Operational cash burn remains persistent, with the company recording a $4.9 million free cash flow outflow in 2025Q3, highlighting a structural inability to generate positive cash from core operations.
| Cash from Operations | -20.45M | -11.07M | -12.86M | -26.98M | -19.77M | -28.65M | -39.59M | -28.7M | -19.26M | -16.16M | -24.12M |
| Operating CF Margin % | - | -17.07% | -16.84% | -27.12% | -18.72% | -36.72% | -35.86% | -130.71% | -90.42% | -103.62% | -139.98% |
| Operating CF Growth % | -880.5% | 13.94% | 52.34% | -36.46% | 30.99% | 27.64% | -37.97% | -49.04% | -19.13% | 32.98% | - |
| Net Income | -54.61M | -46.97M | -37.05M | -43.58M | -22.14M | -82.82M | -42.3M | -28.73M | -17.84M | -21.85M | -22.97M |
| Depreciation & Amortization | 3.85M | 3.89M | 4.12M | 4.46M | 4.85M | 4.8M | 2.04M | 813K | 574K | 654K | 860K |
| Stock-Based Compensation | 570K | 1.04M | 1.57M | 2.1M | 2.07M | 2.14M | 2.16M | 667K | 465K | 466K | 429K |
| Deferred Taxes | 873K | -443K | -69K | -709K | -165K | -438K | -1.13M | 1.95M | -1.43M | 392K | -578K |
| Other Non-Cash Items | 24.3M | 19.34M | 6.94M | 10.33M | 764K | 55.38M | 12.47M | 470K | 578K | 737K | 1.21M |
| Working Capital Changes | 4.65M | 12.08M | 11.64M | 417K | -5.15M | -7.72M | -12.84M | -3.87M | -1.6M | 3.43M | -3.07M |
| Change in Receivables | 1.56M | 12.49M | 14.89M | 9.86M | -869K | 93K | -21.09M | -4.48M | -1.38M | -987K | 3.5M |
| Change in Inventory | 1.85M | 4.46M | -324K | -5.78M | -4.26M | -1.02M | 6.43M | -2.76M | -19K | 2.89M | -3.37M |
| Change in Payables | 80K | -2.21M | 1M | -385K | 2.1M | -2.98M | -5.97M | 1.8M | 246K | 709K | -1.93M |
| Cash from Investing | -294K | -123K | -116K | -336K | -552K | -2.39M | 6.38M | -1.01M | 1.62M | -1.17M | -456K |
| Capital Expenditures | -294K | -123K | -116K | -336K | -512K | -291K | -1.12M | -1.01M | -229K | -1.17M | -456K |
| CapEx % of Revenue | 0.5% | 0.19% | 0.15% | 0.34% | 0.48% | 0.37% | 1.02% | 4.58% | 1.08% | 7.52% | 2.65% |
| Acquisitions | 0 | 0 | 0 | 0 | -40K | -2.1M | 0 | -7.5M | 0 | 2K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 7.51M | 0 | 1.85M | 2K | 0 |
| Cash from Financing | 22.19M | 10.06M | 6.8M | 8.01M | 16.82M | 49.67M | 42.2M | 22.24M | 29.37M | 12.11M | 8.89M |
| Debt Issued (Net) | 18.91M | 9.2M | 0 | -543K | -738K | 1.42M | 16.42M | 6.28M | -3M | 0 | 4.6M |
| Equity Issued (Net) | 1M | 987K | 1000K | 1000K | 1000K | 1000K | 0 | 1000K | 1000K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -126K | -275K | -101K | 817K | -911K | 25.78M | 392K | 43K | 41K | 111K |
| Net Change in Cash | 1.44M | -1.13M | -6.17M | -19.31M | -3.5M | 18.63M | 8.99M | -7.44M | 11.64M | -5.22M | -15.67M |
| Free Cash Flow | -20.75M | -11.19M | -12.97M | -27.32M | -20.28M | -28.94M | -40.72M | -29.7M | -19.48M | -17.34M | -24.57M |
| FCF Margin % | -35.24% | -17.26% | -16.99% | -27.45% | -19.2% | -37.1% | -36.88% | -135.29% | -91.49% | -111.13% | -142.62% |
| FCF Growth % | -156.07% | 13.76% | 52.5% | -34.67% | 29.92% | 28.92% | -37.07% | -52.45% | -12.39% | 29.45% | - |
| FCF per Share | -11.16 | -15.78 | -2.38 | -6.21 | -5.59 | -11.85 | -71.71 | -199.44 | -166.94 | -169.22 | -239.86 |
| FCF Conversion (FCF/Net Income) | 0.38x | 0.24x | 0.35x | 0.62x | 0.86x | 0.35x | 0.97x | 1.00x | 1.08x | 0.74x | 1.05x |
| Interest Paid | -23K | 1.61M | 4.47M | 4.15M | 3.29M | 1.47M | 6.17M | 1.76M | 1.5M | 1.74M | 1.45M |
| Taxes Paid | 31K | 128K | 124K | 329K | 116K | 941K | 1.09M | 35K | 28K | 56K | 61K |
Imminent liquidity crisis
As reported in recent financial filings, VERO consistently exhibits a wide gap between net losses and operating cash flow, with the most recent quarter showing a $22.6M net loss compared to a $4.9M cash burn, highlighting significant non-cash charges that mask the underlying operational cash drain.
The persistent divergence between net income and operating cash flow suggests that accounting adjustments, such as depreciation and amortization, are providing a misleading view of the company's actual cash-generating capacity. Investors should monitor whether these non-cash items are masking a structural inability to convert revenue into liquidity, as the current cash burn remains disconnected from the reported bottom-line figures.
Based on quarterly data, VERO's free cash flow remains deeply negative, with the most recent period recording a $4.9M outflow, reflecting a trend where the company has failed to achieve positive cash generation in any of the last ten quarters as reported in its financial statements.
The consistent negative free cash flow trajectory indicates that the company's current business model is unable to self-fund its operations, let alone its capital requirements. This trend suggests that the company is reliant on external financing to sustain its existence, which may become increasingly difficult given the current market environment.
According to historical cash flow statements, VERO has relied on working capital fluctuations to mitigate cash burn, with a $2.8M inflow in the latest quarter, yet this volatility appears insufficient to offset the structural operating losses inherent in the company's current medical device business model.
The reliance on working capital changes to manage liquidity suggests that the company may be aggressively managing payables or accelerating collections to preserve cash. This strategy appears unsustainable and warrants further investigation into whether these short-term maneuvers are creating future liabilities that could exacerbate the company's liquidity crisis.
As indicated by the provided data, the cash flow statement obscures the true extent of the company's financial distress by highlighting minimal capital expenditures, which averaged less than $0.2M per quarter, while failing to address the underlying structural deficit in the core operating business model.
The minimal capital expenditure levels suggest that the company may be under-investing in its core technology to preserve cash, which could impair its long-term competitive position. This lack of investment, combined with persistent operating losses, suggests that the company is in a defensive posture that may not be sufficient to ensure its long-term viability.
Quick answers to the most common questions about buying VERO stock.
Venus Concept Inc. (VERO) generated $-11.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Venus Concept Inc. (VERO) reported negative free cash flow of $11.2M in 2024, indicating capital requirements exceeded cash from operations.
Venus Concept Inc. (VERO) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.