital changes have been erratic, swinging from a $7.7 million inflow in 2023Q4 to a $3.1 million inflow in 2025Q2, reflecting the inherent instability of managing supply chain and inventory requirements during a pre-revenue, low-volume assembly phase.
These fluctuations suggest that the company is struggling to establish a predictable cash conversion cycle, likely due to the irregular timing of component procurement and prototype delivery milestones. Such volatility complicates cash flow forecasting and may indicate underlying inefficiencies in how the company manages its payables and inventory levels.
SBC Masking Operational Reality
As indicated by the financial data, stock-based compensation remains a significant non-cash add-back, consistently contributing to the gap between net income and operating cash flow and potentially obscuring the true economic cost of talent acquisition in a highly competitive electric vehicle technology market.
While SBC is a standard tool for preserving cash in early-stage firms, its persistent presence in the cash flow statement suggests that the company is effectively diluting shareholders to fund its operational runway. Analysts should consider the impact of this ongoing dilution on future earnings per share as the company attempts to scale.