Free cash flow remains highly volatile, swinging from a 13.2% margin in 2024Q4 to a negative 6.1% in 2026Q3, largely driven by significant working capital outflows of $4.7M.
| Metric | TTM | May'25 | Jun'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 | May'96 |
|---|
| Cash from Operations | -1.31M | 10.55M | 6.52M | -8.2M | 1.91M | 832K | 1.92M | -2.56M | 2.95M | 1.81M | -13.58M | -9.78M | 4.61M | 8.63M | -48.72M | 2.14M | 24.33M | 11.08M | 27.92M | -9.67M | 5.46M | -2.03M | 11.98M | 8.21M | 34.21M | -19.56M | 4.11M | 4.1M | 6.3M | 3.6M | -7.9M |
| Operating CF Margin % | - | 5.05% | 3.32% | -3.12% | 0.85% | 0.47% | 1.23% | -1.54% | 1.81% | 1.32% | -9.57% | -7.14% | 3.34% | 6.11% | -30.87% | 1.35% | 4.95% | 2.23% | 4.91% | -1.74% | 1.03% | -0.35% | 2.3% | 1.77% | 7.71% | -3.89% | 1.01% | 1.28% | 2.07% | 1.41% | -3.3% |
| Operating CF Growth % | -126.59% | 61.74% | 179.57% | -529.04% | 129.69% | -56.73% | 175.03% | -186.82% | 63.18% | 113.32% | -38.9% | -312.01% | -46.52% | 117.7% | -2376.78% | -91.2% | 119.57% | -60.31% | 388.72% | -277.19% | 368.55% | -116.96% | 45.91% | -76% | 274.87% | -575.5% | 0.34% | -34.92% | 75% | 145.57% | -17.91% |
| Net Income | 3.76M | -1.14M | 61K | 22.33M | 17.93M | 1.66M | -1.84M | -7.33M | 3.82M | -6.93M | -6.77M | -5.56M | -515K | 1.25M | 8.53M | 90.07M | 16.09M | -12.16M | -8.43M | 40.68M | -2.64M | -11.31M | 6.03M | -27.56M | -11.27M | 17.73M | 13.1M | 8.4M | 9.7M | -1M | 8.1M |
| Depreciation & Amortization | 3.86M | 4M | 4.31M | 3.67M | 3.42M | 3.42M | 3.39M | 3.17M | 2.99M | 2.74M | 2.38M | 1.71M | 1.09M | 1.06M | 1.11M | 1.96M | 4.05M | 4.55M | 5.26M | 6.13M | 6.24M | 5.36M | 5.23M | 5.36M | 5.88M | 5.78M | 5.16M | 4.2M | 4.1M | 3.9M | 3.1M |
| Stock-Based Compensation | 1.61M | 1.54M | 1.33M | 936K | 654K | 675K | 683K | 697K | 533K | 437K | 548K | 726K | 759K | 619K | 481K | 1.19M | 657K | 630K | 687K | 845K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -3.14M | -3.24M | -1M | -138K | -4.04M | -1K | -7K | 315K | 319K | -55K | 201K | -1.6M | -1M | 145K | 2.85M | 252K | -146K | -126K | -3.03M | 309K | 1.46M | 15.58M | 1.19M | -1.82M | -5.78M | 885K | 1.29M | 1.2M | 2.8M | -3.3M | 2.3M |
| Other Non-Cash Items | 546K | 4.64M | 372K | 459K | 482K | 1.05M | 1.02M | 7.43M | 314K | 241K | -243K | -32K | 1.64M | 595K | -6.14M | -109.46M | 2.66M | 16.31M | 12.18M | -42.61M | 3K | 2.32M | -89K | 35.43M | 22.3M | 1.31M | 0 | 500K | 100K | 11.3M | -100K |
| Working Capital Changes | -7.95M | 4.75M | 1.46M | -35.46M | -16.53M | -5.97M | -1.32M | -6.85M | -5.03M | 5.37M | -9.71M | -5.02M | 2.64M | 4.96M | -55.56M | 18.12M | 1.02M | 1.88M | 21.25M | -15.02M | 394K | -4.06M | -386K | -3.21M | 23.09M | -45.27M | -15.44M | -10.2M | -10.7M | -7.3M | -21.8M |
| Change in Receivables | -932K | 130K | 5.3M | -363K | -6.18M | -3.55M | 3.9M | -2.03M | -1.76M | 4.17M | -3.52M | -4.5M | 195K | 1.81M | 4.11M | -6.61M | -8M | 12.22M | 3.54M | -3.63M | -5.42M | 4.3M | -19.31M | 4.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -3.92M | 459K | 66K | -30.45M | -20.57M | -4.86M | -5.45M | -4.24M | -8.25M | 2.41M | -5.17M | -7.52M | 1.52M | 2.49M | -4.94M | -17.49M | 444K | 244K | 23.4M | -9.84M | -10.42M | -8.92M | 4.69M | 2.48M | 14.46M | -25.09M | -11.31M | -11M | -3.7M | 400K | -12.9M |
| Change in Payables | -318K | 5.53M | -8.12M | -439K | 7.67M | -1.21M | 631K | -2.42M | 3.46M | 1.04M | -899K | 4.21M | -2.07M | 1.48M | -4.71M | 2.04M | 9.07M | -4.95M | 2.34M | 2.64M | 15.91M | -8.25M | 9.7M | -8.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.37M | 4.02M | -4.04M | -2.18M | -8.12M | 13.37M | -9.78M | -11.87M | 4.15M | -3.79M | 8.23M | -6.92M | 7.6M | 67.2M | -49.4M | 160.01M | -2.35M | -1M | -3.2M | 80.31M | -12.73M | 2.87M | -10.97M | -7.26M | -7.77M | -14.92M | -10.27M | -14M | -14.3M | -14.3M | 1.2M |
| Capital Expenditures | -4.21M | -2.81M | -4.04M | -7.38M | -3.12M | -2.63M | -1.78M | -3.87M | -5.24M | -5.22M | -4.81M | -4.74M | -2.78M | -1.64M | -218K | -533K | -1.33M | -1.2M | -4.46M | -6.4M | -6.21M | -7.09M | -4.86M | -6.13M | -5.73M | -7.88M | -7.03M | -11.4M | -4.1M | -4M | -2.4M |
| CapEx % of Revenue | 1.96% | 1.35% | 2.06% | 2.81% | 1.39% | 1.49% | 1.14% | 2.32% | 3.21% | 3.81% | 3.39% | 3.46% | 2.02% | 1.16% | 0.14% | 0.34% | 0.27% | 0.24% | 0.79% | 1.15% | 1.17% | 1.22% | 0.93% | 1.32% | 1.29% | 1.57% | 1.73% | 3.55% | 1.35% | 1.57% | 1% |
| Acquisitions | -158K | 6.83M | 0 | 194K | 0 | 2.63M | 1.78M | 0 | 0 | 0 | -12.21M | 0 | -973K | -2.56M | -2.29M | 3K | 6K | 189K | 1.14M | 78.11M | -6.8M | -971K | -6.2M | -1.11M | -8.79M | -8.32M | -2.36M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 194K | 0 | -2.63M | -1.78M | 0 | 371K | -12K | 382K | -248K | 98K | 72K | 64K | -64K | -993K | 2K | -256K | 5.09M | 278K | 10.93M | 83K | -23K | 6.74M | 1.28M | -885K | -2.6M | 0 | -10.3M | -1.1M |
| Cash from Financing | -3.06M | -3.25M | -2.9M | 389K | -352K | -3.01M | -3.21M | -2.82M | -2.95M | -3M | -7.96M | -6.88M | -11.85M | -18.4M | -26.57M | -24.52M | -35.72M | -3.77M | -5.87M | -71.16M | -593K | 6.25M | -1.86M | -966K | -26.9M | 38.59M | 5.42M | 14.5M | 6M | 13.9M | 2.4M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -151K | -181K | -166K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.52M | -32.81M | -2.36M | -65.64M | -7.77M | 3.14M | -18.39M | -1.31M | 898K | -26.36M | 36.63M | 4.67M | 27.8M | -18.9M | 15.3M | 2.5M |
| Equity Issued (Net) | 466K | 320K | 591K | 3.78M | 2.99M | 289K | 59K | 259K | 97K | 30K | -4.87M | -3.62M | -8.55M | -14.83M | -23.18M | -3.4M | -1.51M | 5K | 69K | 1.95M | 710K | 29.73M | 1.66M | 1.13M | 1.61M | 4.04M | 2.71M | -11.1M | 26.9M | 500K | 1.7M |
| Dividends Paid | -2.67M | -3.41M | -3.38M | -3.32M | -3.19M | -3.12M | -3.1M | -3.08M | -3.05M | -3.03M | -3.08M | -3.26M | -3.34M | -3.57M | -3.31M | -1.95M | -1.4M | -1.41M | -2.11M | -2.76M | -2.74M | -2.72M | -2.21M | -2.69M | -2.14M | -2.08M | -1.96M | -2.2M | -2M | -1.9M | -1.8M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.01M | -3.94M | -8.74M | -15.02M | -23.99M | -8.84M | -2.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11K | -11.5M | 0 | 0 | 0 |
| Other Financing | -857K | -159K | -120K | -69K | 0 | 0 | 0 | 0 | 0 | 0 | -4K | 3K | 37K | 0 | -75K | 346K | -1K | 0 | 61.8M | -62.57M | -1.71M | -2.36M | 0 | -304K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -7.18M | 11.64M | -718K | -10.51M | -7.82M | 12.78M | -11.48M | -18.45M | 5.14M | -5.13M | -14.08M | -28.22M | 750K | 58.11M | -127.08M | 141.94M | -14.85M | 3.85M | 22.61M | 426K | -7.29M | 7.6M | 53K | 2.01M | -461K | 4.11M | -737K | 4.6M | -2M | 3.2M | -4.3M |
| Free Cash Flow | -5.52M | 7.74M | 2.48M | -15.58M | -1.21M | -1.8M | 147K | -6.44M | -2.29M | -3.41M | -18.4M | -14.52M | 1.83M | 6.99M | -48.94M | 1.61M | 23M | 9.88M | 23.45M | -16.07M | -754K | -9.12M | 7.12M | 2.08M | 28.48M | -27.45M | -2.91M | -7.3M | 2.2M | -400K | -10.3M |
| FCF Margin % | -2.57% | 3.71% | 1.26% | -5.93% | -0.54% | -1.02% | 0.09% | -3.86% | -1.4% | -2.49% | -12.95% | -10.6% | 1.33% | 4.95% | -31.01% | 1.01% | 4.68% | 1.99% | 4.13% | -2.88% | -0.14% | -1.58% | 1.37% | 0.45% | 6.42% | -5.46% | -0.72% | -2.27% | 0.72% | -0.16% | -4.3% |
| FCF Growth % | -137.42% | 211.76% | 115.94% | -1188.42% | 32.83% | -1324.49% | 102.28% | -181.46% | 32.97% | 81.45% | -26.73% | -892.41% | -73.77% | 114.27% | -3145.49% | -93.01% | 132.69% | -57.85% | 245.94% | -2031.3% | 91.73% | -228.01% | 241.79% | -92.68% | 203.78% | -842.48% | 60.11% | -431.82% | 650% | 96.12% | -9.57% |
| FCF per Share | -0.44 | 0.63 | 0.17 | -1.08 | -0.09 | -0.14 | 0.01 | -0.50 | -0.18 | -0.27 | -1.41 | -1.05 | 0.13 | 0.45 | -2.86 | 0.09 | 1.29 | 0.55 | 1.31 | -0.78 | -0.04 | -0.54 | 0.49 | 0.20 | 2.10 | -1.56 | -0.18 | -0.52 | 0.17 | -0.03 | -0.86 |
| FCF Conversion (FCF/Net Income) | -1.47x | -9.23x | 106.95x | -0.37x | 0.11x | 0.50x | -1.05x | 0.35x | 0.77x | -0.26x | 2.01x | 1.76x | -8.96x | 6.91x | -5.71x | 0.02x | 1.51x | -0.91x | -3.31x | -0.24x | -2.07x | 0.18x | 1.99x | -0.30x | -3.04x | -1.10x | 0.31x | 0.49x | 0.65x | -2.40x | -0.98x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 1.23M | 5M | 4.42M | 6.14M | 11.14M | 9.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.82M | 0 | 4.81M | 1.48M | 106K | 1.02M | 290K | 474K | 362K | 715K | 495K | 2.09M | -1.68M | 40.14M | 3.36M | 1.47M | 2.58M | 6.15M | 2.53M | 1.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial statements, RELL exhibits a significant disconnect between net income and operating cash flow, with the 2026Q3 OCF/NI ratio of -2.97 highlighting the company's struggle to convert accounting profits into actual liquidity during periods of intense working capital investment.
The frequent divergence between net income and operating cash flow suggests that earnings are heavily influenced by non-cash items and timing differences rather than core operational efficiency. Investors should monitor whether this pattern reflects a structural inability to generate cash from operations or merely the lumpy nature of project-based revenue recognition.
Based on the provided cash flow data, RELL's free cash flow trajectory remains highly erratic, with FCF margins swinging from a positive 13.2% in 2024Q4 to a negative 6.1% in 2026Q3, underscoring the company's sensitivity to cyclical industrial demand and inventory management requirements.
The inability to maintain consistent positive free cash flow suggests that the company's current business model is highly susceptible to operational shocks. This volatility may indicate that the firm is prioritizing long-term product development over immediate cash generation, which warrants further investigation into the sustainability of its current investment cycle.
According to the company's cash flow statements, working capital fluctuations are the primary driver of cash flow volatility, evidenced by a substantial $4.7M outflow in 2026Q3 that directly offset the modest net income reported during the same period, indicating inefficient inventory or receivables management.
The recurring negative impact of working capital changes suggests that the company is frequently forced to tie up cash in inventory to support its specialized manufacturing and distribution operations. This dynamic appears to be a structural hurdle that prevents the company from achieving a more stable and predictable cash flow profile.
As indicated by the historical cash flow data, RELL maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently hovering between 0.8% and 3.4%, suggesting that the company is focused on maintaining existing manufacturing infrastructure rather than aggressive capacity expansion.
The relatively low capital intensity implies that the company is not currently in a phase of heavy asset investment, which may be a strategic choice to preserve its fortress balance sheet. However, investors should monitor whether this level of spending is sufficient to support the long-term competitiveness of its proprietary healthcare and green energy product lines.
Based on the provided financial disclosures, the company's cash flow statement obscures the impact of stock-based compensation, which consistently adds back hundreds of thousands of dollars each quarter, potentially masking the true economic cost of talent retention in a competitive industrial technology landscape.
The consistent presence of stock-based compensation adjustments suggests that the company relies on equity-based incentives to manage its cost structure. Analysts should consider these adjustments when evaluating the true cash-generating capacity of the business, as they represent a real economic cost that is often excluded from standard operating cash flow metrics.
Quick answers to the most common questions about buying RELL stock.
Richardson Electronics, Ltd. (RELL) generated $10.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Richardson Electronics, Ltd. (RELL) generated $7.7M 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.
Richardson Electronics, Ltd. (RELL) spent $2.8M 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, Richardson Electronics, Ltd. (RELL) returned $3.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.