Operational viability is severely compromised by a 2026Q1 CapEx/Revenue ratio of 1157.7% and a current ratio of only 0.08, indicating an inability to fund operations through internal cash generation.
| Cash from Operations | -1.9M | -3.27M | -7.49M | -376.06K | -2.72M |
| Operating CF Margin % | - | -26.2% | -32.06% | -0.74% | -16.68% |
| Operating CF Growth % | 352.47% | 56.31% | -1892.11% | 86.15% | - |
| Net Income | -11.18M | -12.2M | -14.73M | -4.44M | -2.71M |
| Depreciation & Amortization | 1.29M | 1.27M | 884.44K | 602.56K | 165.13K |
| Stock-Based Compensation | 667.71K | 659.13K | 632.21K | 634.78K | 209.13K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 915.19K | 1.21M | 5.19M | 2.21M | 153.42K |
| Working Capital Changes | 6.41M | 5.78M | 529.2K | 613.93K | -529.66K |
| Change in Receivables | 1.76M | 1.12M | 2.39M | 719.6K | -56.5K |
| Change in Inventory | 1.45M | 2.47M | -712.05K | 1M | -225.41K |
| Change in Payables | 2M | 2.35M | 0 | 0 | 0 |
| Cash from Investing | -495.23K | -368.06K | -1.48M | -731.94K | -9.27M |
| Capital Expenditures | -246.75K | -133.64K | -1.48M | -1.69M | -5.28M |
| CapEx % of Revenue | 4.01% | 1.07% | 6.34% | 3.34% | 32.39% |
| Acquisitions | -14.06K | 0 | 0 | 0 | -4M |
| Investments | - | - | - | - | - |
| Other Investing | -234.42K | -234.42K | 0 | 961.4K | 0 |
| Cash from Financing | 2.22M | 1.13M | 7.62M | 4.46M | 11.68M |
| Debt Issued (Net) | 340.97K | 1.13M | 11.96M | 7.91M | -4.45M |
| Equity Issued (Net) | 748.35K | 374 | 308K | 614.8K | 16.13M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.13M | 0 | -4.65M | -4.06M | 0 |
| Net Change in Cash | -141.78K | -2.51M | -1.37M | 3.33M | -413.16K |
| Free Cash Flow | -2.14M | -3.41M | -8.97M | -2.07M | -7.99M |
| FCF Margin % | -34.83% | -27.27% | -38.4% | -4.08% | -49.07% |
| FCF Growth % | 77.69% | 62.04% | -333.6% | 74.11% | - |
| FCF per Share | -0.60 | -1.23 | -3.77 | -0.84 | -3.36 |
| FCF Conversion (FCF/Net Income) | 0.19x | 0.27x | 0.51x | 0.08x | 1.00x |
| Interest Paid | 0 | 0 | 6.52M | 3.53M | 0 |
| Taxes Paid | 0 | 0 | 0 | 85 | 0 |
Immediate Liquidity Insolvency Risk
According to historical financial data, Sky Quarry consistently reports negative net income alongside operating cash flow deficits, with the OCF/NI ratio fluctuating between 0.25 and 0.68, suggesting that the company's accounting losses are being compounded by an inability to generate cash from its core operations.
The persistent gap between net losses and operating cash outflows indicates that the company is not merely suffering from non-cash accounting charges but is actively consuming liquidity to sustain its business model. This suggests that the underlying operational economics are fundamentally misaligned with the cost structure required to process waste into energy.
As reported in quarterly filings, Sky Quarry's free cash flow trajectory remains consistently negative, with the company burning through millions in cash each quarter, a trend that highlights the extreme difficulty in achieving self-sustaining operations given the current scale of the business and its high fixed costs.
The inability to reach positive free cash flow, even in periods where capital expenditures were minimized, suggests that the business model is currently incapable of covering its own operating expenses. Investors should monitor whether the company can achieve any meaningful scale, as the current trajectory points toward a continued reliance on external financing.
Based on reported figures, Sky Quarry's capital intensity has been highly volatile, with CapEx/Revenue ratios reaching as high as 1157.7% in 2026Q1, indicating that the company is forced to invest heavily in infrastructure despite a collapsing revenue base and deteriorating operational performance.
The high capital intensity relative to revenue suggests that the company is trapped in a cycle of maintenance spending that does not appear to be yielding productive capacity. This pattern may indicate that the facility requires constant, expensive remediation or upgrades just to remain operational, further straining the company's limited liquidity.
Analysis of recent financial statements reveals significant swings in working capital, with changes ranging from $2.7 million to -$1.2 million, suggesting that the company's cash position is highly sensitive to the timing of collections and inventory management rather than stable operational cash generation.
The erratic nature of working capital changes may imply that the company is struggling to manage its supply chain or is experiencing significant delays in converting waste feedstock into sellable refined products. This volatility warrants further investigation into whether the company is effectively managing its payables or if it is relying on extended credit terms to survive.
Quick answers to the most common questions about buying SKYQ stock.
Sky Quarry Inc. (SKYQ) generated $-3.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sky Quarry Inc. (SKYQ) reported negative free cash flow of $3.4M in 2025, indicating capital requirements exceeded cash from operations.
Sky Quarry Inc. (SKYQ) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.