Cash generation remains highly erratic, as demonstrated by the OCF/NI ratio swinging from -90.26 in 2025Q1 to 11.16 in 2025Q4, indicating that accounting profits frequently fail to translate into actual liquidity.
| Cash from Operations | 171K | -8.57M | 1.97M | -2.01M | -1.65M | 2.32M |
| Operating CF Margin % | - | -13.8% | 3.77% | -5.38% | -4.42% | 7.87% |
| Operating CF Growth % | -71.4% | -534.65% | 198.26% | -21.58% | -171.09% | - |
| Net Income | 944K | 1.79M | 4.24M | -4.39M | -2.62M | 2.32M |
| Depreciation & Amortization | 984K | 897K | 928K | 742K | 567K | 454K |
| Stock-Based Compensation | 448K | 575K | 725K | 773K | 625K | 160K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 83K | 0 | 0 | 0 | 2.57M | -49K |
| Working Capital Changes | -2.29M | -11.83M | -3.92M | 869K | -2.79M | -564K |
| Change in Receivables | 2.71M | -1.97M | -1.4M | 1.06M | -797K | -1M |
| Change in Inventory | 4.35M | 1.76M | -10.24M | -1.19M | -2.74M | -1.75M |
| Change in Payables | -4.35M | -5.38M | 2.4M | -503K | 0 | 1.03M |
| Cash from Investing | -2.8M | -2.14M | -4.56M | -1.05M | -2.82M | -1.87M |
| Capital Expenditures | -3.76M | -2.14M | -4.56M | -1.05M | -2.82M | -1.87M |
| CapEx % of Revenue | 6.23% | 3.45% | 8.71% | 2.82% | 7.56% | 6.36% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 958K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.39M | 10.59M | 2.27M | 2.59M | 6M | -747K |
| Debt Issued (Net) | 1.05M | 10.27M | -5.81M | 2.52M | -111K | -981K |
| Equity Issued (Net) | 16K | 323K | 6M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 319K | 0 | 2.08M | 73K | 6.11M | 234K |
| Net Change in Cash | -1.24M | -121K | -313K | -464K | 1.53M | -300K |
| Free Cash Flow | -2.18M | -10.71M | -2.59M | -3.06M | -4.47M | 447K |
| FCF Margin % | -3.61% | -17.26% | -4.94% | -8.2% | -11.99% | 1.52% |
| FCF Growth % | 62.8% | -313.99% | 15.37% | 31.66% | -1100.67% | - |
| FCF per Share | -0.03 | -0.15 | -0.04 | -0.06 | -0.09 | 0.01 |
| FCF Conversion (FCF/Net Income) | -2.31x | -4.79x | 0.47x | 0.46x | 0.63x | 1.00x |
| Interest Paid | 594K | 0 | 637K | 752K | 333K | 218K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and working capital
As reported in quarterly financial statements, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from -90.26 in 2025Q1 to 11.16 in 2025Q4, suggesting that accounting profits bear little resemblance to actual cash generation.
The extreme divergence between net income and operating cash flow indicates that accrual-based accounting may be masking significant underlying cash volatility. Investors should monitor whether this disconnect stems from aggressive revenue recognition or simply the timing of customer payments relative to production cycles.
Based on the provided cash flow data, Solesence's free cash flow trajectory is characterized by frequent negative periods, with the company recording a -$7.2M outflow in 2025Q1, highlighting a persistent inability to sustain positive cash generation despite top-line growth efforts.
The inconsistency in FCF margins suggests that the company's business model is not yet self-funding. The reliance on sporadic positive quarters to offset deep cash burns implies that the firm remains vulnerable to any sustained disruption in its manufacturing throughput or customer demand.
According to recent SEC filings, working capital changes are the primary determinant of cash flow, with a massive $7.7M outflow in 2025Q1 followed by a $1.9M inflow in 2026Q1, illustrating that the company's liquidity is hostage to the timing of inventory and receivables management.
The high sensitivity of operating cash flow to working capital movements suggests that the company lacks the scale to absorb fluctuations in its supply chain or customer payment terms. This volatility warrants further investigation into whether the company is forced to extend credit to maintain its brand partnerships.
As indicated by historical financial data, capital expenditures have remained a significant burden, peaking at 20.6% of revenue in 2024Q4, which suggests that the company must continuously reinvest in its manufacturing infrastructure just to maintain its specialized production capabilities.
The necessity of ongoing capital investment in a low-margin environment limits the company's ability to generate meaningful free cash flow. This capital intensity appears to be a structural requirement for maintaining the proprietary coating processes that define their competitive moat.
Quick answers to the most common questions about buying SLSN stock.
Solesence, Inc. Common Stock (SLSN) generated $-8.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solesence, Inc. Common Stock (SLSN) reported negative free cash flow of $10.7M in 2025, indicating capital requirements exceeded cash from operations.
Solesence, Inc. Common Stock (SLSN) spent $2.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.