Free cash flow remains highly volatile and negative, with a -4.8% margin in 2026Q1, as capital expenditure as a percentage of revenue has trended upward to 1.9%.
| Cash from Operations | 14.48M | 16.44M | 669K | 33.43M | -319K | 23.97M | 21.71M | 511K |
| Operating CF Margin % | - | 2.74% | 0.12% | 6.12% | -0.05% | 4.26% | 10.06% | 0.5% |
| Operating CF Growth % | 381.92% | 2356.8% | -98% | 10578.37% | -101.33% | 10.39% | 4148.92% | - |
| Net Income | -30.22M | -31.43M | -25.99M | -98.89M | -176.7M | -6.09M | 14.8M | 1.44M |
| Depreciation & Amortization | 18.1M | 8.33M | 17.6M | 19.14M | 20.35M | 16.71M | 6.76M | 6.23M |
| Stock-Based Compensation | 4.99M | 7.05M | 7.98M | 7.64M | 6.73M | 8.04M | 1.38M | 353K |
| Deferred Taxes | 41K | 41K | 1.51M | -745K | -4.06M | -11.95M | -2.91M | -1.71M |
| Other Non-Cash Items | 19.77M | 28.02M | 10.25M | 80.04M | 186.64M | 34.05M | 0 | 0 |
| Working Capital Changes | 1.8M | 4.42M | -10.68M | 26.23M | -33.28M | -16.79M | 1.67M | -5.81M |
| Change in Receivables | 5.99M | -2.33M | -3.29M | -1.28M | -602K | -858K | -833K | -47K |
| Change in Inventory | 29.81M | 12.07M | -10.66M | 32.15M | -16.26M | -32.13M | -9.38M | -15.06M |
| Change in Payables | 1.32M | 811K | 2.44M | 7.51M | -1.89M | 6.04M | -2.78M | 5.12M |
| Cash from Investing | -16.21M | -17.07M | -11.59M | -6.03M | -25.31M | -278.07M | -2.38M | -21.83M |
| Capital Expenditures | -16.21M | -17.07M | -11.59M | -5.97M | -19.75M | -7.73M | -1.33M | -1.03M |
| CapEx % of Revenue | 2.68% | 2.84% | 2.02% | 1.09% | 3.23% | 1.38% | 0.62% | 1.01% |
| Acquisitions | 0 | 0 | 0 | 0 | -5.32M | -269.5M | -600K | -20.43M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -2K | -61K | -247K | -841K | -451K | -372K |
| Cash from Financing | -13.84M | -4.43M | 15.51M | -52.83M | 33.26M | 269.85M | 1.24M | 20.58M |
| Debt Issued (Net) | -10.04M | -1.75M | 17.9M | -50.7M | 34.28M | 90.32M | 790K | -1.58M |
| Equity Issued (Net) | -1.48M | -1.74M | -1.51M | -2.29M | 0 | 179.53M | 450K | 22.16M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.72M | -1.98M | -1.51M | -2.1M | 0 | 0 | 0 | 0 |
| Other Financing | -2.32M | -944K | -879K | 162K | -1.02M | 0 | 0 | 0 |
| Net Change in Cash | -14.05M | -3.96M | 2.45M | -24.34M | 7.36M | 13.92M | 21.31M | -252K |
| Free Cash Flow | -1.73M | -633K | -10.92M | 27.39M | -20.31M | 15.39M | 19.93M | -892K |
| FCF Margin % | -0.29% | -0.11% | -1.9% | 5.01% | -3.32% | 2.74% | 9.23% | -0.87% |
| FCF Growth % | 77.78% | 94.2% | -139.87% | 234.87% | -231.96% | -22.78% | 2334.64% | - |
| FCF per Share | -0.16 | -0.06 | -1.03 | 2.56 | -1.89 | 1.44 | 1.87 | -0.08 |
| FCF Conversion (FCF/Net Income) | 0.06x | -0.52x | -0.03x | -0.34x | 0.00x | -4.02x | 1.51x | 0.37x |
| Interest Paid | 0 | 0 | 9.77M | 0 | 6.3M | 7.9M | 278K | 334K |
| Taxes Paid | 0 | 0 | 2.06M | 0 | 2.33M | 20.63M | 4.88M | 4.43M |
Persistent negative operating cash
According to the provided financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently swinging between positive and negative values, suggesting that reported losses are not consistently mitigated by non-cash adjustments or efficient working capital management cycles.
The lack of a stable correlation between net income and operating cash flow indicates that the company's earnings quality is currently poor. Investors should monitor whether the frequent divergence is driven by volatile inventory adjustments or the timing of payments, as this inconsistency complicates the assessment of the firm's underlying cash-generating capability.
As reported in recent financial statements, AKA's free cash flow trajectory remains highly unstable, with quarterly margins fluctuating between -7.2% and 10.0% over the last ten periods, reflecting a business model that struggles to generate consistent surplus cash after accounting for necessary capital expenditures.
The inability to maintain positive free cash flow suggests that the company's current operational scale is insufficient to cover both its overhead and the capital requirements of its retail footprint. This volatility warrants further investigation into whether the firm can achieve a sustainable cash-flow inflection point without further external financing.
Based on reported figures, capital expenditure as a percentage of revenue has trended upward from 0.3% in 2023Q4 to 1.9% in 2026Q1, indicating that the company is increasingly deploying capital into physical infrastructure, which may be pressuring the firm's already thin liquidity position.
The shift toward higher capital intensity appears to coincide with the expansion of physical retail locations, which represents a departure from the company's original asset-light digital model. This transition may increase the firm's fixed-cost burden and requires careful monitoring to ensure that these investments yield a sufficient return on invested capital.
As evidenced by the quarterly data, working capital changes have been highly erratic, ranging from a $21.2 million inflow in 2023Q4 to a $7.9 million outflow in 2024Q1, suggesting that the company's cash flow is heavily influenced by seasonal inventory management and timing of payables.
These significant swings in working capital suggest that the company's cash flow is highly sensitive to inventory turnover and supplier payment terms. Investors should monitor whether these fluctuations are indicative of structural inefficiencies in the supply chain or merely the result of aggressive seasonal inventory builds.
Based on an analysis of the cash flow statement, stock-based compensation and depreciation and amortization consistently provide a buffer to operating cash flow, effectively masking the underlying cash burn associated with the company's ongoing operational losses and high corporate overhead requirements.
The reliance on non-cash adjustments to bolster operating cash flow suggests that the company's core business operations are not yet self-sustaining. Analysts should be cautious of these adjustments, as they do not represent actual cash inflows and may obscure the true extent of the company's cash-burning nature.
Quick answers to the most common questions about buying AKA stock.
a.k.a. Brands Holding Corp. (AKA) generated $16.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
a.k.a. Brands Holding Corp. (AKA) reported negative free cash flow of $0.6M in 2025, indicating capital requirements exceeded cash from operations.
a.k.a. Brands Holding Corp. (AKA) spent $17.1M 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, a.k.a. Brands Holding Corp. (AKA) spent $2.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.