Free cash flow margins reached an inflection point of 4.2% in 2024Q4, supported by an exceptionally low CapEx/Revenue ratio of approximately 0.1%.
| Cash from Operations | 3.94M | 16.51M | 3.94M | -11.58M | -42.36M | -5.19M | 3.43M | -1.24M |
| Operating CF Margin % | - | 7.85% | 1.96% | -7.16% | -36.59% | -6.47% | 4.86% | -2.02% |
| Operating CF Growth % | -6056.31% | 318.67% | 134.05% | 72.66% | -715.81% | -251.5% | 375.93% | - |
| Net Income | 3.91M | 3.31M | 5.37M | -8.93M | -43.41M | -67.05M | -14.77M | -16.15M |
| Depreciation & Amortization | 388K | 121K | 146K | 114K | 556K | 721K | 931K | 1.19M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -61K | 0 | 0 | 0 |
| Other Non-Cash Items | -2.49M | 6.43M | -1.03M | -4.8M | 566.93K | 37.01M | -277K | 155K |
| Working Capital Changes | 2.14M | 6.65M | -541K | 2.03M | -3.94K | 24.12M | 17.54M | 13.55M |
| Change in Receivables | 2.14M | 5.28M | 2.14M | -9.27M | -3.94M | 10.32M | 3.68M | -3.78M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -3.42M | 3.77M |
| Change in Payables | 0 | 1.36M | -2.68M | 11.3M | 14.47M | 13.8M | 13.87M | 17.34M |
| Cash from Investing | -256K | -85K | -256K | -245K | -164K | -83K | -72K | -275K |
| Capital Expenditures | -256K | -85K | -256K | -245K | -164K | -80K | -55K | -75K |
| CapEx % of Revenue | 0.13% | 0.04% | 0.13% | 0.15% | 0.14% | 0.1% | 0.08% | 0.12% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -2.04M | -4.58M | -2.04M | 1.33M | 0 | 89.33M | 254K | 6.81M |
| Debt Issued (Net) | 0 | -2.03M | -1.94M | 1.33M | 0 | 441K | 254K | 6.81M |
| Equity Issued (Net) | -193K | -2.36M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -193K | -2.36M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.85M | -188K | -105K | 0 | 0 | 88.89M | 0 | 0 |
| Net Change in Cash | 0 | 9.68M | -971K | -12.53M | -41.1M | 84.01M | 2.88M | 5.39M |
| Free Cash Flow | 3.69M | 16.42M | 3.69M | -11.82M | -42.52M | -5.27M | 3.8M | -1.32M |
| FCF Margin % | 1.84% | 7.81% | 1.84% | -7.32% | -36.74% | -6.57% | 5.39% | -2.14% |
| FCF Growth % | 217.78% | 345.43% | 131.18% | 72.19% | -706.54% | -238.7% | 388.61% | - |
| FCF per Share | 0.08 | 0.36 | 0.08 | -0.26 | -0.94 | -0.12 | 0.43 | -21.95 |
| FCF Conversion (FCF/Net Income) | 0.94x | 12.78x | 1.01x | 4.79x | 0.91x | 0.08x | -0.21x | 0.08x |
| Interest Paid | 105K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and geographic concentration
As reported in financial statements, CDRO's OCF/NI ratio reached 1.00 in 2024Q4, indicating that the company has finally achieved a direct conversion of net income into operating cash flow after periods of significant divergence where cash generation lagged behind accounting profits due to working capital volatility.
The historical volatility in the OCF/NI ratio suggests that the company's earnings quality was previously obscured by aggressive accruals or timing differences in tax and bonus payments. Investors should monitor whether this 1.00 ratio is a sustainable feature of the business model or merely a temporary alignment resulting from specific quarterly cash management.
Based on reported figures, CDRO's free cash flow margin shifted from a negative 7.1% in 2023Q4 to a positive 4.2% by 2024Q4, reflecting a critical transition point where the company's operational scaling has finally begun to outpace its heavy investment in customer acquisition and platform maintenance.
While the move to positive FCF is a constructive signal, the margin remains razor-thin and highly susceptible to fluctuations in sporting outcomes. The trajectory suggests that the company is moving away from a cash-burning phase, yet the lack of a significant buffer warrants caution regarding future liquidity requirements.
According to recent SEC filings, CDRO maintains an exceptionally low CapEx/Revenue ratio of approximately 0.1%, which highlights the asset-light nature of its digital-first gambling platform and suggests that the company does not require significant physical infrastructure investment to sustain its current market share in Latin America.
The minimal capital expenditure requirements provide a structural advantage, allowing the company to direct the vast majority of its cash flow toward marketing and user acquisition. This low capital intensity is a key factor in the company's ability to maintain a healthy cash position despite its thin net margins.
As indicated by historical data, CDRO experienced a $1.0M working capital inflow in 2024Q1 and 2024Q2, which significantly bolstered reported cash flows and suggests that the company's cash position is highly sensitive to the timing of player deposits and the settlement of gaming tax liabilities.
The reliance on working capital fluctuations to drive cash flow suggests that the underlying operational cash generation may be less stable than the headline figures imply. Investors should be wary of periods where working capital turns negative, as this could quickly drain the company's limited cash reserves.
Quick answers to the most common questions about buying CDRO stock.
Codere Online Luxembourg, S.A. (CDRO) generated $16.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Codere Online Luxembourg, S.A. (CDRO) generated $16.4M 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.
Codere Online Luxembourg, S.A. (CDRO) spent $0.1M 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, Codere Online Luxembourg, S.A. (CDRO) spent $2.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.