Free cash flow remains highly volatile and often negative, highlighted by a -16.0% FCF margin in 2025Q2, indicating that capital expenditures continue to outpace operational cash generation.
| Cash from Operations | 75.27M | 33.92M | 45.83M | 45.54M | 139.82M | 141.22M | 28.68M | 80.81M | 78.94M | 62.87M | 56.91M | 59.31M | 33.86M |
| Operating CF Margin % | - | 2.23% | 2.75% | 2.7% | 9.14% | 10.2% | 2.56% | 8.42% | 15.22% | 12.82% | 12.36% | 13.61% | 8.4% |
| Operating CF Growth % | 1263.2% | -25.98% | 0.63% | -67.43% | -1% | 392.5% | -64.52% | 2.37% | 25.55% | 10.48% | -4.04% | 75.16% | - |
| Net Income | -510.67M | -523.78M | 3.1M | -37.92M | -16M | -14.84M | -60.94M | -34M | 32.4M | 30.06M | 34.26M | 20.78M | 166.27M |
| Depreciation & Amortization | 135.29M | 137.07M | 133.6M | 125.89M | 110.26M | 101.61M | 80.4M | 63.77M | 16.2M | 12.84M | 11.11M | 9.89M | 8.23M |
| Stock-Based Compensation | 10.26M | 12.87M | 35.15M | 24.2M | 0 | 22.92M | 11.6M | 10.74M | 5.58M | 4.47M | 6.45M | 6.8M | 6.7M |
| Deferred Taxes | -27.44M | -35.55M | 3.07M | -18.49M | -14.24M | -3.5M | -36K | 8.42M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 444.12M | 447.29M | -94.27M | 28.55M | 49.68M | 1.93M | 8.13M | 34.4M | 20.78M | 23.11M | 5.58M | 19.86M | -140.64M |
| Working Capital Changes | 24.86M | -3.98M | -34.81M | -76.68M | 10.11M | 33.1M | -10.48M | -2.51M | 3.98M | -7.61M | -485K | 1.98M | -2.72M |
| Change in Receivables | 0 | 5.48M | -13.89M | -3.52M | -9.48M | -3.82M | -11.94M | -1.26M | -808K | -3.96M | 556K | -248K | -5M |
| Change in Inventory | 0 | -19.87M | -2.01M | 780K | -12.52M | -301K | -15.35M | -3.22M | 1.91M | -1.34M | -4.55M | 299K | 2.27M |
| Change in Payables | 0 | 0 | -20.16M | -74.47M | 32.02M | 0 | 12.91M | -10.15M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 113.72M | -12.14M | 19.28M | -112.59M | -120.88M | -153.41M | -168.13M | -226.61M | -29.16M | -33.65M | -22.17M | -14.44M | -2.52M |
| Capital Expenditures | -80.82M | -97.93M | -120.79M | -121.43M | -111.72M | -119.5M | -97.83M | -76.37M | -28.93M | -31.45M | -23.42M | -14.22M | -11.88M |
| CapEx % of Revenue | 5.34% | 6.43% | 7.25% | 7.2% | 7.3% | 8.63% | 8.72% | 7.96% | 5.58% | 6.41% | 5.09% | 3.26% | 2.95% |
| Acquisitions | -3.43M | 72M | -23.89M | 0 | -7.26M | -46.33M | -74.89M | -150.37M | -1.88M | -7.15M | -1.6M | -915K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 197.97M | 13.78M | 163.96M | 10.26M | -916K | 11.4M | 3.52M | 645K | 1.66M | 4.95M | 2.86M | 695K | 9.36M |
| Cash from Financing | -133.01M | -7.76M | -73.95M | 71.86M | -17.43M | 16.1M | 139.44M | 129.08M | -49.97M | -34.01M | -45.33M | -22.86M | -8.99M |
| Debt Issued (Net) | -104.44M | 49.94M | -36.53M | 91.31M | 47.82M | -452.05M | 62.56M | 89.39M | -340K | -384K | -24.66M | -2.35M | 0 |
| Equity Issued (Net) | -1.5M | -1.35M | -4.57M | -1.88M | -16.77M | 508.76M | 0 | 0 | -51.56M | -43.88M | -23.06M | -20.76M | 0 |
| Dividends Paid | -5.97M | -11.93M | -23.69M | -23.56M | -23.43M | -48.19M | -42K | -2.63M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.63M | -1.35M | -5.49M | -1.88M | -4.02M | -139.1M | 0 | 0 | -51.56M | -43.88M | -23.06M | -20.76M | -1M |
| Other Financing | -21.1M | -44.41M | -9.16M | 5.99M | -25.05M | 7.57M | 76.93M | 42.32M | 1.93M | 10.26M | 2.38M | 245K | -8.99M |
| Net Change in Cash | 55.54M | 13.58M | -9.3M | 2.88M | -3.46M | 1.71M | 2.03M | -17.66M | -186K | -4.78M | -10.58M | 22.01M | 22.35M |
| Free Cash Flow | -5.54M | -64M | -74.96M | -75.88M | 28.1M | 21.73M | -69.15M | 4.44M | 50M | 31.43M | 33.49M | 45.09M | 21.98M |
| FCF Margin % | -0.37% | -4.2% | -4.5% | -4.5% | 1.84% | 1.57% | -6.16% | 0.46% | 9.64% | 6.41% | 7.28% | 10.35% | 5.45% |
| FCF Growth % | 92.6% | 14.61% | 1.22% | -370.04% | 29.34% | 131.42% | -1657.81% | -91.12% | 59.11% | -6.17% | -25.72% | 105.18% | - |
| FCF per Share | -0.03 | -0.37 | -0.44 | -0.45 | 0.17 | 0.13 | -0.42 | 0.03 | 0.43 | 0.26 | 0.27 | 0.37 | 0.18 |
| FCF Conversion (FCF/Net Income) | 0.01x | -0.07x | 14.81x | -1.20x | -8.95x | -5.76x | -0.44x | -2.16x | 2.44x | 2.09x | 1.66x | 2.85x | 0.20x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative cash generation
As reported in recent financial filings, the persistent disconnect between net income and operating cash flow, highlighted by an OCF/NI ratio that frequently swings into negative territory, suggests that the company's reported earnings are not currently supported by the underlying cash-generating capacity of its operations.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are masking the core business's inability to generate consistent cash. Investors should monitor whether this divergence is a structural feature of the hub-and-spoke model or a temporary byproduct of aggressive expansion efforts.
According to the provided cash flow data, DNUT has struggled to maintain positive free cash flow, with margins frequently dipping into negative territory, such as the -16.0% margin observed in 2025Q2, indicating that capital expenditures continue to outpace the cash generated from core operations.
The inability to sustain positive free cash flow suggests that the company's current growth strategy is highly capital-intensive and reliant on external financing. This trajectory warrants further investigation into whether the planned scaling of the wholesale business will eventually provide the necessary operating leverage to reach self-funding status.
Based on reported figures, the company maintains a consistent capital intensity, with CapEx/Revenue ratios hovering between 2.4% and 8.4%, which reflects the ongoing requirement to fund the specialized infrastructure of its production hubs and the logistics fleet necessary for its fresh-daily distribution model.
The persistent level of capital expenditure appears to be a non-discretionary cost required to maintain the 'theatre' and distribution network. This high capital intensity, combined with negative operating margins, suggests that the company is effectively reinvesting in a business model that has yet to demonstrate a clear path to positive returns on invested capital.
Analysis of the cash flow statements reveals significant volatility in working capital changes, ranging from a $50.4M outflow in 2024Q1 to a $26.9M inflow in 2025Q3, which suggests that the company's cash conversion cycle is highly sensitive to seasonal inventory management and the timing of wholesale receivables.
The erratic nature of these working capital swings may indicate challenges in managing perishable inventory and the 'stales' associated with the Delivered Fresh Daily model. Investors should monitor whether these fluctuations are becoming more pronounced as the company attempts to scale its wholesale partnerships.
As reported in financial statements, the company has continued to pay dividends and engage in minor share repurchases despite persistent negative net income and cash flow, a strategy that appears to be funded by debt rather than operational success, warranting significant investor caution.
The decision to return capital to shareholders while the business is burning cash suggests a management priority that may be at odds with the company's underlying financial health. This approach may limit the firm's flexibility to invest in the infrastructure required for its long-term wholesale pivot.
Quick answers to the most common questions about buying DNUT stock.
Krispy Kreme, Inc. (DNUT) generated $33.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Krispy Kreme, Inc. (DNUT) reported negative free cash flow of $64.0M in 2025, indicating capital requirements exceeded cash from operations.
Krispy Kreme, Inc. (DNUT) spent $97.9M 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, Krispy Kreme, Inc. (DNUT) returned $11.9M to shareholders via cash dividends and spent $1.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.