Free cash flow deficits are rapidly expanding, with quarterly outflows hitting $21.2M in 2026Q1, driven in part by a high CapEx-to-revenue ratio of 37.4%.
| Cash from Operations | -46.66M | -34.82M | -9.87M | -1.98M | -1.86M | 49.72K | -238.72K |
| Operating CF Margin % | - | -269.68% | -502.41% | -108.35% | -61.51% | 2.18% | -24.05% |
| Operating CF Growth % | -1664.85% | -252.99% | -398.18% | -6.42% | -3842.79% | 120.83% | - |
| Net Income | -67.6M | -44.4M | -4.48M | -241.5K | 14.28K | -216.1K | -211.93K |
| Depreciation & Amortization | 3.32M | 2.14M | 281.75K | 263.06K | 246.91K | 157.97K | 32.16K |
| Stock-Based Compensation | 35K | 0 | 521.55K | 0 | 266.4K | 0 | 182.4K |
| Deferred Taxes | 0 | 0 | 0 | -4.17K | -5.76K | -5.76K | -5.77K |
| Other Non-Cash Items | 33.25M | 23.41M | 2.06M | 297.97K | 314.05K | 121.76K | 77.57K |
| Working Capital Changes | -19.41M | -15.97M | -8.25M | -2.3M | -2.7M | -8.15K | -313.15K |
| Change in Receivables | -1.67M | -959.38K | -8.35M | -2.22M | -40.79K | -16.43K | -145.8K |
| Change in Inventory | 348.35K | -2.79M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -3.08M | -2.48M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -25.98M | -28.79M | -1.93M | -923.8K | -1.34M | 2.82K | -479.46K |
| Capital Expenditures | -13.39M | -12.26M | -398.48K | -2.12K | -8.5K | 0 | -250K |
| CapEx % of Revenue | 65.9% | 94.93% | 20.29% | 0.12% | 0.28% | 0% | 25.18% |
| Acquisitions | -6.13M | -7.46M | 20.88K | 0 | -558.41K | 2.82K | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -18.4M | 0 | -1.03M | -921.68K | -770.37K | 2.25K | -229.46K |
| Cash from Financing | 77.71M | 66.25M | 14.91M | 2.81M | 1.96M | 1.03M | 837.71K |
| Debt Issued (Net) | 60.29M | 63.31M | 10.78M | 2.81M | 2.01M | 2.63M | 817.86K |
| Equity Issued (Net) | 16.27M | 3.26M | 4.13M | 0 | -46.04K | 472.96K | 19.85K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -46.04K | 0 | 0 |
| Other Financing | 1.15M | -327.18K | -22.51K | 0 | 46.04K | -2.07M | 0 |
| Net Change in Cash | 5.64M | 2.4M | 3.75M | -199.61K | -996.58K | 1.1M | 92.08K |
| Free Cash Flow | -56.09M | -42.65M | -11.31M | -2.58M | -2.66M | 49.72K | -488.72K |
| FCF Margin % | -276.02% | -330.29% | -576.19% | -141.4% | -87.97% | 2.18% | -49.23% |
| FCF Growth % | -290.11% | -276.96% | -337.78% | 2.89% | -5453.25% | 110.17% | - |
| FCF per Share | -1.64 | -1.25 | -0.61 | -0.15 | -0.16 | 0.00 | -0.03 |
| FCF Conversion (FCF/Net Income) | 0.83x | 0.77x | 2.20x | 8.20x | -130.34x | -0.23x | 1.13x |
| Interest Paid | 82.66K | 0 | 204.6K | 53.16K | 37.3K | 50.48K | 2.82K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
As reported in recent financial statements, ZenaTech's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly and reaching 0.71 in 2026Q1, which suggests that the company's reported losses are being compounded by an inability to convert operational activities into actual cash inflows.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based accounting is not being validated by cash generation. Investors should monitor this divergence, as it suggests that the underlying business model is currently consuming more liquidity than the income statement might imply.
Based on ZenaTech's reported figures, the free cash flow trajectory has deteriorated sharply, with quarterly outflows reaching $21.2M in 2026Q1, a trend that highlights the company's increasing reliance on external financing to sustain its current operational scale and aggressive market entry strategy.
The widening FCF deficit suggests that the company's growth initiatives are becoming increasingly capital-intensive. This trajectory warrants further investigation into whether the current spending levels are generating sufficient long-term value or merely subsidizing unprofitable revenue growth.
According to recent SEC filings, ZenaTech's capital expenditures have surged to $3.2M in 2026Q1, with the CapEx-to-revenue ratio remaining elevated at 37.4%, indicating that the firm is heavily investing in physical infrastructure to support its drone operations rather than focusing on asset-light software scalability.
This high level of capital intensity appears to be a structural requirement for the company's hardware-heavy business model. The persistent need for significant investment suggests that the firm may struggle to achieve positive free cash flow until it can successfully transition toward a more software-centric revenue mix.
As indicated by the cash flow statements, ZenaTech has experienced consistent working capital outflows, including a $7.3M drain in 2026Q1, which suggests that the company is facing significant challenges in managing its cash conversion cycle and optimizing its inventory or receivables management.
The recurring negative impact of working capital changes implies that the company's growth is placing an increasing strain on its liquidity. This trend may indicate inefficiencies in the supply chain or a lack of pricing power that forces the company to offer unfavorable payment terms to its enterprise clients.
Based on the provided data, ZenaTech's cash flow statement reveals that the company's reliance on external capital is masked by its aggressive R&D and hardware deployment, with net acquisition costs and working capital swings consistently offsetting any potential operational improvements in the firm's cash position.
The cash flow statement suggests that the company's operational reality is far more capital-intensive than the software-infrastructure narrative might imply. Investors should be wary of the potential for future dilutive financing, as the current burn rate appears to be outpacing the company's ability to generate internal liquidity.
Quick answers to the most common questions about buying ZENA stock.
ZenaTech, Inc. (ZENA) generated $-34.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ZenaTech, Inc. (ZENA) reported negative free cash flow of $42.6M in 2025, indicating capital requirements exceeded cash from operations.
ZenaTech, Inc. (ZENA) spent $12.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.