Free cash flow remains deeply negative, with margins reaching -301.5% in 2023Q4, confirming that the firm lacks a self-sustaining revenue engine to offset its ongoing cash burn.
| Metric | TTM | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 |
|---|
| Cash from Operations | -5.62M | -6.28M | -5.94M | -12.96M | -7.99M | -1.79M | -1.36M | -1.18M | -999.86K | -1.71M | -1.68M | -1.25M | -2.39M | -1.64M | -1.32M | -1.08M | -37.74K |
| Operating CF Margin % | - | -720.05% | -19934.54% | -17784.46% | -2351.98% | -76207.35% | - | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 10.09% | -5.7% | 54.13% | -62.19% | -345.14% | -32.31% | -14.6% | -18.37% | 41.53% | -1.68% | -34.94% | 47.76% | -45.46% | -24.46% | -21.5% | -2773.69% | - |
| Net Income | -8.08M | -10.04M | -8.64M | -14.41M | -12.02M | -3.87M | -1.54M | -2.43M | -1.56M | -2.84M | -4.2M | -3.02M | -3.52M | -2.35M | -1.04M | -1.24M | -147.95K |
| Depreciation & Amortization | 539K | 600.32K | 453.04K | 539.69K | 614.71K | 126.8K | 24.88K | 5.3K | 6.07K | 9.71K | 11.38K | 13.68K | 16.28K | 16.75K | 18.78K | 6.49K | 0 |
| Stock-Based Compensation | 470.55K | 1.53M | 0 | 3.2M | 4.73M | 2.02M | 293.57K | 888.06K | 462.96K | 1.15M | 2.47M | 1.33M | 1.2M | 1.11M | 446.77K | 516.08K | 0 |
| Deferred Taxes | 0 | 0 | 0 | -808.08K | 0 | 0 | 0 | -1.26M | 0 | -1.15M | -2.47M | -1.33M | -1.2M | -339.3K | -623.12K | -277.7K | -5.4K |
| Other Non-Cash Items | 375.89K | 150.99K | 1.57M | 917.7K | 48.12K | -109.8K | -39.57K | 1.24M | -5.46K | 1.15M | 2.47M | 1.33M | 1.2M | 1.11M | 446.77K | 516.08K | 0 |
| Working Capital Changes | 1.08M | 1.48M | 675.37K | -2.4M | -1.36M | 38.55K | -94.39K | 375.44K | 101.1K | -31.69K | 37.99K | 426.93K | -75.87K | -74.63K | -120.93K | -87.41K | 115.61K |
| Change in Receivables | -1.17M | -906.22K | 201.14K | -12.84K | -536.82K | -41.81K | 139.6K | -189.19K | 26.86K | -926 | 45.04K | 556.91K | -213.64K | -64.03K | -19.84K | 0 | 0 |
| Change in Inventory | 480.77K | 397.48K | -51.86K | -2.18M | -665.57K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 9.63K | 0 | 0 | 0 | 831.48K | 0 | 0 | 0 | 67.15K | 0 | 0 | 0 | 0 | 2.93K | 0 | 0 | 0 |
| Cash from Investing | 1.75M | 358.65K | 1.39M | -2.31M | -7.25M | -1.23M | -1.24M | -1.74M | 256.73K | -955.58K | -949.71K | -113.16K | -9.2M | -1.16M | 1.88M | -9.65M | -974.62K |
| Capital Expenditures | -527.35K | -1.4K | -436.98K | -2.27M | -3.99M | -254.28K | -103.21K | -3.44K | -433.8K | -873.7K | -1.05M | -1.68M | -9.19M | -2.42M | -4.1M | -30.31K | 0 |
| CapEx % of Revenue | 55.93% | 0.16% | 1465.59% | 3119.81% | 1173.48% | 10797.54% | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 7.38K | 0 | 0 | 0 | 0 | 1.53K | 13.98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.28M | 360.05K | 1.82M | -33.64K | -3.27M | -978.96K | -1.13M | -1.74M | 77.24K | 268.54K | 129.53K | 500K | -9.18M | -2.41M | 0 | -1.5M | -574.62K |
| Cash from Financing | 4.18M | 2.52M | -491.25K | -1.05M | 38.82M | 5.31M | 2.18M | 4.05M | 455.9K | 2.88M | 2.67M | 865.38K | 6.9M | 7M | 0 | 9.17M | 3.13M |
| Debt Issued (Net) | 1.42M | -562.11K | -177.43K | -1.1M | -122.45K | -73.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 2.81M | 3.07M | -218.4K | 46K | 35.34M | 2.05M | 2.26M | 4.3M | 464.97K | 2.95M | 2.11M | 0 | 0 | 0 | 0 | 10.26M | 2.58M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -301.81K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.11M | -228.5K |
| Other Financing | -45.28K | 16.01K | -95.42K | 46K | 3.6M | 3.34M | -84.02K | -259.04K | -9.07K | -67.68K | 556.13K | 865.38K | 6.9M | 7M | 0 | -1.09M | 555.88K |
| Net Change in Cash | 1.32M | -3.4M | 268.59K | -16.32M | 23.58M | 2.29M | -415.55K | 1.12M | -287.23K | 214.37K | 37.11K | -494.14K | -4.69M | 4.2M | 561.81K | -1.57M | 3.13M |
| Free Cash Flow | -5.99M | -6.28M | -6.18M | -15.23M | -11.97M | -2.05M | -1.46M | -1.19M | -1.43M | -2.58M | -2.74M | -2.92M | -11.58M | -4.06M | -5.41M | -1.11M | -37.74K |
| FCF Margin % | -635.73% | -720.21% | -20727.06% | -20904.27% | -3525.46% | -87004.88% | - | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -1.97% | -1.68% | 59.42% | -27.18% | -484.43% | -40.38% | -22.97% | 17.21% | 44.51% | 5.55% | 6.4% | 74.76% | -184.99% | 24.95% | -385.55% | -2854% | - |
| FCF per Share | -0.06 | -0.06 | -0.06 | -0.15 | -0.13 | -0.02 | -0.02 | -0.02 | -0.02 | -0.04 | -0.05 | -0.05 | -0.21 | -0.10 | -0.14 | -0.04 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.74x | 0.63x | 0.51x | 0.90x | 0.25x | 0.46x | 1.25x | 0.49x | 0.64x | 0.60x | 0.40x | 0.41x | 0.68x | 0.70x | 1.27x | 0.87x | 0.26x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Acute liquidity and dilution
According to reported financial data, Zentek's operating cash flow consistently trails net losses, with the OCF/NI ratio fluctuating between 0.21 and 0.86, suggesting that the company's accounting losses are not fully mitigated by non-cash charges and that cash burn remains the primary operational reality.
The persistent gap between net income and operating cash flow indicates that the company is consuming cash at a rate that exceeds its reported accounting losses. This suggests that the firm's reliance on external financing is structural rather than temporary, as the cash conversion cycle fails to generate sufficient internal liquidity to fund ongoing R&D and administrative overhead.
As reported in financial statements, Zentek's free cash flow remains deeply negative across all observed periods, with FCF margins reaching as low as -301.5% in 2023Q4, confirming that the company is currently in a capital-intensive phase without a self-sustaining commercial revenue engine.
The trajectory of free cash flow highlights a lack of operational leverage, as the company continues to burn through its limited cash reserves to maintain its specialized workforce and patent portfolio. Investors should monitor whether the recent shift toward commercial revenue can eventually narrow this FCF deficit, though current figures suggest a long runway to break-even.
Based on Zentek's reported figures, working capital changes have been highly erratic, swinging from a $561.5K inflow in 2025Q2 to a $154.2K outflow in 2025Q3, which indicates that the company's cash position is highly sensitive to the timing of inventory procurement and customer collections.
This volatility in working capital suggests that the company lacks a stabilized supply chain or a predictable customer payment cycle. Such fluctuations complicate cash flow forecasting and may indicate that the firm is struggling to manage its inventory levels effectively as it attempts to scale its functionalized graphene production.
Data from recent filings suggests that Zentek's cash flow statement obscures the true extent of its burn by relying on stock-based compensation and other non-cash adjustments, which, when combined with minimal cash reserves, points to a high probability of future equity dilution for shareholders.
The reliance on stock-based compensation to preserve cash highlights the company's limited liquidity and its need to conserve capital for essential operations. This practice may mask the true cost of talent acquisition and R&D, warranting further investigation into how long the company can sustain its current burn rate without additional capital raises.
Quick answers to the most common questions about buying ZTEK stock.
Zentek Ltd. (ZTEK) generated $-6.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Zentek Ltd. (ZTEK) reported negative free cash flow of $6.3M in 2024, indicating capital requirements exceeded cash from operations.
Zentek Ltd. (ZTEK) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.