Liquidity is severely constrained with cash reserves dwindling to $653,000, while the company continues to burn cash, reporting a $782,000 negative free cash flow in 2026Q1.
| Cash from Operations | -2.79M | -4.95M | -3.23M | -13.41M | -198K | -6.39M | -7.79M | -4.5M | -2.73M | -3.68M | -2.11M |
| Operating CF Margin % | - | -2% | -0.46% | -1.87% | -0.12% | -61.77% | -174.05% | -90.83% | -45.27% | -46.37% | -42.61% |
| Operating CF Growth % | 119.46% | -53.49% | 75.95% | -6673.23% | 96.9% | 17.89% | -72.86% | -65.19% | 25.84% | -74.21% | - |
| Net Income | -99.19M | -92.65M | 3.74M | -8.04M | -7.96M | -8.18M | -10.1M | -28.39M | -7.2M | -13.21M | -4.22M |
| Depreciation & Amortization | 68K | 95K | 258K | 1.81M | 2.02M | 1.21M | 422.55K | 280.95K | 200.88K | 446.37K | 204.49K |
| Stock-Based Compensation | 1.77M | 2.06M | 6.66M | 4.85M | 3.75M | 2.08M | 2.82M | 666.5K | 383.97K | 912.82K | 3.68K |
| Deferred Taxes | 0 | 0 | -55K | 6K | 0 | 0 | 0 | 0 | 0 | -246.53K | 127.28K |
| Other Non-Cash Items | 54.62M | 71.88M | -21.32M | 2.87M | 433K | 198.02K | 313.63K | 23.32M | 3.96M | 6.58M | 327.83K |
| Working Capital Changes | 39.75M | 13.66M | 7.49M | -14.91M | 1.56M | -1.7M | -1.24M | -389.67K | -65.06K | 1.84M | 1.45M |
| Change in Receivables | 14.15M | -15.74M | 34.48M | -52.86M | -3.38K | -21.52K | -56.54K | -103.92K | -179.55K | -8.01K | -50.21K |
| Change in Inventory | 271K | 717K | 1.64M | -2.26M | -39K | -125.46K | -35.4K | -33.35K | 47.7K | -28.65K | -49.92K |
| Change in Payables | 9.14M | 17.24M | -21.88M | 48.72M | -132.99K | 622.83K | -786.28K | 248.21K | 309.78K | 1.56M | 0 |
| Cash from Investing | 0 | 0 | 1.01M | -3.46M | -5.44M | -3.58M | -850.33K | -1.52M | -188.22K | -843.17K | -1.1M |
| Capital Expenditures | 0 | 0 | -37K | -7.53M | -597K | -262.02K | -781.04K | -1.16M | -252.65K | -968.83K | -957.39K |
| CapEx % of Revenue | 0% | - | 0.01% | 1.05% | 0.37% | 2.53% | 17.46% | 23.42% | 4.19% | 12.22% | 19.33% |
| Acquisitions | 0 | 0 | 0 | 3.65M | 0 | -3.32M | -75K | -335.12K | 0 | 0 | -124.12K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 1.05M | 421K | -4.84M | 1.6K | 5.71K | -23.83K | 64.42K | 125.66K | -14.17K |
| Cash from Financing | 1.53M | 3.82M | 2.64M | 8.32M | -230K | 21.54M | 12.35M | 6.15M | 3.19M | 4.26M | 2.94M |
| Debt Issued (Net) | -1.46M | 854K | 2.78M | 6.17M | -230K | -1.28M | -131.12K | 6.15M | 3.06M | 4.04M | 2.61M |
| Equity Issued (Net) | 539K | 2.96M | 0 | 2.15M | 44 | 22.79M | 12.48M | 0 | 265.58K | 470K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.44M | 0 | -137K | 0 | -44 | 28.77K | 0 | 0 | -132.46K | -250.01K | 329.08K |
| Net Change in Cash | -1.26M | -1.13M | 432K | -8.54M | -5.87M | 11.57M | 3.72M | 121.01K | 279.16K | -257.04K | -263.55K |
| Free Cash Flow | -2.79M | -4.95M | -3.26M | -20.94M | -795K | -6.65M | -8.57M | -5.67M | -2.98M | -4.65M | -3.07M |
| FCF Margin % | -2.43% | -2% | -0.47% | -2.92% | -0.49% | -64.3% | -191.51% | -114.25% | -49.47% | -58.59% | -61.94% |
| FCF Growth % | 68.3% | -51.75% | 84.43% | -2534.47% | 88.05% | 22.32% | -51.2% | -90.17% | 35.87% | -51.42% | - |
| FCF per Share | -3.08 | -6.03 | -6.99 | -59.94 | -2.78 | -40.41 | -113.02 | -71.35 | -41.07 | -64.04 | -4.23 |
| FCF Conversion (FCF/Net Income) | 0.03x | 0.05x | -0.81x | 1.71x | 0.02x | 0.78x | 0.77x | 0.16x | 0.38x | 0.28x | 0.68x |
| Interest Paid | 1.59M | 1.33M | 3.12M | 600K | 96K | 0 | 0 | 0 | 0 | 0 | 119 |
| Taxes Paid | 0 | 4K | 4K | 19K | 26K | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and solvency crisis
According to reported financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -5.92 in 2025Q2 to 0.16 in 2026Q1, indicating that reported earnings provide little insight into the company's actual cash-generating capacity.
The persistent divergence between accounting profits and cash flows suggests that non-cash items and accruals are heavily distorting the company's performance metrics. Investors should monitor this volatility, as it implies that the reported net income is not a reliable indicator of the firm's ability to sustain operations.
As evidenced by historical cash flow data, the company has struggled to maintain positive free cash flow, with the most recent 2026Q1 period showing a cash burn of $782,000, highlighting the ongoing difficulty in aligning operational scale with the company's current cost structure.
The inability to generate consistent free cash flow suggests that the business model is currently consuming rather than creating capital. This trajectory warrants further investigation into whether the company can reach a break-even point before its limited cash reserves are fully exhausted.
Based on quarterly filings, working capital changes have been the primary driver of cash flow fluctuations, including a significant $15.7 million inflow in 2025Q4, which appears to be a temporary relief rather than a sustainable improvement in operational efficiency or collection cycles.
The reliance on working capital swings to manage liquidity suggests that the company's core operations are not generating sufficient cash internally. This pattern may indicate that the firm is aggressively managing payables or liquidating assets to bridge the gap between its high operating costs and thin gross margins.
Data from recent SEC filings reveals that stock-based compensation has been a recurring non-cash adjustment, reaching as high as $4.9 million in 2024Q4, which effectively masks the true extent of the company's cash burn by inflating the reported operating cash flow figures.
The use of equity-based incentives in a cash-constrained environment may be an attempt to preserve liquidity, but it also dilutes existing shareholders while failing to address the underlying operational losses. Analysts should be wary of these adjustments, as they do not represent actual cash inflows and may hide the severity of the company's financial distress.
Quick answers to the most common questions about buying SDOT stock.
Sadot Group Inc. (SDOT) generated $-5.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sadot Group Inc. (SDOT) reported negative free cash flow of $5.0M in 2025, indicating capital requirements exceeded cash from operations.
Sadot Group Inc. (SDOT) 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.