Persistent cash burn is highlighted by a -7.0% FCF margin in 2025Q2, with the firm appearing to rely on payables deferral to manage its $102.5K cash balance.
| Cash from Operations | -3.42M | -2.16M | -3.49M | -5.99M |
| Operating CF Margin % | - | -166.76% | -240.23% | -3906.84% |
| Operating CF Growth % | 0% | 38.13% | 41.77% | - |
| Net Income | -11.08M | -12.07M | -61.37M | -8.77M |
| Depreciation & Amortization | 1.99M | 2.02M | 2.01M | 2M |
| Stock-Based Compensation | 0 | 5.6M | 55.86M | 145.8K |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.06M | 511.36K | 179.68K | 75.4K |
| Working Capital Changes | 1.61M | 1.79M | -162.11K | 553.3K |
| Change in Receivables | 343.79K | 612.16K | -420.52K | -364.62K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 546.37K | 563.16K | -159.15K | 791.86K |
| Cash from Investing | -6.55K | -5.93K | -30.74K | -20.28K |
| Capital Expenditures | -6.55K | -5.93K | -30.74K | -20.28K |
| CapEx % of Revenue | 0.81% | 0.46% | 2.12% | 13.22% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 3.49M | 2.05M | 3.22M | 6.3M |
| Debt Issued (Net) | 3.46M | 1.99M | 2.97M | 6.5M |
| Equity Issued (Net) | 24.25K | 60.75K | 255K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | -200K |
| Net Change in Cash | 104.94K | -111.34K | -300.01K | 286.47K |
| Free Cash Flow | -3.43M | -2.17M | -3.52M | -6.01M |
| FCF Margin % | -422.64% | -167.22% | -242.35% | -3920.06% |
| FCF Growth % | - | 38.5% | 41.46% | - |
| FCF per Share | -0.15 | -0.09 | -0.15 | -0.26 |
| FCF Conversion (FCF/Net Income) | 0.31x | 0.18x | 0.06x | 0.68x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Imminent liquidity exhaustion
According to recent financial filings, WSHP's OCF/NI ratio of 0.50 in 2025Q2 highlights a significant divergence between reported net losses and actual cash outflows, suggesting that non-cash charges and working capital adjustments are currently obscuring the true severity of the company's underlying cash burn.
The gap between net income and operating cash flow indicates that accounting adjustments are providing a temporary, albeit insufficient, buffer against the firm's cash depletion. Investors should interpret this conversion ratio with caution, as it suggests that the company's reported losses are not fully capturing the immediate liquidity pressure facing the business.
As reported in financial statements, WSHP's FCF margin of -7.0% in 2025Q2 underscores a persistent inability to generate positive cash flow, reflecting a business model that continues to consume capital at a rate that far exceeds its current revenue-generating capacity.
The negative FCF trajectory confirms that the company remains in a state of structural cash consumption with no evidence of a pivot toward self-funding. This trend warrants further investigation into whether the current burn rate is a result of necessary growth investment or a fundamental failure to achieve unit-level profitability.
Based on reported figures, the positive working capital change of $571.5K in 2025Q2 suggests that the company is likely relying on the deferral of payables to manage its extremely limited cash reserves, a practice that may provide short-term relief but risks long-term operational disruption.
The reliance on working capital shifts to bridge the gap between operating losses and cash availability appears to be a defensive measure rather than an efficiency gain. This strategy may indicate that the company is stretching its vendor relationships to maintain basic operations, which could lead to supply chain or service delivery constraints if creditors tighten terms.
Data from recent disclosures indicates that D&A expenses of $950.5K in 2025Q2 represent a substantial portion of the company's non-cash adjustments, which may be masking the true economic cost of maintaining the platform's infrastructure in a highly competitive and capital-intensive environment.
The significant D&A figures suggest that the company is heavily reliant on past capital investments that are now depreciating, yet the lack of corresponding growth implies these assets are not effectively driving revenue. This divergence suggests that the company may be under-investing in new technology while struggling to maintain the utility of its existing, aging asset base.
Quick answers to the most common questions about buying WSHP stock.
WeShop Holdings Limited Class A Ordinary Shares (WSHP) generated $-2.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
WeShop Holdings Limited Class A Ordinary Shares (WSHP) reported negative free cash flow of $2.2M in 2024, indicating capital requirements exceeded cash from operations.
WeShop Holdings Limited Class A Ordinary Shares (WSHP) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.