Capital intensity remains elevated with CapEx as a percentage of revenue reaching 22.0% in 2026Q2, contributing to volatile free cash flow margins that have swung between -18.0% and 31.3%.
| Cash from Operations | 24.06M | 24.6M | 15.61M | 18.06M | 23.69M | -7.23M | -13M | 5.99M | 5.24M | 2.94M |
| Operating CF Margin % | - | 8.7% | 6.56% | 9.64% | 16.79% | -11.14% | -28.79% | 9.33% | 10.13% | 7.88% |
| Operating CF Growth % | 1111.95% | 57.6% | -13.58% | -23.76% | 427.81% | 44.42% | -316.99% | 14.3% | 78.58% | - |
| Net Income | -1.93M | -1.9M | -8.8M | 1.5M | -764K | -10.29M | -17.36M | 1.46M | 1.74M | 707K |
| Depreciation & Amortization | 16M | 14.05M | 11.79M | 7.83M | 8.8M | 7.18M | 5.49M | 2.17M | 1.68M | 1.37M |
| Stock-Based Compensation | 3.53M | 4.74M | 0 | 0 | 0 | 0 | 0 | 590K | 105K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 43K | 0 | 0 | 1.12M | -61K | -60K | 173K |
| Other Non-Cash Items | 1.48M | 454K | 10.48M | 7.35M | 2.42M | 1.52M | 957K | 0 | 234K | 10K |
| Working Capital Changes | 4.98M | 7.27M | 2.15M | 1.34M | 13.23M | -5.64M | -3.21M | 1.84M | 1.55M | 676K |
| Change in Receivables | -3.33M | -2.05M | -1.86M | -301K | 42K | -581K | 843K | -649K | 173K | -486K |
| Change in Inventory | -205K | 78K | -472K | -627K | -387K | -366K | 122K | -155K | -115K | -41K |
| Change in Payables | 2.79M | 2.85M | 623K | 1.68M | -172K | 908K | -614K | 1.65M | 250K | 523K |
| Cash from Investing | -83.39M | -93.72M | -36.46M | -49.9M | -28.17M | -14.67M | -14.78M | -11.26M | -6.59M | -6.04M |
| Capital Expenditures | -20.64M | -48.34M | -44.53M | -40.81M | -27.66M | -14.23M | -14.46M | -11.26M | -7.1M | -6.05M |
| CapEx % of Revenue | 6.73% | 17.09% | 18.72% | 21.77% | 19.61% | 21.93% | 32.01% | 17.52% | 13.73% | 16.24% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 502K | 7K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -34.42M | -513K | -432K | -550K | -510K | -436K | -319K | 0 | 0 | 0 |
| Cash from Financing | 756K | 65.64M | 2.14M | 65.75M | -170K | 53.07M | -1M | 37.59M | 4.18M | 4.59M |
| Debt Issued (Net) | 10K | 58K | -73K | -498K | -975K | -950K | -1.03M | -1.03M | -824K | -405K |
| Equity Issued (Net) | 1.15M | 65.92M | 2.49M | 66.25M | 959K | 54.02M | 30K | 38.63M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -401K | -346K | -280K | 0 | -154K | 0 | 0 | 0 | 5M | 5M |
| Net Change in Cash | -58.57M | -3.49M | -18.71M | 33.91M | -4.65M | 31.17M | -28.79M | 32.33M | 2.83M | 2.88M |
| Free Cash Flow | 4.72M | -21.55M | -28.64M | -21M | -3.07M | -21.3M | -27.4M | -4.73M | -1.85M | -3.09M |
| FCF Margin % | 1.54% | -7.62% | -12.04% | -11.21% | -2.18% | -32.83% | -60.67% | -7.37% | -3.57% | -8.3% |
| FCF Growth % | 117.79% | 24.77% | -36.36% | -583.72% | 85.58% | 22.26% | -479% | -156.39% | 40.3% | - |
| FCF per Share | 0.39 | -1.81 | -2.56 | -1.97 | -0.32 | -2.50 | -3.29 | -0.86 | -0.23 | -0.39 |
| FCF Conversion (FCF/Net Income) | -2.44x | -12.92x | -1.77x | 12.03x | -31.01x | 0.70x | 0.75x | 4.12x | 3.01x | 4.15x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 81 | 8K | 189K | 116K | 80K |
| Taxes Paid | 0 | 257K | 265K | 108K | 206K | 148 | 132K | 56K | 4K | 137K |
Capital Intensity Outpacing Cash
Based on the provided quarterly data, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios frequently reaching extreme negative values, suggesting that reported net losses are not fully capturing the underlying cash-generative capacity of the restaurant operations during this expansion phase.
The persistent divergence between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are significantly masking the true economic performance of the business. Investors should monitor whether this gap narrows as the company matures, as current figures suggest that accounting profitability remains a poor proxy for the actual cash generated by the unit-level operations.
As reported in financial statements, KRUS has struggled to maintain positive free cash flow, with margins fluctuating wildly from -18.0% to 31.3% over the last ten quarters, reflecting the heavy burden of aggressive capital expenditure required to support the company's rapid national footprint expansion strategy.
The inability to consistently generate positive free cash flow suggests that the company is currently in a capital-intensive growth cycle that prioritizes market share over immediate liquidity. This trajectory warrants further investigation into whether the unit-level economics can eventually support the high maintenance and growth capital requirements without continued reliance on external financing or cash reserves.
According to recent SEC filings, the company's capital intensity remains elevated, with CapEx as a percentage of revenue consistently hovering between 13.4% and 23.5%, which highlights the significant financial commitment required to install and maintain the proprietary conveyor-belt technology across new restaurant locations.
This high level of capital expenditure appears to be the primary driver of the company's negative free cash flow profile. The data suggests that the business model is structurally dependent on continuous, high-cost investment, which may limit the company's ability to achieve self-sustaining cash flow in the near term.
Based on the reported figures, working capital changes have been inconsistent, oscillating between significant inflows and outflows, which may indicate variability in inventory management or the timing of payables related to the specialized equipment and food procurement necessary for the revolving sushi model.
The lack of a stable working capital trend suggests that the company's cash conversion cycle is sensitive to the timing of new store openings and supply chain logistics. Analysts should monitor these fluctuations closely, as they may indicate potential inefficiencies in managing the high-volume, small-plate inventory requirements inherent in the Kura Sushi concept.
Quick answers to the most common questions about buying KRUS stock.
Kura Sushi USA, Inc. (KRUS) generated $24.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kura Sushi USA, Inc. (KRUS) reported negative free cash flow of $21.5M in 2025, indicating capital requirements exceeded cash from operations.
Kura Sushi USA, Inc. (KRUS) spent $48.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.