Liquidity is under extreme pressure as the firm continues to burn cash, reporting a negative free cash flow of $2.7 million in 2026Q1 against a limited cash reserve of $12.3 million.
| Cash from Operations | -16.95M | -16.72M | -6.93M | -8.51M | -6.43M | -3.15M | -1.88M | -1.57M |
| Operating CF Margin % | - | -8190.68% | - | - | - | - | - | - |
| Operating CF Growth % | -558.09% | -141.27% | 18.55% | -32.24% | -104.37% | -67.16% | -19.66% | - |
| Net Income | -370.67M | -270.34M | -9.3M | -9.84M | -4.64M | -4.66M | -2.34M | -2.06M |
| Depreciation & Amortization | 23.95K | 132.54K | 773.9K | 882.18K | 654.57K | 28.7K | 11.04K | 10.59K |
| Stock-Based Compensation | 107.42M | 107.47M | 520.83K | 963.02K | 1.01M | 1.2M | 485.2K | 400 |
| Deferred Taxes | 0 | 0 | -30K | -30K | 0 | 0 | 0 | 25.84K |
| Other Non-Cash Items | 227.9M | 143.23M | 1.53M | 639.99K | -3.25M | 179.51K | 10.2K | 372.57K |
| Working Capital Changes | 6.21M | 2.79M | -426.18K | -1.12M | -209.22K | 112.64K | -49.24K | 72.42K |
| Change in Receivables | -195.91K | -204.12K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -19.68K | -298.24K | -350.56K | -1.44M | -34.11K | -121.99K | 0 | 0 |
| Change in Payables | 918.02K | 238.45K | 11.94K | 415.51K | -104.35K | 202.89K | 759 | 47.42K |
| Cash from Investing | -179.4M | -189.16M | -1.16M | -698.28K | -3.12M | -2.34M | -387.2K | -11.18K |
| Capital Expenditures | 90.41K | 0 | -138.8K | -698.28K | -752.34K | -2.27M | -312.2K | -11.18K |
| CapEx % of Revenue | 22.78% | 0% | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -178.07M | -1.64M | -1.02M | 0 | -2.16M | -75K | -75K | 0 |
| Cash from Financing | 196.88M | 215.51M | 5.91M | 8.03M | 12.24M | 5.18M | 3.42M | 1.83M |
| Debt Issued (Net) | 4.54M | 3.41M | 2.53M | 0 | -2M | 1.8M | 0 | 0 |
| Equity Issued (Net) | 192.34M | 212.1M | 3.37M | 8.03M | 14.2M | 3.38M | 3.42M | 1.66M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.59M | 0 | 0 | 0 | 0 | 0 | 0 | -162.5K |
| Other Financing | 0 | 0 | 0 | 0 | 32.5K | 0 | 0 | 180K |
| Net Change in Cash | 336.9K | 9.38M | -2.15M | -1.16M | 2.69M | -311.04K | 1.15M | 636 |
| Free Cash Flow | -202.96M | -16.72M | -7.07M | -9.21M | -7.19M | -5.42M | -2.2M | -1.58M |
| FCF Margin % | -51136.1% | -8190.68% | - | - | - | - | - | - |
| FCF Growth % | -2529.98% | -136.53% | 23.22% | -28.11% | -32.66% | -146.73% | -38.52% | - |
| FCF per Share | -2.80 | -0.66 | -1688.17 | -4663.41 | -5856.15 | -3899.54 | -1580.49 | -1141.02 |
| FCF Conversion (FCF/Net Income) | 0.55x | 0.06x | 0.75x | 0.86x | 1.39x | 0.67x | 0.80x | 0.77x |
| Interest Paid | -875K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 1.13K | 0 |
Rapid cash depletion risk
According to recent financial statements, the persistent gap between net income and operating cash flow, highlighted by an OCF/NI ratio that frequently deviates from unity, suggests that reported earnings are heavily distorted by non-cash items rather than reflecting the underlying cash-generating capacity of the business.
The extreme volatility in the OCF/NI ratio indicates that the company's accounting net income is not a reliable proxy for its actual liquidity position. Investors should monitor this divergence closely, as it implies that the firm's operational survival is currently decoupled from its reported profitability metrics.
As reported in quarterly filings, the company's free cash flow remains consistently negative, with a recent quarterly burn of $2.7 million in 2026Q1, underscoring the structural inability of the current business model to fund its own operations through core product sales or service revenue.
The persistent negative FCF margins suggest that the company is in a capital-intensive phase where every dollar of revenue is accompanied by a disproportionate outflow of cash. This trajectory warrants further investigation into whether the firm can reach a break-even point before its current cash reserves are fully exhausted.
Based on the provided data, the company's capital expenditure patterns, including a $3.4 million outlay in 2025Q4, indicate a significant commitment to building out manufacturing infrastructure that has yet to yield a corresponding increase in top-line revenue or operational efficiency.
The high capital intensity relative to revenue suggests that the firm is front-loading its investment in specialized tooling and cleanroom facilities. This strategy appears to be a high-stakes bet on future volume, as the current asset base is significantly underutilized relative to the capital deployed.
As evidenced by the fluctuating working capital changes, such as the $3.9 million inflow in 2025Q4 followed by subsequent outflows, the company's cash cycle appears highly unstable and sensitive to the timing of inventory procurement and potential distributor stocking orders.
The erratic nature of these working capital shifts suggests that the firm lacks a predictable cash conversion cycle, which is typical for early-stage medical device manufacturers. Analysts should monitor whether these fluctuations represent genuine operational improvements or merely the timing of one-off inventory movements.
Based on the provided financial data, the cash flow statement appears to be significantly impacted by non-cash adjustments, including stock-based compensation and warrant revaluations, which mask the true extent of the company's operational cash burn and reliance on external financing.
These non-cash items effectively obscure the underlying cash-consuming nature of the business, making it difficult to assess the true cost of operations. Investors should look past the headline figures to evaluate the actual cash drain, which appears to be the primary driver of the firm's current financial vulnerability.
Quick answers to the most common questions about buying STSS stock.
Sharps Technology, Inc. (STSS) generated $-16.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sharps Technology, Inc. (STSS) reported negative free cash flow of $16.7M in 2025, indicating capital requirements exceeded cash from operations.
Sharps Technology, Inc. (STSS) 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.