Free cash flow has deteriorated to a negative 10.7% margin in 2026Q1, highlighting a disconnect between accounting profitability and actual cash generation.
| Cash from Operations | -20.99M | 87.58M | 137.76M | 87.45M | 39.03M | 9.87M | 23.02M |
| Operating CF Margin % | - | 10.81% | 21.29% | 17.19% | 12.03% | 4.43% | 20.8% |
| Operating CF Growth % | -457.73% | -36.43% | 57.53% | 124.06% | 295.66% | -57.14% | - |
| Net Income | 51.55M | 110.75M | 101.49M | 58.53M | 21.73M | 13.92M | 11.71M |
| Depreciation & Amortization | 12.3M | 10.69M | 9.83M | 8.61M | 4.41M | 4.01M | 4.26M |
| Stock-Based Compensation | 0 | 0 | 25.02M | 24.11M | 6.7M | 2.11M | 99K |
| Deferred Taxes | -5.77M | -4.26M | -4.35M | -1.26M | -1.51M | -903K | 2.54M |
| Other Non-Cash Items | 35.95M | 33.89M | -1.23M | -502K | 597K | 1.07M | -2.14M |
| Working Capital Changes | -115.02M | -63.48M | 7M | -2.04M | 7.12M | -10.34M | 6.55M |
| Change in Receivables | -28.01M | -25.88M | 728K | -1.8M | -2.44M | -588K | 1.4M |
| Change in Inventory | -51.72M | -35.37M | -15.7M | -3.69M | -18.77M | -35.73M | -6.04M |
| Change in Payables | -55.52M | -3.17M | 23.25M | 2.52M | 7.79M | 21.09M | 7.1M |
| Cash from Investing | -286.78M | -267.25M | 1.35M | -139.99M | -25.78M | -18.78M | 6.67M |
| Capital Expenditures | -17.99M | -15.39M | -3.27M | -2.1M | -7.78M | -6.75M | -3.26M |
| CapEx % of Revenue | 2.43% | 1.9% | 0.51% | 0.41% | 2.4% | 3.03% | 2.95% |
| Acquisitions | 0 | 0 | 0 | -23.17M | 0 | -11.79M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -511K | -941K | -6.88M | -4.71M | -382K | -250K | -150K |
| Cash from Financing | 449.38M | 531.35M | -127.3M | 48.81M | -246K | -318K | 161K |
| Debt Issued (Net) | 0 | 0 | 0 | -4.31M | -362K | -318K | 161K |
| Equity Issued (Net) | 512.73M | 594.7M | -147.59M | 53.01M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -80.06M | 0 | -147.59M | 0 | 0 | 0 | 0 |
| Other Financing | -63.35M | -63.35M | 20.29M | 118K | 116K | 0 | 0 |
| Net Change in Cash | 141.67M | 351.86M | 11.58M | -4.35M | 12.22M | -9.23M | 29.85M |
| Free Cash Flow | -24.78M | 83.64M | 129.76M | 81.84M | 31.25M | 3.12M | 19.75M |
| FCF Margin % | -3.35% | 10.33% | 20.05% | 16.09% | 9.63% | 1.4% | 17.85% |
| FCF Growth % | -117.99% | -35.54% | 58.56% | 161.86% | 901.67% | -84.2% | - |
| FCF per Share | -0.44 | 1.36 | 2.10 | 1.39 | 0.55 | 0.06 | 0.35 |
| FCF Conversion (FCF/Net Income) | -0.48x | 0.79x | 1.36x | 1.49x | 1.80x | 0.71x | 1.97x |
| Interest Paid | 0 | 0 | 0 | 73K | 210K | 168K | 124K |
| Taxes Paid | 0 | 0 | 35.7M | 11.23M | 1.95M | 696K | 47K |
Working Capital Liquidity Drain
As reported in recent financial filings, ODD's operating cash flow to net income ratio plummeted to 0.95 in 2026Q1, reflecting a significant disconnect between accounting profitability and actual cash generation that warrants close monitoring by investors concerned with the sustainability of reported earnings.
The sharp divergence between net income and operating cash flow suggests that the company is struggling to convert its accrual-based profits into liquid assets. This trend indicates that the underlying quality of earnings may be deteriorating as the business faces increased pressure on its cash conversion cycle.
Based on the latest quarterly data, ODD's free cash flow margin has shifted to a negative 10.7% in 2026Q1, a stark reversal from the 32.0% margin achieved in 2025Q1, signaling a rapid erosion of the company's ability to self-fund operations through internal cash generation.
The transition from positive free cash flow to a cash-burning state suggests that the company's current operating model is failing to cover its capital requirements. Investors should investigate whether this trajectory is a temporary seasonal anomaly or a structural shift in the company's ability to generate surplus cash.
According to the provided cash flow statements, ODD experienced a significant $10.3 million outflow from working capital in 2026Q1, which follows a pattern of volatile swings that have historically obscured the company's true operational cash-generating capacity during periods of slowing revenue growth.
The recurring volatility in working capital changes suggests that the company may be facing challenges in managing inventory levels or collection cycles effectively. This instability in cash flow timing implies that the business is highly sensitive to shifts in demand, which could exacerbate liquidity pressures if top-line contraction persists.
As evidenced by recent financial statements, ODD utilized $80.1 million for share repurchases in 2026Q1 despite generating negative operating cash flow, a capital allocation strategy that appears to prioritize shareholder returns over the preservation of cash reserves during a period of operational stress.
The decision to deploy significant capital toward buybacks while the business is burning cash suggests a management focus on supporting equity valuation rather than strengthening the balance sheet. This approach warrants further investigation into the long-term sustainability of such capital allocation policies given the current negative cash flow environment.
Quick answers to the most common questions about buying ODD stock.
Oddity Tech Ltd. (ODD) generated $87.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Oddity Tech Ltd. (ODD) generated $83.6M 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.
Oddity Tech Ltd. (ODD) spent $15.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.