Operational cash flow remains negative, with a $10.6M free cash flow burn in 2025Q2 exacerbated by $12.6M in stock-based compensation that obscures underlying cash generation.
| Cash from Operations | -23.49M | -15.04M | 6.04M | -6.16M |
| Operating CF Margin % | - | -4.25% | 2.62% | -3.71% |
| Operating CF Growth % | -474.37% | -348.73% | 198.18% | - |
| Net Income | -61.11M | -48.17M | -13.84M | -12.77M |
| Depreciation & Amortization | 22.11M | 23.52M | 12.38M | 8.46M |
| Stock-Based Compensation | 12.55M | 211K | 312K | 691K |
| Deferred Taxes | -1.85M | -8.25M | 0 | 0 |
| Other Non-Cash Items | 6.24M | 21.11M | 4.04M | 5.08M |
| Working Capital Changes | -1.43M | -3.46M | 3.16M | -7.61M |
| Change in Receivables | 39K | -854K | -246K | 70K |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 3.36M | 313K | 171K | -2.5M |
| Cash from Investing | -8.76M | -20.5M | -14.61M | -6.38M |
| Capital Expenditures | -17.82M | -25.14M | -23.87M | -17.81M |
| CapEx % of Revenue | 5.17% | 7.11% | 10.34% | 10.74% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 9.07M | 4.63M | 9.26M | 11.43M |
| Cash from Financing | 26.85M | 37.28M | 15.74M | 6.42M |
| Debt Issued (Net) | 11.97M | 13.84M | 520K | 1.72M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 14.88M | 23.44M | 15.22M | 4.69M |
| Net Change in Cash | -5.39M | 1.74M | 7.17M | -6.12M |
| Free Cash Flow | -41.31M | -40.17M | -17.83M | -23.97M |
| FCF Margin % | -11.97% | -11.36% | -7.72% | -14.45% |
| FCF Growth % | - | -125.35% | 25.62% | - |
| FCF per Share | -0.72 | -0.80 | -0.36 | -0.48 |
| FCF Conversion (FCF/Net Income) | 0.68x | 0.31x | -0.44x | 0.48x |
| Interest Paid | 29.33M | 36.84M | 26.14M | 21.33M |
| Taxes Paid | 0 | 0 | 0 | 0 |
Liquidity and Capital Runway
As reported in recent financial filings, TWNP consistently reports negative net income alongside operating cash flow deficits, with the OCF/NI ratio reaching a low of 0.09 in 2024Q3, illustrating a fundamental inability to convert accounting losses into positive cash generation for the business.
The persistent gap between net income and operating cash flow suggests that the company's core restaurant operations are not yet self-sustaining. Investors should monitor whether the reliance on non-cash adjustments, such as stock-based compensation, masks the underlying cash burn required to maintain the current corporate footprint.
Based on the provided quarterly data, TWNP has maintained a negative free cash flow trajectory throughout the observed period, culminating in a -$10.6M outflow in 2025Q2, which underscores the significant cash drain inherent in the company's current expansion and operational model.
The consistent negative FCF margins, which reached -14.2% in 2024Q4, indicate that the company is consuming capital at an accelerating rate relative to its revenue base. This trend suggests that the business model requires substantial external financing to bridge the gap between operational costs and capital expenditure requirements.
According to the latest quarterly statements, TWNP's capital expenditure as a percentage of revenue peaked at 10.3% in 2024Q2, reflecting an aggressive investment phase that continues to weigh heavily on the company's overall liquidity position despite the recent slowdown in unit-level spending.
The high capital intensity relative to revenue suggests that the company is prioritizing physical footprint expansion over immediate cash flow preservation. Analysts should investigate whether these investments are generating sufficient incremental returns or if they are merely sustaining the existing, underperforming asset base.
As indicated by the quarterly cash flow statements, working capital changes have been erratic, swinging from a positive $5.2M in 2024Q3 to a negative $2.4M in 2025Q2, which suggests significant instability in the company's ability to manage its short-term operational obligations effectively.
This volatility in working capital management may imply difficulties in timing vendor payments or managing inventory levels across the newly integrated restaurant portfolio. Such fluctuations often serve as a leading indicator of operational stress, warranting further investigation into the company's accounts payable and receivable cycles.
Based on the reported figures, the $12.6M in stock-based compensation recorded in 2025Q2 significantly distorts the cash flow picture, effectively obscuring the true extent of the company's operational cash burn by inflating non-cash expenses in the reconciliation of net income to operating cash flow.
The reliance on stock-based compensation as a primary adjustment suggests that the company is utilizing equity to preserve cash, which may lead to significant shareholder dilution over time. Investors should be wary of this practice, as it does not address the underlying structural deficit in the restaurant operations.
Quick answers to the most common questions about buying TWNP stock.
Twin Hospitality Group (TWNP) generated $-15.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Twin Hospitality Group (TWNP) reported negative free cash flow of $40.2M in 2024, indicating capital requirements exceeded cash from operations.
Twin Hospitality Group (TWNP) spent $25.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.