Free cash flow margins have deteriorated from a high of 52.6% in 2023Q3 to a negative 7.9% in 2025Q4, signaling a rapid decline in the firm's ability to self-fund operations.
| Cash from Operations | 1.64B | 2.84B | 1.93B | 43.03M |
| Operating CF Margin % | 12.74% | 22.87% | 41.67% | 8.75% |
| Operating CF Growth % | -42.06% | 46.75% | 4393.21% | - |
| Net Income | 1.19B | 2.51B | 802.57M | -90.72M |
| Depreciation & Amortization | 146.38M | 60.9M | 10.37M | 4.91M |
| Stock-Based Compensation | 723.54M | 603K | 10.52M | 3.94M |
| Deferred Taxes | -149.61M | -126.87M | -95.77M | -21.71M |
| Other Non-Cash Items | 30.23M | 6.39M | 109.69M | 2.85M |
| Working Capital Changes | -292.77M | 382.04M | 1.1B | 143.75M |
| Change in Receivables | -36.28M | -32.84M | -75.47M | -5.16M |
| Change in Inventory | -119.01M | -69.42M | -9.18M | -6.32M |
| Change in Payables | 47.2M | 127.8M | 384.02M | 31.86M |
| Cash from Investing | -825.02M | -229.48M | -146.71M | -10.98M |
| Capital Expenditures | -417.1M | -225.5M | -31.86M | -10.73M |
| CapEx % of Revenue | 3.23% | 1.82% | 0.69% | 2.18% |
| Acquisitions | -123.4M | -10.81M | -2M | 0 |
| Investments | - | - | - | - |
| Other Investing | -35.22M | 6.84M | -15.42M | -700K |
| Cash from Financing | 2.05B | -173.93M | 344.2M | -33K |
| Debt Issued (Net) | 0 | -2.15M | 0 | 0 |
| Equity Issued (Net) | 3.18B | -210.08M | 331.42M | 0 |
| Dividends Paid | -1.23B | 0 | 0 | 0 |
| Share Repurchases | 0 | -210.08M | 0 | 0 |
| Other Financing | 97.96M | 38.3M | 12.78M | -33K |
| Net Change in Cash | 2.86B | 2.45B | 2.12B | 32.02M |
| Free Cash Flow | 1.19B | 2.6B | 1.9B | 32.3M |
| FCF Margin % | 9.23% | 20.93% | 40.98% | 6.57% |
| FCF Growth % | -54.1% | 36.53% | 5787.76% | - |
| FCF per Share | 7.24 | 14.15 | 10.36 | 0.18 |
| FCF Conversion (FCF/Net Income) | 1.40x | 1.13x | 2.41x | -0.47x |
| Interest Paid | 1.06M | 0 | 0 | 0 |
| Taxes Paid | 630.24M | 644.27M | 206.97M | 72K |
Rapid Cash Flow Volatility
As reported in recent financial statements, the OCF/NI ratio fluctuated wildly from 0.53 in 2025Q1 to 6.45 in 2025Q4, indicating that cash generation has become increasingly decoupled from reported net income as the company's core operational performance faces mounting pressure.
The extreme variance in the conversion ratio suggests that accounting accruals or non-cash items are playing an outsized role in the company's bottom line. Investors should monitor whether this divergence reflects a structural shift in revenue recognition or merely the impact of aggressive inventory management during a period of slowing demand.
According to quarterly cash flow data, FCF margins have deteriorated from a peak of 52.6% in 2023Q3 to a negative 7.9% in 2025Q4, signaling that the firm's ability to self-fund operations is rapidly diminishing amidst a broader slowdown in the beverage retail segment.
The transition to negative free cash flow in the most recent quarter is particularly concerning given the company's historical reliance on high-margin franchise supply chain revenue. This trend suggests that the business model may be losing its inherent scalability as the cost of maintaining the franchise network begins to outpace cash inflows.
Based on historical cash flow filings, working capital changes have swung from a massive inflow of $475.1 million in 2023Q3 to zero in 2025Q4, suggesting that the company's ability to extract cash from its supply chain operations has effectively stalled in recent periods.
The cessation of working capital contributions implies that the company may no longer be benefiting from the favorable payment terms or inventory turnover cycles that previously bolstered its cash position. This shift warrants further investigation into whether franchisees are facing liquidity constraints that prevent timely settlement of their obligations to the parent company.
As indicated by recent cash flow statements, the company has largely ceased significant capital deployment activities, with the exception of a $115.1 million share buyback in 2024Q3, leaving a massive cash pile that appears underutilized relative to the company's current growth challenges.
The accumulation of cash in the absence of meaningful reinvestment or shareholder returns suggests that management may be struggling to identify high-return opportunities in the current market environment. This conservative stance may be a defensive reaction to the observed revenue deceleration, yet it raises questions regarding the long-term efficiency of the firm's capital base.
Quick answers to the most common questions about buying CHA stock.
Chagee Holdings Limited American Depositary Shares (CHA) generated $1.64B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chagee Holdings Limited American Depositary Shares (CHA) generated $1.19B 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.
Chagee Holdings Limited American Depositary Shares (CHA) spent $417.1M 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, Chagee Holdings Limited American Depositary Shares (CHA) returned $1.23B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.