Operational efficiency is deteriorating, evidenced by a capital expenditure to revenue ratio that spiked to 273.4% in 2026Q3.
| Cash from Operations | -14.92M | -2.34M | -1.55M | -354.12K | -504.3K | -883.55K |
| Operating CF Margin % | - | -112.78% | -96.44% | -14.51% | -19.04% | -52.83% |
| Operating CF Growth % | -1812.62% | -51.02% | -337.1% | 29.78% | 42.92% | - |
| Net Income | -152.6M | -6.74M | -2.28M | -5.34M | -541.61K | -1.41M |
| Depreciation & Amortization | 148.6K | 203.78K | 155.06K | 128.31K | 19.43K | 20.17K |
| Stock-Based Compensation | 2.64M | 3.2M | 0 | 4.12M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 16.55M | 814.86K | 804.61K | 316.69K | 311.2K | 705.97K |
| Working Capital Changes | 621.18K | 182.75K | -225.8K | 424.83K | -293.32K | -201.69K |
| Change in Receivables | 150.94K | -138.86K | -271.22K | -1.83K | -189.27K | -24.65K |
| Change in Inventory | -418.3K | -326.96K | -211 | 317.41K | -170.24K | -266.23K |
| Change in Payables | 498.38K | 614.27K | -45.06K | 180.36K | 0 | 59.19K |
| Cash from Investing | -130.87M | -614.18K | -10.44K | -2.01M | -35.03K | -9.72K |
| Capital Expenditures | -148.64M | -32.39K | -10.44K | -1.26K | -35.03K | -9.72K |
| CapEx % of Revenue | 4359.03% | 1.56% | 0.65% | 0.05% | 1.32% | 0.58% |
| Acquisitions | -581.79K | -581.79K | 0 | -2.01M | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -130.25M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 162.08M | 2.37M | 3.18M | 2.51M | 667.41K | 834.7K |
| Debt Issued (Net) | -1.1M | 515.27K | -689.57K | 83.68K | 667.41K | 834.7K |
| Equity Issued (Net) | 164.72M | 1.91M | 4.46M | 2.65M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.54M | -53.48K | -587.57K | -227.68K | 0 | 0 |
| Net Change in Cash | 16.27M | -555.61K | 1.62M | 129.69K | 128.07K | -58.57K |
| Free Cash Flow | -14.96M | -2.37M | -1.56M | -355.38K | -539.34K | -893.26K |
| FCF Margin % | -438.6% | -114.34% | -97.09% | -14.56% | -20.37% | -53.41% |
| FCF Growth % | -349.98% | -52.09% | -338.49% | 34.11% | 39.62% | - |
| FCF per Share | -0.55 | -0.28 | -0.20 | -0.04 | -0.07 | -0.11 |
| FCF Conversion (FCF/Net Income) | 0.10x | 0.35x | 0.68x | 0.07x | 0.93x | 0.63x |
| Interest Paid | 0 | 0 | 0 | 0 | 171 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable cash burn rate
As reported in recent financial statements, CleanCore's operating cash flow to net income ratio reached 0.25 in 2026Q3, illustrating a persistent inability to convert accounting losses into meaningful cash generation, which suggests that the company's underlying business model remains fundamentally disconnected from cash-based operational reality.
The wide gap between net income and operating cash flow indicates that the company's losses are not merely accounting artifacts but reflect actual cash outflows. Investors should monitor whether this conversion inefficiency stems from aggressive revenue recognition or an inability to manage cash-based operating expenses effectively.
Based on the company's reported figures, free cash flow margins plummeted to -14.1% in 2026Q3, marking a significant departure from previous periods and indicating that the firm's cash burn is accelerating rather than stabilizing as the company attempts to scale its hardware-heavy business model.
The consistent negative free cash flow trajectory suggests that the company is currently unable to fund its operations through internal cash generation. This trend warrants further investigation into how much longer the current cash reserves can support the existing burn rate before external financing becomes mandatory.
According to recent SEC filings, CleanCore's capital expenditure to revenue ratio spiked to 273.4% in 2026Q3, a dramatic increase that suggests the company is aggressively investing in hardware infrastructure despite a lack of proven, scalable demand for its electrolytic ozone generation units.
This level of capital intensity appears disproportionate to the company's current revenue base and may indicate significant investment in manufacturing capacity that is not yet being utilized. Analysts should question whether these capital outlays are truly growth-oriented or if they represent maintenance requirements for aging hardware.
As indicated by historical cash flow data, working capital changes have fluctuated significantly, including a $115.4K outflow in 2026Q3, which suggests that the company is struggling to manage its cash conversion cycle effectively amidst its current transactional, hardware-focused sales model.
The erratic nature of these working capital shifts may imply challenges in inventory management or delays in collecting receivables from distributors. Such volatility often serves as a leading indicator of operational friction that could further exacerbate the company's existing liquidity constraints.
Based on the provided financial data, the company's cash flow statement appears to mask the true extent of its operational challenges by failing to reconcile the massive disparity between net losses and cash burn, which may mislead investors regarding the firm's actual runway and capital needs.
The lack of clarity regarding capitalized costs and the potential for hidden liabilities in the form of warranty reserves suggests that the reported cash flow figures may be overly optimistic. Investors should remain cautious, as the current financial disclosures may not fully capture the risks associated with the company's high-burn, low-scale environment.
Quick answers to the most common questions about buying ZONE stock.
CleanCore Solutions, Inc. (ZONE) generated $-2.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CleanCore Solutions, Inc. (ZONE) reported negative free cash flow of $2.4M in 2025, indicating capital requirements exceeded cash from operations.
CleanCore Solutions, Inc. (ZONE) 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.