Liquidity remains precarious as evidenced by an OCF/NI ratio of -450.93 in 2026Q1, forcing a reduction in capital expenditure to just 0.6% of revenue to preserve cash.
| Cash from Operations | 1.09M | -9.81M | 11.31M | -24.97M | -116.19M | -7.69M | 11.55M | 4.14M |
| Operating CF Margin % | - | -2.46% | 2.89% | -6.31% | -38.56% | -3.3% | 7.04% | 5.05% |
| Operating CF Growth % | -254.69% | -186.75% | 145.29% | 78.51% | -1410.73% | -166.61% | 178.62% | - |
| Net Income | -9.04M | -32.23M | -7.65M | -16.75M | -338.04M | -13.85M | 4.32M | -772K |
| Depreciation & Amortization | 11.78M | 12.2M | 10.06M | 7.26M | 4.38M | 2.9M | 1.38M | 933K |
| Stock-Based Compensation | 10.45M | 10.31M | 10.61M | 6.97M | 6.08M | 3.2M | 1.93M | 143K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47K |
| Other Non-Cash Items | -2.63M | 8.91M | 12.96M | -34.35M | 269.83M | 2.6M | 1.76M | 314K |
| Working Capital Changes | -3.35M | -8.99M | -14.66M | 11.89M | -58.44M | -2.54M | 2.16M | 3.48M |
| Change in Receivables | -9.37M | -1.54M | -8.63M | -2.77M | -14.89M | -3.76M | -2.96M | -243K |
| Change in Inventory | -5.23M | -12.02M | -10.11M | -8.18M | -56.31M | -4.83M | -10.9M | 289K |
| Change in Payables | 6.63M | -3.83M | 6.81M | 21.56M | -6.15M | 4.65M | 7.03M | 986K |
| Cash from Investing | 1.96M | 1.42M | -7.71M | -21.51M | -30.4M | -19.29M | -9.76M | -1.11M |
| Capital Expenditures | -3.12M | -3.66M | -8.67M | -27.22M | -30.4M | -19.29M | -9.76M | -1.04M |
| CapEx % of Revenue | 0.75% | 0.92% | 2.21% | 6.88% | 10.09% | 8.27% | 5.95% | 1.27% |
| Acquisitions | 5.08M | 5.08M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 953K | 5.71M | 0 | 0 | 0 | -63K |
| Cash from Financing | 3.01M | 5.91M | -10.7M | 21.4M | 167.25M | 9.68M | 28.81M | -2.17M |
| Debt Issued (Net) | -35.27M | -32.66M | -9.48M | 25.06M | 12.84M | 17.02M | 8.65M | -2.37M |
| Equity Issued (Net) | 37.44M | 37.57M | 518K | 673K | -20.14M | 0 | 145.1M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -127.85M | -7M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -20.14M | 0 | 0 | 0 |
| Other Financing | 849K | 1M | -1.73M | -4.33M | 302.41M | -338K | -124.94M | 201K |
| Net Change in Cash | 6.07M | -2.48M | -7.1M | -25.08M | 20.66M | -17.3M | 30.6M | 872K |
| Free Cash Flow | -2.02M | -13.47M | 2.64M | -52.19M | -146.59M | -26.98M | 1.79M | 3.1M |
| FCF Margin % | -0.48% | -3.38% | 0.67% | -13.19% | -48.65% | -11.57% | 1.09% | 3.78% |
| FCF Growth % | 58.46% | -609.84% | 105.06% | 64.4% | -443.38% | -1610.53% | -42.41% | - |
| FCF per Share | -0.02 | -0.14 | 0.04 | -0.86 | -2.86 | -0.19 | 0.01 | 0.07 |
| FCF Conversion (FCF/Net Income) | 0.22x | 0.82x | -3.83x | 1.49x | 1.40x | 0.56x | 2.67x | -5.37x |
| Interest Paid | 1.07M | 0 | 9.04M | 4.48M | 1.28M | 719K | 1.01M | 332K |
| Taxes Paid | 262K | 0 | 425K | 562K | 277K | 147K | 114K | 14K |
Liquidity and capital exhaustion
As reported in recent financial filings, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio reaching an extreme -450.93 in 2026Q1, suggesting that accounting earnings provide little insight into the company's actual ability to generate cash from core operations.
The persistent divergence between net losses and operating cash flow indicates that non-cash adjustments and working capital swings are masking the underlying cash burn. Investors should monitor whether this volatility reflects genuine operational inefficiency or simply the accounting complexities inherent in the company's current growth-stage business model.
Based on the provided quarterly data, free cash flow trajectory remains inconsistent, oscillating between positive and negative territory, with a notable -8.3% FCF margin in 2025Q4 that highlights the difficulty in sustaining self-funded growth while managing high operational overhead and fluctuating capital requirements across multiple business segments.
The inability to maintain a positive FCF trajectory suggests that the company's current scale is insufficient to cover its capital-intensive expansion plans. This inconsistency warrants further investigation into whether management can achieve a sustainable cash-flow-positive state without further diluting shareholders or increasing debt obligations.
According to historical cash flow statements, capital expenditure as a percentage of revenue has declined from a peak of 12.5% in 2023Q4 to just 0.6% in 2026Q1, indicating a forced reduction in investment spending likely driven by the company's urgent need to preserve its limited cash reserves.
While the reduction in capital intensity may improve short-term cash flow, it may also imply a strategic pivot away from aggressive retail expansion. Analysts should consider whether this lower level of investment is sufficient to maintain the brand's competitive positioning or if it signals a long-term degradation of asset quality.
Data from recent quarterly reports reveals that working capital changes have been a primary driver of cash flow volatility, including a massive $27 million inflow in 2023Q4 followed by significant outflows, suggesting that the company's cash position is highly sensitive to inventory management and trade credit cycles.
The reliance on working capital fluctuations to manage liquidity appears to be a precarious strategy for a company with such limited cash on hand. Investors should monitor the sustainability of these cycles, as any disruption in collections or inventory turnover could rapidly exacerbate the company's existing liquidity constraints.
Quick answers to the most common questions about buying BRCC stock.
BRC Inc. (BRCC) generated $-9.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
BRC Inc. (BRCC) reported negative free cash flow of $13.5M in 2025, indicating capital requirements exceeded cash from operations.
BRC Inc. (BRCC) spent $3.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.