Operating cash flow remains disconnected from earnings, evidenced by a negative $1.5 million in 2025Q2 and an OCF/NI ratio of -16.87 in 2024Q2.
| Cash from Operations | 193.1M | 126.39M | 22.26M | 45.5M | 698.81M | 491.23M | 864.99M | 554.22M | 482.99M | 360.66M | 134.89M | 46.62M |
| Operating CF Margin % | - | 7.2% | 1.05% | 3.16% | 49.85% | 14.59% | 33.75% | 32.24% | 36.36% | 34.67% | 18.09% | 7.93% |
| Operating CF Growth % | 2849.94% | 467.78% | -51.07% | -93.49% | 42.26% | -43.21% | 56.07% | 14.75% | 33.92% | 167.38% | 189.31% | - |
| Net Income | -1.02B | -996.28M | -386.82M | -119.7M | -165.8M | 164.17M | 252.76M | 248.9M | 191.81M | 2.92M | -39.91M | -38.12M |
| Depreciation & Amortization | 0 | 63.09M | 83.92M | 115.93M | 221.74M | 197.43M | 130.82M | 85.88M | 78.06M | 72.09M | 57.11M | 33.47M |
| Stock-Based Compensation | 0 | 869.78K | 0 | -816K | 1.86M | -10.63M | 51.66M | 29.06M | 0 | 95.07M | 0 | 0 |
| Deferred Taxes | 0 | 576.13K | 108.11M | -33.53M | -44.34M | -12.97M | -4.55M | 6.69M | 975K | 4.77M | -32.09M | 0 |
| Other Non-Cash Items | 224.68M | 1.17B | 292.93M | 49.05M | 643.04M | 225.13M | 14.9M | -16.64M | 4.74M | 166K | 289K | -169K |
| Working Capital Changes | 0 | -106.98M | -75.88M | 34.56M | 42.3M | -71.9M | 419.4M | 200.33M | 207.41M | 185.73M | 149.49M | 51.44M |
| Change in Receivables | 0 | -61.51M | 521K | 27.28M | -37.97M | 5.47M | 1.56M | -424K | 2.18M | -2.07M | 16.18M | 14.5M |
| Change in Inventory | 0 | 1.03M | 1.38M | 710K | -2.74M | -1.34M | -14.72M | -468K | 982K | -485K | -1.61M | -2.07M |
| Change in Payables | 0 | 2.96M | -1.5M | 36.86M | 997K | -7.88M | -3.48M | -2.74M | 14.55M | -8.44M | 12.95M | -22.75M |
| Cash from Investing | -114.08M | -98M | -52.95M | -836.77M | -3.08B | 72.57M | -2.26B | -472.46M | -77.02M | 32.09M | -154.38M | -170.51M |
| Capital Expenditures | 0 | -4.88M | -79.38M | -89.64M | -158.67M | -149.76M | -155.2M | -117.56M | -97.12M | -92.69M | -134.52M | -149.19M |
| CapEx % of Revenue | 0% | 0.28% | 3.74% | 6.23% | 11.32% | 4.45% | 6.06% | 6.84% | 7.31% | 8.91% | 18.04% | 25.37% |
| Acquisitions | 0 | 0 | -19K | 895.15M | -2.92B | -12.67M | -2.07B | -190.46M | -80.88M | -101K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -114.08M | -102.33M | 26.45M | -836.77M | 2.19M | 1.54M | 1.55M | 859K | 63.45M | 62.69M | -19.86M | -162.37M |
| Cash from Financing | -76.97M | -85.46M | -298.79M | 101.38M | -446.53M | 675.7M | 1.48B | 1.09B | 1.16B | -274.54M | 115.61M | 101.66M |
| Debt Issued (Net) | 0 | -67.5M | -171.93M | 1.7B | -261.54M | 955.56M | 2.07B | 49.84M | 0 | 0 | 112.61M | 96.66M |
| Equity Issued (Net) | 0 | 0 | 0 | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -92.55M | -184.24M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -9.24M | -24.63M | -56.06M | -417.15M | -108.94M | 0 | 0 | 0 | 0 |
| Other Financing | -76.97M | -17.96M | -126.86M | -1.59B | -67.82M | -39.56M | -172.46M | 0 | 16.85M | -274.54M | 3M | 5M |
| Net Change in Cash | 883K | -61.44M | -290.55M | -657.38M | -2.91B | 1.16B | 100.93M | 1.27B | 1.53B | 118.2M | 96.12M | -22.23M |
| Free Cash Flow | 193.1M | 80.93M | -57.11M | -44.15M | 540.13M | 341.46M | 709.78M | 436.66M | 385.87M | 267.97M | 363K | -102.57M |
| FCF Margin % | 17.28% | 4.61% | -2.69% | -3.07% | 38.53% | 10.14% | 27.69% | 25.4% | 29.05% | 25.76% | 0.05% | -17.44% |
| FCF Growth % | 225.15% | 241.7% | -29.37% | -108.17% | 58.18% | -51.89% | 62.55% | 13.16% | 44% | 73721.21% | 100.35% | - |
| FCF per Share | 25.89 | 10.91 | -7.70 | -5.95 | 72.49 | 45.47 | 92.84 | 57.18 | 58.89 | 44.21 | 0.06 | -17.72 |
| FCF Conversion (FCF/Net Income) | -0.19x | -0.13x | -0.06x | -0.06x | -13.23x | 3.05x | 3.59x | 2.24x | 2.81x | -9.92x | -3.37x | -1.42x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 4.09M | 7.13M | 19.06M | 7.7M | 67.87M | 56.47M | 65.14M | 16.38M | 2.21M | -1.04M | 242K |
Regulatory and enrollment volatility
As reported in recent financial statements, BEDU exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently falling into negative territory, such as the -16.87 reading observed in 2024Q2, suggesting that reported profits are not translating into actual liquidity.
The extreme volatility in the OCF/NI ratio indicates that accounting earnings are heavily influenced by non-cash items or timing differences that do not reflect the underlying cash-generating capacity of the schools. Investors should monitor this divergence as it suggests that the company's reported profitability may be masking a more challenging operational reality.
Based on the provided cash flow data, BEDU's free cash flow trajectory remains highly unstable, swinging from a positive $104.0 million in 2024Q4 to a negative $50.0 million in 2024Q2, which highlights the difficulty in maintaining consistent cash generation amidst a contracting revenue environment.
The lack of a predictable FCF trend suggests that the business model is struggling to cover its fixed operating costs during periods of enrollment decline. This inconsistency warrants further investigation into whether the company can achieve sustainable cash flow without significant structural changes to its asset base.
According to historical data, the cumulative gap between net income and operating cash flow suggests that BEDU's reported earnings have consistently failed to materialize as cash, with multiple quarters showing negative operating cash flow despite periods of positive net income, such as the $3.2 million income in 2025Q2.
This persistent divergence implies that the company's accounting practices may be capturing revenue or gains that are not yet realized in cash, potentially due to the nature of deferred tuition or non-cash impairments. Analysts should be cautious of relying on net income as a proxy for the company's financial health.
As indicated by the provided financial data, the absence of consistent capital expenditure reporting alongside significant non-cash adjustments, such as the $17.6 million in depreciation and amortization in 2024Q2, suggests that the cash flow statement may be obscuring the true cost of maintaining the company's physical school network.
The reliance on non-cash charges to reconcile net income to operating cash flow may hide the actual capital intensity required to keep facilities operational. This lack of transparency regarding maintenance capex makes it difficult to assess the long-term sustainability of the company's infrastructure investments.
Quick answers to the most common questions about buying BEDU stock.
Bright Scholar Education Holdings Limited (BEDU) generated $126.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Bright Scholar Education Holdings Limited (BEDU) generated $80.9M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Bright Scholar Education Holdings Limited (BEDU) spent $4.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.