Liquidity is under severe pressure, evidenced by a $133.9 million operating cash outflow in 2026Q1 that significantly outpaced the reported $28.4 million net loss.
| Cash from Operations | -123.71M | 16.58M | 1.93M | -10.26M | -66.2M | -90.57M | -50.17M |
| Operating CF Margin % | - | 2.15% | 0.2% | -0.88% | -5.7% | -7.08% | -4.74% |
| Operating CF Growth % | -1896.66% | 760.46% | 118.77% | 84.5% | 26.91% | -80.53% | - |
| Net Income | -330.34M | -306.54M | -105.53M | -19.25M | 62.65M | 41.53M | 30.15M |
| Depreciation & Amortization | -881K | 0 | 23.3M | 30.53M | 45.7M | 47.47M | 39.37M |
| Stock-Based Compensation | -820K | 0 | 2.05M | 891K | 0 | 0 | 0 |
| Deferred Taxes | 1.53M | 0 | -44.75M | -12.34M | -2.1M | -271K | 476K |
| Other Non-Cash Items | -224.97M | 80.37M | -5.93M | -31.17M | -14.74M | -15.68M | -6.17M |
| Working Capital Changes | 125.7M | 242.75M | 132.79M | 21.08M | -157.7M | -163.62M | -114M |
| Change in Receivables | 158.48M | 139.91M | 80.64M | -48.97M | -157.11M | -9.53M | -42.78M |
| Change in Inventory | 0 | 0 | 0 | -46.61M | 0 | 0 | 0 |
| Change in Payables | -90.8M | 23.62M | 0 | 46.61M | -13.55M | 26.48M | -752K |
| Cash from Investing | 3.59M | 3.39M | 3.23M | 4.49M | 5.56M | -8.5M | 195.82M |
| Capital Expenditures | 1.77M | 0 | -7.42M | -10.85M | -4.76M | -18.8M | -31M |
| CapEx % of Revenue | 0.25% | 0.5% | 0.76% | 0.93% | 0.41% | 1.47% | 2.93% |
| Acquisitions | 4.34M | 0 | 0 | 15.81M | -664K | -587K | -16.21M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -3.33M | 3.39M | 10.58M | -540K | 10.06M | 11.25M | 239.13M |
| Cash from Financing | 70.83M | -40.15M | 18.78M | -2.59M | 20.14M | 30.6M | -47.95M |
| Debt Issued (Net) | -66.38M | -52.36M | -17.14M | -18.29M | 24.19M | 32.87M | -40.94M |
| Equity Issued (Net) | 0 | 0 | 0 | 17.09M | 0 | 0 | 0 |
| Dividends Paid | -2.02M | -1.81M | 0 | -110K | -2.46M | -2.62M | -6.36M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 139.23M | 14.02M | 35.92M | -1.28M | -1.6M | 355K | -657K |
| Net Change in Cash | -49.16M | -20.09M | 23.74M | -8.17M | -39.25M | -69.15M | 98.66M |
| Free Cash Flow | -121.94M | 12.73M | -5.49M | -21.11M | -70.97M | -109.37M | -81.17M |
| FCF Margin % | -17.29% | 1.65% | -0.56% | -1.82% | -6.11% | -8.55% | -7.67% |
| FCF Growth % | -1102.1% | 332.01% | 74% | 70.25% | 35.11% | -34.75% | - |
| FCF per Share | -0.25 | 0.00 | -0.11 | -0.45 | -1.98 | -3.05 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.37x | -0.05x | -0.02x | 0.53x | -1.09x | -2.34x | -1.49x |
| Interest Paid | 0 | 35.28M | 28.05M | 18.28M | 9.04M | 7.52M | 8.58M |
| Taxes Paid | 0 | 1.16M | 1.56M | 7.59M | 10.39M | 14.09M | 1.85M |
Liquidity and project insolvency
According to the latest quarterly data, Southland reported a net loss of $28.4 million alongside a $133.9 million operating cash outflow, highlighting a severe disconnect where cash burn significantly outpaces accounting losses, suggesting that working capital requirements are currently consuming liquidity at an unsustainable and alarming rate.
The extreme divergence between net income and operating cash flow indicates that the company is struggling to convert project progress into actual cash receipts. This pattern suggests that the firm may be funding its ongoing operations through the depletion of cash reserves rather than through profitable project execution.
As reported in recent financial statements, Southland's free cash flow trajectory remains highly erratic, swinging from a $13.1 million inflow in 2025Q4 to a $133.9 million outflow in 2026Q1, which underscores the inherent instability of a business model reliant on large-scale, lumpy infrastructure project milestones.
The inability to maintain consistent positive free cash flow suggests that the company lacks the operational predictability required to sustain its current capital structure. Investors should monitor whether these cash flow swings are indicative of systemic project delays or merely the timing of milestone payments.
Based on the provided cash flow statements, working capital changes have become the primary driver of cash movement, with a massive $109.6 million outflow in 2026Q1 alone, indicating that the company is likely facing significant delays in collecting receivables or managing project-related payables effectively.
The volatility in working capital suggests that the company's cash position is highly sensitive to the timing of client payments and subcontractor obligations. This reliance on working capital fluctuations to manage liquidity may leave the firm vulnerable to even minor disruptions in project billing cycles.
Data from the past ten quarters reveals a persistent gap between reported net income and operating cash flow, where the cumulative cash burn has significantly exceeded accounting losses, implying that the company's underlying cash-generating capability is weaker than the headline income statement figures might otherwise suggest.
This long-term divergence warrants investigation into whether the company is consistently overestimating the value of its unbilled receivables. The failure to bridge this gap suggests that the firm may be facing structural challenges in realizing the cash value of its recognized project revenue.
Quick answers to the most common questions about buying SLND stock.
Southland Holdings, Inc. (SLND) generated $16.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Southland Holdings, Inc. (SLND) generated $12.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Southland Holdings, Inc. (SLND) 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, Southland Holdings, Inc. (SLND) returned $1.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.