The firm continues to burn capital at an alarming rate, evidenced by a 2025Q4 free cash flow margin of -2177.7% and a capital expenditure-to-revenue ratio of 258.3% in the same period.
| Cash from Operations | -10.09M | -4.56M | -6.25M | -4.18M | -809.07K | -590.19K | -744.61K |
| Operating CF Margin % | - | -72083.02% | -3993.77% | -48823.35% | - | -476.65% | -745.54% |
| Operating CF Growth % | -43.97% | 26.95% | -49.46% | -416.61% | -37.09% | 20.74% | - |
| Net Income | -12.22M | -6.07M | -6.74M | -5.46M | -1.71M | -650.98K | -739.46K |
| Depreciation & Amortization | 645.47K | 343.39K | 103.1K | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 1.56M | 365.31K | 1.01M | 1.73M | 290.36K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 318.84K | 169.34K | 497.06K | -260.6K | -32.07K | 1.19K | 91.67K |
| Working Capital Changes | -382.46K | 625.62K | -1.12M | -216.28K | 644.39K | 59.61K | -96.82K |
| Change in Receivables | -179.53K | 219.66K | -217.84K | 0 | 928 | -928 | 0 |
| Change in Inventory | -29.68K | -34.29K | -60.38K | 20.95K | 121 | -21.07K | 0 |
| Change in Payables | -669.63K | 466.85K | -572.25K | 33.94K | 641.16K | 81.61K | -96.82K |
| Cash from Investing | -1.2M | -603.89K | -1.16M | -178.4K | 0 | 0 | 0 |
| Capital Expenditures | -1.21M | -603.89K | -952.5K | -178.4K | 0 | 0 | 0 |
| CapEx % of Revenue | 1371.89% | 9538.62% | 608.94% | 2083.9% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 3.65K | 0 | -211.95K | -178.4K | 0 | 0 | 0 |
| Cash from Financing | 9.53M | 5.81M | 1.65M | 13.69M | 813.21K | 585.2K | 704.64K |
| Debt Issued (Net) | -82.36K | -107.76K | -206.27K | 146.25K | 100K | 0 | 0 |
| Equity Issued (Net) | 7.9M | 5.13M | 234 | 13.65M | 519.61K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -85.5K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.71M | 786.74K | 1.85M | -111.64K | 193.59K | 585.2K | 704.64K |
| Net Change in Cash | -1.76M | 639.7K | -5.76M | 9.33M | 4.13K | -4.99K | -39.97K |
| Free Cash Flow | -11.48M | -5.17M | -7.41M | -4.36M | -809.07K | -590.19K | -744.61K |
| FCF Margin % | -13068.41% | -81621.64% | -4738.21% | -50907.25% | - | -476.65% | -745.54% |
| FCF Growth % | -26.81% | 30.28% | -70.06% | -438.66% | -37.09% | 20.74% | - |
| FCF per Share | -2.41 | -1.67 | -3.69 | -4.10 | -0.71 | -0.52 | -0.65 |
| FCF Conversion (FCF/Net Income) | 0.94x | 0.75x | 0.93x | 0.77x | 0.47x | 0.91x | 0.93x |
| Interest Paid | 5.79K | 78.95K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Existential liquidity and solvency
As reported in recent financial filings, VRAX exhibits a persistent divergence between net income and operating cash flow, with OCF/NI ratios frequently exceeding 1.0, suggesting that non-cash charges and working capital volatility are masking the true extent of the company's underlying cash-based operational losses.
The recurring pattern of operating cash flow being more negative than net income implies that the company is struggling with cash-based outflows that are not fully captured by accounting accruals. Investors should monitor whether this trend indicates hidden cash-burn drivers beyond the reported income statement figures.
Based on quarterly cash flow statements, VRAX has consistently generated negative free cash flow, with margins reaching as low as -2177.7% in 2025Q4, indicating that the firm lacks a self-sustaining business model capable of covering its operational and capital expenditure requirements through internal cash generation.
The trajectory of free cash flow suggests an accelerating depletion of liquidity, as the company fails to achieve the scale necessary to offset its fixed cost base. This persistent cash drain warrants further investigation into the company's remaining runway and potential reliance on dilutive financing.
According to historical data, VRAX's capital expenditure relative to revenue has reached extreme levels, such as 258.3% in 2025Q4, which suggests that the company is investing in infrastructure or assets that are failing to produce any meaningful top-line growth or commercial return.
High capital intensity in the absence of revenue growth may indicate inefficient asset deployment or the maintenance of legacy infrastructure that no longer serves the current business strategy. This capital allocation appears to be value-destructive given the lack of corresponding revenue expansion.
As evidenced by the provided cash flow statements, VRAX experiences significant swings in working capital, including a $623.5K outflow in 2026Q2, which suggests that the company is struggling to manage its inventory and receivables effectively in a declining market environment.
The erratic nature of working capital changes may reflect difficulties in clearing obsolete inventory or collecting on stagnant distribution agreements. Such volatility often serves as a leading indicator of operational distress and poor supply chain management.
Based on reported financial statements, VRAX has utilized stock-based compensation, including $925.7K in 2024Q4, to manage its cash position, a practice that effectively shifts the burden of operational losses onto shareholders through dilution rather than addressing the core business's inability to generate cash.
The reliance on non-cash compensation suggests that management is attempting to preserve limited cash reserves at the expense of equity value. This strategy may provide temporary relief but does not resolve the fundamental lack of commercial viability inherent in the current business model.
Quick answers to the most common questions about buying VRAX stock.
Virax Biolabs Group Limited (VRAX) generated $-4.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Virax Biolabs Group Limited (VRAX) reported negative free cash flow of $5.2M in 2025, indicating capital requirements exceeded cash from operations.
Virax Biolabs Group Limited (VRAX) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.