Free cash flow remains structurally challenged, with a $17.8 million outflow in 2025Q4 and an OCF/NI ratio of 10.63, highlighting a persistent disconnect between accounting losses and actual cash burn.
| Cash from Operations | -32.36M | -17.77M | -14.21M | -17.14M | -21.79M | -12.55M | -13.89M | -8.49M | -4.93M | -10.93M | -4.62M |
| Operating CF Margin % | -167.77% | -149.68% | -45.95% | -73.9% | -97.9% | -84.92% | -61.32% | -24.77% | -11.45% | -99.72% | -202.21% |
| Operating CF Growth % | -82.07% | -25.12% | 17.14% | 21.33% | -73.63% | 9.65% | -63.58% | -72.18% | 54.89% | -136.38% | - |
| Net Income | -38.15M | -31.94M | -15.45M | -29.25M | -24.09M | -28.91M | 7.45M | -16.27M | -24.75M | -36.49M | -6.39M |
| Depreciation & Amortization | 254K | 682K | 625K | 602K | 994K | 1.59M | 1.35M | 3.48M | 5.02M | 1.19M | 1.98M |
| Stock-Based Compensation | 8.35M | 1.18M | 392K | 744K | 3.78M | 393K | 5.41M | 0 | 2.23M | 24.81M | 651.85K |
| Deferred Taxes | -2.28M | 1K | 222K | -3.27M | -131K | 9K | -17K | -152K | -1.11M | -21.17K | 0 |
| Other Non-Cash Items | -3.06M | 6.13M | 1.89M | 19.38M | -3.54M | 9.11M | -28.29M | 3.43M | 4.91M | -935.35K | -256.71K |
| Working Capital Changes | 2.53M | 6.18M | -1.89M | -5.34M | 1.19M | 5.25M | 197K | -650K | 8.77M | 513.31K | -608.65K |
| Change in Receivables | 549K | 1.19M | -2.9M | 227K | 115K | 1.09M | -1.91M | -5.62M | 2.89M | 6.18M | -1.12M |
| Change in Inventory | -629K | 4.33M | 2.32M | -5.35M | -236K | 313K | 1.4M | -722K | -480K | 1.23M | 821 |
| Change in Payables | 3.31M | 634K | -538K | 137K | 2.06M | 2.39M | -1.76M | -126K | 1.51M | -2.81M | 261.94K |
| Cash from Investing | -28.35M | 179K | -3.02M | -484K | -2.52M | -3.9M | 36.63M | -4.24M | -12.85M | -3.02M | 3.03M |
| Capital Expenditures | -743K | -571K | -3.02M | -303K | -36K | -52K | -293K | -1.24M | -669K | -87.18K | 0 |
| CapEx % of Revenue | 3.85% | 4.81% | 9.77% | 1.31% | 0.16% | 0.35% | 1.29% | 3.63% | 1.55% | 0.8% | - |
| Acquisitions | -16.56M | 750K | 0 | -181K | -2.01M | -3.85M | 40.92M | 0 | -11.63M | -1.43M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -11.04M | 0 | 0 | -181K | -476K | -3.85M | -4M | -3M | -553K | -1.5M | 3.03M |
| Cash from Financing | 399.5M | 92.92M | 11.85M | 4.18M | 36.98M | 21.48M | -17.28M | 11.88M | 25.51M | 18.09M | 1.43M |
| Debt Issued (Net) | -4.93M | 22.46M | 12.71M | 4.57M | 39.09M | 20.36M | -20.74M | 9.65M | 20.43M | 8.41M | 0 |
| Equity Issued (Net) | 436.67M | 60M | -2K | -102K | 226K | 1.06M | 87K | 2M | 5.04M | 7.86M | 1.43M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -2K | -102K | 0 | -1.14M | -1.02M | -900K | 0 | 0 | 0 |
| Other Financing | -32.23M | 10.46M | -862K | -287K | -2.34M | 68K | 3.37M | 217K | 37K | 1.82M | 0 |
| Net Change in Cash | 338.65M | 75.29M | -5.5M | -13.54M | 12.6M | 5.12M | 5.49M | -1.06M | 6.99M | 4.96M | -165.22K |
| Free Cash Flow | -33.1M | -18.34M | -17.23M | -17.45M | -21.83M | -12.6M | -14.18M | -9.74M | -5.6M | -11.02M | -4.62M |
| FCF Margin % | -171.63% | -154.48% | -55.72% | -75.21% | -98.06% | -85.27% | -62.62% | -28.4% | -13% | -100.52% | -202.21% |
| FCF Growth % | -80.46% | -6.49% | 1.26% | 20.07% | -73.2% | 11.15% | -45.69% | -73.83% | 49.17% | -138.26% | - |
| FCF per Share | -2.94 | -1.86 | -1.92 | -4.18 | -5.23 | -3.68 | -4.73 | -3.59 | -2.37 | -6.02 | -0.61 |
| FCF Conversion (FCF/Net Income) | 5.33x | 1.32x | 0.92x | -2.97x | 0.90x | 0.43x | 0.60x | 0.52x | 0.20x | 0.30x | 0.75x |
| Interest Paid | 0 | 0 | 0 | 53K | 0 | 250K | 756K | 772K | 250K | 0 | 0 |
| Taxes Paid | 6K | 8K | 8K | 6K | 0 | 46K | 12K | 72K | 78K | 0 | 0 |
Persistent Operating Cash Burn
According to reported financial statements, WISeKey consistently reports operating cash outflows that exceed net losses, with the 2025Q4 period showing an OCF/NI ratio of 10.63, indicating that the company's accounting losses significantly understate the actual cash required to sustain its current operational and R&D footprint.
The persistent gap between net income and operating cash flow suggests that the company's accrual-based accounting does not capture the full extent of its cash-burning operational model. Investors should monitor this divergence, as it implies that the business requires substantial external liquidity to fund its ongoing activities regardless of reported bottom-line performance.
Based on historical data, WISeKey's free cash flow remains deeply negative, reaching an outflow of $17.8 million in 2025Q4, which highlights a structural inability to generate self-sustaining cash flows despite the company's aggressive expansion into new technology segments like AI and IoT security.
The consistent negative FCF margins suggest that the company's growth initiatives are currently capital-intensive and lack the necessary scale to achieve operational self-sufficiency. This trajectory warrants further investigation into whether the current R&D spending will eventually yield high-margin recurring revenue or continue to drain the company's cash reserves.
As reported in recent filings, working capital changes have fluctuated significantly, swinging from a $2.8 million outflow in 2023Q2 to a $5.0 million inflow in 2024Q2, suggesting that the company's cash position is highly sensitive to the timing of hardware shipments and customer payment cycles.
This volatility indicates that the company's cash flow is heavily influenced by the lumpy nature of its semiconductor hardware business rather than stable software-driven inflows. Such fluctuations may obscure the underlying health of the core business, making it difficult to predict future liquidity needs based on short-term working capital movements.
Analysis of recent financial disclosures reveals that stock-based compensation reached $10.1 million in 2025Q2, a significant non-cash adjustment that effectively masks the true economic cost of talent acquisition and retention within the company's highly competitive semiconductor and AI research divisions.
While these adjustments are standard in accounting, they represent a dilution of shareholder value that is not fully captured in the operating cash flow statement. Investors should consider the impact of this compensation structure on long-term equity value, as it appears to be a primary tool for managing the company's human capital costs.
Quick answers to the most common questions about buying WKEY stock.
WISeKey International Holding AG (WKEY) generated $-32.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
WISeKey International Holding AG (WKEY) reported negative free cash flow of $33.1M in 2025, indicating capital requirements exceeded cash from operations.
WISeKey International Holding AG (WKEY) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.