Cash flow remains highly inefficient, evidenced by a negative free cash flow margin of -11.2% and erratic capital deployment that includes dividend payments despite ongoing net losses.
| Cash from Operations | -72.6M | -21.59M | -21.6M | -16.42M |
| Operating CF Margin % | - | -376.61% | -591.64% | -670.09% |
| Operating CF Growth % | -1954.55% | 0% | -31.55% | - |
| Net Income | -882.28M | -21.58M | -21.58M | -16.91M |
| Depreciation & Amortization | 204.68K | 192K | 260.27K | 212.12K |
| Stock-Based Compensation | 6.53M | 896K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 610.42M | -1.2M | -293.87K | -82.03K |
| Working Capital Changes | -13.23M | 95K | 17.96K | 364.75K |
| Change in Receivables | 0 | 0 | -1.46M | 89.63K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | -10.91M | 5.12M | 927.45K | 220.99K |
| Cash from Investing | -961.96M | -3.2M | -3.2M | 527.65K |
| Capital Expenditures | -932.45M | -24K | -24.26K | -973.4K |
| CapEx % of Revenue | 15571.35% | 0.42% | 0.66% | 39.73% |
| Acquisitions | 0 | - | - | - |
| Investments | 50.51M | 0 | 16.75M | 13.56M |
| Other Investing | 479K | 7.75M | 0 | 0 |
| Cash from Financing | 1.12B | 28.86M | 28.86M | 5M |
| Debt Issued (Net) | 0 | - | - | - |
| Equity Issued (Net) | 1.19B | 979.09M | 28.86M | 5M |
| Dividends Paid | -13.13M | -2.27M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | -34.51M | -947.96M | 0 | 0 |
| Net Change in Cash | 90.88M | 4.07M | 4.07M | -10.88M |
| Free Cash Flow | -72.62M | -21.62M | -21.62M | -17.39M |
| FCF Margin % | -1212.63% | -377.03% | -592.31% | -709.83% |
| FCF Growth % | - | 0% | -24.33% | - |
| FCF per Share | -1.18 | -0.48 | -195.35 | -122.68 |
| FCF Conversion (FCF/Net Income) | 0.08x | 0.05x | 1.00x | 0.97x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
As reported in recent quarterly filings, SATA exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio fluctuating significantly from 0.03 to 1.47, suggesting that reported earnings are heavily distorted by non-cash items and do not reflect the firm's actual cash-generating capacity.
The extreme volatility in the OCF/NI ratio indicates that net income is an unreliable proxy for the firm's underlying economic health. Investors should monitor whether this gap is driven by mark-to-market adjustments on seed investments or aggressive accrual accounting, as the current cash flow profile suggests a business model that is not yet self-funding.
According to the provided financial statements, SATA's free cash flow remains consistently negative, with margins reaching as low as -18.7% in 2025Q3, indicating that the firm is currently consuming capital at a rate that outpaces its ability to generate internal liquidity from its core asset management operations.
The persistent negative FCF trajectory suggests that the firm is in a heavy investment phase, likely prioritizing AUM growth over immediate cash flow positivity. This trend warrants further investigation into the firm's ability to achieve a sustainable break-even point before its current cash reserves are depleted.
Based on the quarterly data, SATA's capital expenditure has been highly erratic, peaking at a 437.6% CapEx/Revenue ratio in 2025Q3, which implies that the firm is deploying significant capital into infrastructure or proprietary investments that are not yet yielding a commensurate return in top-line revenue growth.
The high capital intensity relative to revenue suggests that the firm is building out a platform that requires substantial upfront investment. Analysts should interpret these spikes in CapEx as a potential indicator of aggressive expansion efforts that may be masking the true underlying cost of maintaining the firm's specialized investment edge.
As disclosed in recent filings, SATA has continued to distribute capital through dividends and share repurchases despite reporting significant net losses, a strategy that appears counterintuitive given the firm's ongoing cash burn and the need to preserve liquidity for future operational requirements and potential investment opportunities.
The decision to return capital while the core business is burning cash suggests a management focus on shareholder optics or a potential misallocation of resources. Investors should monitor whether these distributions are sustainable or if they will eventually be curtailed to protect the firm's $67M cash position.
Quick answers to the most common questions about buying SATA stock.
Strive, Inc. Variable Rate Series A Perpetual Preferred Stock (SATA) generated $-21.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Strive, Inc. Variable Rate Series A Perpetual Preferred Stock (SATA) reported negative free cash flow of $21.6M in 2025, indicating capital requirements exceeded cash from operations.
Strive, Inc. Variable Rate Series A Perpetual Preferred Stock (SATA) 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.
In 2025, Strive, Inc. Variable Rate Series A Perpetual Preferred Stock (SATA) returned $2.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.