Free cash flow remains consistently negative, reaching a low of -25.1% in 2025Q4, as capital expenditures as a percentage of revenue spiked to 81.7% during the same period.
| Cash from Operations | -16.73M | -12.7M | 43.39M | 26.48M | -43.17M | -64.53M | -90.35M | -37.2M |
| Operating CF Margin % | - | -1.87% | 6.41% | 4.53% | -9.18% | -18.99% | -40.95% | -13.57% |
| Operating CF Growth % | -426.78% | -129.26% | 63.86% | 161.34% | 33.1% | 28.58% | -142.89% | - |
| Net Income | 16.78M | -134.06M | -90.37M | -113.38M | -190.44M | -153.18M | -141.22M | -67.92M |
| Depreciation & Amortization | 144.77M | 71.54M | 68.26M | 60.37M | 46.7M | 35.55M | 26.85M | 19.42M |
| Stock-Based Compensation | 51.88M | 36.48M | 39.02M | 49.53M | 78.74M | 28.9M | 4.91M | 3.9M |
| Deferred Taxes | 538K | -89K | -1.41M | 358K | 1.29M | 125K | 0 | 0 |
| Other Non-Cash Items | -92.08M | 49.29M | 41.05M | 38.79M | 45.33M | 24.51M | 3.03M | 1.26M |
| Working Capital Changes | -30.09M | -35.84M | -13.16M | -9.19M | -24.78M | -436K | 16.08M | 6.13M |
| Change in Receivables | 870K | -132K | -1.53M | -258K | -600K | -12.73M | -1.63M | -1.48M |
| Change in Inventory | -468K | -397K | 82K | -686K | -480K | -283K | 211K | -190K |
| Change in Payables | 1.5M | 1.19M | 759K | 9.87M | -4.55M | 3.04M | 958K | -1.69M |
| Cash from Investing | -9.9M | -114.25M | -92.21M | -95.67M | -102.02M | -97.55M | -58.41M | -50.47M |
| Capital Expenditures | -202.66M | -106.49M | -84.46M | -89.67M | -96.89M | -84.51M | -48.15M | -39.29M |
| CapEx % of Revenue | 30.04% | 15.67% | 12.48% | 15.35% | 20.61% | 24.87% | 21.82% | 14.33% |
| Acquisitions | 100M | 0 | 0 | 0 | 0 | -3.34M | -791K | -4.79M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 92.75M | -7.76M | -7.75M | -5.99M | -5.13M | -9.7M | -9.47M | -6.38M |
| Cash from Financing | 1.02M | 2.86M | 8.89M | -5.2M | 4.63M | 531.61M | 2.15M | 149.8M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 5.16M | 0 | 0 |
| Equity Issued (Net) | 446K | 3.12M | -2K | -166K | 0 | 500.31M | 0 | 148.91M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3K | 0 | -2K | -166K | 0 | 0 | 0 | 0 |
| Other Financing | 577K | -259K | 8.9M | -5.03M | 4.63M | 26.15M | 2.15M | 890K |
| Net Change in Cash | -25.6M | -124.09M | -39.93M | -74.38M | -140.56M | 369.53M | -146.61M | 62.13M |
| Free Cash Flow | -120.69M | -119.19M | -48.81M | -69.31M | -145.43M | -157.3M | -147.25M | -81.89M |
| FCF Margin % | -17.89% | -17.54% | -7.21% | -11.87% | -30.94% | -46.28% | -66.74% | -29.87% |
| FCF Growth % | -73.47% | -144.2% | 29.58% | 52.34% | 7.55% | -6.83% | -79.81% | - |
| FCF per Share | -1.00 | -1.01 | -0.43 | -0.62 | -1.32 | -1.45 | -1.68 | -0.76 |
| FCF Conversion (FCF/Net Income) | -7.19x | 0.09x | -0.48x | -0.23x | 0.23x | 0.42x | 0.64x | 0.55x |
| Interest Paid | 0 | 0 | 184K | 50K | 0 | 0 | 383K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent cash burn intensity
As reported in recent financial statements, the relationship between net income and operating cash flow remains highly erratic, with the company posting a net income of $125.8M in 2026Q1 while simultaneously reporting a negative operating cash flow of $17.2M, highlighting a significant disconnect in earnings quality.
The divergence between headline profitability and cash generation suggests that reported net income is heavily influenced by non-operating or non-cash items that do not translate into liquidity. Investors should monitor this persistent gap, as it indicates that the core restaurant operations are not yet self-funding despite the positive net income figure.
Based on the company's reported figures, free cash flow margins have remained consistently negative, reaching a low of -25.1% in 2025Q4, which underscores the ongoing challenge of funding aggressive expansion and automation initiatives through internal cash generation rather than external financing or capital dilution.
The trajectory of free cash flow suggests that the business model is currently structured to prioritize footprint growth over immediate cash preservation. This trend warrants further investigation into whether the current capital expenditure levels are yielding the expected improvements in unit-level profitability or merely sustaining a high-burn operational structure.
According to SEC filings, capital expenditures as a percentage of revenue spiked to 81.7% in 2025Q4, reflecting a heavy investment phase in infrastructure and automation that significantly outweighs the cash generated from the company's existing restaurant footprint and digital ordering ecosystem.
The high capital intensity appears to be driven by the rollout of the 'Infinite Kitchen' technology, which represents a significant bet on future labor efficiency. However, the current data suggests that these investments are creating a substantial drag on cash flow that may take several quarters to justify through improved restaurant-level margins.
As indicated by the quarterly cash flow data, working capital changes have frequently been a net drain on cash, including a $22.8M outflow in 2025Q1, suggesting that the company's operational cycle is not currently optimized to provide a meaningful buffer for its broader cash requirements.
The recurring negative impact of working capital changes may indicate inefficiencies in inventory management or the timing of payables relative to the company's rapid expansion. This trend suggests that the company's cash conversion cycle is currently working against its liquidity needs, necessitating closer scrutiny of operational discipline.
Quick answers to the most common questions about buying SG stock.
Sweetgreen, Inc. (SG) generated $-12.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sweetgreen, Inc. (SG) reported negative free cash flow of $119.2M in 2025, indicating capital requirements exceeded cash from operations.
Sweetgreen, Inc. (SG) spent $106.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.