Operational strain is evident in the 2026Q1 OCF/NI ratio of 2.94, reflecting significant cash outflows that exacerbate the company's $18.4M free cash flow deficit.
| Cash from Operations | 12.52M | -46.6M | 10.52M | 62.42M | 32.4M | -10.25M | 32.68M | -19.82M |
| Operating CF Margin % | - | -14.72% | 2.31% | 12.62% | 6.26% | -2.54% | 24.49% | -49.73% |
| Operating CF Growth % | 2870.51% | -543.11% | -83.15% | 92.69% | 416.17% | -131.35% | 264.9% | - |
| Net Income | -102.5M | -145.44M | -180.19M | -111.35M | -7.62M | 56.49M | -24.2M | -29.54M |
| Depreciation & Amortization | 25.62M | 28.54M | 26.63M | 27.35M | 24.59M | 18.23M | 5.67M | 823K |
| Stock-Based Compensation | 3.59M | 3.02M | 6.75M | 14.72M | 18.6M | 7.33M | 0 | 0 |
| Deferred Taxes | -5.65M | -57K | -11.68M | -47.04M | -10.5M | -3.14M | 0 | 0 |
| Other Non-Cash Items | 108.97M | 100.11M | 168.02M | 167.02M | 39.7M | 2.42M | 19.88M | 953K |
| Working Capital Changes | 12.31M | -32.78M | 991K | 11.72M | -32.37M | -91.58M | 31.33M | 7.95M |
| Change in Receivables | 13.39M | 8.5M | 3.19M | 295K | -5.92M | -15.04M | -2.46M | -956K |
| Change in Inventory | 20.43M | 27.4M | -14.67M | 28.18M | -30.88M | -49.41M | -2.08M | 4.04M |
| Change in Payables | -14.79M | -55.86M | 38.15M | 9.56M | 2.68M | 5.01M | 1.3M | 71K |
| Cash from Investing | -11.15M | -12.05M | -14.51M | -53.08M | -10.02M | -143.89M | -274.1M | -52.43M |
| Capital Expenditures | -1.56M | -12.05M | -14.51M | -9.09M | -9.24M | -10.64M | -958K | -118K |
| CapEx % of Revenue | 0.52% | 3.81% | 3.19% | 1.84% | 1.79% | 2.64% | 0.72% | 0.3% |
| Acquisitions | 0 | 0 | 0 | -34.6M | -774K | -133.31M | -273.14M | -52.31M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -9.59M | 0 | 0 | -9.39M | 0 | 64K | 0 | 0 |
| Cash from Financing | -191.37M | 66.55M | -3.66M | -12.87M | -23.54M | 146.48M | 281.07M | 73.98M |
| Debt Issued (Net) | -176.42M | 66.9M | 606K | 34.62M | -15.63M | 56.88M | 48.97M | 23.57M |
| Equity Issued (Net) | -7K | 0 | 0 | -37.26M | -35K | 234.6M | 250M | 54.37M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -33.16M | -16.52M | -3.96M |
| Share Repurchases | -7K | 0 | 0 | -36.96M | -35K | 0 | 0 | 0 |
| Other Financing | -14.94M | -359K | -4.26M | -10.22M | -7.88M | -111.83M | -1.38M | 0 |
| Net Change in Cash | -189.94M | 8.05M | -7.86M | -3.45M | -1.81M | -7.65M | 27.73M | 209K |
| Free Cash Flow | 10.96M | -58.65M | -4M | 53.33M | 23.15M | -20.89M | 31.72M | -19.93M |
| FCF Margin % | 3.63% | -18.53% | -0.88% | 10.78% | 4.47% | -5.17% | 23.77% | -50.02% |
| FCF Growth % | 117.82% | -1368.11% | -107.49% | 130.33% | 210.83% | -165.86% | 259.12% | - |
| FCF per Share | 4.37 | -37.10 | -2.74 | 35.26 | 14.59 | -13.22 | 20.64 | -8.24 |
| FCF Conversion (FCF/Net Income) | -0.11x | 0.32x | -0.09x | -0.56x | -4.25x | -0.21x | -1.35x | 0.67x |
| Interest Paid | 0 | 0 | 13.47M | 10.33M | 5.13M | 8.22M | 0 | 0 |
| Taxes Paid | 0 | 0 | 4.28M | 11.78M | 13.19M | 8K | 0 | 0 |
Structural demand saturation risk
As reported in recent financial statements, the persistent gap between net income and operating cash flow, highlighted by a 2026Q1 OCF/NI ratio of 2.94, suggests that accounting losses are being exacerbated by significant cash outflows rather than being mitigated by non-cash adjustments or efficient working capital management.
The wide variance between net income and operating cash flow indicates that the company's reported losses are not merely accounting artifacts but reflect genuine cash burn. Investors should monitor whether this divergence persists, as it suggests that the underlying business model is struggling to convert sales into liquidity.
Based on the company's quarterly filings, free cash flow has exhibited extreme instability, swinging from a peak of $21.1M in 2023Q4 to a trough of -$78.4M in 2025Q1, illustrating the difficulty in maintaining positive cash generation amidst a contracting revenue base and seasonal demand fluctuations.
The erratic nature of FCF margins suggests that the company lacks the operational predictability required for sustainable growth. This volatility warrants further investigation into whether management can stabilize cash generation or if the business remains tethered to high-cost, seasonal inventory cycles.
According to recent SEC filings, working capital changes have been a primary driver of cash flow volatility, with a massive $65.3M outflow in 2025Q1 followed by inconsistent recovery periods, indicating that inventory management and collection cycles are currently failing to provide a reliable buffer for operations.
The significant negative working capital swings suggest that the company is frequently forced to tie up cash in inventory that may not be moving as anticipated. This pattern implies that the firm's supply chain and inventory procurement processes are not currently aligned with the realities of declining consumer demand.
As indicated by the provided data, the company's capital expenditure relative to revenue reached 12.1% in 2025Q3, a concerning level for a firm experiencing top-line contraction, suggesting that maintenance or growth-related investments are not being scaled down in proportion to the shrinking sales base.
Maintaining elevated capital intensity while revenue is in decline may indicate an inability to pivot to a leaner operational structure. Analysts should monitor whether these expenditures are truly necessary for maintenance or if they represent inefficient capital allocation in a period of structural uncertainty.
Quick answers to the most common questions about buying SBDS stock.
Solo Brands, Inc. (SBDS) generated $-46.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solo Brands, Inc. (SBDS) reported negative free cash flow of $58.7M in 2025, indicating capital requirements exceeded cash from operations.
Solo Brands, Inc. (SBDS) spent $12.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.