Cash conversion remains inconsistent, with the OCF/NI ratio fluctuating between a low of 0.02 in 2024Q3 and a high of 3.11 in 2024Q1, complicating the assessment of true operational cash generation.
| Cash from Operations | 88.77M | 100.29M | 57.96M | 70.82M | 48.52M | 58.5M | 52.61M | 56.16M | 43.67M |
| Operating CF Margin % | - | 6.92% | 4.72% | 6.77% | 5.34% | 7.39% | 7.15% | 8.04% | 7.27% |
| Operating CF Growth % | 1359.58% | 73.04% | -18.16% | 45.95% | -17.05% | 11.19% | -6.32% | 28.59% | - |
| Net Income | 53.07M | 49.22M | -71.03M | 37.72M | 49.66M | 28.33M | 29.66M | 31.37M | 23.27M |
| Depreciation & Amortization | 23.04M | 22.34M | 19.77M | 18.23M | 16.56M | 16.53M | 17.26M | 15.85M | 13.13M |
| Stock-Based Compensation | 9.88M | 13.85M | 131.49M | -6.09M | -3.38M | 13.03M | 3.21M | 1.93M | 5.98M |
| Deferred Taxes | 2.36M | 3.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.7M | 5.43M | 7.14M | 5.35M | 4.4M | 2.08M | 3.58M | 5.67M | 2.95M |
| Working Capital Changes | -8.21M | 6.38M | -29.41M | 15.6M | -18.72M | -1.47M | -1.09M | 1.34M | -1.66M |
| Change in Receivables | -18.68M | -8.55M | -25.48M | -14.3M | -16.79M | -7.71M | 3.58M | -11.13M | -8.79M |
| Change in Inventory | -1.8M | -877K | -1.15M | 4.43M | -8.12M | -240K | 379K | -3.05M | 475K |
| Change in Payables | 6.73M | 16.4M | 13.23M | 6.29M | 13.37M | 9.78M | -1.95M | 7.91M | 9.05M |
| Cash from Investing | -31.35M | -32.26M | -30.41M | -13.44M | -17.9M | -13.15M | -12.18M | -16.59M | -20.75M |
| Capital Expenditures | -18.76M | -19.58M | -16.37M | -14.56M | -16.77M | -9.28M | -8.34M | -14.54M | -10.01M |
| CapEx % of Revenue | 1.29% | 1.35% | 1.33% | 1.39% | 1.85% | 1.17% | 1.13% | 2.08% | 1.67% |
| Acquisitions | -4.15M | 0 | -14.71M | -985K | -2M | -4.4M | -4.38M | -2.07M | -10.68M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.44M | -12.68M | 671K | 2.1M | 874K | 535K | 545K | 16K | -57K |
| Cash from Financing | -6.52M | -7.07M | -23.64M | -57.23M | -45.03M | -36.79M | -34.26M | -41.55M | -21.07M |
| Debt Issued (Net) | -4.96M | -4.98M | -36.48M | -2.89M | -2.8M | -6.1M | -13.37M | 2.3M | 16.03M |
| Equity Issued (Net) | 0 | -1.59M | 64.61M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | -35.75M | -38.42M | -30.8M | -17.36M | -10.82M | -34.32M | -27.99M |
| Share Repurchases | -30.28M | -29.04M | -55.18M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.56M | -497K | -16.02M | -15.92M | -11.42M | -13.34M | -10.07M | -9.52M | -9.11M |
| Net Change in Cash | 50.89M | 60.96M | 3.91M | 145K | -14.4M | 8.56M | 6.17M | -1.98M | 1.85M |
| Free Cash Flow | 70.01M | 80.71M | 41.59M | 56.26M | 31.75M | 49.22M | 44.27M | 41.62M | 33.67M |
| FCF Margin % | 4.81% | 5.57% | 3.39% | 5.38% | 3.49% | 6.21% | 6.02% | 5.96% | 5.61% |
| FCF Growth % | 44.72% | 94.05% | -26.08% | 77.2% | -35.48% | 11.17% | 6.36% | 23.63% | - |
| FCF per Share | 1.10 | 1.28 | 0.67 | 0.92 | 0.52 | 0.81 | 0.73 | 0.68 | 0.55 |
| FCF Conversion (FCF/Net Income) | 1.32x | 2.04x | -0.66x | 2.96x | 1.37x | 3.59x | 2.64x | 2.58x | 2.98x |
| Interest Paid | 475K | 0 | 3.12M | 2.78M | 1.78M | 1.52M | 2.08M | 2.25M | 1.83M |
| Taxes Paid | 6.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working Capital Volatility
According to quarterly financial data, the OCF/NI ratio has fluctuated wildly, reaching a low of 0.02 in 2024Q3 and a high of 3.11 in 2024Q1, indicating that reported net income is a poor proxy for the company's actual cash-generating capacity in any given period.
The significant divergence between net income and operating cash flow suggests that non-cash charges and accounting adjustments are heavily influencing the bottom line. Investors should monitor whether this volatility stems from recurring operational timing differences or more structural issues related to the company's decentralized accounting practices.
As reported in recent financial statements, free cash flow margins have remained inconsistent, ranging from a negative 2.3% in 2024Q3 to a peak of 8.7% in 2024Q2, highlighting the difficulty in maintaining stable cash conversion during periods of rapid facility onboarding.
The erratic FCF trajectory suggests that the company's decentralized model may struggle to achieve consistent cash flow efficiency as it scales. This inconsistency warrants further investigation into whether the current growth phase is permanently suppressing cash margins or if operational overhead is structurally higher than previously anticipated.
Based on the provided cash flow statements, working capital changes have been highly erratic, including a significant $24.7 million outflow in 2024Q3 and a $16.6 million inflow in 2023Q4, which suggests that the company's cash cycle is highly sensitive to timing of collections and inventory management.
These sharp swings in working capital indicate that the company may lack a standardized approach to managing its receivables and payables across its various local pharmacy hubs. Such volatility may force the company to maintain higher cash balances than would otherwise be necessary to buffer against these periodic liquidity crunches.
Data from recent filings reveals that the company utilized $30.3 million for share repurchases in 2026Q1 despite reporting only $1.0 million in free cash flow, suggesting a reliance on existing cash reserves rather than current operational cash generation to fund shareholder returns.
This aggressive deployment of capital during a period of thin free cash flow generation may indicate management's confidence in the long-term stability of the business. However, investors should monitor whether this strategy limits the company's ability to fund necessary technology investments or future bolt-on acquisitions.
Quick answers to the most common questions about buying GRDN stock.
Guardian Pharmacy Services, Inc. (GRDN) generated $100.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Guardian Pharmacy Services, Inc. (GRDN) generated $80.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Guardian Pharmacy Services, Inc. (GRDN) spent $19.6M 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, Guardian Pharmacy Services, Inc. (GRDN) spent $29.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.