Free cash flow remains deeply negative with a -10.6% margin in 2026Q1, highlighting a disconnect between the company's $110.4 million cash position and its inability to generate sustainable operating cash flow.
| Cash from Operations | -2.08M | -417K | -2.3M | -680.87K |
| Operating CF Margin % | - | -0.43% | - | - |
| Operating CF Growth % | 100% | 81.89% | -238.12% | - |
| Net Income | -5.11M | -2.51M | 5.76M | 414.5K |
| Depreciation & Amortization | 240K | 19K | 0 | 0 |
| Stock-Based Compensation | 0 | 3.78M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.4M | 432K | -8.78M | -771.73K |
| Working Capital Changes | -2.61M | -2.14M | 717.64K | -323.64K |
| Change in Receivables | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.31M | -4.3M | 0 | 0 |
| Change in Payables | 2.49M | 3.19M | 0 | 0 |
| Cash from Investing | -10.23M | -8.98M | 2M | -170M |
| Capital Expenditures | -10.23M | -8.47M | 0 | 0 |
| CapEx % of Revenue | 13.15% | 8.79% | - | - |
| Acquisitions | 2K | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | -509K | 0 | 0 |
| Cash from Financing | 110.86M | 111.91M | -85.72K | 171.97M |
| Debt Issued (Net) | 7.87M | 6.89M | 0 | 0 |
| Equity Issued (Net) | -10.83M | -8.8M | -85.72K | 172.17M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -10.83M | -8.8M | 0 | 0 |
| Other Financing | 113.82M | 113.81M | 0 | -196.32K |
| Net Change in Cash | 106.43M | 102.51M | -387.87K | 1.29M |
| Free Cash Flow | -11.65M | -8.89M | -2.3M | -680.87K |
| FCF Margin % | -14.97% | -9.22% | - | - |
| FCF Growth % | -587.12% | -286.16% | -238.12% | - |
| FCF per Share | -0.39 | -0.30 | -0.11 | -0.03 |
| FCF Conversion (FCF/Net Income) | 2.28x | 0.17x | -0.40x | -1.64x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Persistent negative operating cash
According to the provided financial data, PEW exhibits a significant disconnect between net income and operating cash flow, evidenced by a 2025Q4 OCF/NI ratio of -2552.00, which suggests that reported accounting profits are not translating into actual cash generation for the business at this stage.
The extreme volatility in the OCF/NI ratio indicates that accruals and non-cash adjustments are heavily distorting the company's true economic performance. Investors should monitor whether this divergence is a result of timing differences in inventory procurement or a more structural inability to convert sales into liquid assets.
As reported in recent quarterly filings, PEW's free cash flow trajectory remains deeply negative, with a 2026Q1 FCF margin of -10.6% and a 2025Q4 margin of -19.9%, indicating that the company is currently consuming rather than generating cash to support its ongoing e-commerce operations.
The consistent negative FCF trend suggests that the company's current business model is not self-funding. Without a clear path to positive FCF, the company remains reliant on its existing cash reserves to bridge the gap between operational outflows and revenue generation.
Based on the company's reported figures, PEW's capital expenditure reached 29.3% of revenue in 2025Q4, a significant spike that highlights the high cost of maintaining the digital infrastructure and logistics integrations required to support its decentralized FFL delivery model in a competitive retail environment.
This level of capital intensity appears disproportionate for an asset-light e-commerce entity, suggesting that the company may be investing heavily in platform development or compliance systems. Analysts should investigate whether these expenditures are truly growth-oriented or merely necessary maintenance to keep the platform operational.
Data from recent periods shows that PEW has utilized its cash reserves for share repurchases, such as the $8.9 million outflow in 2025Q3, despite the company's persistent negative operating cash flow and lack of consistent profitability in its core retail business operations.
The decision to return capital to shareholders while the core business is burning cash warrants further investigation into management's strategic priorities. This approach may indicate a lack of high-return internal investment opportunities or a desire to support the stock price amidst operational headwinds.
Quick answers to the most common questions about buying PEW stock.
GrabAGun Digital Holdings Inc. (PEW) generated $-0.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GrabAGun Digital Holdings Inc. (PEW) reported negative free cash flow of $8.9M in 2025, indicating capital requirements exceeded cash from operations.
GrabAGun Digital Holdings Inc. (PEW) spent $8.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, GrabAGun Digital Holdings Inc. (PEW) spent $8.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.