The company continues to burn cash, evidenced by a negative free cash flow margin of -33.9% in 2026Q1 and a chronic inability to convert net income into operating cash flow.
| Cash from Operations | -1.39M | -1.54M | -1.08M | -806.16K | -540.04K | -1.07M | -959.07K | -4.69M | -3.58M | -5.57M | -2.02M |
| Operating CF Margin % | - | -53.64% | -36.27% | -21.19% | -13.37% | -23.1% | -18.4% | -84.56% | -2384.22% | -132.08% | -341.23% |
| Operating CF Growth % | 19.26% | -42.36% | -34.5% | -49.28% | 49.53% | -11.56% | 79.56% | -31.1% | 35.76% | -176.03% | - |
| Net Income | -4.14M | -4.44M | -1.14M | -3.98M | -1.85M | -3.81M | -7.4M | -11.31M | -3.79M | -11.98M | -4.16M |
| Depreciation & Amortization | -1.25M | 2.6M | 0 | 0 | 0 | 76.16K | 234.26K | 41.23K | 40.83K | 830.12K | 397.44K |
| Stock-Based Compensation | 73.61K | 61.2K | 0 | 361.36K | 1.14M | 2.69M | 3.28M | 7.48M | 738.5K | 944K | 2.65M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -770.48K | 680.44K | -755.65K |
| Other Non-Cash Items | 4.2M | 534.99K | 193.64K | 2.57M | -44.47K | 530.76K | 1.69M | 228.66K | 186.2K | 3.33M | 3.48M |
| Working Capital Changes | -266.44K | -297.27K | -141.71K | 241.58K | 209.9K | -550.29K | 1.24M | -1.13M | 13.99K | 624.58K | -146.11K |
| Change in Receivables | -150.72K | 24.17K | -93.4K | -16.78K | 50.69K | 93.39K | 3.1K | -622.97K | -32.18K | -185.16K | 28.25K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 475K | -523.44K | 0 | -246.17K | 0 | 68.42M |
| Change in Payables | 49.2K | 0 | -39.33K | 0 | 0 | 0 | 848.47K | -719.17K | 246.17K | 746.14M | -68.61M |
| Cash from Investing | -96.06K | -30.64K | 0 | 165K | 0 | 0 | 0 | 4.92M | -21.85K | -1.07M | -1.85M |
| Capital Expenditures | -10.62K | -10.62K | 0 | 0 | 0 | 0 | 0 | -111.65K | 0 | -236.73K | -111.6K |
| CapEx % of Revenue | 0.37% | 0.37% | 0% | - | - | - | - | 2.01% | - | 5.61% | 18.87% |
| Acquisitions | 0 | 0 | 0 | 165K | 0 | 0 | 0 | 5.44M | 0 | -835.4K | -1.74M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -85.43K | -20.02K | 0 | 0 | 0 | 0 | 0 | -414.55K | -21.85K | -1.01M | -184.07K |
| Cash from Financing | 1.76M | 3.11M | 1.1M | 483.14K | 718.42K | 764.6K | 847.54K | 187.55K | 2.01M | 2.31M | 8.55M |
| Debt Issued (Net) | -12.75K | 1.36M | 931.51K | -57.39K | -6.63K | 139.59K | 293.97K | 120K | 1.24M | 300K | -353.45K |
| Equity Issued (Net) | 1.82M | 1.82M | 168K | 572.91K | 725.05K | 525K | 38.57K | 67.55K | 7.45M | 2.01M | 8.9M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K | 0 | -278 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -52.12K | -67.62K | 0 | -32.38K | 0 | 100K | 515K | 0 | -6.48M | 0 | 0 |
| Net Change in Cash | 269.36K | 1.54M | 15.22K | -158.03K | 178.39K | -305.35K | -111.53K | 411.49K | 5.39M | -4.33M | 4.68M |
| Free Cash Flow | -1.4M | -1.55M | -1.08M | -806.16K | -540.04K | -1.07M | -959.07K | -4.8M | -3.58M | -5.81M | -2.13M |
| FCF Margin % | -48.32% | -54.01% | -36.27% | -21.19% | -13.37% | -23.1% | -18.4% | -86.57% | -2384.22% | -137.69% | -360.1% |
| FCF Growth % | 1.89% | -43.34% | -34.5% | -49.28% | 49.53% | -11.56% | 80.03% | -34.22% | 38.38% | -172.68% | - |
| FCF per Share | -1.32 | -3.20 | -11.15 | -11.71 | -10.15 | -22.91 | -23.83 | -172.52 | -989.49 | -2324.62 | -1649.18 |
| FCF Conversion (FCF/Net Income) | 0.34x | 0.35x | 0.95x | 0.20x | 0.29x | 0.28x | 0.13x | 0.41x | 0.25x | 0.47x | 0.49x |
| Interest Paid | 0 | 0 | 0 | 6.45K | 131 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and operational viability
According to the provided financial data, SCWorx exhibits a chronic inability to convert net income into operating cash flow, with OCF/NI ratios fluctuating wildly, including a 1.45x reading in 2026Q1, which suggests that non-cash items and accruals are masking the underlying severity of the cash burn.
The erratic relationship between net income and operating cash flow indicates that the company's accounting results are heavily influenced by non-operational adjustments rather than core business performance. Investors should monitor this divergence, as it implies that the reported losses may actually understate the true cash-consuming nature of the current business model.
As reported in financial statements, the company has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a trough of -95.5% in 2025Q2, highlighting a structural inability to fund operations through internal cash generation.
The consistent negative FCF trajectory suggests that the company is trapped in a cycle of cash depletion that necessitates external funding. Without a clear path to positive margins, the current burn rate appears unsustainable and warrants further investigation into the company's long-term viability.
Based on the quarterly cash flow data, working capital changes have been highly inconsistent, swinging from a $243.7K inflow in 2024Q4 to a $420.5K outflow in 2024Q2, which suggests that the company lacks a stable mechanism for managing its receivables and payables effectively.
These sharp fluctuations in working capital indicate significant friction in the company's cash conversion cycle, likely exacerbated by the disparate nature of its revenue streams. Such instability makes it difficult to forecast liquidity needs and suggests that operational efficiency remains a significant hurdle for management.
As indicated by the historical cash flow filings, the company's reliance on stock-based compensation and non-cash depreciation adjustments, such as the $1.3M credit in 2025Q4, obscures the true extent of the cash drain required to maintain the current, fragmented business operations.
The presence of these non-cash adjustments suggests that the headline cash flow figures may be misleading to investors attempting to gauge the company's actual operational health. The reliance on these accounting entries may indicate that the business is struggling to maintain its core infrastructure without significant non-cash support.
Quick answers to the most common questions about buying WORX stock.
SCWorx Corp. (WORX) generated $-1.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SCWorx Corp. (WORX) reported negative free cash flow of $1.6M in 2025, indicating capital requirements exceeded cash from operations.
SCWorx Corp. (WORX) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.