Revolve Group, Inc. (RVLV) Cash Flow Statement

The wide dispersion in OCF/NI suggests reported earnings are heavily influenced by working capital timing rather than steady cash generation. Two quarters of strongly positive conversion (2025Q1 and 2026Q1) appear to reflect inventory and payables reversals, which may not be repeatable. Investors should monitor whether the negative conversion quarters in 2026Q3 and 2026Q2 reflect a sustained inventory build relative to the company's stated high-turnover model.

Free cash flow appears driven by a few seasonal quarters rather than a steady run-rate, which weakens the case for valuing the business on current cash generation alone. The FCF swing tracks working capital changes far more closely than net income, suggesting underlying cash earnings power is harder to establish than headline profitability implies. Investors should monitor whether trailing free cash flow turns durably positive outside of peak seasonal quarters.

Persistent large working capital outflows during the two most recent quarters suggest inventory or receivables are growing faster than sales, which warrants further investigation given the company's emphasis on rapid inventory turnover. The reversal to a $30.9M inflow in 2026Q1 indicates the balance is timing-driven, but the recurrence of large drains raises the question of whether the buying algorithm is over-committing to stock. Investors should monitor inventory aging and payables trends for confirmation.

The low capital intensity suggests the business is not requiring heavy reinvestment to sustain operations, supporting the view that cash constraints stem from working capital rather than fixed asset needs. Depreciation of roughly $1.2M to $2.7M per quarter remains well below capex in several periods, indicating modest reinvestment relative to the asset base. Investors should monitor whether capex rises materially if the company expands physical retail or automated fulfillment capacity.