Sweetgreen, Inc. (SG) Cash Flow Statement

The gap between net income and operating cash flow is shaped heavily by non-cash items such as D&A of $18.6M and SBC, which together absorb a large share of reported losses. The 2026Q1 net income of $125.8M against operating cash flow of -$17.2M suggests a non-operating gain rather than underlying cash generation, so reported earnings should not be read as evidence of earnings quality. Investors should monitor whether operating cash outflows persist as non-cash add-backs change.

The FCF margin deterioration from roughly -1.2% in 2024Q2 to -12.5% in 2026Q3 indicates that capital spending and operating outflows are growing faster than the revenue base, which is flat at 0.4% YoY. This pattern suggests the business is not yet self-funding its store footprint or automation investment. Sustained negative FCF may increase reliance on balance sheet capacity, warranting continued monitoring.

The 2025Q4 outlay is consistent with an intensive build-out phase, potentially tied to Infinite Kitchen deployment and new store openings, though the supplied data does not break out maintenance versus growth components. Excluding that quarter, CapEx intensity has stabilized near 6% to 9% of revenue in the most recent periods, which suggests spending has partly normalized. The durability of automation returns remains unproven and warrants further investigation.

The absence of distributions is consistent with a company prioritizing liquidity preservation over shareholder returns, given cumulative negative free cash flow across the series. Acquisition outflows of $100.0M in 2026Q1 represent a notable exception and deserve scrutiny regarding their strategic rationale and return profile. Capital deployment choices should be evaluated against the company's ability to generate internal cash over time.