Free cash flow remains deeply negative at -11.4% of revenue, exacerbated by aggressive capital deployment including $200.2 million in acquisitions during 2025Q2.
| Cash from Operations | -1.69B | -1.33B | -631.74M | -685.7M | -557.23M | -366.42M | 7.87M | 141.87M |
| Operating CF Margin % | - | -16.05% | -9.25% | -9.86% | -10.3% | -10.97% | 0.2% | 4.13% |
| Operating CF Growth % | -1933.75% | -110.8% | 7.87% | -23.05% | -52.07% | -4755.91% | -94.45% | - |
| Net Income | -51.82M | 138.19M | 115.05M | 148.97M | -990.73M | -539.17M | 17.34M | 66.31M |
| Depreciation & Amortization | 686.59M | 290.04M | 252.59M | 184.06M | 126.24M | 62.29M | 46.17M | 44.27M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 196.85M | 0 | 0 | 149K |
| Deferred Taxes | -188.71M | -188.71M | -101.64M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -2.87B | -1.57B | -1.4B | -968.78M | 1.9M | -156.66M | 42.88M | 151.54M |
| Working Capital Changes | 744.68M | 1.97M | 498.76M | -49.94M | 108.5M | 267.12M | -98.52M | -120.39M |
| Change in Receivables | 1.16B | 299.96M | 580.68M | -222.38M | -37.02M | 189.14M | -66.88M | 30.17M |
| Change in Inventory | 63.55M | -10.61M | -25.87M | -95.41M | -2.44M | -2.44M | 892K | 6.92M |
| Change in Payables | 744.6M | 876.51M | -69.88M | 0 | 0 | 0 | 0 | 88.51M |
| Cash from Investing | -127.85M | 361.39M | -328.58M | 580.44M | -83.94M | -139.6M | -37.93M | -79.39M |
| Capital Expenditures | -388.3M | -71.41M | -135.84M | -120.74M | -95.65M | -73.56M | -7.41M | -34.3M |
| CapEx % of Revenue | 2.58% | 0.86% | 1.99% | 1.74% | 1.77% | 2.2% | 0.19% | 1% |
| Acquisitions | 1.09B | 887.07M | 584.77M | -148M | 54.24M | -99.19M | -3.2M | -60.27M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -850.71M | -478.18M | -774.41M | 849.18M | 30.39M | 33.15M | -27.32M | 15.18M |
| Cash from Financing | 1.78B | 1.19B | 461.21M | 340.1M | -427.95M | 1.43B | 331.99M | -74.47M |
| Debt Issued (Net) | 758.89M | 324.96M | 300.92M | 502.35M | -251.08M | 388.56M | -241.91M | -74.47M |
| Equity Issued (Net) | 1.03B | 868.38M | 0 | 0 | 0 | 1.17B | 700M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -5.04M | 1 | 160.29M | -162.25M | -176.87M | -125.06M | -126.09M | 0 |
| Net Change in Cash | -70.05M | 223.05M | -499.11M | 234.84M | -1.07B | 926.11M | 301.93M | -11.99M |
| Free Cash Flow | -2.36B | -1.9B | -767.58M | -806.44M | -652.88M | -439.98M | 464K | 107.57M |
| FCF Margin % | -15.67% | -22.85% | -11.24% | -11.6% | -12.07% | -13.17% | 0.01% | 3.13% |
| FCF Growth % | -63.49% | -147.08% | 4.82% | -23.52% | -48.39% | -94922.41% | -99.57% | - |
| FCF per Share | -298.13 | -324.10 | -148.56 | -147.41 | -133.86 | -109.32 | 0.11 | 22.78 |
| FCF Conversion (FCF/Net Income) | 45.46x | -8.95x | -5.49x | -4.60x | 0.56x | 0.68x | 0.45x | 2.14x |
| Interest Paid | 33.65M | 47.56M | 34.58M | 7.54M | 10.87M | 10.22M | 11.87M | 17.01M |
| Taxes Paid | 12.78M | 12.78M | 52.1M | 30.81M | 45.51M | 7M | 24.34M | 14.78M |
Persistent Operating Cash Burn
According to historical financial data, MEDIROM consistently reports a significant divergence between net income and operating cash flow, with the OCF/NI ratio frequently fluctuating into negative territory, suggesting that reported earnings do not translate into actual cash generation for the company's core service-based business model.
The recurring inability to convert net income into positive operating cash flow indicates that the company's accounting profits are likely heavily influenced by non-cash items or accruals that do not reflect the underlying cash burn. Investors should monitor this gap closely, as it suggests that the business model remains fundamentally reliant on external financing rather than self-sustaining operational cash flows.
As reported in recent financial statements, MEDIROM's free cash flow remains deeply negative, with a -11.4% FCF margin in 2025Q2, highlighting a structural inability to generate surplus cash after accounting for the capital expenditures required to maintain its physical salon network and digital health initiatives.
The consistent negative FCF trajectory underscores the high capital intensity of the company's expansion strategy. Without a clear path to positive FCF, the company appears to be in a perpetual state of cash consumption that may necessitate further dilution or debt issuance to sustain operations.
Based on reported figures, MEDIROM's capital expenditure as a percentage of revenue reached 7.5% in 2025Q2, indicating that the company is aggressively reinvesting in its infrastructure despite the lack of consistent profitability, which warrants further investigation into the long-term return on these specific capital allocations.
The rising trend in CapEx relative to revenue suggests that the company is prioritizing growth and asset acquisition over immediate cash preservation. This strategy appears to be placing significant pressure on the balance sheet, as the capital intensity is not currently yielding the expected improvements in operating margins.
As evidenced by quarterly filings, MEDIROM exhibits highly erratic working capital changes, including a significant $217.8 million inflow in 2025Q2, which suggests that the company's cash position is heavily influenced by timing differences in collections and payables rather than stable operational efficiency.
The volatility in working capital movements implies that the company's cash flow is susceptible to short-term fluctuations in its business cycle. This lack of predictability in working capital management makes it difficult to assess the underlying health of the company's cash conversion cycle.
According to recent SEC filings, MEDIROM has utilized significant cash for acquisitions, including $200.2 million in 2025Q2, despite reporting negative net income, which indicates a management strategy focused on inorganic growth that may be exacerbating the company's current cash burn and overall financial risk profile.
The decision to pursue acquisitions while the core business is struggling to generate positive cash flow appears to be a high-risk capital allocation strategy. Investors should question whether these acquisitions are providing the necessary synergies to justify the continued depletion of the company's cash reserves.
Quick answers to the most common questions about buying MRM stock.
MEDIROM Healthcare Technologies Inc. (MRM) generated $-1331.7M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
MEDIROM Healthcare Technologies Inc. (MRM) reported negative free cash flow of $1.90B in 2024, indicating capital requirements exceeded cash from operations.
MEDIROM Healthcare Technologies Inc. (MRM) spent $71.4M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.