The firm has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a low of -173.1% in 2024Q1, indicating a structural inability to fund operations through core activities.
| Cash from Operations | -6.05M | -6.15M | -9.56M | -5.53M | -5.47M | -3.9M | -1.12M | -122.27K |
| Operating CF Margin % | - | -63.71% | -170% | -92.48% | -76.35% | -86.26% | -71.42% | -8.66% |
| Operating CF Growth % | 137.29% | 35.69% | -72.88% | -1.15% | -40.33% | -247.13% | -818.1% | - |
| Net Income | -6.85M | -6.24M | -13.48M | -7.46M | -7.54M | -4.72M | -876.48K | -201.27K |
| Depreciation & Amortization | 107.53K | 116.64K | 173.97K | 205.72K | 164.77K | 61.08K | 16.57K | 13.79K |
| Stock-Based Compensation | 898.24K | 1.16M | 825.63K | 812.04K | 2.11M | 188.1K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 2.89M | 0 | 0 |
| Other Non-Cash Items | -2.86M | -3.06M | 5.73M | -15.38K | 1.2M | 316.57K | 11.9K | 0 |
| Working Capital Changes | 2.65M | 1.86M | -2.81M | 922.65K | -1.41M | -2.64M | -274.59K | 65.21K |
| Change in Receivables | -31.45K | -105.94K | -458.09K | 161.9K | 458.32K | -566.43K | -176.6K | 57.99K |
| Change in Inventory | 2.77M | 1.07M | -2.45M | 704.75K | -2.48M | -2.41M | -179.14K | 7.19K |
| Change in Payables | 52.14K | 65.7K | 51.11K | 56.73K | -3.79K | 11.18K | -34.4K | 70.25K |
| Cash from Investing | 3K | 4.25K | 113.41K | 16.58K | -515.69K | -113.69K | -36.75K | -9.8K |
| Capital Expenditures | 0 | 0 | -19.2K | -20.17K | -567.37K | -113.69K | -38.43K | -9.8K |
| CapEx % of Revenue | 0% | 0% | 0.34% | 0.34% | 7.92% | 2.52% | 2.44% | 0.69% |
| Acquisitions | 1.5K | 4.25K | 0 | 0 | 51.68K | 0 | 1.68K | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 1.5K | 0 | 132.61K | 36.75K | 0 | 0 | 0 | 0 |
| Cash from Financing | 8.01M | 8.57M | 6.06M | 2.25M | 12.41M | 4.49M | 1.31M | 177.57K |
| Debt Issued (Net) | -32.16K | -32.92K | -3.63M | 2.2M | -2.35M | 3.86M | 1.19M | 177.57K |
| Equity Issued (Net) | 8.04M | 8.6M | 9.51M | 49.78K | 14.77M | 838.4K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 185.43K | 0 | -11.8K | -204.63K | 116.67K | 0 |
| Net Change in Cash | 1.96M | 2.42M | -3.39M | -3.27M | 6.43M | 482.56K | 151.16K | 45.5K |
| Free Cash Flow | -6.05M | -6.15M | -9.58M | -5.55M | -6.04M | -4.01M | -1.16M | -132.07K |
| FCF Margin % | -65.97% | -63.71% | -170.34% | -92.82% | -84.27% | -88.78% | -73.87% | -9.35% |
| FCF Growth % | 33.74% | 35.82% | -72.6% | 8.03% | -50.5% | -245.43% | -779.08% | - |
| FCF per Share | -0.58 | -1.12 | -14.95 | -80.60 | -98.37 | -62.23 | -18.01 | -2.05 |
| FCF Conversion (FCF/Net Income) | 0.88x | 0.99x | 0.71x | 0.74x | 0.73x | 0.83x | 1.28x | 0.61x |
| Interest Paid | 3.78K | 0 | 220.71K | 121.89K | 435.15K | 341.26K | 99.06K | 99.06K |
| Taxes Paid | 0 | 0 | 258 | 1.85K | 300 | 1.83K | 150 | 150 |
Liquidity and dilution risk
As reported in recent financial filings, XPON's operating cash flow consistently trails net income, with the OCF/NI ratio reaching an extreme 11.58 in 2024Q4, suggesting that reported accounting losses significantly understate the actual cash required to sustain the company's current operational and working capital requirements.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based accounting does not capture the full extent of its cash-burning nature. Investors should monitor this divergence, as it suggests that the business model requires continuous external financing to bridge the gap between accounting losses and actual cash outflows.
Based on the provided quarterly data, XPON has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins bottoming out at -173.1% in 2024Q1, reflecting a structural inability to self-fund operations through core business activities.
The consistent negative FCF trajectory highlights a business model that is currently unable to achieve the scale necessary to cover its operating expenses. This trend suggests that the company remains entirely dependent on capital markets to maintain its liquidity position, which warrants further investigation into future financing needs.
According to the cash flow statements, working capital changes have been highly erratic, swinging from a $1.9M outflow in 2024Q4 to a $1.1M inflow in 2025Q3, which indicates significant instability in the company's ability to manage inventory levels and accounts receivable effectively.
This volatility in working capital suggests that the company's cash position is highly sensitive to the timing of inventory procurement and customer payments. Such fluctuations may indicate challenges in aligning supply chain inputs with the seasonal demand cycles of the RV and marine markets.
As evidenced by the financial statements, the company relies heavily on stock-based compensation, with $711.8K recorded in 2025Q4 alone, which effectively masks the true cash cost of operations and contributes to the ongoing dilution of existing shareholders to support the business's cash burn.
The reliance on non-cash compensation to manage operating expenses suggests that the company is attempting to preserve its limited cash balance at the expense of equity holders. Analysts should consider whether this strategy is sustainable given the persistent negative cash flow and the potential for future equity-based financing requirements.
Quick answers to the most common questions about buying XPON stock.
Expion360 Inc. (XPON) generated $-6.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Expion360 Inc. (XPON) reported negative free cash flow of $6.1M in 2025, indicating capital requirements exceeded cash from operations.
Expion360 Inc. (XPON) 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.