Persistent cash burn is underscored by the failure to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a trough of -143.5% in 2024Q3.
| Cash from Operations | -170.62M | -270.16M | -254.29M | 3.44M | -4.87M | -189.16M | -26.34M | -156.82M |
| Operating CF Margin % | - | -53.07% | -22.64% | 0.32% | -0.62% | -22.39% | -2.2% | -17.19% |
| Operating CF Growth % | 250.15% | -6.24% | -7498.75% | 170.63% | 97.43% | -618.15% | 83.2% | - |
| Net Income | -565.38M | -614.57M | -275.71M | -267.15M | -255.75M | -141.01M | -178.9M | -604.08M |
| Depreciation & Amortization | 23.58M | 43.46M | 55.88M | 56.74M | 42.21M | 47.33M | 53.45M | 82.89M |
| Stock-Based Compensation | 20.05M | 28.7M | 18.33M | 14.58M | 7.23M | 7.25M | 7.13M | 8.58M |
| Deferred Taxes | -348K | -355K | 2.44M | 8.6M | 5.59M | -1.33M | 804K | -2.24M |
| Other Non-Cash Items | 364.83M | 342.9M | 116.41M | 31.82M | 66.77M | -18.04M | 29.43M | 384.44M |
| Working Capital Changes | -545.5K | -70.29M | -171.63M | 158.84M | 129.09M | -83.36M | 61.74M | -26.42M |
| Change in Receivables | 15.79M | 42.56M | -8.33M | -15.33M | 38.27M | 71.23M | -77.57M | -31.3M |
| Change in Inventory | 1.54M | 50.06M | -43.47M | -106.62M | -43.17M | 28.68M | 28.41M | 18.08M |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 27.94M | -25.24M | 13.93M | -139.3M | -154.45M | -45.49M | -41.87M | -52.97M |
| Capital Expenditures | -15.86M | -52.15M | -67.45M | -63.34M | -154.61M | -27.69M | -41.91M | -39.62M |
| CapEx % of Revenue | 8.99% | 10.24% | 6.01% | 5.97% | 19.74% | 3.28% | 3.5% | 4.34% |
| Acquisitions | 24M | 24M | 0 | 0 | 0 | -26.78M | 0 | -13.35M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 18.47M | 1.58M | 5.38M | 36K | 163K | 3.75M | 34K | 0 |
| Cash from Financing | 92.74M | 141.23M | 167.95M | 211.47M | 141.81M | 320.35M | 89.88M | 165.82M |
| Debt Issued (Net) | -6M | 44.79M | -25.54M | 211.79M | -23.63M | 199.46M | -2.52M | -5.26M |
| Equity Issued (Net) | 96.45M | 96.45M | 193.49M | 0 | 169.68M | 296.76M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -134M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.29M | 0 | 0 | -321K | -4.25M | -41.88M | 92.41M | 171.09M |
| Net Change in Cash | -84.86M | -164.5M | -72.45M | 75.73M | -17.34M | 85.77M | 22.05M | -43.91M |
| Free Cash Flow | -186.47M | -322.31M | -321.89M | -60.04M | -159.54M | -216.85M | -68.48M | -196.44M |
| FCF Margin % | -105.7% | -63.32% | -28.66% | -5.66% | -20.37% | -25.67% | -5.71% | -21.53% |
| FCF Growth % | 57.51% | -0.13% | -436.1% | 62.36% | 26.43% | -216.68% | 65.14% | - |
| FCF per Share | -11.09 | -38.71 | -6.26 | -1.47 | -4.26 | -8.85 | -2.31 | -6.62 |
| FCF Conversion (FCF/Net Income) | 0.33x | 0.44x | 0.92x | -0.01x | 0.02x | 1.33x | 0.15x | 0.26x |
| Interest Paid | 8.08M | 17.73M | 30.94M | 12.91M | 15.16M | 3.44M | 1.93M | 1.27M |
| Taxes Paid | 0 | 12.56M | 15.21M | 6.45M | 9.58M | 12.49M | 8.11M | 7.59M |
Imminent liquidity and insolvency risk
As reported in recent financial statements, Maxeon's operating cash flow consistently fails to track with net income, evidenced by a 2024Q2 OCF/NI ratio of -6.37, which suggests that the company's reported losses significantly understate the actual cash burn required to sustain its current manufacturing operations.
The persistent divergence between net income and operating cash flow indicates that non-cash charges and working capital volatility are masking the true severity of the company's cash consumption. Investors should monitor this gap as it suggests that the firm's accounting earnings are failing to capture the ongoing cash-based costs of maintaining its high-cost manufacturing footprint.
Based on the company's historical cash flow data, Maxeon has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a trough of -143.5% in 2024Q3, highlighting a structural inability to self-fund operations through core business activities.
The consistent negative FCF trajectory implies that the company is perpetually reliant on external financing or shareholder support to cover its operational and capital requirements. This trend suggests that the business model is currently incapable of achieving the scale necessary to reach cash flow break-even, regardless of its technological positioning.
According to quarterly filings, working capital changes have been highly erratic, including a massive $113.7 million outflow in 2023Q3, which indicates that the company's cash position is highly sensitive to inventory management and the timing of supplier payments in a declining revenue environment.
The erratic nature of working capital suggests that the company lacks control over its cash conversion cycle, likely due to the need to manage excess inventory in a market characterized by rapid price deflation. This volatility appears to be a primary driver of the company's liquidity strain, as cash is frequently trapped in non-liquid assets.
As evidenced by the provided data, stock-based compensation has remained a consistent cash-equivalent expense, peaking at $10.7 million in 2024Q4, which effectively dilutes shareholders while the company simultaneously burns through its remaining cash reserves to fund ongoing operational deficits and restructuring efforts.
The reliance on stock-based compensation as a component of the cost structure suggests that management is attempting to preserve cash by substituting equity for cash-based wages. However, this practice does not address the underlying cash burn, and investors should interpret this as a signal of limited financial flexibility.
Quick answers to the most common questions about buying MAXN stock.
Maxeon Solar Technologies, Ltd. (MAXN) generated $-270.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Maxeon Solar Technologies, Ltd. (MAXN) reported negative free cash flow of $322.3M in 2024, indicating capital requirements exceeded cash from operations.
Maxeon Solar Technologies, Ltd. (MAXN) spent $52.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.