Capital intensity is disconnected from operational performance, evidenced by a record $65.9 million in capital expenditures during 2026Q1 that contributed to a $74.4 million free cash flow deficit.
| Cash from Operations | 8.17M | 7.65M | 3.76M | -4.88M | -700.75K |
| Operating CF Margin % | - | 42.74% | 21.07% | -38.71% | -8.09% |
| Operating CF Growth % | 99.28% | 103.56% | 177.06% | -595.85% | - |
| Net Income | -39.89M | -50.78M | -32.95M | -11.39M | -8.02M |
| Depreciation & Amortization | 5.06M | 6.18M | 3.66M | 1.88M | 1.18M |
| Stock-Based Compensation | 4.49M | 15.35M | 12.02M | 1.61M | 973.68K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.49M | -4M | 7.35M | 568.36K | 4.22M |
| Working Capital Changes | 44.98M | 40.91M | 13.68M | 2.45M | 949.24K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -311.2K | -249.18K | -39.54K | -98.59K | 10.92K |
| Change in Payables | 37.62M | 17.85M | 4.69M | 745.26K | 1.71M |
| Cash from Investing | -165.97M | -133.43M | -72.41M | -31.17M | -4.43M |
| Capital Expenditures | -185.47M | -141.66M | -72.48M | -31.17M | -8.12M |
| CapEx % of Revenue | 1221.57% | 791.5% | 406.43% | 247.39% | 93.79% |
| Acquisitions | 11.9M | 2.62M | 74.08K | 0 | 3.69M |
| Investments | - | - | - | - | - |
| Other Investing | 11.61M | 7.6M | 0 | 0 | 0 |
| Cash from Financing | 189.74M | 129.12M | 86.42M | 32.77M | 24.4M |
| Debt Issued (Net) | 23.24M | 15.62M | 5.78M | -224.39K | 357.9K |
| Equity Issued (Net) | 133.01M | 43.54M | 43.11M | 16.7M | 4.4M |
| Dividends Paid | -42.45K | 0 | -934.43K | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.5M | 0 | 0 |
| Other Financing | 33.6M | 70.18M | 38.46M | 16.3M | 19.64M |
| Net Change in Cash | 31.94M | 3.34M | 17.77M | -3.27M | 19.28M |
| Free Cash Flow | -177.3M | -134.01M | -68.73M | -36.04M | -8.82M |
| FCF Margin % | -1167.77% | -748.76% | -385.36% | -286.09% | -101.88% |
| FCF Growth % | -101.13% | -94.99% | -90.69% | -308.63% | - |
| FCF per Share | -581.33 | -3.69 | -1.84 | -0.96 | -0.23 |
| FCF Conversion (FCF/Net Income) | 4.44x | -0.17x | -0.12x | 0.46x | 0.10x |
| Interest Paid | 91.35K | 0 | 406.48K | 305.17K | 51.41K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Aggressive capital expenditure burn
As reported in the quarterly financial statements, VENU's free cash flow has remained consistently negative, reaching a trough of -$74.4 million in 2026Q1, which underscores the company's inability to generate self-sustaining cash from its current operational footprint despite significant ongoing investments in new venue development.
The persistent negative free cash flow trajectory suggests that the company is currently in a high-intensity capital phase that far outstrips its ability to generate internal liquidity. Investors should monitor whether the current rate of cash consumption is sustainable given the lack of a clear path to positive cash flow margins in the near term.
Based on the provided cash flow data, VENU's capital expenditure reached a peak of $65.9 million in 2026Q1, representing a significant capital intensity that appears to be disconnected from the company's stagnant revenue growth and limited ability to replace assets through operational cash generation.
The high level of capital expenditure relative to revenue suggests that the company is aggressively funding growth through external means rather than operational efficiency. This strategy warrants further investigation into whether these investments are yielding the expected returns or if they are merely inflating the asset base without improving core profitability.
According to recent SEC filings, VENU has experienced erratic working capital fluctuations, including a notable $25.9 million inflow in 2025Q4, which suggests that the company's cash position is highly sensitive to timing differences in payables and receivables rather than consistent operational cash conversion cycles.
These swings in working capital indicate a lack of stability in the company's cash management processes. The reliance on these fluctuations to bolster operating cash flow may mask underlying operational inefficiencies that could become more pronounced as the company attempts to scale its venue operations.
As indicated by the financial data, the relationship between net income and operating cash flow is highly inconsistent, with OCF/NI ratios swinging wildly from 1.52 in 2024Q4 to -1.56 in 2025Q4, signaling a fundamental disconnect between accounting profitability and actual cash generation capabilities.
The extreme volatility in the conversion of net income to operating cash flow suggests that the company's earnings are heavily impacted by non-cash items or timing issues. This divergence implies that investors should prioritize cash flow metrics over net income when assessing the company's true financial health.
Based on the reported figures, the cash flow statement is significantly impacted by stock-based compensation, which reached $11.3 million in 2025Q1, effectively obscuring the true cash cost of operations and complicating the assessment of the company's underlying burn rate and long-term viability.
The reliance on stock-based compensation as a significant adjustment suggests that the company may be using equity to preserve cash, which could lead to future dilution for shareholders. Analysts should carefully adjust for these non-cash expenses to determine the true economic cost of the company's current expansion strategy.
Quick answers to the most common questions about buying VENU stock.
Venu Holding Corporation (VENU) generated $7.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Venu Holding Corporation (VENU) reported negative free cash flow of $134.0M in 2025, indicating capital requirements exceeded cash from operations.
Venu Holding Corporation (VENU) spent $141.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.