Persistent negative free cash flow, with quarterly outflows frequently exceeding $10 million, highlights a reliance on external financing that is only partially obscured by stock-based compensation add-backs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 |
|---|
| Cash from Operations | -55.43M | -58.36M | -66.09M | -56.41M | -46.5M | -29.99M | -11.01M | -14.27M | -6.12M | -8.51M | -8.56M | -11.79M | -9.5M | -13.02M | -11.8M | -13.53M | -16.34M | -26.75M | -18.84M |
| Operating CF Margin % | - | -277.91% | -3239.51% | - | - | - | - | - | -406.1% | -5637.75% | -1316.77% | -75.95% | -54.25% | -2244.83% | -385.62% | -133.17% | -175.7% | -1273.81% | -5709.09% |
| Operating CF Growth % | 118.13% | 11.69% | -17.15% | -21.32% | -55.05% | -172.42% | 22.86% | -133.19% | 28.11% | 0.54% | 27.37% | -24.05% | 27.04% | -10.34% | 12.79% | 17.2% | 38.92% | -41.99% | - |
| Net Income | -72.71M | -73.04M | -100.19M | -53.4M | -50.38M | -31.25M | -13.89M | -14.7M | -9.6M | -26.52M | -23.07M | -37.88M | -14.24M | -19.93M | -19.9M | -15.46M | -21.75M | -28.58M | -27.44M |
| Depreciation & Amortization | 5.4M | 10.29M | 8.31M | 5.54M | 2.6M | 1.66M | 1.71M | 918K | 37K | 66K | 869K | 1.6M | 2.29M | 2.3M | 2.49M | 2.62M | 2.68M | 2.9M | 1.18M |
| Stock-Based Compensation | 3.71M | 10.97M | 19.93M | 20.65M | 22.77M | 4.57M | 154K | 123K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -137K | -137K | 0 | -1.06M | 0 | -840K | -25K | 487 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 11.22M | -2.98M | -2.53M | -17.03M | -27.29M | 95K | 25K | -487 | -236K | 14.67M | 18.59M | 22.65M | -2.77M | 3.79M | 22.63M | 8.58M | 44.35M | 32.56M | -6.02B |
| Working Capital Changes | -2.92M | -3.47M | 8.39M | -11.11M | 5.8M | -4.22M | 1.02M | -610K | 2.42M | 1.58M | -8.26M | -745K | 3M | -1.5M | -17.9M | -10.5M | -43.8M | -35.5M | 1.89M |
| Change in Receivables | -5.45M | -2.63M | 2.96M | -1.53M | 5.53M | -7.91M | 0 | 0 | -272K | -140K | 659K | -7K | -672K | 314K | 2.33M | 218K | -1.33M | -1.16M | -168.43M |
| Change in Inventory | -2.85M | -1.03M | 330K | -184K | -383K | 7.91M | 0 | 0 | 43K | 1K | 424K | 281K | -873K | 26K | 296K | 119K | -199K | -261K | -516.26M |
| Change in Payables | 1.56M | 1.04M | -72K | -62K | -3.98M | 1.29M | 608K | -188K | 422K | 118K | 861K | 0 | 112K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 48.86M | -39.19M | 108.19M | 32.72M | -296.01M | 3.31M | -13.27M | -4.61M | 1.13M | -397K | -799K | -1.98M | -2.44M | -610K | -910K | 260K | -30.22M | -8.35M | -12.92M |
| Capital Expenditures | -2.33M | -2.86M | -12.21M | -15.76M | -14.65M | -8.98M | -982K | -4.61M | -5K | -5K | -27K | -355K | -892K | -12K | -70K | -70K | -980K | -4.16M | -23.1M |
| CapEx % of Revenue | 10.65% | 13.61% | 598.33% | - | - | - | - | - | 0.33% | 3.31% | 4.15% | 2.29% | 5.09% | 2.07% | 2.29% | 0.69% | 10.54% | 198.1% | 7000% |
| Acquisitions | -3.03M | -3.03M | 0 | 0 | -2.35M | 275.97M | 12.29K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.24M | 3.13M | 7.21M | 0 | 2.35M | -275.97M | -12.29K | 0 | 1.13M | -392K | -772K | -1.63M | -1.55M | -598K | -840K | 330K | -29.24M | 40.81M | 10.18M |
| Cash from Financing | -3.96M | -1.96M | 1.01M | 3.27M | 289.93M | 184.76M | 840K | 1.14M | 122K | 2.05M | 16.57M | 15.47M | 15.47M | 11.44M | -1.47M | 2.82M | -1.29M | -2.3M | 152.25M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 840K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -3.59M | -1.53M | 1.01M | 524K | 283.27M | 471.42M | 0 | 1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.7M | -1.6M | 0 | 0 | 0 | 0 | 0 | 0 | 122K | 1.28M | 11.71M | 14.66M | 14.66M | 14.88M | -30K | 5.17M | 140K | -40K | 149.12M |
| Other Financing | -374.41K | -433K | 0 | 2.75M | 6.66M | -286.66M | 0 | 17K | 122K | 2.05M | 16.57M | 15.47M | 15.47M | 11.44M | -1.47M | 2.82M | -1.29M | -2.3M | 152.25M |
| Net Change in Cash | -9.17M | -99.18M | 42.43M | -20.97M | -53.11M | 158.32M | -23.25M | -17.8M | 2.08M | -8.82M | -7.52M | 2.81M | 3.54M | -2.17M | -14.14M | -10.4M | -47.85M | -37.45M | 121.67M |
| Free Cash Flow | -57.71M | -61.22M | -78.29M | -72.17M | -61.15M | -38.97M | -11.99M | -18.88M | -6.13M | -8.52M | -8.59M | -12.14M | -10.39M | -13.03M | -11.87M | -13.6M | -17.32M | -30.91M | -41.94M |
| FCF Margin % | -263.29% | -291.52% | -3837.84% | - | - | - | - | - | -406.44% | -5641.06% | -1320.92% | -78.24% | -59.35% | -2246.9% | -387.91% | -133.86% | -186.24% | -1471.9% | -12709.09% |
| FCF Growth % | 32.98% | 21.81% | -8.48% | -18.02% | -56.93% | -224.98% | 36.49% | -208.24% | 28.09% | 0.79% | 29.28% | -16.82% | 20.26% | -9.79% | 12.72% | 21.48% | 43.97% | 26.3% | - |
| FCF per Share | -0.17 | -0.19 | -0.24 | -0.23 | -0.21 | -0.64 | -0.03 | -0.05 | -4.47 | -6.26 | -6.33 | -10.26 | -10.09 | -13.86 | -14.84 | -17.89 | -23.09 | -41.21 | -77.67 |
| FCF Conversion (FCF/Net Income) | 0.79x | 0.80x | 0.66x | 1.06x | 0.91x | 0.96x | 0.79x | 0.97x | 0.64x | 0.30x | 0.41x | 0.30x | 0.66x | 0.64x | 0.65x | 0.91x | 0.66x | 0.94x | -0.05x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 286K | 222K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Limited liquidity and commercialization
According to the provided financial data, SES exhibits a persistent divergence between net income and operating cash flow, with OCF/NI ratios frequently exceeding 1.0, which highlights the significant impact of non-cash expenses and working capital fluctuations inherent in the company's current early-stage development phase.
The lack of a stable relationship between net income and operating cash flow suggests that accounting earnings are currently poor proxies for the company's actual cash burn. Investors should monitor this volatility, as it indicates that cash outflows are driven more by R&D intensity and milestone-related working capital shifts than by operational profitability.
As reported in recent financial statements, SES consistently records negative free cash flow, with quarterly outflows frequently exceeding $10 million, underscoring the company's ongoing reliance on external financing to fund its lithium-metal battery development and pilot production activities without any meaningful offset from commercial revenue.
The consistent negative FCF trajectory confirms that the company remains in a cash-burning phase with no immediate path to self-sustainability. This trend warrants further investigation into how long the current cash runway can support operations before additional dilutive capital is required.
Based on the reported figures, SES maintains a relatively low capital intensity, with quarterly CapEx/Revenue ratios fluctuating significantly due to the lumpy nature of revenue recognition, suggesting that the firm is currently prioritizing R&D over heavy investment in large-scale, permanent manufacturing infrastructure at this stage.
The relatively low level of capital expenditure relative to the company's high R&D spend suggests an asset-light strategy for now. However, investors should monitor whether this changes as the company moves toward B-sample testing and potentially higher-volume production requirements.
As indicated by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $8.3 million inflow in 2024Q4 to a $8.0 million outflow in 2025Q1, which reflects the unpredictable timing of milestone payments and inventory management within the JDA-based business model.
This volatility in working capital suggests that the company's cash position is highly sensitive to the timing of project-based receipts. Such fluctuations may indicate potential challenges in managing cash flow predictability until the company transitions to a more stable, commercial revenue stream.
Based on the provided financial statements, stock-based compensation consistently adds back millions to the cash flow statement each quarter, effectively masking the true rate of cash depletion and potentially obscuring the underlying economic cost of talent retention in this highly competitive battery technology sector.
The reliance on SBC as a significant non-cash adjustment suggests that the company's reported operating cash flow may be overstating its financial health. Analysts should adjust for these non-cash charges to better understand the actual cash burn rate required to sustain the current R&D-heavy business model.
Quick answers to the most common questions about buying SES stock.
SES AI Corporation (SES) generated $-58.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SES AI Corporation (SES) reported negative free cash flow of $61.2M in 2025, indicating capital requirements exceeded cash from operations.
SES AI Corporation (SES) spent $2.9M 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, SES AI Corporation (SES) spent $1.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.