Free cash flow has turned significantly negative, reaching a -10.0% margin in 2026Q2, exacerbated by a $24.0 million outflow from working capital changes.
| Cash from Operations | 80.6M | 88.6M | 93.4M | 29.2M | 35.2M | 47M | 78.9M | 92.63M | 32.7M |
| Operating CF Margin % | - | 6.37% | 7.56% | 3.06% | 3.37% | 5.27% | 9.15% | 10.49% | 3.8% |
| Operating CF Growth % | -144.76% | -5.14% | 219.86% | -17.05% | -25.11% | -40.43% | -14.83% | 183.28% | - |
| Net Income | 22.8M | 40.5M | 41.8M | -3.1M | -34.9M | 44.9M | 28.8M | 71.7M | 72.4M |
| Depreciation & Amortization | 34.8M | 34.6M | 37.7M | 32.8M | 24.8M | 20.4M | 18.1M | 16.47M | 9.4M |
| Stock-Based Compensation | 7.7M | 8.8M | 7.1M | 4.5M | 3.6M | 2.6M | 5M | 0 | 0 |
| Deferred Taxes | 1.9M | 1.9M | -8M | -6.4M | -600K | 8.8M | -1M | 594K | 6.3M |
| Other Non-Cash Items | 9.8M | 10M | 7.7M | 7.6M | 46.1M | -2M | 20.1M | 222K | -68.81M |
| Working Capital Changes | 2.6M | -7.2M | 7.1M | -6.2M | -3.8M | -27.7M | 7.9M | 1.86M | 13.4M |
| Change in Receivables | 14.9M | 13.7M | -21.2M | -7.2M | 10.6M | -16.4M | 10.3M | -2.66M | 6M |
| Change in Inventory | -3.5M | 11.1M | -19.3M | 3M | -15.3M | -11.2M | 5.9M | -12.23M | 4.2M |
| Change in Payables | 21.4M | 12.3M | 25.4M | -8.9M | 9.4M | 8.9M | 8.2M | 5.22M | -1.5M |
| Cash from Investing | -46.8M | -51.9M | -33.5M | -54.1M | -51.4M | -70.3M | -67.7M | -30.67M | -64.5M |
| Capital Expenditures | -46.3M | -51.4M | -32.2M | -49.8M | -61.2M | -73.4M | -67.3M | -29.71M | -27.2M |
| CapEx % of Revenue | 3.72% | 3.69% | 2.61% | 5.22% | 5.85% | 8.23% | 7.8% | 3.36% | 3.16% |
| Acquisitions | 0 | 0 | 100K | -2.1M | 3.9M | -200K | -3.4M | -1.91M | -31.6M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -500K | -500K | -1.4M | 100K | 2M | 3.3M | 3M | 2.79M | -5.7M |
| Cash from Financing | -38.1M | -29.5M | -43.8M | 14.3M | -21.8M | -11.5M | 50.1M | -26.79M | 48.4M |
| Debt Issued (Net) | -29.6M | -19.6M | -41M | 11.2M | -22.8M | -11.7M | -13M | -20.63M | 55.1M |
| Equity Issued (Net) | -2.8M | -5.8M | -800K | -1.1M | 100K | 200K | 76.2M | -900K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -13M | -5.6M | -4.5M |
| Share Repurchases | -2.8M | -6.1M | -800K | -600K | 0 | 0 | -1.9M | -900K | 0 |
| Other Financing | -5.7M | -4.1M | -2M | 4.2M | 900K | 0 | -100K | 325K | -2.2M |
| Net Change in Cash | -3.9M | 7.2M | 16.1M | -10.7M | -38.3M | -34.8M | 61.4M | 35.14M | 16.6M |
| Free Cash Flow | 34.3M | 37.2M | 61.2M | -20.6M | -26M | -26.4M | 11.6M | 62.92M | 5.5M |
| FCF Margin % | 2.75% | 2.67% | 4.96% | -2.16% | -2.49% | -2.96% | 1.35% | 7.12% | 0.64% |
| FCF Growth % | 37.2% | -39.22% | 397.09% | 20.77% | 1.52% | -327.59% | -81.56% | 1044.05% | - |
| FCF per Share | 0.49 | 0.52 | 0.86 | -0.29 | -0.37 | -0.37 | 0.16 | 0.89 | 0.08 |
| FCF Conversion (FCF/Net Income) | 1.50x | 2.35x | 2.54x | -10.43x | -1.02x | 1.05x | 2.74x | 1.29x | 0.45x |
| Interest Paid | 0 | 9.1M | 12.2M | 11.5M | 5.7M | 4.3M | 6.3M | 10.5M | 5.5M |
| Taxes Paid | 0 | 23M | 19.6M | 7.1M | 6.2M | 14.8M | 18.5M | 21.5M | 8.4M |
Seasonal working capital volatility
According to reported financial data, Mission Produce's operating cash flow frequently decouples from net income, as evidenced by the 2026Q2 period where the company reported a $7.2 million net loss alongside a significantly larger $18.0 million cash outflow from operations, indicating poor earnings quality.
The persistent gap between net income and operating cash flow suggests that accounting profits are often inflated by non-cash items or accruals that do not materialize into liquidity. Investors should monitor this divergence, as it implies that the company's reported earnings may not be a reliable proxy for its actual ability to generate cash during cyclical downturns.
Based on the provided cash flow statements, Mission Produce's free cash flow trajectory has turned sharply negative, with FCF margins dropping to -10.0% in 2026Q2, a stark reversal from the 17.4% margin peak observed in 2025Q4, highlighting significant instability in cash generation.
The erratic nature of free cash flow appears to be driven by the company's inability to maintain positive cash generation outside of peak harvest windows. This volatility suggests that the business model remains highly sensitive to seasonal pricing and volume fluctuations, which may limit the company's ability to fund operations internally.
As reported in recent filings, Mission Produce's capital expenditures have remained elevated, with CapEx/Revenue ratios reaching 3.8% in 2026Q2, which suggests that the company is continuing to commit significant capital to infrastructure despite the current period of negative operating cash flow.
The ongoing investment in ripening facilities and orchard development appears to be a fixed-cost burden that persists regardless of the current revenue environment. This capital intensity warrants further investigation to determine if these investments are truly growth-oriented or merely necessary maintenance to prevent further operational decay.
Based on the quarterly cash flow statements, working capital changes have become a major drain on liquidity, with a $24.0 million outflow in 2026Q2 alone, reflecting the difficulty of managing inventory and receivables during periods of slowing demand and price volatility.
The significant cash outflows related to working capital suggest that the company is struggling to convert its inventory into cash efficiently. This trend may indicate that perishable stock is lingering longer than expected, potentially leading to increased waste and further pressure on the company's already thin operating margins.
Quick answers to the most common questions about buying AVO stock.
Mission Produce, Inc. (AVO) generated $88.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mission Produce, Inc. (AVO) generated $37.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Mission Produce, Inc. (AVO) spent $51.4M 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, Mission Produce, Inc. (AVO) spent $6.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.