Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, Roma Green Finance (NASDAQ:ROMA) shareholders have done very well over the last year, with the share price soaring by 404%. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

Given its strong share price performance, we think it's worthwhile for Roma Green Finance shareholders to consider whether its cash burn is concerning. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.

How Long Is Roma Green Finance's Cash Runway?

A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Roma Green Finance last reported its September 2025 balance sheet in December 2025, it had zero debt and cash worth HK$21m. In the last year, its cash burn was HK$19m. Therefore, from September 2025 it had roughly 13 months of cash runway. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. The image below shows how its cash balance has been changing over the last few years.

How Well Is Roma Green Finance Growing?

We reckon the fact that Roma Green Finance managed to shrink its cash burn by 40% over the last year is rather encouraging. And arguably the operating revenue growth of 60% was even more impressive. It seems to be growing nicely. Of course, we've only taken a quick look at the stock's growth metrics, here. You can take a look at how Roma Green Finance is growing revenue over time by checking this visualization of past revenue growth.

How Hard Would It Be For Roma Green Finance To Raise More Cash For Growth?

Even though it seems like Roma Green Finance is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

Roma Green Finance's cash burn of HK$19m is about 0.9% of its HK$2.1b market capitalisation. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.

Is Roma Green Finance's Cash Burn A Worry?

It may already be apparent to you that we're relatively comfortable with the way Roma Green Finance is burning through its cash. For example, we think its revenue growth suggests that the company is on a good path. On this analysis its cash runway was its weakest feature, but we are not concerned about it. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried.

Of course Roma Green Finance may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.