Operational liquidity is under severe pressure, with free cash flow reaching -$26.7 million in 2024Q2 and capital expenditures consuming 18.3% of revenue.
| 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 |
Immediate liquidity insolvency risk
As reported in recent financial statements, the company's operating cash flow of -$23.3 million in 2024Q2 significantly trails net income, highlighting a persistent inability to convert accounting results into tangible liquidity, a trend that suggests fundamental challenges in managing the cash-intensive nature of carbon fiber manufacturing.
The divergence between net income and operating cash flow indicates that reported earnings are not supported by cash generation, likely due to high working capital requirements or non-cash adjustments. Investors should monitor this gap closely, as it suggests that the company's current operational model is consuming cash at a rate that far exceeds its ability to generate it from core activities.
Based on quarterly filings, the company's free cash flow has remained consistently negative, reaching -$26.7 million in 2024Q2, which underscores a structural reliance on external financing to sustain operations as the firm attempts to scale its proprietary manufacturing technology amidst significant ongoing capital expenditures.
The persistent negative free cash flow trajectory reflects the heavy burden of both operating losses and necessary capital investment. This trend implies that the company is currently in a high-burn phase where every dollar of revenue growth is accompanied by a disproportionate increase in cash outflow, raising questions about the timeline to self-sustainability.
According to SEC filings, the company's capital expenditure intensity remains elevated, with CapEx/Revenue ratios reaching 18.3% in 2024Q2, reflecting the ongoing requirement to fund the 'Mega-line' automation technology that is essential for the firm's long-term competitive positioning in the high-performance wheel market.
The high level of capital intensity suggests that the company is still in the heavy investment phase of its lifecycle, prioritizing capacity expansion over immediate cash preservation. This strategy appears to be a double-edged sword, as it builds the necessary infrastructure for future scale while simultaneously depleting the limited cash reserves available to the firm.
As indicated by historical data, the company's capital deployment has been dominated by significant share repurchases in 2023Q3, totaling $228.6 million, which stands in stark contrast to the current precarious liquidity position and the urgent need for cash to fund ongoing operational requirements.
The decision to allocate substantial capital to share repurchases during a period of operational cash burn warrants further investigation into management's capital allocation priorities. This deployment strategy appears to have significantly weakened the balance sheet, leaving the company with limited flexibility to navigate the current period of financial distress.
Quick answers to the most common questions about buying CREVW stock.
Carbon Revolution Public Limited Company Warrant (CREVW) 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 Company Warrant (CREVW) reported negative free cash flow of $101.9M in 2024, indicating capital requirements exceeded cash from operations.
Carbon Revolution Public Limited Company Warrant (CREVW) 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.