Free cash flow remains deeply negative, with a 2026Q1 margin of -52.8%, indicating that the company is unable to fund its operations through internal cash generation despite recent revenue gains.
Sonoma Pharmaceuticals, Inc. (SNOA) cash flow statement — 22-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 |
|---|
| Cash from Operations | -2.03M | -3.93M | -88K | -2.4M | -6.15M | -4.25M | -3.38M | -4.59M | -11.72M | -12.44M | -8.17M | -8.75M | -6.69M | -4.89M | 1.15M | -4.03M | -4.43M | -6.64M | -16.83M | -17.45M | -18.08M | -20.52M | -13.53M |
| Operating CF Margin % | - | -20.14% | -0.62% | -18.83% | -46.35% | -33.64% | -18.13% | -25.61% | -61.77% | -74.67% | -63.68% | -93.35% | -48.32% | -35.78% | 7.44% | -31.64% | -45.41% | -90.15% | -312.4% | -454.92% | -398.02% | -794.12% | -998.01% |
| Operating CF Growth % | -566.72% | -4369.32% | 96.33% | 61.02% | -44.82% | -25.75% | 26.42% | 60.82% | 5.8% | -52.31% | 6.62% | -30.65% | -36.89% | -525.22% | 128.52% | 8.96% | 33.29% | 60.56% | 3.52% | 3.52% | 11.88% | -51.63% | - |
| Net Income | -2.26M | -3.17M | -3.46M | -4.83M | -5.15M | -5.09M | -3.95M | -3.31M | -11.8M | -14.33M | 9.27M | -10.16M | -8.2M | 3.73M | -5.43M | -7.33M | -7.95M | -8.23M | -17.66M | -20.34M | -19.78M | -21.12M | -16.53M |
| Depreciation & Amortization | 135K | 139K | 138K | 176K | 125K | 186K | 227K | 312K | 453K | 490K | 248K | 244K | 253K | 284K | 268K | 326K | 395K | 433K | 768K | 740K | 672K | 651K | 434K |
| Stock-Based Compensation | 256K | 255K | 224K | 516K | 669K | 382K | 371K | 839K | 1.64M | 2.41M | 2.15M | 2.34M | 1.77M | 1.45M | 1.6M | 2.8M | 2.37M | 1.43M | 2.26M | 0 | 1.58M | 0 | 0 |
| Deferred Taxes | -324K | -231K | 357K | -109K | -37K | -829K | -1.41M | 0 | 0 | 651K | -4.27M | 0 | 0 | -10.89M | 963K | 7.36M | 155K | 72K | 299K | 0 | -1.58M | 0 | 0 |
| Other Non-Cash Items | -518K | -515K | 174K | 161K | 106K | -2.03M | 4K | -773K | -741K | 90K | -15.31M | 493K | 1.67M | 863K | 624K | -7.1M | 139K | 394K | 372K | -441K | 1.72M | -87K | 2.48M |
| Working Capital Changes | 688K | -406K | 2.48M | 1.69M | -1.86M | 3.13M | 1.38M | -1.66M | -1.27M | -1.75M | -257K | -1.66M | -2.18M | -332K | 3.13M | -83K | 464K | -738K | -2.88M | 2.59M | -693K | 34K | 81K |
| Change in Receivables | -263K | -122K | 434K | -230K | 62K | 1.97M | 2.61M | -2.19M | -1.16M | 11K | 34K | -1.28M | 40K | -88K | 411K | -164K | -626K | -453K | -379K | 0 | -287K | 0 | 0 |
| Change in Inventory | 189K | -465K | -388K | 184K | 44K | -100K | -65K | 323K | -779K | -583K | -675K | -382K | -627K | -126K | -103K | -309K | -245K | -388K | -177K | -180K | 53K | 551K | -748K |
| Change in Payables | 279K | 871K | 416K | -278K | -864K | -157K | -796K | 336K | 5K | 9K | -58K | 429K | 222K | 848K | -10K | 158K | -266K | -163K | -1.33M | 0 | -245K | 0 | 0 |
| Cash from Investing | -125K | -192K | -80K | -2K | -258K | -99K | 388K | 3.64M | -131K | -201K | 18.22M | 4.19M | 875K | -445K | -370K | -360K | -164K | -184K | -424K | -617K | -877K | -1.58M | -1.12M |
| Capital Expenditures | -88K | -192K | -80K | -17K | -269K | -137K | -179K | -206K | -100K | -187K | -394K | -345K | -139K | -504K | -257K | -336K | -174K | -141K | -393K | -617K | -873K | -475K | -1.04M |
| CapEx % of Revenue | 0.4% | 0.98% | 0.56% | 0.13% | 2.03% | 1.08% | 0.96% | 1.15% | 0.53% | 1.12% | 3.07% | 3.68% | 1% | 3.69% | 1.66% | 2.64% | 1.78% | 1.91% | 7.29% | 16.09% | 19.22% | 18.38% | 76.84% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.7M | 0 | 0 | 18.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -37K | 0 | 0 | 15K | 11K | 38K | 567K | 1.15M | -31K | -14K | -21K | -2K | 51K | 59K | -113K | -24K | 10K | -43K | -31K | 0 | -4K | -1.11M | -76K |
| Cash from Financing | 4.29M | 477K | 3.03M | 1.68M | 2.49M | 7.4M | 3.31M | 1.03M | 5.49M | 5.24M | -32K | 6.04M | 6.61M | 2.94M | 3.75M | 3.45M | 2.68M | 11.08M | 376K | 17.83M | 30.57M | 26.12M | 17.2M |
| Debt Issued (Net) | -270K | -271K | -404K | -481K | -894K | -374K | 1.02M | -347K | -478K | -280K | -130K | -119K | -176K | -1.61M | -2.08M | 1.34M | 2.59M | -294K | -2.14M | -4.11M | 5.31M | -727K | 500K |
| Equity Issued (Net) | 3.98M | 471K | 3.08M | 1.78M | 2.87M | 7.55M | 2.29M | 1.38M | 5.97M | 5.47M | 0 | 6.14M | 6.79M | 3.19M | 5.85M | 1.89M | 94K | 11.38M | 2.51M | 21.94M | 24.86M | 27.32M | 16.7M |
| Dividends Paid | 0 | 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 | -1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 579K | 277K | 356K | 373K | 515K | 216K | 0 | 0 | 0 | 52K | 98K | 14K | 0 | 1.37M | -16K | 219K | 0 | 0 | 0 | 0 | 401K | -478K | 0 |
| Net Change in Cash | 2.44M | -2.98M | 2.25M | -692K | -3.58M | 3.18M | 529K | 2K | -6.38M | -7.39M | 9.99M | 1.33M | 656K | -2.42M | 4.55M | -1.02M | -1.89M | 4.34M | -16.9M | -227K | 11.6M | 4.16M | 2.42M |
| Free Cash Flow | -2.15M | -4.13M | -168K | -2.42M | -6.42M | -4.38M | -3.56M | -4.8M | -11.82M | -12.63M | -8.56M | -9.09M | -6.83M | -5.39M | 893K | -4.37M | -4.6M | -6.78M | -17.23M | -18.06M | -18.95M | -21M | -14.57M |
| FCF Margin % | -9.82% | -21.12% | -1.18% | -18.96% | -48.38% | -34.72% | -19.09% | -26.76% | -62.29% | -75.8% | -66.75% | -97.03% | -49.32% | -39.46% | 5.78% | -34.27% | -47.19% | -92.07% | -319.69% | -471% | -417.24% | -812.5% | -1074.85% |
| FCF Growth % | -138.58% | -2355.36% | 93.04% | 62.39% | -46.43% | -23.28% | 25.85% | 59.41% | 6.41% | -47.48% | 5.83% | -33.05% | -26.68% | -704.03% | 120.44% | 5.11% | 32.11% | 60.64% | 4.64% | 4.71% | 9.72% | -44.05% | - |
| FCF per Share | -0.56 | -2.45 | -0.14 | -2.66 | -18.92 | -16.53 | -17.82 | -32.48 | -127.89 | -250.85 | -182.41 | -105.40 | -108.34 | -169.53 | 80.74 | -234.71 | -271.42 | -419.89 | -1399.27 | -4467.18 | -10959.66 | -7967.74 | -5738.19 |
| FCF Conversion (FCF/Net Income) | 0.95x | 1.24x | 0.03x | 0.50x | 1.19x | 0.84x | 0.86x | 1.39x | 0.99x | 0.87x | -0.88x | 0.86x | 0.82x | -1.31x | -0.21x | 0.55x | 0.56x | 0.81x | 0.95x | 0.86x | 0.91x | 0.89x | 0.82x |
| Interest Paid | 11K | 0 | 11K | 0 | 0 | 24K | 12K | 16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 247K | 0 | 0 | 0 | 0 | 767K | 941K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying SNOA stock.
Sonoma Pharmaceuticals, Inc. (SNOA) generated $-3.9M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Sonoma Pharmaceuticals, Inc. (SNOA) reported negative free cash flow of $4.1M in 2026, indicating capital requirements exceeded cash from operations.
Sonoma Pharmaceuticals, Inc. (SNOA) spent $0.2M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Liquidity and dilution risk
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Accruals
Based on the provided quarterly data, the relationship between net income and operating cash flow is highly inconsistent, with OCF/NI ratios fluctuating wildly from 0.18 to 1.62, suggesting that reported earnings are frequently decoupled from actual cash generation due to significant working capital volatility.
The wide variance in the conversion ratio indicates that Sonoma's cash flow is heavily influenced by timing differences in receivables and payables rather than core operational efficiency. Investors should monitor whether this instability reflects genuine business cycle fluctuations or an underlying difficulty in converting sales into realized cash.
Persistent Free Cash Flow Deficits
As reported in financial statements, Sonoma's free cash flow trajectory remains deeply negative, with FCF margins reaching as low as -52.8% in 2026Q1, highlighting a structural inability to fund operations through internal cash generation despite recent top-line growth trends observed across the last ten quarters.
The consistent failure to achieve positive free cash flow suggests that the company's current business model is not yet self-sustaining. This persistent cash burn necessitates ongoing external financing, which may continue to dilute existing shareholders if management cannot bridge the gap between revenue scaling and operational profitability.
Working Capital Volatility Drives Cash
According to recent SEC filings, working capital changes have been the primary driver of cash flow variability, with swings as large as $1.5 million in a single quarter, indicating that the company's cash position is highly sensitive to the timing of distributor payments and inventory management.
The reliance on working capital shifts to bolster cash flow suggests that the company may be pulling forward or delaying payments to manage liquidity. This behavior warrants further investigation into the sustainability of these payment terms and whether they mask underlying weaknesses in the core cash conversion cycle.
SBC and Capitalized Cost Obfuscation
Analysis of the cash flow statement reveals that stock-based compensation adjustments, reaching $135,000 in 2026Q4, frequently offset operating losses, potentially obscuring the true economic cost of talent retention and the actual cash-basis burn rate experienced by the company over the last two and a half years.
By adding back non-cash expenses like stock-based compensation, the company presents a more favorable cash flow picture than the underlying operational performance warrants. Investors should focus on the unadjusted cash burn to better understand the true capital requirements needed to sustain the current commercial strategy.