Operational sustainability is under pressure as the company burned $5.0 million in free cash flow during 2026Q1, further depleting cash reserves to a precarious $2.6 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | -9.14M | -8.71M | -11.01M | -16.07M | -24.19M | 14.56M | -25.01M | -113K | -6.57M | -12.17M | -8.44M | -2.57M | -28.38M | -23.46M | -14.47M | -5.38M | -6.36M | -4.85M | -7.3M |
| Operating CF Margin % | - | -29.83% | -32.47% | -53.39% | -43.24% | 19.75% | -298.29% | -0.23% | -13.11% | -24.93% | -44.49% | -11.33% | -1991.72% | -2133.18% | -3920.87% | -749.3% | -3014.69% | -24250% | - |
| Operating CF Growth % | -311.64% | 20.83% | 31.54% | 33.55% | -266.12% | 158.22% | -22034.51% | 98.28% | 46.06% | -44.2% | -228.32% | 90.94% | -20.95% | -62.19% | -168.92% | 15.42% | -31.15% | 33.53% | - |
| Net Income | -23.45M | -16.11M | -16.49M | -27.74M | -32.63M | 2.89M | -92.23M | -20.53M | -35.63M | -16.11M | -24M | -11.26M | -109.68M | -52.43M | -20.84M | 748K | -9.94M | -6.15M | -7.33M |
| Depreciation & Amortization | 2.5M | 1.78M | 2.27M | 3.55M | 7.27M | 4.92M | 7.22M | 6.12M | 9.5M | 7.98M | 1.84M | 3.52M | 4.02M | 5.22M | 2.5M | 61K | 87K | 113K | 107K |
| Stock-Based Compensation | 2.48M | 1.08M | 893K | 2.32M | 3.87M | 2.86M | 1.33M | 335K | 916K | 2.18M | 2.57M | 5.06M | 10.97M | 12.09M | 8.09M | 1.77M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.61M | 19.23M | -3.47M | 15.1M | -866K | 65.1M | 7.06M | -58K | 24K | 132K | -25K | -7K |
| Other Non-Cash Items | 12.61M | 6.79M | 3.9M | 7.72M | 7.33M | 2.26M | 67.03M | 4.81M | 1.54M | 26K | -216K | 1.8M | 65K | 1.2M | -3.96M | -7.56M | 3.85M | 539K | -35K |
| Working Capital Changes | -1.43M | -2.26M | -1.58M | -1.92M | -9.94M | 1.63M | -8.36M | 4.54M | -2.12M | -2.77M | -3.74M | -826K | 1.14M | 3.4M | -201K | -424K | -474K | 505K | -77K |
| Change in Receivables | 229K | 247K | -193K | 1.19M | -1.83M | -1.12M | 0 | 0 | -1.83M | -636K | -132K | 0 | 0 | 0 | 0 | -283K | 0 | 0 | 0 |
| Change in Inventory | 78K | -8K | 399K | 261K | 592K | -1.11M | -10K | 136K | 377K | 1.35M | 16K | -146K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.48M | 1.21M | 387K | -488K | -3.25M | 6.69M | -5.17M | 3.76M | -604K | -3.11M | -2.91M | 378K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 4.41M | 4.33M | 5.89M | 5.65M | -34.84M | -5.16M | -4.35M | -2.27M | -1.87M | -5.4M | 3.47M | -104K | -2.65M | -1.64M | -19.48M | -6K | 2.5M | -2.62M | -109K |
| Capital Expenditures | -2.93M | 0 | -1.78M | -1.91M | -6.84M | -4.28M | -3.97M | -2.27M | -3.12M | -4.71M | -641K | 0 | -246K | -1.44M | -22.76M | -27K | -86K | -33K | -101K |
| CapEx % of Revenue | 10.16% | 10.15% | 5.26% | 6.33% | 12.22% | 5.81% | 47.33% | 4.69% | 6.22% | 9.65% | 3.38% | - | 17.26% | 131.18% | 6166.94% | 3.76% | 40.76% | 165% | - |
| Acquisitions | 0 | 0 | 0 | -1.39M | -4.85M | 2.43M | 0 | 178K | 800K | 276K | 2.11M | 144K | 0 | 0 | 3.33M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -7.16M | -3.06M | -9K | -468K | -34.84M | -3.31M | -380K | -178K | 335K | -960K | 2M | -248K | -2.4M | -193K | -46K | 1K | 2.58M | 0 | 0 |
| Cash from Financing | 17.39M | 1.94M | 1.36M | 8K | -27.38M | 6.35M | 117.22M | 1.17M | 5.64M | 6.09M | -2.06M | 11.6M | 13.45M | 1.56M | 85.69M | 1.2M | 8.52M | 2.18M | 5M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -3.58M | -2.07M | 6.15M | 2.87M | 4.35M | 0 | -2.01M | 11.81M | 0 | 0 | -3.2M | 405K | -757K | 1.91M | 0 |
| Equity Issued (Net) | 26.52M | 157K | 1.35M | -22K | -23.86M | 9.26M | 110.62M | 0 | 0 | 6.58M | 0 | 0 | 0 | 0 | 76.11M | 785K | 9.26M | 0 | 0 |
| Dividends Paid | -1.24M | -267K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -913K | -1.79M | 0 | -22K | -23.86M | -7.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -7.89M | 2.05M | 4K | 30K | 69K | -841K | 453K | -1.71M | 1.29M | -497K | -50K | -218K | 13.45M | 1.56M | 12.78M | 8K | 14K | 271K | 5M |
| Net Change in Cash | 12.64M | -2.43M | -3.89M | -10.6M | -86.47M | 15.76M | 87.87M | -1.25M | -2.96M | -11.54M | -7.04M | 8.93M | -17.56M | -23.37M | 51.75M | -4.22M | 4.66M | -5.26M | -2.45M |
| Free Cash Flow | -12.07M | -11.68M | -12.8M | -18.45M | -31.02M | 6.97M | -29.36M | -2.39M | -9.68M | -16.88M | -9.08M | -2.57M | -28.63M | -24.91M | -37.22M | -5.41M | -6.45M | -4.88M | -7.4M |
| FCF Margin % | -41.86% | -39.98% | -37.75% | -61.27% | -55.46% | 9.45% | -350.16% | -4.92% | -19.33% | -34.58% | -47.87% | -11.33% | -2008.98% | -2264.36% | -10087.8% | -753.06% | -3055.45% | -24415% | - |
| FCF Growth % | 10.12% | 8.75% | 30.63% | 40.54% | -545.06% | 123.74% | -1129.52% | 75.34% | 42.66% | -85.91% | -253.25% | 91.02% | -14.94% | 33.09% | -588.44% | 16.13% | -32.03% | 33.99% | - |
| FCF per Share | -1.63 | -2.10 | -2.78 | -4.42 | -6.63 | 1.33 | -13.18 | -29.22 | -399.64 | -909.11 | -718.57 | -301.97 | -3796.82 | -3589.05 | -10721.20 | -6522.32 | -14326.67 | -2.04 | -7078.47 |
| FCF Conversion (FCF/Net Income) | 0.51x | 0.51x | 0.65x | 0.58x | 0.74x | 4.35x | 0.28x | 0.01x | 0.18x | 0.42x | 0.35x | 0.23x | 0.26x | 0.45x | 0.69x | 0.72x | 0.64x | 0.79x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 10K | 11K | 187K | 735K | 0 | 0 | 0 | 0 | 0 | 0 | 9K | 0 | 0 | 0 | 0 |
| Taxes Paid | 58K | 58K | 59K | 35K | 55K | 0 | 11K | 124K | 0 | 0 | 0 | 0 | 0 | 34K | 7K | 0 | 0 | 0 | 0 |
Critical liquidity depletion risk
According to the provided financial data, XWEL consistently reports negative operating cash flow that frequently exceeds net losses, as evidenced by the 2026Q1 period where the company burned $4.6 million in cash despite a net loss of $11.2 million, highlighting a fundamental lack of earnings quality.
The recurring inability to generate positive operating cash flow suggests that the company's core service model is not self-sustaining under its current cost structure. Investors should monitor the OCF/NI ratio, which remains erratic and fails to demonstrate the conversion of accounting profits into tangible liquidity.
As reported in quarterly filings, XWEL's free cash flow remains deeply negative across all observed periods, with the company recording a $5.0 million outflow in 2026Q1 alone, indicating that the business is currently consuming capital at a rate that outpaces its ability to generate revenue.
The persistent negative FCF margins, which reached -75.2% in the most recent quarter, imply that the company is effectively subsidizing its operations through external capital rather than internal generation. This trajectory appears unsustainable without a significant pivot in either revenue scale or cost management.
Based on the provided cash flow statements, XWEL continues to allocate capital toward leasehold improvements and equipment, with CapEx/Revenue ratios peaking at 12.9% in 2025Q3, even as the company struggles to maintain top-line growth and faces significant operational headwinds in its airport-based service model.
The ongoing investment in physical infrastructure appears to be a defensive necessity to maintain airport concessions rather than a growth-oriented strategy. This capital intensity, when paired with negative operating margins, suggests that the company is trapped in a cycle of high maintenance spending to support a shrinking revenue base.
Analysis of recent financial statements reveals significant volatility in working capital, with swings ranging from a $2.6 million inflow in 2025Q4 to a $2.9 million outflow in 2025Q3, suggesting that the company lacks a stable mechanism for managing its cash conversion cycle and operational payables.
These erratic fluctuations in working capital may indicate difficulties in timing payments to vendors or managing the collection of receivables from diagnostic testing partners. Such instability complicates cash forecasting and adds another layer of risk to the company's already strained liquidity position.
As indicated by the cash flow data, XWEL has continued to engage in minor share repurchases and dividend payments despite reporting consistent net losses and negative cash flow, a practice that appears incongruent with the company's urgent need to preserve its dwindling $2.6 million cash reserve.
The decision to return capital to shareholders while the business is burning cash warrants further investigation into management's capital allocation priorities. This behavior may suggest a disconnect between corporate financial strategy and the underlying reality of the company's operational distress.
Quick answers to the most common questions about buying XWEL stock.
XWELL, Inc. (XWEL) generated $-8.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
XWELL, Inc. (XWEL) reported negative free cash flow of $11.7M in 2025, indicating capital requirements exceeded cash from operations.
XWELL, Inc. (XWEL) 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.
In 2025, XWELL, Inc. (XWEL) returned $0.3M to shareholders via cash dividends and spent $1.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.