The firm's capital intensity is disproportionate to its revenue base, with 2025Q3 capital expenditures of $2.1M representing 5465.5% of total revenue, signaling a severe lack of cash conversion efficiency.
| Cash from Operations | -7.39M | -3.49M | -2.33M | -1.08M | -813.21K | -13.68K |
| Operating CF Margin % | - | -470431.71% | -113599.76% | -44773.23% | -33246.57% | - |
| Operating CF Growth % | -1582.83% | -49.83% | -114.63% | -33.29% | -5843.22% | - |
| Net Income | -16.48M | -4M | -3.32M | -1.22M | -857.25K | -5.69K |
| Depreciation & Amortization | 156.14K | 98.32K | 29.4K | 2.16K | 1.74K | 0 |
| Stock-Based Compensation | 0 | 0 | 192.04K | 50.96K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -50.96K | 0 | 0 |
| Other Non-Cash Items | 9.32M | 298.36K | 1.09M | 62.11K | 0 | 0 |
| Working Capital Changes | -411.27K | 117.33K | -311.83K | 73.53K | 42.31K | -8K |
| Change in Receivables | -134.59K | -17.04K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 67.97K | 269.34K | -25.5K | 76.44K | 32.31K | 0 |
| Cash from Investing | -6.8M | -211.95K | -176.5K | 0 | -6.45K | 0 |
| Capital Expenditures | -4.27M | -11.12K | -7.99K | 0 | -6.45K | 0 |
| CapEx % of Revenue | 604218.25% | 1500.67% | 389.94% | - | 263.65% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -2.53M | -200.83K | -168.51K | 0 | 0 | 0 |
| Cash from Financing | 58.16M | 8.12M | 1.61M | 1.81M | 1.04M | 215K |
| Debt Issued (Net) | 360K | 0 | 0 | 0 | 0 | 215K |
| Equity Issued (Net) | 1.7M | 1000K | 1000K | 1000K | 1000K | 0 |
| Dividends Paid | -3 | -61.47K | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.26M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 256.56K | 36.47K | 15.4K | -182.14K | 0 | 0 |
| Net Change in Cash | 43.97M | 4.42M | -896.13K | 730.9K | 223.13K | 201.32K |
| Free Cash Flow | -9.6M | -3.5M | -2.5M | -1.08M | -819.66K | -13.68K |
| FCF Margin % | -1358474.4% | -471932.39% | -122217.87% | -44773.23% | -33510.22% | - |
| FCF Growth % | -462.71% | -39.71% | -130.91% | -32.25% | -5891.67% | - |
| FCF per Share | -1.00 | -0.44 | -0.35 | -0.17 | -0.13 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.58x | 0.87x | 0.70x | 0.72x | 0.95x | 2.41x |
| Interest Paid | 70.44K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Rapid capital depletion
According to the provided financial data, the company's operating cash flow consistently trails net income, with an OCF/NI ratio of 0.22 in 2025Q3, suggesting that reported losses are being compounded by significant cash outflows that are not fully captured by standard accounting accruals or non-cash adjustments.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are not merely paper-based but represent actual cash consumption. Investors should monitor this divergence as it suggests that the underlying business model is failing to convert operational activity into meaningful liquidity.
As reported in recent quarterly filings, the company's free cash flow trajectory has deteriorated significantly, reaching a negative $4.4M in 2025Q3, which reflects an accelerating burn rate that far outpaces any potential revenue generation or operational efficiency gains achieved during the same period.
The negative FCF margins, which reached -11427.6% in the most recent quarter, imply that the company is effectively paying for its own existence rather than funding growth through operations. This trend suggests that the current cash runway is being consumed at an unsustainable velocity.
Based on the company's reported figures, capital expenditures have surged to $2.1M in 2025Q3, representing a staggering 5465.5% of revenue, which indicates that the firm is investing heavily in infrastructure that has yet to demonstrate any capacity to generate a return on invested capital.
This level of capital intensity is highly unusual for an advertising agency model and suggests that the company is attempting to build a proprietary platform from scratch. The lack of revenue correlation with these expenditures warrants further investigation into whether these costs are truly growth-oriented or merely maintenance.
As indicated by the financial statements, the company utilized $959.2K for share repurchases in 2025Q3, a decision that appears counterintuitive given the company's negative operating cash flow and the urgent need to preserve capital for core operational requirements during this early-stage development phase.
Allocating scarce cash to buybacks while the business is burning through its reserves suggests a potential misalignment between capital allocation strategy and operational reality. Investors should question the rationale behind returning capital to shareholders when the company has not yet achieved a self-sustaining commercial footprint.
Based on the quarterly cash flow statements, working capital changes have been erratic, including a $689.1K outflow in 2025Q3, which suggests that the company is struggling to manage its cash conversion cycle effectively as it attempts to scale its influencer-based advertising platform.
The inconsistency in working capital movements may indicate difficulties in collecting payments from advertisers or managing the timing of influencer payouts. Such volatility often precedes liquidity stress in companies that lack a robust and predictable revenue stream.
Quick answers to the most common questions about buying TZUP stock.
Thumzup Media Corporation (TZUP) generated $-3.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Thumzup Media Corporation (TZUP) reported negative free cash flow of $3.5M in 2024, indicating capital requirements exceeded cash from operations.
Thumzup Media Corporation (TZUP) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Thumzup Media Corporation (TZUP) returned $0.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.