Free cash flow remains deeply negative with a -143.1% margin in 2024Q2, highlighting a fundamental inability to cover capital expenditures through core operations.
| Cash from Operations | -48.04M | -76.84M | -34.96M | -1.16M | -14.23M | -21.38M |
| Operating CF Margin % | - | -107.54% | -91.36% | -2.87% | -40.74% | -79.54% |
| Operating CF Growth % | -34642.1% | -119.84% | -2916.62% | 91.86% | 33.42% | - |
| Net Income | -45.88M | 0 | 0 | 6.22M | -26.99M | -78.71M |
| Depreciation & Amortization | 8.12M | 0 | 5.44M | 5.29M | 5.37M | 3.7M |
| Stock-Based Compensation | 3.09M | 0 | 2.06M | 2.19M | 4.29M | 1.16M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.33M | -76.84M | -52.81M | -8.56M | 2M | 63.01M |
| Working Capital Changes | 2.06M | 0 | 10.36M | 1.18M | 1.1M | -10.54M |
| Change in Receivables | 5.72M | 0 | 0 | -5.69M | -3.2M | 794.34K |
| Change in Inventory | -1.3M | 0 | 0 | 1.54M | 3.81M | -11.45M |
| Change in Payables | 2.1M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 218.7M | -25.08M | -11.96M | -213.09M | -16.56M | -18.58M |
| Capital Expenditures | -13.99M | -19.63M | -13.08M | -21.64M | -16.56M | -10.1M |
| CapEx % of Revenue | 24.28% | 27.47% | 34.19% | 53.65% | 47.4% | 37.57% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -4.5M | -5.44M | 1.12M | -4.15M | -2.99M | -8.48M |
| Cash from Financing | -160.11M | 85.11M | 44.27M | 215.96M | 88.95M | 31.55M |
| Debt Issued (Net) | 0 | 77.02M | 81.15M | 3.69M | -981K | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 95.05M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -228.62M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -160.11M | 8.09M | -36.87M | -422K | -5.12M | 31.55M |
| Net Change in Cash | 6.01M | -15.88M | -3.11M | -85.54M | 53.4M | -8.82M |
| Free Cash Flow | -62.03M | -101.92M | -18.64M | -22.8M | -30.79M | -31.48M |
| FCF Margin % | -107.65% | -142.63% | -48.71% | -56.52% | -88.14% | -117.11% |
| FCF Growth % | -806.78% | -446.85% | 18.25% | 25.96% | 2.17% | - |
| FCF per Share | -25.31 | - | -0.89 | -0.86 | -1.98 | -3.14 |
| FCF Conversion (FCF/Net Income) | 1.35x | 0.35x | 0.44x | -0.19x | 0.40x | 0.27x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Existential liquidity and solvency
As reported in recent financial statements, CREV's operating cash flow consistently trails net income, with the 2024Q2 OCF/NI ratio of 1.25 highlighting a fundamental disconnect between accounting profitability and the actual cash-generating capacity of the company's current manufacturing operations.
The divergence between net income and operating cash flow suggests that the company's reported earnings are not being converted into liquidity, likely due to high cash-based operating expenses. Investors should monitor this trend, as the inability to generate positive cash flow from operations despite revenue growth indicates that the business model remains fundamentally unproven at current scale.
Based on quarterly filings, CREV's free cash flow trajectory is severely negative, with the company reporting a FCF margin of -143.1% in 2024Q2, reflecting a persistent inability to cover capital expenditures through core business activities.
The consistent negative FCF trajectory suggests that the company is trapped in a cycle of high cash burn to fund both operations and necessary infrastructure. This trend warrants further investigation into whether the current capital intensity will ever yield a positive return, or if the company will remain permanently dependent on external financing.
According to recent SEC filings, CREV's capital expenditure as a percentage of revenue reached 18.3% in 2024Q2, underscoring the heavy reliance on continuous investment in automated manufacturing lines to maintain its specialized production capabilities.
The high level of capital intensity appears to be a structural requirement for the company's proprietary resin transfer molding process. However, given the current negative gross margins, this spending may be failing to drive the necessary operational efficiencies, suggesting that the company is over-investing in capacity that it cannot yet profitably utilize.
As indicated by historical data, working capital changes have been volatile, with the company occasionally reporting positive inflows that temporarily offset operating losses, though these appear to be inconsistent and insufficient to stabilize the overall cash position.
The reliance on working capital fluctuations to manage liquidity suggests a lack of operational control over cash cycles. Investors should be wary of these shifts, as they may be masking underlying operational inefficiencies rather than reflecting genuine improvements in inventory management or collection cycles.
Quick answers to the most common questions about buying CREV stock.
Carbon Revolution Public Limited Ordinary Shares (CREV) generated $-76.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Carbon Revolution Public Limited Ordinary Shares (CREV) reported negative free cash flow of $101.9M in 2024, indicating capital requirements exceeded cash from operations.
Carbon Revolution Public Limited Ordinary Shares (CREV) spent $19.6M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.