Liquidity is severely constrained, as evidenced by the company's inability to generate positive free cash flow in any of the last ten quarters, with FCF margins hitting a low of -20.0% in 2025Q2.
| Cash from Operations | -65.08M | -56.25M | -35.61M | -47.4M | 682K | -11.48M | 3.07M | 1.84M | 1.5M | 2.21M | 4.08M |
| Operating CF Margin % | - | -9.49% | -7.41% | -11.64% | 0.57% | -63.38% | 13.65% | 10.3% | 68.98% | 26.18% | 54.16% |
| Operating CF Growth % | -370.3% | -57.96% | 24.88% | -7050% | 105.94% | -473.95% | 67.17% | 22.55% | -32.29% | -45.74% | - |
| Net Income | -225.79M | -189.85M | -90.11M | -126.19M | -31.58M | -14.86M | -1.02M | -1.8M | -613K | 3.55M | 2.66M |
| Depreciation & Amortization | 37.03M | 41.53M | 31.13M | 27.02M | 8.57M | 1.17M | 785K | 358K | 23K | 0 | 0 |
| Stock-Based Compensation | 17.04M | 2.33M | 3.62M | 7.62M | 1.64M | 99K | 262K | 439K | 89K | 0 | 0 |
| Deferred Taxes | -7.42M | -5.03M | -8.38M | 17.46M | -5.34M | -4.08M | 204K | -504K | 232K | 993.54K | 299.56K |
| Other Non-Cash Items | 72.39M | 65.27M | 6.66M | 50.87M | 13.23M | 10.62M | 1.47M | 700K | -336K | 153K | 135.39K |
| Working Capital Changes | 44.41M | 29.5M | 21.47M | -24.18M | 14.17M | -4.44M | 1.37M | 2.64M | 1.64M | -2.48M | 984.74K |
| Change in Receivables | 1.04M | 696K | 12.57M | -24.52M | -4.71M | 554K | -723K | -301K | -213K | -211.31K | -53.6K |
| Change in Inventory | 1.02M | 886K | -2.38M | 0 | 13.38M | -4.85M | 853K | 2.38M | -88.46M | 634.53K | 553.85K |
| Change in Payables | 17.63M | 16.92M | 3.48M | -9.2M | 5.37M | -9K | 3.77M | 2.23M | 808K | 36.07K | 238.85K |
| Cash from Investing | -5.23M | -26.47M | -59.8M | -12.5M | -723.2M | -36.58M | -10.49M | -7.74M | -10.52M | 0 | 0 |
| Capital Expenditures | -9.87M | 0 | -18.9M | -23.17M | -10.42M | -460K | -45K | -148K | -7K | 0 | 0 |
| CapEx % of Revenue | 1.72% | 3.85% | 3.93% | 5.69% | 8.77% | 2.54% | 0.2% | 0.83% | 0.32% | - | - |
| Acquisitions | -4M | 0 | -38.6M | -1.02M | -717.19M | -22.82M | 8K | -7.59M | -10.52M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 8.64M | -26.47M | -2.31M | 11.7M | 4.41M | -13.29M | -10.45M | -6.74M | -9.33K | 0 | 0 |
| Cash from Financing | 26.22M | 58.2M | 118.55M | 28.74M | 815.23M | 55.24M | 6.79M | 6.53M | 9.05M | -2.42M | -3.87M |
| Debt Issued (Net) | 26.31M | 70.53M | 128.74M | 44.65M | 800.34M | 49.18M | 5.77M | 6.21M | 0 | 0 | 0 |
| Equity Issued (Net) | 7.29M | 5M | 6.16M | 694K | 26.73M | 7.62M | 1.11M | 7.98M | 0 | 0 | 0 |
| Dividends Paid | -7.37M | -17.33M | -16.35M | -16.6M | -13.31M | -318K | -2K | -878K | 0 | -1.7M | -7M |
| Share Repurchases | 0 | 0 | 0 | 0 | -29.3M | -1.24M | -2K | 0 | 20.93M | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 1.47M | -1.24M | -80K | -50K | 9.05M | -724.65K | 3.13M |
| Net Change in Cash | -44.09M | -24.51M | 23.14M | -31.16M | 92.71M | 7.19M | -628K | 621K | 32K | -210.87K | 210.87K |
| Free Cash Flow | -74.95M | -79.05M | -57.11M | -70.57M | -9.74M | -11.94M | 3.03M | 1.69M | 1.49M | 2.21M | 4.08M |
| FCF Margin % | -13.05% | -13.34% | -11.89% | -17.33% | -8.19% | -65.92% | 13.45% | 9.47% | 68.66% | 26.18% | 54.16% |
| FCF Growth % | 15.5% | -38.41% | 19.07% | -624.54% | 18.45% | -494.71% | 79.16% | 13.2% | -32.6% | -45.74% | - |
| FCF per Share | -4.19 | -4.64 | -3.44 | -4.28 | -0.66 | -1.00 | 0.26 | 0.14 | 0.15 | 0.20 | 0.36 |
| FCF Conversion (FCF/Net Income) | 0.33x | 0.30x | 0.40x | 0.38x | -0.02x | 0.77x | -3.02x | -1.02x | -2.44x | 0.62x | 1.53x |
| Interest Paid | 119.99M | 119.67M | 109.39M | 66.85M | 14.98M | 6.4M | 5.99M | 2.5M | 0 | 0 | 0 |
| Taxes Paid | -384K | 1.89M | 1.75M | 1.03M | 842K | 167K | 244K | 220K | 0 | 29.97K | 152.28K |
Persistent Negative Operating Cash
As reported in recent financial statements, FAT's operating cash flow consistently trails net income, with the company recording a negative $14.5 million in operating cash flow against a $58.2 million net loss in 2025Q3, indicating a fundamental inability to convert operational activity into actual liquidity.
The persistent gap between net income and operating cash flow suggests that the company's accounting losses are not merely non-cash accounting artifacts but reflect genuine cash outflows. Investors should monitor whether the reliance on non-cash adjustments to bridge this gap masks a deeper structural deficit in the core royalty-generating business.
Based on FAT's reported figures, the company has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a low of -20.0% in 2025Q2, highlighting a structural dependency on external financing to sustain its ongoing operations.
The consistent negative trajectory of free cash flow implies that the current multi-brand roll-up strategy is not self-funding. This trend warrants investigation into whether the company can achieve a pivot to positive cash generation without further dilutive capital raises or asset divestitures.
According to SEC filings, FAT's capital expenditures have remained a persistent drain on liquidity, with CapEx/Revenue ratios peaking at 6.7% in 2024Q2, suggesting that the company is forced to reinvest heavily in its existing footprint despite the lack of meaningful top-line growth.
The level of capital intensity appears disproportionate for a business model that claims to be an asset-light franchisor. This may indicate that the company-owned restaurant portfolio requires significant ongoing maintenance to remain viable, thereby consuming cash that would otherwise be available for debt service.
Financial data indicates that working capital changes have been highly erratic, swinging from a $571,000 outflow in 2023Q3 to a $22.9 million inflow in 2024Q3, which suggests that the company's cash position is heavily influenced by timing differences rather than sustainable operational efficiency.
The reliance on working capital fluctuations to manage liquidity appears to be a stop-gap measure rather than a sign of operational health. Analysts should be wary of these inflows, as they may represent deferred payables or aggressive collection cycles that are not sustainable in the long term.
As disclosed in recent filings, FAT has utilized significant stock-based compensation, reaching $12.8 million in 2025Q2, which effectively masks the true cash cost of management and integration efforts while failing to stem the tide of negative operating cash flow.
The use of equity-based incentives in a cash-burning environment suggests a misalignment between management compensation and the preservation of shareholder capital. This practice warrants further investigation into whether these non-cash expenses are being used to artificially inflate the appearance of operational performance.
Quick answers to the most common questions about buying FAT stock.
FAT Brands Inc. (FAT) generated $-56.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
FAT Brands Inc. (FAT) reported negative free cash flow of $79.0M in 2024, indicating capital requirements exceeded cash from operations.
FAT Brands Inc. (FAT) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, FAT Brands Inc. (FAT) returned $17.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.