Operational liquidity remains under pressure as evidenced by a 2026Q1 OCF/NI ratio of -1.69 and a significant $14.9M outflow related to working capital changes.
| Cash from Operations | -37.4M | -21.18M | -4M | -1.78M | -1.19M | -162.82K |
| Operating CF Growth % | -3498.48% | -429.92% | -124.95% | -49.39% | -630.37% | - |
| Net Income | -5.64M | -19.19M | -31.98M | -2.38M | -1.17M | -161.88K |
| Depreciation & Amortization | 185.49K | 141.27K | 72.16K | 5.6K | 885 | 0 |
| Deferred Taxes | -36.25K | -36.25K | -13.36K | 0 | 0 | 0 |
| Other Non-Cash Items | -20.83M | -4.08M | 24.94M | 0 | 0 | 0 |
| Working Capital Changes | -28.72M | -13.63M | 667.44K | 1.31K | -18.3K | -945 |
| Cash from Investing | -42.47M | -37.09M | -852.8K | -3.16K | 40.65K | 0 |
| Purchase of Investments | -45.05M | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 14.62M | 1.8M | 0 | 0 | 0 | 0 |
| Net Investment Activity | -30.43M | 1.8M | 0 | 0 | 0 | 0 |
| Acquisitions | 93.05K | 93.05K | -852.8K | 0 | 0 | 0 |
| Other Investing | -9.38M | -36.93M | 0 | 0 | 45.22K | 0 |
| Cash from Financing | 297.79M | 157.77M | 7.71M | -424.93K | 462.07K | 3.95M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 140.02M | 157.77M | 7.05M | 0 | 549.9K | 3.95M |
| Net Stock Activity | 140.02M | 157.77M | 7.05M | 0 | 549.9K | 3.95M |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 157.77M | 0 | 664.61K | -424.93K | -87.83K | 0 |
| Net Change in Cash | 217.94M | 99.5M | 2.86M | -2.2M | -686.47K | 3.79M |
| Exchange Rate Effect | 22.9K | 3.47K | 0 | 0 | 0 | 647 |
| Cash at Beginning | 103.26M | 3.76M | 894.77K | 3.1M | 3.79M | 0 |
| Cash at End | 222.94M | 103.26M | 3.76M | 894.77K | 3.1M | 3.79M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -40.16M | -23.24M | -4M | -1.78M | -1.19M | -162.82K |
| FCF Growth % | -905.34% | -481.52% | -124.55% | -49.08% | -633.18% | - |
Unsustainable cash burn rate
According to quarterly financial data, the company exhibits a severe divergence between net income and operating cash flow, highlighted by a 2026Q1 OCF/NI ratio of -1.69, which suggests that reported accounting profits are failing to translate into actual liquidity for the standalone entity.
The consistent negative relationship between net income and operating cash flow indicates that the company's earnings quality is currently compromised by non-cash adjustments and working capital absorption. Investors should monitor whether this gap narrows as the business moves past its initial integration phase, as the current trend suggests that operational cash generation remains elusive.
As reported in financial statements, the company's free cash flow trajectory remains deeply negative, with a 2026Q1 FCF margin of -2.2% and a cumulative cash outflow trend that underscores the significant capital intensity required to maintain its current hardware-focused business model.
The persistent negative free cash flow suggests that the company is currently in a capital-intensive growth phase that consumes liquidity faster than it can be generated from operations. This trajectory warrants further investigation into whether the current R&D and SG&A spending levels will eventually yield a self-sustaining cash flow profile.
Based on reported figures, working capital changes have become a primary drain on liquidity, with a significant $14.9M outflow in 2026Q1, indicating that the company is struggling to manage its inventory and receivables effectively during its current expansion phase.
The volatility in working capital suggests that the company may be building inventory in anticipation of future demand or experiencing delays in cash collection from its e-commerce platform. This trend appears to be a major contributor to the company's cash burn, and investors should monitor for improvements in cash conversion cycles.
As indicated by recent SEC filings, stock-based compensation has reached as high as $6.1M in a single quarter, which significantly masks the true extent of the company's operational cash burn and complicates the assessment of its underlying economic performance.
The reliance on stock-based compensation as a non-cash expense appears to be a mechanism for preserving cash, yet it fails to address the underlying operational inefficiencies. This practice may indicate that the company is attempting to align management incentives while simultaneously managing a precarious liquidity position.
Quick answers to the most common questions about buying UMAC stock.
Unusual Machines, Inc. (UMAC) generated $-21.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Unusual Machines, Inc. (UMAC) reported negative free cash flow of $23.2M in 2025, indicating capital requirements exceeded cash from operations.
Unusual Machines, Inc. (UMAC) spent $2.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.