Oatly Group AB (OTLY) Cash Flow Statement

The conversion ratio is unstable across quarters, ranging from roughly -0.12 to 1.54, which limits the reliability of any single period as evidence of earnings quality. Several quarters show operating cash flow far less negative than net income, suggesting large non-cash charges and working capital timing account for much of the reported loss. Investors should monitor whether conversion stabilizes, as persistent divergence may indicate that reported losses are not a reliable proxy for cash economics.

FCF margin improved from -30.2% in 2024Q2 to near break-even at -0.2% in 2026Q2 before deteriorating again, indicating a volatile rather than steadily improving path. The absence of any positive free cash flow quarter suggests the business is not yet self-funding at its current cost structure. This is consistent with the prior income statement finding that operating losses persist despite gross margin gains.

Capex intensity peaked at 6.9% of revenue in 2024Q2 and fell to near zero in 2025Q4, which may reflect deferral of growth investment rather than structural efficiency. Depreciation and amortization of roughly $12M per quarter generally exceeds capex, suggesting the asset base is being maintained at a minimal level. Investors should monitor whether underinvestment could constrain production capacity if demand recovery continues.

The reversal from a large inflow to a sizeable outflow within one quarter suggests working capital management is episodic rather than structurally improving. Such swings can flatter or depress reported operating cash flow independently of underlying profitability. Investors should monitor whether these movements reverse in subsequent quarters, as persistent outflows would warrant further investigation into inventory or receivables build-up.