Free cash flow remains consistently negative, with a -1.5% margin in 2025Q4, highlighting the company's persistent struggle to achieve self-sustaining operational cash generation.
| Cash from Operations | -12.82M | -8.82M | -29.77M | -85.01M | 3.53M | -7.43M |
| Operating CF Margin % | -4.71% | -3.22% | -13.65% | -51.17% | 2.48% | -7.87% |
| Operating CF Growth % | -45.31% | 70.38% | 64.98% | -2509.01% | 147.49% | - |
| Net Income | -229.75M | -48.65M | -89.98M | -116.62M | -19.58M | -2.37M |
| Depreciation & Amortization | 59.18M | 60.02M | 60.5M | 35.17M | 13.9M | 13.42M |
| Stock-Based Compensation | 0 | 9.39M | 9.23M | 7.74M | 0 | 0 |
| Deferred Taxes | -17.44M | -1.19M | -7.02M | -5.73M | 9.37M | -3.04M |
| Other Non-Cash Items | 173.22M | -21.64M | -2.6M | 27.55M | -761K | 798K |
| Working Capital Changes | 1.97M | -6.76M | 95K | -33.12M | 588K | -16.24M |
| Change in Receivables | -2.43M | -2.85M | -2.89M | 3.58M | -5.06M | -16.66M |
| Change in Inventory | -867K | 2.58M | -1.3M | -6.63M | -6.01M | 4.44M |
| Change in Payables | -6.8M | -3M | 4.03M | 8.66M | 9.65M | -7.39M |
| Cash from Investing | 76.23M | -2.92M | -1.99M | -545.28M | -3.79M | -1.71M |
| Capital Expenditures | -3.67M | -3.01M | -2.05M | -2.5M | -1.29M | -1.71M |
| CapEx % of Revenue | 1.35% | 1.1% | 0.94% | 1.5% | 0.9% | 1.81% |
| Acquisitions | -2.6M | 0 | 0 | -587.66M | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 82.5M | 92K | 52K | 44.39M | -2.5M | 0 |
| Cash from Financing | -47.22M | 5.58M | 44.33M | 633.35M | 5.16M | 14.32M |
| Debt Issued (Net) | -46.77M | 6.11M | -21.93M | 169.28M | 13.54M | 17.38M |
| Equity Issued (Net) | 0 | 0 | 70M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -2M | -2.04M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -451K | -530K | -3.75M | 464.07M | -6.38M | -1.02M |
| Net Change in Cash | 15.59M | -6.27M | 12.41M | -3.28M | 4.87M | 5.18M |
| Free Cash Flow | -16.25M | -11.83M | -31.82M | -87.51M | 2.24M | -9.14M |
| FCF Margin % | -5.97% | -4.32% | -14.59% | -52.67% | 1.57% | -9.68% |
| FCF Growth % | -37.31% | 62.82% | 63.64% | -4003.21% | 124.53% | - |
| FCF per Share | -0.14 | -0.11 | -0.31 | -0.81 | 0.05 | -0.78 |
| FCF Conversion (FCF/Net Income) | 0.06x | 0.21x | 0.33x | 0.73x | -0.18x | 3.14x |
| Interest Paid | 0 | 5.05M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 9K |
Liquidity and Burn Rate
According to the latest quarterly filings, Waldencast's OCF/NI ratio of 0.02 in 2025Q4 highlights a persistent inability to convert accounting losses into meaningful cash generation, suggesting that the company's reported net income figures are heavily impacted by non-cash charges that mask underlying operational cash outflows.
The consistent gap between net income and operating cash flow suggests that the company's earnings are not reflective of its actual cash-generating capacity. Investors should monitor whether this divergence is driven by recurring non-cash expenses or if it indicates a fundamental failure to capture cash from its core revenue streams.
As reported in recent financial statements, Waldencast's FCF margin of -1.5% in 2025Q4 underscores a persistent cash-burning trajectory, which, when compared to the -48.7% margin observed in 2022Q4, indicates that while the burn has moderated, the business remains unable to achieve self-sustaining positive cash flow.
The inability to generate positive free cash flow suggests that the current business model requires external capital to fund ongoing operations. This trajectory warrants further investigation into whether the company can reach a break-even point before its existing cash reserves are fully exhausted.
Based on the company's reported figures, working capital changes have fluctuated significantly, with a $6.7M inflow in 2025Q4 following a $17.8M outflow in 2023Q2, suggesting that the company's cash position is highly sensitive to the timing of inventory management and professional channel collections.
The erratic nature of these working capital swings may indicate challenges in managing inventory levels across the Obagi and Milk Makeup segments. Analysts should interpret these shifts as a potential sign of operational instability rather than a deliberate strategy to optimize cash conversion cycles.
Data from historical financial statements reveals a massive cumulative gap between net income and operating cash flow over the last several years, which appears to confirm that the company's aggressive acquisition strategy has failed to translate into the expected cash-based returns for shareholders.
This persistent divergence suggests that the capital deployed for acquisitions has not yet yielded the anticipated operational cash flow benefits. Investors should monitor whether this trend is a permanent feature of the company's cost-heavy platform or if future operational efficiencies could eventually bridge this significant gap.
Quick answers to the most common questions about buying WALD stock.
Waldencast plc (WALD) generated $-12.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Waldencast plc (WALD) reported negative free cash flow of $16.2M in 2025, indicating capital requirements exceeded cash from operations.
Waldencast plc (WALD) spent $3.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.