Cash flow generation is highly erratic, highlighted by a massive $4.2 billion free cash flow burn in 2026Q1 and an extreme OCF/NI ratio of 13,652.96, which obscures the underlying economic reality of the business.
| Cash from Operations | -4.19B | 498.05K | -9.13M | 3.81M | -1.97M | -5.35M | -23.17M | -14.87M | -5.48M |
| Operating CF Margin % | - | 0.55% | -39.72% | 7.05% | -4.41% | -14.18% | -17.61% | -16.56% | -6.16% |
| Operating CF Growth % | -694850.82% | 105.46% | -339.33% | 293.5% | 63.16% | 76.9% | -55.77% | -171.52% | - |
| Net Income | -5.33M | -6.33M | -34.96M | 434.79K | -6.87M | -3.32M | 952.89K | -14.6M | -11.93M |
| Depreciation & Amortization | 277.46M | 1.6M | 1.55M | 1.61M | 1.37M | 359.86K | 1.48M | 618.8K | 2.08M |
| Stock-Based Compensation | 520.72K | 0 | 18.54M | 0 | 0 | 0 | 22.5K | 0 | 0 |
| Deferred Taxes | -32.78M | -1.4M | 1.83M | -84.19K | -92.74K | -444.7K | 1.22M | 54.48K | 564.4K |
| Other Non-Cash Items | -4.12B | 2.58M | 7.91M | -59.18K | 471.16K | -3.2M | 562.61K | 19.1M | 14.29M |
| Working Capital Changes | -573.87K | 4.04M | -3.99M | 1.91M | 3.15M | 1.25M | -27.4M | -6.26M | -125.61K |
| Change in Receivables | -61.66M | -51.92M | 3.04M | 8.51M | 4.02M | 16.01M | -21.49M | -33.45M | -2.13M |
| Change in Inventory | 519.5K | -832.69K | -7.1K | 1.95M | -119.38K | -1.35M | 615.12K | 383.78K | 2.98M |
| Change in Payables | 57.02M | 56.9M | -718.47K | 1.15M | -2.58M | -18.67M | -1.65M | 20.52M | -7.04M |
| Cash from Investing | 554.18M | 5.84M | -6.32M | -6.55K | -280.52K | 2.03M | 11.22M | 648.34K | 428.32K |
| Capital Expenditures | 0 | 0 | 0 | -28K | -83.47K | 0 | -107.1K | -422.46K | -281.32K |
| CapEx % of Revenue | 0% | - | - | 0.05% | 0.19% | - | 0.08% | 0.47% | 0.32% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 3.52M | 11.36M | 70.8K | 133.83K |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 548.39M | 0 | 20.97K | 21.45K | -197.06K | -1.49M | -31.83K | 1M | 183.81K |
| Cash from Financing | -6.93M | 1.15M | 13.31M | -5.05M | -7.5M | -5.07M | 23.5M | 5.46M | 8.92M |
| Debt Issued (Net) | -4.31M | -3.26M | -4.65M | -4.85M | -7.14M | -5.33M | -1.64M | 1.56M | 4.98M |
| Equity Issued (Net) | 5.35M | 4.75M | 18.95M | 0 | 0 | 0 | 23.69M | 4.83M | 5.07M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -7.97M | -345.54K | -995.87K | -196.68K | -356.33K | 266.06K | 1.44M | -932.83K | -1.13M |
| Net Change in Cash | -3.65B | 7.18M | -1.83M | -1.28M | -9.23M | -8.45M | 11.55M | -9.45M | 3.87M |
| Free Cash Flow | -4.19B | 498.05K | -9.13M | 3.79M | -2.06M | -5.35M | -23.27M | -15.29M | -5.76M |
| FCF Margin % | -4233.2% | 0.55% | -39.72% | 6.99% | -4.6% | -14.18% | -17.69% | -17.03% | -6.48% |
| FCF Growth % | -125571.2% | 105.46% | -341.1% | 284.27% | 61.6% | 77.01% | -52.16% | -165.6% | - |
| FCF per Share | -74.51 | 0.01 | -0.20 | 0.09 | -0.04 | -0.11 | -0.49 | -0.34 | -0.13 |
| FCF Conversion (FCF/Net Income) | 784.72x | -0.08x | 0.26x | 8.77x | 0.29x | 1.61x | -23.78x | 1.02x | 0.46x |
| Interest Paid | -392.05K | 0 | 1.36M | 1.09M | 1.63M | 0 | 3.44M | 2.06M | 1.75M |
| Taxes Paid | -14.23K | 0 | 158.79K | 177.38K | 4.52K | 371.7K | 11.41K | 196.28K | 80.38K |
Liquidity and Working Capital
As reported in financial statements, SMXT exhibits a profound disconnect between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 13,652.96 in 2026Q1, suggesting that reported earnings provide little insight into the company's actual ability to generate cash from its core operations.
The massive variance between accounting losses and cash flow suggests that non-cash items and working capital swings are the primary drivers of the cash flow statement. Investors should monitor this divergence, as it implies that the company's reported net income is not a reliable proxy for its underlying economic health.
Based on recent SEC filings, SMXT's free cash flow trajectory is characterized by extreme volatility, swinging from a positive $4.5 million in 2023Q4 to a negative $4.2 billion in 2026Q1, highlighting the company's inability to maintain a consistent or sustainable cash-generative business model.
The erratic nature of these cash flows appears to stem from the lumpy, project-based revenue recognition inherent in the company's solar farm procurement business. This lack of predictability makes it difficult to assess the company's long-term viability without frequent external capital injections.
According to the company's reported figures, working capital changes have become the dominant factor in cash flow, with a $4.7 million inflow in 2025Q3 followed by a $4.4 million outflow in 2026Q1, indicating that operational liquidity is highly sensitive to timing differences in project execution.
The reliance on working capital management to fund operations suggests that the company is effectively using its suppliers or customers as a source of short-term financing. This strategy appears precarious given the company's thin cash reserves and the potential for sudden reversals in receivable collections.
As disclosed in financial statements, the cash flow statement is heavily impacted by significant adjustments, including stock-based compensation of $17.2 million in 2024Q1, which masks the true economic cost of operations and dilutes the perceived quality of the company's cash flow generation.
These non-cash adjustments suggest that the company's reported operating cash flow may be artificially inflated relative to the actual cash required to sustain the business. Analysts should be wary of relying on headline cash flow figures without adjusting for these significant, recurring non-cash expenses.
Quick answers to the most common questions about buying SMXT stock.
Solarmax Technology Inc. Common Stock (SMXT) generated $0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solarmax Technology Inc. Common Stock (SMXT) generated $0.5M 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.
Solarmax Technology Inc. Common Stock (SMXT) 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.