Free cash flow remains consistently negative, with a -32.8% FCF margin in 2026Q1, as the company burns through cash reserves that have plummeted from $10.1 million in 2025Q1 to $2.1 million in 2026Q1.
| Cash from Operations | -7.84M | -6.96M | -6.52M | -5.93M | -6.16M | -3.69M | -2.19M | -543.96K | -162.56K | -310.91K | -444.71K | -406.4K | -433.18K |
| Operating CF Margin % | - | -1590.68% | -3065.58% | -3768.84% | -17428.72% | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -62.11% | -6.69% | -10.01% | 3.71% | -66.91% | -68.3% | -302.89% | -234.62% | 47.72% | 30.09% | -9.43% | 6.18% | - |
| Net Income | -9.36M | -8.95M | -8.61M | -10.21M | -12.35M | -7.87M | -29.98M | -1.25M | -639.09K | -744.56K | -758.42K | -3.55M | -1.1M |
| Depreciation & Amortization | 365.36K | 389.28K | 385.46K | 385.46K | 2.68M | 385.46K | 232.19K | 0 | 0 | 776 | 777 | 606 | 911 |
| Stock-Based Compensation | 122.5K | 0 | 729.71K | 2.25M | 3.87M | 473.75K | 54.28K | 44.08K | 6.29K | 69.89K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 825.56K | 1.07M | 1.26M | 677.57K | -1.41M | 2.85M | 27.4M | 327.69K | 98.98K | 54.55K | -56.21K | 2.9M | -10.84K |
| Working Capital Changes | 207.89K | 536.36K | -286.75K | 977.74K | 1.06M | 472.86K | 105.3K | 336.43K | 371.26K | 308.43K | 369.13K | 250.71K | 678.16K |
| Change in Receivables | -19.22K | -27.65K | -24.44K | 1.92K | -30.32K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 51.65K | 78.35K | 2.17K | -127.29K | -176.03K | -39.46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 80.8K | 62.17K | -103.11K | 382.7K | 0 | 168.84K | 113.16K | 22.17K | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -38.17K | -38.17K | 0 | 0 | 0 | 0 | 951 | 0 | 0 | 0 | 511 | 280 | 0 |
| Capital Expenditures | -38.17K | -38.17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -970 | 0 |
| CapEx % of Revenue | 8.88% | 8.73% | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 511 | 1.25K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 951 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -85.71K | 3.37M | 12.12M | 139.23K | 13.85M | 4.34M | 1.74M | 1.23M | 148.39K | 311.53K | 443.42K | 298.89K | 510.5K |
| Debt Issued (Net) | -211.28K | -250.42K | -200.81K | 676.98K | -3.29M | 4.5M | 41.66K | 186.63K | 98.19K | 311.53K | 443.42K | 166.89K | 74.5K |
| Equity Issued (Net) | 1.82M | 5.68M | 8.2M | 0 | 0 | 0 | 1.7M | 1.04M | 50.2K | 0 | 0 | 122K | 436K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.69M | -2.06M | 4.12M | -537.75K | 17.14M | -167.27K | 0 | 0 | 0 | 0 | 0 | 10K | 0 |
| Net Change in Cash | -7.97M | -3.62M | 5.59M | -5.79M | 7.7M | 649.43K | -448.92K | 681.67K | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -7.88M | -7M | -6.52M | -5.93M | -6.16M | -3.69M | -2.19M | -543.96K | -162.56K | -310.91K | 0 | -407.37K | -433.18K |
| FCF Margin % | -1833.81% | -1599.41% | -3065.58% | -3768.84% | -17428.72% | - | - | - | - | - | - | - | - |
| FCF Growth % | -16.37% | -7.28% | -10.01% | 3.71% | -66.91% | -68.3% | -302.89% | -234.62% | 47.71% | - | 100% | 5.96% | - |
| FCF per Share | -3.16 | -4.76 | -106.32 | -359.32 | -615.62 | -468.59 | -469.68 | -353.45 | -182.39 | -870.18 | - | -1581.32 | -1681.51 |
| FCF Conversion (FCF/Net Income) | 0.84x | 0.78x | 0.76x | 0.58x | 0.50x | 0.47x | 0.07x | 0.44x | 0.25x | 0.42x | 0.59x | 0.11x | 0.39x |
| Interest Paid | 0 | 0 | 32.58K | 446.07K | 30.72K | 72.67K | 1.98K | 3.75K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operational cash burn
As indicated by the company's financial statements, the relationship between net income and operating cash flow is consistently negative, with an OCF/NI ratio that frequently exceeds 1.0, suggesting that reported losses are being compounded by ongoing cash outflows rather than mitigated by non-cash accounting adjustments.
The persistent gap between net income and operating cash flow suggests that the company's losses are not merely accounting artifacts but represent actual cash depletion. Investors should monitor this trend, as the inability to narrow the spread between these two metrics indicates that the business model has yet to achieve the operational efficiency required to self-fund its activities.
Based on the reported figures, SOBR's free cash flow has remained consistently negative over the last ten quarters, with FCF margins reaching as low as -40.4% in 2024Q3, reflecting a structural inability to generate positive cash flow from its current commercial operations and hardware deployment strategy.
The consistent negative free cash flow trajectory implies that the company is in a perpetual state of capital consumption. This trend warrants further investigation into whether the current revenue growth is sufficient to eventually offset the high fixed costs inherent in the company's current operating structure.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $644.8K inflow in 2023Q4 to a $415.3K outflow in 2026Q1, which suggests that the company's cash position is heavily dependent on the timing of inventory management and customer payment cycles.
The volatility in working capital appears to be a primary driver of the quarter-to-quarter fluctuations in operating cash flow. This instability suggests that the company lacks a predictable cash conversion cycle, which may complicate liquidity planning as the business attempts to scale its hardware and software offerings.
As reported in financial statements, the company's cash flow statement reveals that stock-based compensation and depreciation provide only minimal relief to the overall cash burn, with SBC peaking at $214.4K in 2024Q1, failing to meaningfully offset the substantial operating losses incurred during the same period.
The limited impact of non-cash adjustments on the cash flow statement suggests that the reported burn rate is a direct reflection of core operational expenses. Investors should be cautious, as the lack of significant non-cash add-backs implies that the company's cash position is highly sensitive to the ongoing, cash-intensive nature of its R&D and manufacturing efforts.
Quick answers to the most common questions about buying SOBR stock.
SOBR Safe, Inc. (SOBR) generated $-7.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SOBR Safe, Inc. (SOBR) reported negative free cash flow of $7.0M in 2025, indicating capital requirements exceeded cash from operations.
SOBR Safe, Inc. (SOBR) 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.