B&G Foods, Inc. (BGS) Cash Flow Statement

The OCF-to-net-income ratio is not meaningful in quarters where net income is negative, but the direction of the gap is clear: operating cash generation has repeatedly exceeded or contrasted sharply with reported earnings. In 2026Q1, operating cash flow of $23.6M sat against a net loss of $32.5M, suggesting that non-cash charges and working capital movements are carrying a large share of the reported result. Investors should monitor whether this gap reflects timing effects or a structural difference between accounting earnings and cash economics.

The swing between quarters is dominated by working capital changes, such as the $119.3M outflow in 2025Q3 followed by a $37.6M inflow in 2025Q4, rather than by stable operating economics. Excluding these movements, underlying free cash generation appears modest relative to the company's revenue base. The trajectory suggests that the reported free cash flow may not be a reliable indicator of sustainable capacity without normalization for working capital timing.

Low capex relative to revenue suggests the business is not currently absorbing heavy reinvestment, which supports free cash flow conversion. However, depreciation and amortization of roughly $20M to $23M per quarter substantially exceeds capex in most periods, which may indicate that the asset base is being maintained at a level below its consumption rate. Investors should monitor whether underinvestment could affect future capacity or competitiveness.

Because the dividend outflow is steady while free cash flow is erratic, the payout appears to be structurally demanding in quarters with negative or thin free cash flow, such as 2025Q3 and 2024Q3. Acquisition spending in 2026Q1 of $109.7M was funded in a period of negative free cash flow, which suggests capital allocation may have been prioritized over balance sheet flexibility. Based on reported figures, this pattern warrants further investigation into how distributions and acquisitions are funded over time.