Free cash flow remains chronically negative, with the firm failing to generate positive FCF in eight of the last ten quarters, including a -30.3% FCF margin in 2025Q2.
| Cash from Operations | -1.51M | 875.22K | -4.59M | -3.8M | 194.14K | 133.94K | 690.61K |
| Operating CF Margin % | - | 6.82% | -49.83% | -45.87% | 2.97% | 4.22% | 17.02% |
| Operating CF Growth % | -73.08% | 119.06% | -20.87% | -2056.69% | 44.94% | -80.61% | - |
| Net Income | -3.31M | -2.67M | -3.04M | -3.49M | -1.63M | -450.13K | -134.13K |
| Depreciation & Amortization | 977.15K | 862.15K | 545.55K | 658.37K | 138.66K | 114.48K | 20.72K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -36.72K | 0 | -709.37K | -385.9K | 978.11K | 0 | 0 |
| Working Capital Changes | 865.04K | 2.68M | -1.39M | -583.87K | 707.85K | 469.59K | 804.02K |
| Change in Receivables | 6.78K | -84.11K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -119.92K | -53.61K | -12.12K | -24.33K | -20.84K | -1.66K | 20.76K |
| Change in Payables | 58.39K | 198.98K | -33.91K | 883.87K | 296.92K | -43.33K | 114.04K |
| Cash from Investing | -3.11M | -2.56M | -1.47M | -1.47M | -896.62K | -545.24K | -52.55K |
| Capital Expenditures | -612.97K | -761.53K | -1.47M | -1.47M | -896.62K | -545.24K | -52.55K |
| CapEx % of Revenue | 4.41% | 5.93% | 15.97% | 17.79% | 13.72% | 17.19% | 1.29% |
| Acquisitions | 0 | -1.8M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -2.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 4.75M | 1.47M | 1.39M | 10.69M | 1.79M | 333.17K | -624.33K |
| Debt Issued (Net) | -3.56M | 1.2M | 1.33M | 348.41K | 1.21M | 938.37K | -44.93K |
| Equity Issued (Net) | 6.3M | 267.79K | 56K | 10.35M | 1.28M | 0 | 105K |
| Dividends Paid | 0 | 0 | 0 | 0 | -696.58K | -665.19K | -684.4K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.01M | 0 | 0 | 0 | 0 | 60K | 0 |
| Net Change in Cash | 132.37K | -221.29K | -4.68M | 5.42M | 1.09M | -78.12K | 13.73K |
| Free Cash Flow | -2.12M | 113.7K | -6.06M | -5.27M | -702.47K | -411.29K | 638.06K |
| FCF Margin % | -15.26% | 0.89% | -65.79% | -63.65% | -10.75% | -12.97% | 15.72% |
| FCF Growth % | 5.76% | 101.88% | -15% | -650.5% | -70.8% | -164.46% | - |
| FCF per Share | -0.36 | 0.02 | -1.14 | -1.22 | -0.01 | -0.08 | 0.12 |
| FCF Conversion (FCF/Net Income) | 0.64x | -0.33x | 1.51x | 1.09x | -0.12x | -0.30x | -5.15x |
| Interest Paid | 307.23K | 443.49K | 218.15K | 88.3K | 52.22K | 51.59K | 64.04K |
| Taxes Paid | 29.32K | 34.24K | 48.65K | 19.25K | 14.65K | 12.36K | 22.56K |
Liquidity and solvency insolvency
As reported in recent financial statements, VSTD's operating cash flow consistently trails net income, with the 2025Q2 OCF/NI ratio of 0.75 highlighting a persistent inability to convert accounting profits into actual liquidity, suggesting that the company's reported earnings are not supported by underlying cash generation.
The recurring gap between net income and operating cash flow suggests that VSTD is struggling with significant non-cash accruals or timing mismatches in its core operations. Investors should monitor whether this divergence is a result of aggressive revenue recognition or simply the high cost of maintaining a negative-margin restaurant footprint.
Based on the provided cash flow data, VSTD has failed to generate positive free cash flow in eight of the last ten quarters, with FCF margins reaching a low of -109.2% in 2023Q1, indicating that the business model is currently consuming rather than creating capital.
The persistent negative FCF trajectory implies that the company's expansion efforts are not self-funding and likely require external capital injections to sustain operations. This trend warrants further investigation into how long the company can continue to fund its cash burn before reaching a critical liquidity threshold.
According to quarterly cash flow filings, VSTD exhibits extreme volatility in working capital changes, ranging from a $1.9M inflow in 2024Q2 to a $1.1M outflow in 2024Q4, which suggests that the company's cash management is highly sensitive to irregular timing of payables and receivables.
Such erratic swings in working capital often indicate a lack of operational discipline or a reliance on delaying payments to manage short-term liquidity. This behavior appears to be a defensive mechanism to offset the underlying cash burn from the restaurant segment's poor unit-level economics.
As indicated by the cash flow statements, VSTD's reliance on non-operating cash movements, including a $1.8M net acquisition outflow in 2024Q2, suggests that the company is prioritizing balance sheet restructuring over the stabilization of its core food service operations, potentially masking deeper operational distress.
The lack of share-based compensation adjustments in the data may imply that the company is not yet using equity to preserve cash, but the aggressive pivot toward acquisitions and treasury assets suggests a shift away from traditional operational metrics. Analysts should be wary of whether these capital movements are intended to distract from the persistent cash drain in the ramen business.
Quick answers to the most common questions about buying VSTD stock.
Vestand Inc. (VSTD) generated $0.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Vestand Inc. (VSTD) generated $0.1M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Vestand Inc. (VSTD) spent $0.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.