Free cash flow remains highly volatile, swinging from a 47.8% margin in 2024Q4 to a negative 4.0% in 2025Q1, reflecting inconsistent cash conversion efficiency.
| Cash from Operations | 69.08M | 58.66M | 143.07M | 177.53M | 255.32M | 200.03M | 128.97M | 52.57M |
| Operating CF Margin % | - | 13.87% | 33.85% | 38.74% | 36.25% | 33.43% | 45.7% | 35.47% |
| Operating CF Growth % | 275.49% | -59% | -19.41% | -30.47% | 27.64% | 55.09% | 145.34% | - |
| Net Income | -15M | -9.25M | 19.52M | 61.59M | 244.07M | 220.78M | 39.28M | 60.88M |
| Depreciation & Amortization | 53.78M | 0 | 53.5M | 50.29M | 48.78M | 48.94M | 45.88M | 0 |
| Stock-Based Compensation | 13.88M | 0 | 11.12M | 9.07M | 7.28M | 3.96M | 1.53M | 0 |
| Deferred Taxes | -12.05M | 0 | 6.71M | -5.63M | 9.18M | -1.13M | -4.43M | 0 |
| Other Non-Cash Items | 16.8M | 76.86M | 13.18M | 18.1M | 178.84M | 2.83M | 46.47M | 0 |
| Working Capital Changes | 11.67M | -8.95M | 39.03M | 44.11M | -232.82M | -75.36M | 248K | -8.31M |
| Change in Receivables | -14.37M | -14.5M | 24.14M | 5.3M | -5.44M | -26.4M | -7.12M | -4.88M |
| Change in Inventory | 7.2M | 8.5M | 14.01M | 34.6M | 8.18M | -63.72M | -14.24M | -3.85M |
| Change in Payables | 5.09M | -2.12M | 3.15M | -2.67M | -9.42M | 2.35M | 14.87M | -2.23M |
| Cash from Investing | -11.9M | -12.61M | -4.89M | -3.61M | -2.68M | -6.26M | -1.38B | 3.41M |
| Capital Expenditures | -320K | 0 | -1.12M | -375K | -650K | -1.76M | -27K | -7K |
| CapEx % of Revenue | 0.08% | 0.08% | 0.27% | 0.08% | 0.09% | 0.29% | 0.01% | 0% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -4.5M | -1.38B | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -11.58M | -12.61M | -3.77M | -3.24M | -2.03M | -890K | 0 | 0 |
| Cash from Financing | -311.9M | -313.29M | -18.61M | -30.33M | -116.22M | -18.34M | 1.26B | -65.02M |
| Debt Issued (Net) | -300M | -301.69M | -6.75M | -8.44M | -105.38M | -20.11M | 789.35M | 0 |
| Equity Issued (Net) | 227K | 527K | 919K | -10.41M | 1.88M | 633K | 959.87M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -470M | -65.02M |
| Share Repurchases | 0 | 0 | 0 | -16.45M | 0 | 0 | 0 | 0 |
| Other Financing | -12.13M | -12.13M | -12.78M | -11.48M | -12.72M | 1.14M | -15.62M | 0 |
| Net Change in Cash | -254.72M | -267.24M | 119.57M | 143.59M | 136.42M | 175.42M | 7.81M | -9.04M |
| Free Cash Flow | 68.12M | 58.33M | 138.18M | 173.92M | 254.67M | 198.26M | 128.95M | 52.56M |
| FCF Margin % | 16.01% | 13.79% | 32.69% | 37.95% | 36.16% | 33.13% | 45.69% | 35.47% |
| FCF Growth % | -25.67% | -57.79% | -20.55% | -31.71% | 28.45% | 53.75% | 145.33% | - |
| FCF per Share | 0.10 | 0.09 | 0.21 | 0.26 | 0.37 | 0.31 | 0.20 | 0.08 |
| FCF Conversion (FCF/Net Income) | -4.54x | -6.34x | 7.33x | 2.88x | 1.05x | 0.91x | 3.28x | 0.86x |
| Interest Paid | 14.1M | 0 | 59.88M | 59.59M | 41.23M | 58.32M | 34.57M | 0 |
| Taxes Paid | -385K | 0 | 12.37M | 7.74M | 59.92M | 33.81M | 9.91M | 0 |
Margin erosion and competition
As reported in recent quarterly filings, OLPX exhibits a persistent disconnect between net income and operating cash flow, with OCF/NI ratios frequently swinging into negative territory, such as the -6.27x observed in 2025Q1, indicating that accounting earnings are failing to capture the underlying cash reality.
The significant volatility in the relationship between net income and operating cash flow suggests that non-cash charges and working capital fluctuations are masking the true cash-generating capacity of the business. Investors should monitor this divergence closely, as it implies that the company's reported profitability may be structurally decoupled from its actual ability to generate cash from core operations.
Based on the provided financial data, OLPX's free cash flow margins have demonstrated extreme instability, ranging from a peak of 47.8% in 2024Q4 to a negative 4.0% in 2025Q1, reflecting a business model that struggles to maintain consistent cash conversion amid fluctuating top-line performance.
The erratic nature of FCF margins suggests that the company's cash generation is highly sensitive to seasonal inventory shifts and promotional spending cycles. This lack of predictability in cash flow trajectory warrants further investigation into whether the brand can sustain its premium positioning without sacrificing its ability to convert revenue into meaningful free cash flow.
According to the cash flow statements, working capital changes have been a major source of volatility for OLPX, with swings as large as the $30.2M inflow in 2024Q4 followed by a $21.4M outflow in 2025Q1, highlighting significant instability in inventory and receivables management.
These sharp fluctuations in working capital suggest that the company may be experiencing uneven demand patterns or potential channel stuffing, which complicates the assessment of underlying operational health. The reliance on these swings to bolster cash flow indicates that the business lacks a stable, predictable cash conversion cycle.
As indicated by the reported figures, OLPX maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently remaining at or below 0.5% over the last ten quarters, confirming the company's reliance on an asset-light, outsourced manufacturing model to preserve its balance sheet.
The minimal capital expenditure requirements suggest that the company is not burdened by heavy infrastructure investment, which theoretically provides more flexibility for capital allocation. However, this low investment level may also imply a lack of internal capacity to innovate or scale production independently, leaving the firm dependent on third-party contractors.
Quick answers to the most common questions about buying OLPX stock.
Olaplex Holdings, Inc. (OLPX) generated $58.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Olaplex Holdings, Inc. (OLPX) generated $58.3M 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.
Olaplex Holdings, Inc. (OLPX) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.