Liquidity is under severe pressure as evidenced by the $14.6 million free cash flow outflow in 2025Q4 and an OCF/NI ratio of 3.49, indicating inefficient cash conversion.
| Cash from Operations | -28.65M | -33.82M | -6.62M | -9.11M | -918.2K | -1.48M |
| Operating CF Margin % | - | -2161.08% | -264.56% | -813.29% | -152.74% | -469.09% |
| Operating CF Growth % | -1337.07% | -410.96% | 27.38% | -892.58% | 37.92% | - |
| Net Income | -24.05M | -25.52M | -22.75M | -15.75M | -1.84M | -1.96M |
| Depreciation & Amortization | 53.04K | 36.02K | 0 | 208.33K | 250K | 166.67K |
| Stock-Based Compensation | -295.43K | 1.93M | 2.53M | 1.09M | 317.88K | 207.13K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.61M | 1.25M | 4.67M | 7.43M | 0 | 100K |
| Working Capital Changes | -6.97M | -11.51M | 8.93M | -2.09M | 356.1K | 9.92K |
| Change in Receivables | -174.95K | -2.57M | -5.06K | 52.2K | -130.77K | -93.92K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -31.08K | -475.3K | 228K | -67.64K | 287.62K | 103.84K |
| Cash from Investing | -18.83M | -18.83M | 675.67K | -5.34M | -190.34K | -124.43K |
| Capital Expenditures | -340.54K | -340.54K | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 25.07% | 21.76% | - | - | - | - |
| Acquisitions | 0 | -18.49M | 0 | -10K | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -3.82M | 0 | 670K | -5.33M | -190.34K | -124.43K |
| Cash from Financing | 44.04M | 53.24M | 4.27M | 21.51M | 0 | 2.72M |
| Debt Issued (Net) | 0 | 0 | 0 | 950K | 0 | 0 |
| Equity Issued (Net) | 44.04M | 53.33M | 4.35M | 20.62M | 0 | 3.08M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -547.41K | -1.46M | 0 | 0 |
| Other Financing | 0 | -88.95K | -80.5K | -60K | 0 | -360.93K |
| Net Change in Cash | -3.44M | 588.62K | -1.68M | 7.06M | -1.11M | 1.12M |
| Free Cash Flow | -28.99M | -34.16M | -6.62M | -9.11M | -918.2K | -1.48M |
| FCF Margin % | -2134.4% | -2182.85% | -264.56% | -813.29% | -152.74% | -469.09% |
| FCF Growth % | -144.35% | -416.1% | 27.38% | -892.58% | 37.92% | - |
| FCF per Share | -3.98 | -4.69 | -1.23 | -1.97 | -0.22 | -0.35 |
| FCF Conversion (FCF/Net Income) | 1.21x | 1.32x | 0.29x | 0.58x | 0.50x | 0.75x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
According to the provided cash flow statements, LQR House consistently reports operating cash outflows that exceed net losses, with OCF/NI ratios reaching as high as 3.49 in 2025Q4, indicating that the company's accrual-based accounting fails to capture the severity of its ongoing cash consumption.
The recurring divergence between net income and operating cash flow suggests that the company is struggling with significant non-cash adjustments or working capital drains that are not being offset by operational efficiency. Investors should monitor this trend closely, as the inability to align cash generation with earnings performance points to a fundamental lack of quality in the company's reported results.
As reported in financial statements, LQR House has maintained a consistently negative free cash flow trajectory, with quarterly outflows peaking at $14.6 million in 2025Q4, which underscores the company's inability to fund its operations through internal cash generation or achieve a sustainable margin profile.
The persistent negative FCF margins, which reached -48.8% in 2025Q4, indicate that the business model is currently incapable of self-funding its growth or maintenance requirements. This trajectory suggests that the company remains entirely dependent on external capital to sustain its current operational footprint.
Based on the company's reported figures, working capital changes have been highly erratic, swinging from a $11.5 million outflow in 2025Q4 to a $6.6 million inflow in 2024Q4, which suggests that the firm is experiencing significant instability in its inventory management and accounts payable cycles.
These wild fluctuations in working capital appear to be a primary driver of the company's unpredictable cash flow profile, potentially masking the underlying structural burn rate. The lack of consistency in managing these cycles warrants further investigation into whether the company is aggressively delaying payments or struggling with inventory liquidation.
As evidenced by the historical cash flow data, LQR House has engaged in sporadic share repurchases despite generating significant operating losses, with $1.3 million spent on buybacks in 2023Q4, a decision that appears difficult to reconcile with the company's urgent need for liquidity.
The allocation of capital toward share repurchases during periods of heavy cash burn suggests a potential misalignment between management's capital deployment strategy and the company's actual financial health. Investors should be wary of such actions, as they may indicate a lack of discipline in prioritizing the preservation of cash for core operational needs.
Quick answers to the most common questions about buying YHC stock.
LQR House Inc. (YHC) generated $-33.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LQR House Inc. (YHC) reported negative free cash flow of $34.2M in 2025, indicating capital requirements exceeded cash from operations.
LQR House Inc. (YHC) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.