Free cash flow remains consistently negative, with a -11.3% FCF margin in 2025Q4, highlighting the firm's inability to fund its 17.5% CapEx-to-revenue intensity through internal operations.
| Cash from Operations | 3.94M | 3.41M | 17.83M | 22.16M | 23.4M | 39.8M | -2.05M | 11.97M |
| Operating CF Margin % | - | 1.61% | 8.55% | 12.24% | 14.29% | 28.32% | -3.27% | 10.52% |
| Operating CF Growth % | -334.5% | -80.85% | -19.57% | -5.28% | -41.21% | 2042.56% | -117.11% | - |
| Net Income | -3.89M | -19.38M | 4.53M | 11.43M | 11.73M | 49.86M | -8.97M | 7.1M |
| Depreciation & Amortization | 16.17M | 15.52M | 13.67M | 9.53M | 6.92M | 4.36M | 4.54M | 4.13M |
| Stock-Based Compensation | 1.47M | 2.94M | 2.99M | 1.52M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -754K | -914K | 333K | 87K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.03M | 5.06M | -3.42M | -55K | 3.06M | -19.3M | 231K | 300.72K |
| Working Capital Changes | 4.14M | 196K | -277K | -353K | 1.69M | 4.88M | 2.15M | 440.04K |
| Change in Receivables | -660K | -7.68M | -3.49M | 0 | 0 | 0 | 0 | 536.98K |
| Change in Inventory | -725K | -485K | -266K | 2.08M | -1.41M | -987K | 283K | -145.13K |
| Change in Payables | 805K | 2.27M | 730K | 3.01M | 1.97M | -1.16M | 2.29M | -275.75K |
| Cash from Investing | -24.26M | -27.73M | -26.8M | -6.31M | 2.57M | -18.53M | -4.09M | -5.11M |
| Capital Expenditures | -24.26M | -27.73M | -23.82M | -17.16M | -8.1M | -1.29M | -292K | -5.11M |
| CapEx % of Revenue | 11.6% | 13.05% | 11.43% | 9.48% | 4.95% | 0.92% | 0.47% | 4.49% |
| Acquisitions | 0 | 0 | -2.98M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 10.85M | 10.68M | -17.24M | -3.8M | 0 |
| Cash from Financing | 9.51M | 3.46M | 18K | 5.58M | -24.66M | -18.54M | 6.61M | -5.97M |
| Debt Issued (Net) | 10.59M | 4.74M | 1.74M | -9.9M | 4.5M | 10.91M | 8.54M | -1.39M |
| Equity Issued (Net) | -1K | -291K | 0 | 46.17M | 0 | 0 | 0 | 0 |
| Dividends Paid | -156K | -987K | -845K | -26.47M | -29.18M | 0 | -3.47M | -9.61M |
| Share Repurchases | 0 | -90K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -921K | 0 | -881K | -4.22M | 22K | -29.45M | 1.54M | 5.03M |
| Net Change in Cash | -10.93M | -20.85M | -8.96M | 21.44M | 1.3M | 9.89M | 477K | 890.41K |
| Free Cash Flow | -20.31M | -24.32M | -6M | 5.01M | 15.29M | 38.52M | -2.34M | 6.86M |
| FCF Margin % | -9.71% | -11.44% | -2.88% | 2.77% | 9.34% | 27.4% | -3.74% | 6.03% |
| FCF Growth % | -101.37% | -305.47% | -219.79% | -67.26% | -60.29% | 1745.28% | -134.11% | - |
| FCF per Share | -3.81 | -4.71 | -1.28 | 1.18 | 4.25 | 10.70 | -0.65 | 1.91 |
| FCF Conversion (FCF/Net Income) | 5.22x | -1.13x | 30.11x | 2.64x | 2.28x | 0.80x | 0.22x | 1.70x |
| Interest Paid | 247K | 250K | 288K | 195K | 736K | 0 | 613K | 0 |
| Taxes Paid | -7K | 455K | 114K | 175K | 0 | 0 | 0 | 0 |
Unsustainable capital intensity
According to quarterly financial disclosures, GENK exhibits a persistent disconnect between net income and operating cash flow, with OCF/NI ratios frequently reaching extreme levels, such as the -347.12 observed in 2023Q4, suggesting that reported earnings are heavily influenced by non-cash items and volatile working capital adjustments.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's actual cash-generating ability. Investors should monitor whether this divergence is driven by aggressive accrual accounting or the inherent difficulty of matching cash receipts with the high-volume, fixed-price AYCE revenue model.
As reported in recent financial statements, GENK has struggled to maintain positive free cash flow, with FCF margins consistently in negative territory, including a -11.3% margin in 2025Q4, which underscores the company's inability to fund its aggressive expansion strategy through internally generated cash flow.
The persistent negative FCF trajectory suggests that the company is effectively subsidizing its growth through external financing rather than operational success. This trend warrants further investigation into whether the current unit-level economics can ever support the high capital requirements of the brand's expansion model.
Based on the company's reported figures, capital expenditures have remained elevated, with CapEx/Revenue ratios peaking at 17.5% in 2025Q2, indicating that the firm is heavily reinvesting in new store build-outs despite the lack of consistent profitability or positive free cash flow generation.
The high capital intensity relative to revenue suggests that GENK is prioritizing footprint expansion over the optimization of existing assets. This strategy appears to be a significant drain on liquidity, leaving the company vulnerable to any slowdown in consumer discretionary spending or unexpected increases in construction costs.
Analysis of the cash flow statements reveals significant fluctuations in working capital, with changes ranging from a $5.6M inflow in 2023Q4 to a $3.4M outflow in 2025Q3, suggesting that the company's cash position is highly sensitive to the timing of payables and inventory management.
The erratic nature of working capital changes may indicate that the company is managing its cash position by stretching payables or timing inventory purchases to offset operational shortfalls. Investors should monitor these shifts closely, as they may be masking underlying liquidity pressures within the restaurant operations.
As indicated by the provided data, the company's cash flow statement is heavily impacted by stock-based compensation and significant depreciation and amortization, with D&A consistently exceeding $3M per quarter, which effectively masks the true cash cost of maintaining the company's extensive grill infrastructure.
The reliance on non-cash adjustments to reconcile net income to operating cash flow suggests that the company's reported cash flow from operations may be overstated. Analysts should be wary of these adjustments, as they do not reflect the ongoing capital requirements necessary to keep the table-top grill model operational.
Quick answers to the most common questions about buying GENK stock.
GEN Restaurant Group, Inc. (GENK) generated $3.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GEN Restaurant Group, Inc. (GENK) reported negative free cash flow of $24.3M in 2025, indicating capital requirements exceeded cash from operations.
GEN Restaurant Group, Inc. (GENK) spent $27.7M 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, GEN Restaurant Group, Inc. (GENK) returned $1.0M to shareholders via cash dividends and spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.