Free cash flow remains highly unstable, swinging from a $49.9M inflow in 2023Q4 to a $50.9M outflow in 2023Q2, largely driven by erratic working capital management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | -64.36M | -26.97M | -821K | -3.84M | 20.48M | -53.29M | 84.51M | -10.08M | -3.63M | -21.22M | -2.78M | -2.34M | 4.14M | -200K | 1.7M | -3.16M | -4.98M | 1.79M | -802.96K | -1.66M |
| Operating CF Margin % | - | -1.87% | -0.07% | -0.26% | 1.19% | -2.24% | 4% | -0.66% | -648.85% | -2405.75% | -21.25% | -317.6% | 149.46% | -2.7% | 7.98% | -14.6% | -25.41% | 14.47% | -8.53% | -25.11% |
| Operating CF Growth % | -79.99% | -3185.38% | 78.61% | -118.75% | 138.43% | -163.05% | 938.66% | -177.64% | 82.89% | -664.61% | -18.35% | -156.64% | 2170% | -111.73% | 153.95% | 36.55% | -378.22% | 322.92% | 51.54% | - |
| Net Income | -5.56M | -4.88M | -43.33M | -58.99M | -57.43M | 36.26M | 30.43M | -16.99M | -33.6M | -11.97M | -9.48M | -6.56M | -24.3M | 2M | 3.21M | 3.1M | 4.54M | 2.67M | 918.02K | 795.21K |
| Depreciation & Amortization | 8.27M | 7.59M | 10.7M | 13.44M | 11.02M | 10.8M | 9.09M | 10.71M | 827.63K | 1.33M | 1.23B | 619.21M | 269.6K | 220K | 550K | 450K | 365.34K | 286.39K | 235.87K | 147.8K |
| Stock-Based Compensation | 17.81M | 21.66M | 27.25M | 33.66M | 33.94M | 6.29M | 1.62M | 744K | 3.9M | 4M | 947.48M | 1.06B | 1.41B | 239.87M | 314.48M | 144.45M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -4K | 472K | 726K | -679K | 12.5M | -12.7M | 372K | -1.01M | 0 | 0 | 0 | 0 | -283.87M | -2.7M | 0 | -118.03M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -6.74M | 3.27M | 4.04M | -3.02M | 10.22M | 15.15M | 8.55M | -46.34M | 5.87M | 5.56M | 3.85M | 0 | -1.1B | -240.12M | 0 | -143.71M | 0 | 0 | 141.41K | 179.68K |
| Working Capital Changes | -78.14M | -55.08M | -213K | 11.75M | 10.23M | -109.08M | 34.45M | 42.81M | 275.74K | 0 | 1.63M | 4.39M | -150K | -3.93M | -3.15M | -7.33M | -10.32M | -1.26M | -2.1M | -2.78M |
| Change in Receivables | 52.53M | 2.27M | 14.47M | 2.76M | -21.97M | 785K | -14.06M | 32.83M | 5.83M | -237.25K | 129.13K | 1.62M | 1.67M | -660K | 598.75M | -2.2M | -2.22M | -1.43M | -2.27M | -816.66K |
| Change in Inventory | -44.82M | -70.95M | 32.88M | 16.78M | 78.77M | -70.83M | -76.24M | 110.14M | 58.99M | -2.15M | 2.41M | 41.82K | 541.94M | -260K | 842.05K | -4.04M | -4.04M | -803.89K | 701.88K | -1.28M |
| Change in Payables | -73.21M | 11.61M | -57.4M | -898K | -14.06M | -20.07M | 76.34M | -100.73M | 186.56K | -24.56K | 51.58K | -24.91K | -19.71K | -50K | 3.61K | -64.45K | 60K | 19.45K | 25.43K | -308.33K |
| Cash from Investing | 1.55M | 105K | 2.44M | -14.25M | -3.77M | -13.84M | -5.24M | 84.68M | -6.23M | -55.11M | -634.02M | -27.86K | -11.2M | -1.13M | -2.73M | -160K | -880K | -914.53K | -637.81K | -542.4K |
| Capital Expenditures | -3.15M | -2.69M | -3.62M | -30.27M | -9.19M | -13.84M | -6.16M | -10.28M | -776.33K | 0 | 0 | -27.48K | -5.41M | -1.13M | 0 | -150K | -887.54K | 0 | 0 | -510.87K |
| CapEx % of Revenue | 0.24% | 0.19% | 0.29% | 2.02% | 0.53% | 0.58% | 0.29% | 0.67% | 138.78% | - | - | 3.72% | 195.31% | 15.28% | 12.77% | 0.69% | 4.53% | 7.42% | - | 7.74% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 70.52M | 1.31K | 0 | 0 | 0 | -6M | -1M | 0 | 0 | 0 | 0 | 33.1K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.71M | 2.8M | 2.19M | 176K | 1K | 1K | 920K | 24.45M | -5.45M | 0 | 0 | -384 | -5.79M | 0 | 0 | -2.36K | -1.5K | 2.89K | -637.81K | -31.53K |
| Cash from Financing | -3.88M | 35.58M | -6.05M | 1.56M | 1.55M | 12.74M | -1.73M | -49.69M | 3.7M | 143.98M | 13.68M | 1.5M | 6.26M | 330.87K | 792.71K | 9.08M | 9.94M | 0 | 231.95K | 2.85M |
| Debt Issued (Net) | -4.07M | -1.06M | -1.32M | 1.14M | 172K | 502K | -1.73M | -49.69M | 12.75M | 1.48M | -3.63M | -2.59M | -4.7K | 0 | 0 | 0 | 0 | 0 | 0 | 849.38K |
| Equity Issued (Net) | -640K | 38.94M | -3.39M | 1.19M | -1.51M | 808K | 0 | 0 | -45.13M | 0 | 17.31M | 36.25K | 6.26M | 0 | 0 | 0 | 9.94M | 0 | 0 | 2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -640K | 0 | -3.5M | -774K | -1.51M | 0 | 0 | 0 | -45.13M | 1.49M | -1.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 834K | -2.3M | -1.34M | -774K | 2.89M | 11.43M | 0 | 0 | 36.09M | 0 | 0 | 4.05M | 0 | 329.58K | 0 | 0 | 0 | 0 | 231.95K | 0 |
| Net Change in Cash | -50.75M | 8.91M | -6.73M | -17.03M | 19.18M | -53.42M | 77.2M | 23.87M | -6.33M | 0 | 10.18M | -1.11M | -870K | -910K | -190K | -2.23M | 4.77M | 869.12K | -860.75K | 0 |
| Free Cash Flow | -67.51M | -29.66M | -4.44M | -34.1M | 11.29M | -67.13M | 78.36M | -20.36M | -4.41M | -5.45M | -3.41M | -2.37M | -1.27M | -210K | -1.03M | -3.31M | -5.87M | 1.79M | -802.96K | -2.17M |
| FCF Margin % | -5.15% | -2.05% | -0.36% | -2.28% | 0.66% | -2.82% | 3.71% | -1.33% | -787.63% | -617.88% | -26.12% | -321.32% | -45.85% | -2.84% | -4.82% | -15.3% | -29.95% | 14.47% | -8.53% | -32.85% |
| FCF Growth % | -535.51% | -568.26% | 86.98% | -402.07% | 116.82% | -185.67% | 484.85% | -362.11% | 19.15% | -59.76% | -43.8% | -86.79% | -504.76% | 79.61% | 68.88% | 43.61% | -427.94% | 322.92% | 62.96% | - |
| FCF per Share | -3.22 | -1.47 | -0.23 | -1.80 | 0.61 | -3.11 | 4.26 | -1.12 | -0.24 | -0.31 | -0.23 | -0.16 | -4.61 | -0.91 | -4.48 | -14.68 | -28.29 | 21.21 | -42.82 | -115.62 |
| FCF Conversion (FCF/Net Income) | 12.14x | 5.53x | 0.02x | 0.07x | -0.36x | -1.47x | 2.78x | 0.59x | 0.41x | 4.13x | 0.29x | 0.23x | -0.17x | -0.10x | 0.53x | -1.02x | -1.10x | 0.67x | -0.87x | -2.08x |
| Interest Paid | 702K | 1.06M | 1.4M | 1.26M | 558K | 268K | 270K | 2.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 379K | 223K | 342K | 4.96M | 6.37M | 261K | 4.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative operating cash
According to quarterly financial disclosures, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -5.84 in 2026Q1 to 14.71 in 2025Q2, indicating that reported earnings provide little visibility into the company's actual cash-generative capacity.
The extreme divergence between net income and operating cash flow suggests that non-cash items and working capital swings are the primary drivers of the bottom line rather than core operational efficiency. Investors should monitor this disconnect, as it implies that the company's reported profitability is frequently decoupled from its ability to convert sales into liquid assets.
As reported in recent filings, Newegg's free cash flow trajectory is characterized by sharp, cyclical swings, ranging from a $49.9M inflow in 2023Q4 to a $50.9M outflow in 2023Q2, highlighting a lack of consistent cash generation necessary to support long-term capital requirements.
The inability to maintain positive free cash flow suggests that the business model remains highly sensitive to seasonal inventory cycles and hardware launch timing. This volatility warrants further investigation into whether the company can achieve sustainable cash self-sufficiency without relying on external financing or aggressive working capital management.
Based on the provided cash flow statements, working capital changes are the dominant influence on liquidity, with fluctuations as significant as a $55.6M outflow in 2026Q1, suggesting that inventory and payables management are the primary levers currently dictating the company's short-term cash position.
The reliance on working capital shifts to manage cash flow indicates that the company may be using payables as a financing tool to offset operational losses. This strategy appears precarious, as any disruption in vendor terms or a slowdown in inventory turnover could rapidly exacerbate the company's liquidity constraints.
As indicated by the company's financial statements, stock-based compensation remains a consistent non-cash expense, peaking at $9.0M in 2023Q2, which effectively masks the true economic cost of operations and complicates the assessment of the company's underlying cash burn rate.
By adding back significant stock-based compensation to arrive at operating cash flow, the company presents a more favorable liquidity picture than the core business performance might otherwise suggest. Analysts should be cautious, as this accounting treatment may obscure the extent to which the company relies on equity dilution to retain talent while failing to generate positive cash from operations.
Quick answers to the most common questions about buying NEGG stock.
Newegg Commerce, Inc. (NEGG) generated $-27.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Newegg Commerce, Inc. (NEGG) reported negative free cash flow of $29.7M in 2025, indicating capital requirements exceeded cash from operations.
Newegg Commerce, Inc. (NEGG) spent $2.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.