Operational efficiency is supported by a capital-light model with CapEx/Revenue ratios consistently below 1.5%, contributing to a strong OCF/NI ratio that peaked at 1.60 in 2024Q4.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 3.28M | 3.4M | 2.74M | 2.63M | 1.38M | 1.49M | -360K | 659K | -3.9M | -5.55M | 1.95M | 1.98M | -75K | 734K | 1.17M | 1.57M | 1.55M | 1.52M | 2.42M | -1.37M | 1.24M | 1.09M | 3.51M | 4.02M | 5.56M | 6.42M | 4.58M | 5.8M | 6.4M | 5.4M | 6.2M |
| Operating CF Margin % | - | 28.2% | 22.55% | 22.11% | 12.94% | 17.28% | -3.59% | 5.35% | -25.81% | -9.71% | 3.2% | 4.1% | -0.18% | 1.75% | 2.73% | 3.64% | 3.79% | 3.46% | 4.89% | -2.91% | 2.44% | 1.97% | 5.83% | 6.84% | 8.34% | 10.12% | 6.93% | 8.79% | 9.47% | 7.83% | 8.96% |
| Operating CF Growth % | -32.76% | 23.91% | 4.22% | 89.96% | -6.8% | 512.5% | -154.63% | 116.89% | 29.67% | -385.1% | -1.57% | 2736% | -110.22% | -37.37% | -25.26% | 1.36% | 1.98% | -37.29% | 276.44% | -211.01% | 13.51% | -69.02% | -12.66% | -27.68% | -13.4% | 40.24% | -21.07% | -9.38% | 18.52% | -12.9% | 121.43% |
| Net Income | 2.93M | 2.7M | 2.47M | 1.61M | 8.02M | 1.52M | -4.23M | -750K | 1.91M | -12.49M | -8.89M | -1.84M | -1.57M | -1.26M | 322K | 1.36M | 1.16M | 1.17M | 2.83M | 206K | -5.99M | 204K | 2.24M | 3.09M | 1.14M | 2.48M | 2.88M | 2.8M | 4.9M | 4.5M | 3.9M |
| Depreciation & Amortization | 239K | 237K | 629K | 651K | 608K | 700K | 657K | 466K | 874K | 2.46M | 2.72M | 1.62M | 1.45M | 1.3M | 946K | 851K | 357K | 290K | 342K | 692K | 1.21M | 1.14M | 1.13M | 1.4M | 1.34M | 1.34M | 1.21M | 900K | 900K | 700K | 600K |
| Stock-Based Compensation | 211K | 136K | 149K | 345K | 169K | 80K | -104K | 36K | 115K | 58K | 213K | 128K | 68K | 150K | 121K | 103K | 165K | 198K | 51K | -14K | 341K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 866K | 761K | 586K | 430K | -5.77M | -525K | 4.06M | -198K | 1.1M | 0 | 2.59M | -703K | -840K | -671K | 83K | 310K | -67K | 88K | -334K | 687K | -1.03M | 39K | 500K | 1.38M | 538K | 1.25M | 1.13M | 1.1M | 0 | 0 | 0 |
| Other Non-Cash Items | -969K | 185K | 65K | 78K | 73K | 63K | 938K | 2.4M | 35K | 6M | 2.23M | 502K | 204K | 920K | 91K | -16K | 155K | 75K | 156K | 63K | 4.99M | 30K | -510K | -1.79M | 2.37M | 210K | 225K | -100K | 1.4M | 2.2M | 1.9M |
| Working Capital Changes | 1K | -626K | -1.16M | -488K | -1.72M | -353K | -1.68M | -1.29M | -7.94M | -1.57M | 3.07M | 2.27M | 606K | 292K | -391K | -1.04M | -227K | -306K | -621K | -3M | 1.71M | -328K | 146K | -61K | 181K | 1.14M | -868K | 900K | -800K | -2M | -200K |
| Change in Receivables | -426K | 288K | -454K | 791K | -1.12M | 47K | 132K | 226K | 908K | -576K | -44K | -240K | -70K | -283K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -1.21M | 7K | -1K | 73K | 118K | -17K | 1.52M | -88K | 237K | -23K | -340K | -117K | 25K | 122K | 254K | 145K | -205K | -202K | 15K | 537K | 847K | -517K | -400K | 300K | -300K | -300K |
| Change in Payables | -80K | -152K | -143K | -167K | 25K | 198K | 46K | -21K | -4.24M | 350K | 940K | 852K | 451K | 10K | -541K | 320K | -23K | -574K | 298K | -135K | 255K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.87M | -2.04M | -4.87M | -15K | 338K | -238K | 67K | 131K | 708K | 426K | -7.67M | -6.73M | -1.96M | -2.06M | -2.48M | -1.86M | -769K | -1.05M | -141K | 11.08M | -1.64M | -753K | -1.3M | -470K | -8.93M | -4.71M | -754K | -600K | -300K | -600K | -600K |
| Capital Expenditures | -91K | -56K | -76K | -65K | -162K | -286K | -56K | -81K | -1.08M | -573K | -8.11M | -6.73M | -2.07M | -2.24M | -2.48M | -1.86M | -769K | -1.05M | -249K | -249K | -2.23M | -753K | -655K | -476K | -8.95M | -4.71M | -754K | -600K | -1.3M | -600K | -600K |
| CapEx % of Revenue | 0.72% | 0.47% | 0.63% | 0.55% | 1.52% | 3.33% | 0.56% | 0.66% | 7.15% | 1% | 13.34% | 13.96% | 4.9% | 5.36% | 5.77% | 4.33% | 1.88% | 2.39% | 0.5% | 0.53% | 4.4% | 1.36% | 1.09% | 0.81% | 13.43% | 7.43% | 1.14% | 0.91% | 1.92% | 0.87% | 0.87% |
| Acquisitions | 5K | 0 | 0 | 0 | 0 | 1K | 0 | 11K | 1.79M | 999K | 444K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -682K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -30K | -16K | 100K | 50K | 500K | 47K | 123K | 201K | 1.79M | 999K | 444K | 0 | 106K | 184K | 0 | 0 | 0 | 0 | 108K | 11.32M | 589K | 0 | 38K | 6K | 24K | 0 | 0 | 0 | 1M | 0 | -100K |
| Cash from Financing | 1K | -1.39M | -311K | -5.01M | -2.33M | 3.88M | 999K | 88K | 4.13M | 4.7M | 866K | 7.91M | 3.91M | 1.66M | 951K | 485K | -291K | -1.35M | -3M | -8.01M | 414K | -779K | -2M | -3.92M | 3.6M | -1.65M | -3.85M | -7M | -6.1M | -3.4M | -6.7M |
| Debt Issued (Net) | 0 | 0 | 0 | -30K | -1.82M | 250K | 657K | 0 | 0 | 3.89M | 0 | -767K | -1.76M | 783K | 927K | 485K | -291K | 621K | 0 | -8.04M | 333K | -649K | -2.15M | -3.92M | 4.17M | 623K | 4.91M | 800K | -2.3M | -2M | -3.5M |
| Equity Issued (Net) | 1K | -1.2M | 0 | -4.98M | -512K | 3.63M | 357K | 88K | 5.13M | 0 | 764K | 8.25M | 5.59M | 872K | 0 | 0 | 0 | -1.97M | -3.02M | 59K | 81K | -130K | 150K | 0 | 0 | -1.03M | -5.96M | -5.7M | -1.3M | -1.4M | -3.2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.24M | -2.8M | -2.1M | -2.3M | 0 | 0 |
| Share Repurchases | 1K | -1.2M | 0 | -4.98M | -512K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.97M | -3.02M | 0 | 0 | -160K | 0 | 0 | 0 | -1.33M | -6.1M | -5.8M | -2.6M | -1.9M | -3.7M |
| Other Financing | 0 | -182K | -311K | 0 | 0 | 0 | -15K | 0 | -1M | 806K | 102K | 426K | 82K | 0 | 24K | 0 | 0 | 0 | 20K | -25K | 0 | 0 | 0 | 0 | -573K | 0 | 0 | 0 | -200K | 0 | 0 |
| Net Change in Cash | 411K | -27K | -2.44M | -2.4M | -607K | 5.13M | 706K | 878K | 935K | -422K | -4.85M | 3.16M | 1.88M | 329K | -359K | 188K | 487K | -883K | -722K | 1.7M | 11K | -444K | 218K | -371K | 230K | 56K | -25K | -1.8M | 0 | -3.4M | -6.7M |
| Free Cash Flow | 3.2M | 3.34M | 2.66M | 2.4M | 1.22M | 1.2M | -416K | 578K | -4.98M | -6.12M | -6.16M | -4.75M | -2.14M | -1.51M | -1.31M | -297K | 778K | 468K | 2.17M | -1.62M | -992K | 335K | 2.86M | 3.54M | -3.39M | 1.71M | 3.82M | 5.2M | 5.1M | 4.8M | 5.6M |
| FCF Margin % | 25.31% | 27.73% | 21.93% | 20.14% | 11.43% | 13.95% | -4.15% | 4.69% | -32.97% | -10.72% | -10.14% | -9.86% | -5.08% | -3.61% | -3.05% | -0.69% | 1.9% | 1.07% | 4.38% | -3.44% | -1.96% | 0.61% | 4.74% | 6.03% | -5.09% | 2.69% | 5.79% | 7.88% | 7.54% | 6.96% | 8.09% |
| FCF Growth % | -9.3% | 25.34% | 11.23% | 95.99% | 1.92% | 388.22% | -171.97% | 111.6% | 18.59% | 0.7% | -29.77% | -121.65% | -41.92% | -15.27% | -341.08% | -138.17% | 66.24% | -78.43% | 233.95% | -63.31% | -396.12% | -88.27% | -19.41% | 204.51% | -298.71% | -55.36% | -26.46% | 1.96% | 6.25% | -14.29% | 211.11% |
| FCF per Share | 0.22 | 0.23 | 0.18 | 0.15 | 0.07 | 0.07 | -0.03 | 0.04 | -0.33 | -0.53 | -0.53 | -0.43 | -0.22 | -0.17 | -0.15 | -0.03 | 0.09 | 0.05 | 0.21 | -0.15 | -0.09 | 0.03 | 0.26 | 0.33 | -0.31 | 0.15 | 0.31 | 0.40 | 0.35 | 0.33 | 0.37 |
| FCF Conversion (FCF/Net Income) | 1.09x | 1.26x | 1.11x | 1.63x | 0.17x | 0.98x | 0.09x | -0.88x | -2.04x | 0.44x | -0.22x | -1.08x | 0.05x | -0.58x | 3.64x | 1.16x | 1.33x | 1.29x | 0.86x | -6.66x | -0.21x | 5.33x | 1.57x | 1.30x | 4.89x | 2.59x | 1.59x | 2.07x | 1.31x | 1.20x | 1.59x |
| Interest Paid | 0 | 0 | 0 | 1K | 64K | 64K | 66K | 72K | 187K | 25K | 0 | 113K | 142K | 0 | 81K | 65K | 62K | 57K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -31K | 122K | 5K | 87K | 31K | 23K | 18K | 168K | 64K | 29K | 0 | 19K | 17K | 0 | 6K | 670K | 742K | 244K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stagnant Legacy Brand Growth
Based on recent quarterly filings, RAVE consistently demonstrates an OCF/NI ratio frequently exceeding 1.0, with a peak of 1.60 in 2024Q4, indicating that the company's reported net income is generally well-supported by actual cash inflows from its franchise-heavy operating model.
The consistent ability to convert net income into operating cash flow suggests that the company's accounting practices are conservative and that earnings are not overly reliant on non-cash accruals. Investors should monitor whether this high conversion quality persists if the company shifts its revenue mix further toward company-owned units, which typically carry higher working capital requirements.
As reported in financial statements, RAVE's free cash flow margins have shown significant volatility, ranging from a negative 12.5% in 2024Q2 to a robust 41.8% in 2024Q4, highlighting the sensitivity of cash generation to fluctuations in working capital and seasonal franchise activity.
The wide variance in FCF margins suggests that while the underlying business model is inherently cash-generative, it remains susceptible to timing differences in royalty collections and operational expenses. The recent trend of positive FCF margins indicates that the company has successfully moved past the cash-burning phase associated with its earlier Pie Five expansion efforts.
According to historical data, RAVE maintains a remarkably low capital intensity, with CapEx/Revenue ratios often remaining below 1.5%, which underscores the company's transition toward a capital-light franchise model that requires minimal ongoing investment to maintain its existing footprint.
This low level of capital expenditure is a primary driver of the company's strong free cash flow profile, as it avoids the heavy reinvestment cycles typical of traditional restaurant operators. The lack of significant growth-related CapEx suggests that management is prioritizing cash preservation over aggressive physical expansion, which may limit future top-line growth potential.
Based on RAVE's reported figures, working capital changes have been a major source of cash flow instability, with a notable $1.0M outflow in 2024Q2 followed by a $951.0K inflow in 2026Q3, reflecting the unpredictable nature of the company's short-term asset and liability management.
The significant swings in working capital suggest that the company's cash flow is highly sensitive to the timing of franchise fee receipts and the settlement of corporate payables. Analysts should investigate whether these fluctuations are indicative of underlying operational inefficiencies or simply the result of the company's specific contractual payment cycles with its franchise partners.
Quick answers to the most common questions about buying RAVE stock.
RAVE Restaurant Group, Inc. (RAVE) generated $3.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RAVE Restaurant Group, Inc. (RAVE) generated $3.3M 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.
RAVE Restaurant Group, Inc. (RAVE) spent $0.1M 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, RAVE Restaurant Group, Inc. (RAVE) spent $1.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.