The firm exhibits a high cash burn profile, evidenced by a $3.1 million free cash flow deficit in 2026Q1 and a cumulative ten-quarter deficit exceeding $30 million.
Verde Clean Fuels, Inc. (VGAS) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | -6.45M | -8.89M | -8.88M | -9.12M | -3.28M | -2.63M | -2.21K |
| Operating CF Growth % | 129.33% | -0.1% | 2.68% | -178.26% | -24.85% | - | - |
| Operating CF / Revenue % | - | - | - | - | - | - | - |
| Net Income | -6.57M | -14.13M | -10.52M | -2.74M | 2.72M | -12.93M | -4.71K |
| Depreciation & Amortization | 394.56K | 368K | 322.09K | 544.47K | 247.88K | 249.16K | 28.97K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.94M | 3.94M | 0 | -6.15M | -7.55M | 8.81M | -28.97K |
| Working Capital Changes | 81.85K | -1.24M | -41.24K | -776.61K | -115.86K | -70.45K | 2.5K |
| Capital Expenditures | -6.12M | -7.68M | -2.55M | -58.59K | -4.41K | -290.1K | 3 |
| CapEx / Revenue % | - | - | - | - | - | - | - |
| CapEx / D&A | 15.52x | 20.88x | 7.92x | 0.11x | 0.02x | 1.16x | 0.00x |
| CapEx Coverage (OCF/CapEx) | -1.05x | -1.16x | -3.48x | -155.74x | -743.40x | -9.05x | - |
| Cash from Investing | -2.15M | -2.39M | -854.93K | -58.59K | -4.41K | -290.1K | 0 |
| Acquisitions | 0 | 5.3M | 0 | 0 | 0 | -287.5K | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 3.97M | 0 | 1.69M | 0 | 0 | 0 | 0 |
| Cash from Financing | -108 | 49.45M | 0 | 37.52M | 3.66M | 1.95M | 13.33K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio % | - | - | - | - | - | - | - |
| Debt Issuance (Net) | 0 | 0 | 0 | -55.63K | -73.99K | -47.01K | 38.33K |
| Stock Issued | 0 | 49.45M | 0 | 335.98K | 0 | 0 | -25K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -108 | 0 | 0 | 37.24M | -16.62K | 0 | 0 |
| Net Change in Cash | -8.6M | 38.17M | -9.74M | 28.42M | 375.84K | -963.64K | 11.12K |
| Exchange Rate Effect | 0 | 0 | 0 | 80.78K | 0 | 0 | 0 |
| Cash at Beginning | 54.38M | 19.14M | 28.88M | 463.48K | 87.64K | 1.05M | 0 |
| Cash at End | 53.55M | 57.31M | 19.14M | 28.88M | 463.48K | 87.64K | 11.12K |
| Free Cash Flow | -12.57M | -16.57M | -11.43M | -9.18M | -3.28M | -2.92M | -2.21K |
| FCF Growth % | 8.65% | -45.01% | -24.47% | -179.67% | -12.58% | - | - |
| FCF Margin % | - | - | - | - | - | - | - |
| FCF / Net Income % | 191.51% | 117.26% | 342.79% | 334.71% | -120.75% | 22.57% | 0.06% |
Quick answers to the most common questions about buying VGAS stock.
Verde Clean Fuels, Inc. (VGAS) generated $-8.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verde Clean Fuels, Inc. (VGAS) reported negative free cash flow of $16.6M in 2025, indicating capital requirements exceeded cash from operations.
Verde Clean Fuels, Inc. (VGAS) spent $7.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Pre-revenue liquidity depletion
Metrics are mathematically derived from official filings.
Capital Intensity Outpacing Operational Progress
According to the provided quarterly data, VGAS recorded a peak capital expenditure of $3.2 million in 2025Q4, which significantly exceeds the company's historical quarterly investment levels and highlights the escalating cash requirements necessary to advance its proprietary STG+ technology toward a commercial-scale production milestone.
The erratic nature of capital spending suggests that the company is currently in a high-stakes development phase where project-level costs are volatile. Investors should monitor whether these expenditures translate into tangible infrastructure assets or if they represent ongoing R&D costs that fail to generate future rate-base growth.
Reliance on Dilutive Equity Funding
As reported in financial statements, the company's $50 million equity issuance in 2025Q1 remains the primary liquidity event, as the firm continues to operate with zero long-term debt and a persistent free cash flow deficit that reached $3.1 million in the most recent 2026Q1 quarter.
The absence of debt financing indicates that the company has not yet reached a stage where it can secure non-dilutive project capital. This reliance on equity markets suggests that shareholders may face continued dilution until the company can demonstrate a clear path to operational cash flow self-sufficiency.
Hidden Risks of Development-Stage Burn
Based on the reported figures, the company's cumulative free cash flow deficit over the last ten quarters exceeds $30 million, a trend that warrants further investigation into the sustainability of the current cash runway in the absence of any recurring revenue or regulatory cost recovery mechanisms.
The cash flow statement masks the reality that VGAS lacks the defensive characteristics of a traditional utility, such as rate-case protection or guaranteed returns on invested capital. The current burn rate suggests that the company is highly vulnerable to market volatility and potential delays in flagship project timelines.
Cash Reality Versus Accounting Losses
As indicated by the quarterly data, the company's net losses are consistently mirrored by negative operating cash flows, with the 2026Q1 period showing a $2.6 million cash outflow, confirming that the reported losses are driven by actual cash expenditures rather than non-cash accounting adjustments.
Unlike mature utilities that often utilize AFUDC to capitalize interest during construction, VGAS is currently expensing its development costs directly against its cash balance. This confirms that the company's financial position is deteriorating in real-time, necessitating a transition to operational revenue to avoid further balance sheet erosion.