Operational sustainability is under pressure as evidenced by deeply negative free cash flow margins, which reached -88.9% in 2026Q1, signaling an ongoing reliance on external capital to fund operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -10.34M | -7.19M | -14.29M | -6.97M | -19.26M | -12.92M | 7.92M | 9.99M | -2.87M | -7.42M | -11.5M | -55K | -6.85M | -16.57M | -12.8M | -13.55M | 24.74M | 18.48M | 16.45M | 18.26M | 14.75M | 2.46M | 3.02M | -767K | 426K | -2.85M | -2.51M | -3.2M | -900K | 100K | -300K |
| Operating CF Margin % | - | -41.43% | -69.55% | -17.06% | -39.7% | -22.11% | 15.45% | 23.04% | -10.93% | -32.29% | -40.74% | -0.14% | -18.52% | -38.84% | -29.55% | -23.45% | 18.96% | 17.22% | 16.71% | 24.88% | 27.08% | 12.16% | 22.66% | -10.63% | 5.97% | -26.49% | -18.26% | -29.91% | -9.47% | 0.85% | -1.36% |
| Operating CF Growth % | -377.54% | 49.68% | -105% | 63.8% | -49.13% | -263% | -20.66% | 447.53% | 61.26% | 35.5% | -20814.55% | 99.2% | 58.68% | -29.43% | 5.48% | -154.75% | 33.92% | 12.33% | -9.9% | 23.77% | 498.62% | -18.36% | 493.48% | -280.05% | 114.94% | -13.68% | 21.63% | -255.56% | -1000% | 133.33% | -106.67% |
| Net Income | -28.05M | -29.33M | -48.7M | -24.4M | -29.28M | -31.04M | 4.17M | 10.72M | -2.74M | -6.66M | -15.34M | -2.6M | -11.8M | -27.95M | -25.46M | -159.61M | 12.35M | 4.75M | -732K | 3.16M | 8.96M | 4.72M | 3.44M | -923K | -688K | -6.13M | -3.15M | -6.1M | -2M | -1.6M | -1.5M |
| Depreciation & Amortization | 5.29M | 5.4M | 6.3M | 7.39M | 7.56M | 9.34M | 4.69M | 1.34M | 779K | 922K | 1.38M | 1.9M | 2.93M | 4.01M | 4.43M | 10.18M | 11.78M | 10.54M | 8.45M | 3.2M | 2.1M | 901K | 146K | 410K | 605K | 1.25M | 1.11M | 900K | 700K | 700K | 500K |
| Stock-Based Compensation | 3.11M | 3.61M | 4.5M | 4.83M | 4.95M | 4.85M | 0 | 1.49M | 935K | 1.17M | 1.53M | 2.16M | 3.65M | 3.53M | 3.95M | 6.53M | 9.5M | 8.72M | -72K | 12.37M | 4.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -128K | -40K | -10K | 61K | 58K | 153K | 97K | 213K | -585K | -137K | 0 | -2K | 806K | 1.28M | 0 | -1.54M | -871K | 2M | 5.31M | -8.38M | 0 | 0 | 0 | 0 | 0 | 0 | 800K | -200K | 100K | -600K |
| Other Non-Cash Items | 10.03M | 9.84M | 23.11M | 5.59M | -197K | 13.92M | 2.31M | 815K | 1.16M | 917K | 19K | 75K | 471K | 1.01M | -1.21M | 116.71M | 1.08M | 2.66M | 13.58M | -3.2M | 10.04M | 694K | 180K | 132K | 486K | 1.41M | 71K | -100K | -200K | -400K | -100K |
| Working Capital Changes | -727K | 3.42M | 524K | -388K | -2.35M | -10.04M | -3.4M | -4.48M | -3.22M | -3.18M | 1.05M | -1.59M | -2.1M | 2.02M | 4.21M | 12.64M | -8.42M | -7.33M | -6.78M | -2.59M | -2.63M | -3.85M | -753K | -386K | 23K | 607K | -536K | 2M | 800K | 1.3M | -5.1M |
| Change in Receivables | 439K | 3.9M | 2.19M | 2.59M | 85K | 7.94M | -1.27M | -3.81M | -1.9M | -365K | 3.37M | 40K | -1M | 660K | -1.47M | 20.04M | -6.52M | -6M | 1.17M | 574K | 468K | 573K | 112K | 132K | 486K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 16.31M | 0 | 0 | -197K | 154K | 16K | 10K | -54K | -67K | 60K | -97K | -167K | -372K | 473K | -734K | -327K | -246K | -25K | 23K | 250K | 43K | 164K | 200K | -100K | 0 | -100K |
| Change in Payables | -1.3M | -736K | -1.93M | -2.83M | -2.57M | -16.31M | -1.93M | 0 | -1.08M | -2.95M | -1.97M | -1.36M | -2.19M | -13.03M | -29.14M | -60.02M | -949K | -59.66M | -784K | 1.67M | 1.16M | 978K | 732K | -157K | -1.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 1.19M | 1.2M | 178K | 132K | 115K | -57.5M | -14.68M | -5.26M | -173K | -77K | 1.09M | -1.32M | -18K | 9.43M | 24.87M | 2.74M | -30.26M | -20.4M | -90.23M | -36.2M | -2.59M | -11.04M | -102K | -39K | -23K | -101K | -750K | -1.4M | -800K | -200K | -2.5M |
| Capital Expenditures | -95K | -88K | -20K | -4K | -49K | -830K | -1.32M | -1.66M | -173K | -77K | -500K | -124K | -216K | -829K | -322K | -13.43M | -6.31M | -4.81M | -4.04M | -2.22M | -362K | -142K | -102K | -39K | -23K | -101K | -583K | -1.4M | -200K | -200K | -300K |
| CapEx % of Revenue | 0.56% | 0.51% | 0.1% | 0.01% | 0.1% | 1.42% | 2.58% | 3.83% | 0.66% | 0.34% | 1.77% | 0.31% | 0.58% | 1.94% | 0.74% | 23.25% | 4.84% | 4.48% | 4.1% | 3.03% | 0.66% | 0.7% | 0.77% | 0.54% | 0.32% | 0.94% | 4.24% | 13.08% | 2.11% | 1.71% | 1.36% |
| Acquisitions | 300K | 1.29M | 0 | 0 | 0 | -56.87M | -13.5M | -3.97M | 0 | 0 | -2.48M | 0 | 0 | 0 | 0 | 0 | -532K | -6.91M | -63.62M | -33.97M | -2.22M | -10.9M | 0 | 0 | 0 | 0 | -94K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 987K | 0 | 198K | 136K | 164K | 192K | 367K | 370K | 0 | 0 | -985K | -1.2M | 198K | 10.26M | 25.2M | 16.17M | -5.84M | -4.79M | 385K | -31.7M | 0 | -10.9M | 0 | 0 | 0 | 0 | -73K | 0 | -600K | 0 | -2.2M |
| Cash from Financing | 8.61M | 4.68M | 9.8M | -60K | 17.09M | 60.74M | 4.24M | 11.38M | 13M | 7.47M | 3.82M | 32K | 5.27M | 36K | -671K | 425K | 8.8M | 2.54M | 201K | 12.92M | 59.19M | 21.16M | 2M | 901K | -2K | 0 | 732K | 500K | 0 | 0 | -1.8M |
| Debt Issued (Net) | 4.11M | 1.33M | -44K | -55K | 263K | 0 | 0 | 0 | -3.2M | 3M | 3.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 0 | -1.9M |
| Equity Issued (Net) | 966K | 3.35M | 9.84M | 0 | 3M | 59.71M | 4.24M | -14K | 0 | 0 | 0 | 0 | 5.24M | 0 | -753K | 0 | 0 | 0 | 129K | 9.15M | 59.19M | 21.16M | 2M | 901K | -2K | 0 | 732K | 600K | 0 | 0 | 200K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -119K | -404K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -14K | 0 | 0 | 0 | 0 | 0 | 0 | -753K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13K | -5K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 3.54M | 2K | 5K | -5K | 13.83M | 1.03M | 0 | 11.52M | 16.61M | 4.47M | 13K | 32K | 27K | 36K | 82K | 425K | 8.8M | 2.54M | 72K | 3.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K |
| Net Change in Cash | -546K | -1.31M | -4.32M | -6.9M | -2.05M | -9.68M | -2.51M | 16.11M | 9.95M | -24K | -6.59M | -1.35M | -1.6M | -7.11M | 11.4M | -10.38M | 3.28M | 611K | -73.58M | -5.01M | 71.35M | 12.58M | 4.91M | 95K | 401K | -2.95M | -2.53M | -4M | -1.7M | -100K | -4.6M |
| Free Cash Flow | -10.43M | -7.28M | -14.31M | -6.98M | -19.31M | -13.75M | 6.6M | 8.33M | -3.05M | -7.5M | -12M | -179K | -7.07M | -17.4M | -13.13M | -26.98M | 18.43M | 13.67M | 12.41M | 16.03M | 14.39M | 2.32M | 2.92M | -806K | 403K | -2.95M | -3.09M | -4.6M | -1.1M | -100K | -600K |
| FCF Margin % | -61.47% | -41.93% | -69.64% | -17.07% | -39.8% | -23.53% | 12.87% | 19.22% | -11.59% | -32.63% | -42.51% | -0.45% | -19.11% | -40.78% | -30.3% | -46.7% | 14.12% | 12.74% | 12.61% | 21.85% | 26.41% | 11.46% | 21.9% | -11.17% | 5.65% | -27.43% | -22.5% | -42.99% | -11.58% | -0.85% | -2.71% |
| FCF Growth % | 23.17% | 49.14% | -105.17% | 63.87% | -40.48% | -308.24% | -20.75% | 373.35% | 59.35% | 37.55% | -6605.59% | 97.47% | 59.4% | -32.57% | 51.34% | -246.36% | 34.86% | 10.13% | -22.59% | 11.43% | 519.64% | -20.37% | 461.79% | -300% | 113.65% | 4.5% | 32.8% | -318.18% | -1000% | 83.33% | -114.63% |
| FCF per Share | -2.03 | -1.77 | -5.79 | -4.30 | -13.94 | -10.73 | 6.17 | 9.01 | -5.46 | -22.23 | -40.17 | -0.62 | -27.81 | -75.29 | -7.32 | -15.15 | 10.65 | 8.31 | 8.01 | 10.34 | 11.36 | 2.04 | 3.17 | -0.98 | 0.50 | -3.64 | -3.87 | -5.95 | -1.46 | -0.13 | -0.80 |
| FCF Conversion (FCF/Net Income) | 0.37x | 0.24x | 0.29x | 0.29x | 0.66x | 0.42x | 1.90x | 0.93x | 1.05x | 1.11x | 0.75x | 0.02x | 0.58x | 0.59x | 0.50x | 0.08x | 2.00x | 3.89x | -22.47x | 5.78x | 1.65x | 0.52x | 0.88x | 0.83x | -0.62x | 0.47x | 0.79x | 0.52x | 0.45x | -0.06x | 0.20x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 386K | 662K | 21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 253K | 84K | 0 | 104K | 2K | 15K | 27K | 17K | 75K | 165K | 257K | 700K | 5.78M | 6.61M | 1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
According to quarterly financial data, the OCF/NI ratio has fluctuated wildly, with the most recent period showing an OCF/NI of 0.96, which obscures the underlying reality that both net income and operating cash flow remain consistently negative across the entire ten-quarter observation window.
The wide variance in the relationship between net income and operating cash flow suggests that non-cash charges and working capital swings are significantly distorting the reported bottom line. Investors should monitor this divergence, as it indicates that the company's accounting earnings are not providing a reliable proxy for the actual cash depletion occurring within the business.
As reported in recent financial statements, Smith Micro's free cash flow margins have remained deeply negative, reaching as low as -99.2% in 2024Q4, which highlights a structural inability to generate self-sustaining cash flow from its current carrier-integrated software operations.
The consistent failure to achieve positive free cash flow suggests that the company's business model is currently incapable of covering its operating expenses, let alone funding future growth. This trajectory implies that the firm remains entirely dependent on external financing to maintain its ongoing software development and carrier support obligations.
Based on reported figures, working capital changes have been highly erratic, swinging from a $3.2 million inflow in 2024Q1 to a $2.9 million outflow in 2024Q4, which suggests that the company's cash position is highly sensitive to the timing of carrier payments and internal accrual management.
These significant fluctuations in working capital may indicate challenges in managing accounts receivable or timing payments to vendors, which complicates the predictability of cash flow. Such volatility warrants further investigation into whether the company is pulling forward cash collections to mitigate its immediate liquidity constraints.
Data from recent filings reveals that stock-based compensation and depreciation and amortization consistently add back millions to the cash flow statement, effectively masking the severity of the company's underlying operational cash burn during periods of significant net losses.
While these non-cash adjustments are standard, their magnitude relative to the company's dwindling cash reserves suggests that the reported operating cash flow is significantly more optimistic than the actual cash-neutral performance of the business. Investors should be wary of relying on adjusted metrics that exclude these recurring costs, as they are essential to the company's ongoing operations.
Quick answers to the most common questions about buying SMSI stock.
Smith Micro Software, Inc. (SMSI) generated $-7.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Smith Micro Software, Inc. (SMSI) reported negative free cash flow of $7.3M in 2025, indicating capital requirements exceeded cash from operations.
Smith Micro Software, Inc. (SMSI) 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.