The firm remains in a state of persistent cash burn, evidenced by a negative free cash flow margin of -76.7% in the most recent quarter, indicating an inability to fund operations through royalty inflows.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | -6.47M | -7.02M | -4.72M | -6.54M | -14.18M | -6.56M | 3.19M | 3.5M | 6.59M | 4.68M | 7.92M | 3.29M | 5.87M | 2.38M | 2.59M | 273K | 195.75K | -989.67K | 1.97M | -319.78K | -1.47M | -3.05M | -1.01M | -19.78K | -2.12K | -2.11K | -1.9K | -1K |
| Operating CF Margin % | - | -142.19% | -57.1% | -36.86% | -55.01% | -17.28% | 10.82% | 8.39% | 18.59% | 14.75% | 24.17% | 11.89% | 28.33% | 17.83% | 19.71% | 2.35% | - | - | 8.14% | -1.97% | -8.37% | -24.29% | -165655.56% | - | - | -0.01% | - | - |
| Operating CF Growth % | -983.31% | -48.92% | 27.94% | 53.85% | -116.32% | -305.84% | -9% | -46.91% | 40.97% | -40.92% | 140.24% | -43.84% | 146.2% | -8.03% | 849.08% | 39.47% | 119.78% | -150.17% | 716.87% | 78.29% | 51.64% | -200.45% | -5026.22% | -834.64% | -0.19% | -11.1% | -90.1% | - |
| Net Income | -17.15M | -17.46M | -22.56M | -21.05M | -5.36M | -13.03M | -13.09M | -3.44M | 1.09M | -10.12M | 2.7M | 2.85M | 44K | 1.53M | 4.28M | 3.3M | -286.04K | -900.04K | -920.29K | -11.76M | -17.07M | -6.78M | -1.5M | -6.31K | -9.23K | -7.05K | -7.25K | -1K |
| Depreciation & Amortization | 3.59M | 3.59M | 4.95M | 6.95M | 7.26M | 6.83M | 5.5M | 3.9M | 1.78M | 1.56M | 1.56M | 1.38M | 935K | 893K | 856K | 422K | 0 | 91.86K | 287.42K | 316.94K | 3.16M | 1.48M | 229.33K | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 212K | 0 | 403K | 242K | 620K | 720K | 850K | 976K | 1.79M | 3.18M | 4.73M | 4.64M | 5.15M | 4.81M | 4.62M | 530K | 0 | 132.97K | 268.22K | 268.3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 1.11M | -965K | -3.19M | -4.38M | -705K | 1.76M | -526K | 168K | -394K | -1.03M | -1.26M | -928K | -190K | 0 | -91.86K | 1.4M | 9.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 9.53M | 9.58M | 11.94M | 980K | -17.12M | 2.72M | 13.83M | 3.22M | 382K | 12.62M | -2.31M | -1.3M | -1.19M | -2.95M | -5.77M | 243K | 0 | 486.84K | 40K | 616.64K | 11.74M | 3.02M | 100K | -19.3K | 0 | 0 | 4K | 0 |
| Working Capital Changes | -2.55M | -2.74M | 557K | 5.22M | 1.37M | -602K | 475K | -448K | -209K | -2.04M | 1.07M | -3.88M | 1.96M | -645K | -475K | -4.04M | 481.79K | -709.43K | 900.81K | 970.48K | 696.13K | -758.72K | 159.12K | 5.83K | 7.11K | 4.94K | 1.35K | 0 |
| Change in Receivables | 1.42M | 1.28M | 1.17M | 869K | 2.12M | 1.15M | 691K | 438K | -2.65M | -1.57M | 625K | -3.93M | -103K | -127K | -1.26M | -2.37M | 0 | 18.58K | -1.27M | 390.86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 453K | 2.39M | 530K | -2.16M | -317K | 1.09M | -1.99M | 278K | 549K | -68K | -4K | -70K | 21K | 0 | 0 | 0 | 0 | 299.69K | 0 | -176.72K | -72.03K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.51M | -2.34M | 16K | -2.94M | -1.37M | 1.23M | -496K | -1.45M | 4.38M | -524K | 258K | -217K | 2.22M | -119K | 581K | 523K | 0 | -530.02K | 719.5K | 248.43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 4K | -10K | -112K | 209K | 44.52M | -4.79M | -702K | -10.34M | -1.48M | -238K | -2.76M | -5.24M | -31.56M | -509K | -117K | -11.99M | 0 | 0 | -14.78K | -106.02K | -132.67K | -307.85K | -180.05K | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | 4K | -10K | -112K | -100K | -265K | -1.13M | -748K | -9.96M | -1.48M | -238K | -2.19M | -4.13M | -31.12M | -412K | -117K | -76K | 0 | 0 | -20.76K | -106.02K | -132.67K | -120.84K | -180.14K | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0.08% | 0.2% | 1.36% | 0.56% | 1.03% | 2.99% | 2.54% | 23.88% | 4.16% | 0.75% | 6.67% | 14.9% | 150.31% | 3.08% | 0.89% | 0.65% | - | - | 0.09% | 0.65% | 0.75% | 0.96% | 29434.97% | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 44.79M | -2.66M | 346K | -375K | 0 | 0 | -877K | -3.6M | -30.88M | 0 | 0 | -10.17M | 0 | 0 | 0 | 0 | 0 | -187K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 309K | 44.79M | -1M | -300K | -8.83M | 0 | -30K | 300K | 2.49M | 30.45M | -97K | 175K | -1.74M | 0 | 0 | 5.98K | 0 | 0 | 0 | 90 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 5.18M | 7.93M | 3.82M | 4.73M | -30.95M | 10.51M | -2.17M | 2.27M | -6.49M | -8.38M | -7.49M | 10.27M | 26.76M | 1.66M | -1.26M | 14.62M | 0 | 1.05M | -655.56K | 427.59K | 1.61M | 3.3M | 1.24M | 19.61K | 2K | 2K | 2.44K | 454 |
| Debt Issued (Net) | 1.8M | 4.35M | 2.95M | 5M | -29M | 12.25M | -2.25M | 2.76M | -5.46M | -7.18M | -5.5M | -3.26M | 18.75M | -2.22M | -556K | 13.5M | 0 | 1.13M | -655.56K | 259.6K | 1.11M | 2.32M | 993.53K | 10K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 3.59M | 3.58M | 1.79M | 0 | -442K | -16K | -190K | -174K | -1.03M | -1.2M | -1.43M | 15.36M | 8.32M | 4.07M | -709K | 8.61M | 0 | 0 | 0 | 450K | 500K | 1M | 250K | 25.09K | 0 | 0 | 1K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -192K | -204K | -107K | 0 | -442K | -16K | -190K | -174K | -1.03M | -1.2M | -1.43M | -748K | -978K | -622K | -711K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -208K | 0 | -922K | -274K | -1.51M | -1.73M | 273K | -315K | 0 | -7K | -557K | -1.83M | -306K | -189K | 2K | -5.34M | 0 | -85.63K | 0 | -282K | 0 | -25.55K | 0 | -15.48K | 2K | 2K | 1.44K | 454 |
| Net Change in Cash | -1.78M | -104K | -1M | -1.61M | -614K | -844K | 316K | -4.57M | -1.38M | -3.94M | -2.33M | 8.33M | 1.07M | 3.53M | 1.21M | 2.67M | 195.75K | 55.44K | 1.3M | 1.79K | 3.9K | -58.18K | 49.67K | -164 | -116 | -112 | 541 | -546 |
| Free Cash Flow | -6.46M | -7.03M | -4.83M | -6.64M | -14.45M | -7.69M | 2.44M | -6.46M | 5.12M | 4.44M | 5.73M | -836K | -25.26M | 1.97M | 2.47M | 197K | 195.75K | -989.67K | 1.95M | -425.81K | -1.61M | -3.17M | -1.19M | -19.78K | -2.12K | -2.11K | -1.9K | -1K |
| FCF Margin % | -136.01% | -142.4% | -58.46% | -37.43% | -56.04% | -20.27% | 8.28% | -15.49% | 14.43% | 14% | 17.49% | -3.02% | -121.97% | 14.74% | 18.82% | 1.69% | - | - | 8.06% | -2.62% | -9.12% | -25.25% | -195090.52% | - | - | -0.01% | - | - |
| FCF Growth % | -76.22% | -45.67% | 27.34% | 54% | -87.87% | -415.55% | 137.71% | -226.3% | 15.27% | -22.53% | 785.41% | 96.69% | -1381.43% | -20.33% | 1155.84% | 0.64% | 119.78% | -150.7% | 558.39% | 73.48% | 49.3% | -165.24% | -5937.08% | -834.64% | -0.19% | -11.1% | -90.1% | - |
| FCF per Share | -1.09 | -2.05 | -2.12 | -0.34 | -0.74 | -0.40 | 0.13 | -0.34 | 0.28 | 0.24 | 0.30 | -0.05 | -1.97 | 0.20 | 0.33 | 0.03 | 1.05 | -5.31 | 10.49 | -2.72 | -12.28 | -31.26 | -19.82 | -0.35 | -0.14 | -0.14 | -0.17 | -0.19 |
| FCF Conversion (FCF/Net Income) | 0.38x | 0.40x | 0.21x | 0.31x | 2.65x | 0.50x | -0.24x | -1.02x | 6.06x | -0.46x | 2.89x | 1.28x | -5.69x | 1.56x | 0.60x | 0.08x | -0.68x | -4.57x | -2.14x | 0.03x | 0.09x | 0.45x | 0.67x | 3.13x | 0.23x | 0.30x | 0.26x | 1.00x |
| Interest Paid | 235K | 0 | 505K | 56K | 0 | 1.8M | 1.13M | 1.18M | 969K | 1.25M | 1.26M | 1.16M | 653K | 1.12M | 1.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 515K | 0 | 0 | 99K | 0 | 91K | 58K | 136K | 302K | 167K | 230K | 453K | 109K | 119K | 62K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and solvency risk
According to historical cash flow statements, XELB consistently reports negative net income alongside negative operating cash flow, with the OCF/NI ratio frequently failing to provide a positive signal, indicating that the company's accounting losses are matched by actual cash outflows rather than non-cash accounting adjustments.
The persistent inability to generate positive operating cash flow suggests that the company's licensing model is not yet self-sustaining. Investors should monitor the fact that even with significant depreciation and amortization, the cash burn remains acute, implying that the underlying business model is currently consuming capital rather than generating it.
As reported in recent quarterly filings, XELB has maintained a negative free cash flow trajectory across all observed periods, with FCF margins frequently exceeding -100%, highlighting a structural inability to cover operating expenses through the royalty-based revenue streams currently being generated by the firm's brand portfolio.
The consistent negative FCF trajectory suggests that the company is in a state of perpetual cash depletion. This trend warrants further investigation into whether the current licensing strategy can ever reach a scale sufficient to achieve positive cash flow, or if the business model is fundamentally misaligned with its cost structure.
Based on the provided financial data, XELB exhibits erratic working capital movements, including a significant $1.7 million outflow in 2025Q2, which suggests that the company's cash management is highly sensitive to the timing of royalty collections and the settlement of liabilities with its various brand partners.
The volatility in working capital appears to exacerbate the company's liquidity challenges, as large swings in cash flow make it difficult to maintain a stable operating runway. This instability may indicate that the company lacks the leverage to dictate favorable payment terms with its licensees or vendors.
Analysis of the cumulative financial data reveals a persistent gap where operating cash flow remains deeply negative, consistently trailing the company's reported net losses, which suggests that the firm's cash reality is even more strained than the headline earnings figures might imply to a casual observer.
This divergence between net income and operating cash flow indicates that the company is not merely suffering from non-cash accounting charges, but is experiencing a genuine, ongoing depletion of its liquid assets. The cumulative nature of this burn suggests that the business model has not yet achieved the necessary efficiency to stabilize its cash position.
While the company reports a 100% gross margin, the cash flow statement obscures the significant cash-based SG&A and talent-related costs required to maintain brand relevance, as evidenced by the consistent negative operating cash flow despite the absence of traditional inventory-related capital expenditures in most recent quarters.
The cash flow statement reveals that the 'asset-light' licensing model is not as cost-effective as the gross margin suggests, as the company must still fund substantial corporate and marketing overhead. Investors should monitor whether these fixed costs can be reduced, as they currently represent a significant drain on the company's limited cash reserves.
Quick answers to the most common questions about buying XELB stock.
Xcel Brands, Inc. (XELB) generated $-7.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Xcel Brands, Inc. (XELB) reported negative free cash flow of $7.0M in 2025, indicating capital requirements exceeded cash from operations.
Xcel Brands, Inc. (XELB) 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.
In 2025, Xcel Brands, Inc. (XELB) spent $0.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.