Cash flow remains highly erratic, with the company reporting a negative $18.7M in free cash flow during 2024Q1 before achieving a $5.2M inflow in 2024Q3 primarily through working capital adjustments.
| Cash from Operations | -10.7M | -16.95M | -3.05M | 29.96M | 56.9M | 3.55M | -10.39M | 23M | 16.53M |
| Operating CF Margin % | - | -7.7% | -1.03% | 8.92% | 20.43% | 1.33% | -4.3% | 10.62% | 9.11% |
| Operating CF Growth % | 3449.52% | -455.08% | -110.19% | -47.35% | 1501.49% | 134.18% | -145.19% | 39.13% | - |
| Net Income | -98.12M | -77.42M | 20.2M | 37.42M | 18.57M | -17.6M | -1.51M | 9.8M | 2.91M |
| Depreciation & Amortization | 10.21M | 9.03M | 7.6M | 6.98M | 7.27M | 6.37M | 9.02M | 8.87M | 8.43M |
| Stock-Based Compensation | 10.45M | 11.59M | 10.68M | 7.72M | 3.44M | 17.7M | 0 | 0 | 0 |
| Deferred Taxes | 12.49M | 9.09M | -5.19M | -6.07M | -1.07M | 7.4M | -1.86M | -1.88M | -118K |
| Other Non-Cash Items | 2.96M | 16.49M | 3.92M | 934K | 2.98M | 1.45M | 1.53M | 410K | -210K |
| Working Capital Changes | 37.46M | 14.27M | -40.26M | -17.02M | 25.71M | -11.76M | -17.57M | 5.8M | 5.51M |
| Change in Receivables | 16.71M | 32.05M | -11.17M | -19.34M | 3.02M | -4.67M | -5.29M | -2.26M | 5.74M |
| Change in Inventory | 16.54M | -26.41M | -27.03M | 174K | 5.7M | -7.63M | -10.01M | 586K | -1.31M |
| Change in Payables | -5.47M | -13.64M | 2.77M | -2.71M | 6.1M | 2.1M | 4.26M | 4.73M | -3.36M |
| Cash from Investing | -13.2M | -11.22M | -9.24M | -10.17M | -5.4M | -8.61M | -7.5M | -5.93M | -2.03M |
| Capital Expenditures | -9.8M | -4.59M | -9.24M | -10.17M | -5.07M | -3.95M | -7.5M | -5.93M | -2.03M |
| CapEx % of Revenue | 5.69% | 2.08% | 3.11% | 3.03% | 1.82% | 1.48% | 3.1% | 2.74% | 1.12% |
| Acquisitions | 0 | 0 | 0 | 0 | -334K | -4.67M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.39M | -6.64M | 0 | 0 | 0 | 0 | -1.91M | -2.58M | -164K |
| Cash from Financing | 42.87M | -1.27M | 1.25M | -22.95M | -8.37M | 20.02M | 15.07M | -24.35M | -5.43M |
| Debt Issued (Net) | 41.72M | -2.63M | -1.97M | -25.44M | -10M | -40.21M | 15.46M | 53.48M | -5.43M |
| Equity Issued (Net) | 540K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -38K | -700K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 615K | -822K | -986K | 729K | 4K | -5.75M | -396K | -77.83M | 0 |
| Net Change in Cash | 18.96M | -29.45M | -11.13M | -3.18M | 43.13M | 14.9M | -2.94M | -7.25M | 9.01M |
| Free Cash Flow | -23.89M | -21.54M | -12.3M | 19.79M | 51.84M | -393K | -17.89M | 17.07M | 14.5M |
| FCF Margin % | -13.87% | -9.78% | -4.14% | 5.89% | 18.61% | -0.15% | -7.4% | 7.88% | 7.99% |
| FCF Growth % | -31.7% | -75.14% | -162.14% | -61.81% | 13289.57% | 97.8% | -204.83% | 17.72% | - |
| FCF per Share | -0.85 | -0.78 | -0.44 | 0.69 | 1.96 | -0.02 | -0.90 | 0.86 | 0.73 |
| FCF Conversion (FCF/Net Income) | 0.24x | 0.22x | -0.15x | 0.80x | 3.06x | -0.20x | 6.87x | 2.35x | 7.27x |
| Interest Paid | 2.44M | 1.84M | 807K | 2.06M | 4M | 6.46M | 7.61M | 1.53M | 2.25M |
| Taxes Paid | 3.31M | 4.92M | 1.35M | 779K | 2.23M | 1.7M | 1.07M | 1.49M | 1.31M |
Liquidity and inventory overhang
According to recent SEC filings, Cambium's operating cash flow frequently decouples from net income, as evidenced by a 2024Q3 OCF/NI ratio of -0.92, which highlights the significant impact of non-cash adjustments and working capital swings on the company's reported bottom-line performance.
The persistent divergence between net losses and operating cash flow suggests that accounting earnings are currently poor proxies for the company's actual cash generation capabilities. Investors should monitor whether the recent positive cash flow in 2024Q3 represents a sustainable improvement in operational efficiency or merely a temporary benefit from aggressive inventory liquidation.
As reported in financial statements, Cambium's free cash flow trajectory has been erratic, swinging from a negative $18.7M in 2024Q1 to a positive $5.2M in 2024Q3, reflecting the company's struggle to maintain consistent cash generation amidst a broader period of revenue contraction.
The volatility in FCF margins suggests that the company's cost structure remains highly sensitive to top-line fluctuations, making it difficult to forecast future liquidity. The inability to generate sustained positive free cash flow warrants further investigation into whether the current business model can support its existing operational footprint.
Based on Cambium's reported figures, working capital changes have been the primary driver of cash flow variance, with a notable $12.7M inflow in 2024Q3 that appears to be the result of aggressive inventory reduction efforts rather than organic operational growth.
The reliance on working capital management to bolster cash positions suggests that the company is actively attempting to mitigate liquidity pressures by clearing excess stock. This strategy may provide short-term relief, but it also risks future revenue potential if channel inventory levels are depleted too aggressively.
Data from recent quarterly reports indicates that Cambium maintains a consistent capital intensity, with CapEx/Revenue ratios hovering between 4% and 7%, suggesting that the company continues to prioritize essential infrastructure investment despite the significant headwinds facing its core product segments.
While the absolute level of capital expenditure is relatively modest, it represents a meaningful drain on cash given the company's current negative operating margins. This ongoing investment appears necessary to support the proprietary wireless fabric, yet it adds to the overall pressure on the company's dwindling cash reserves.
As disclosed in recent financial filings, stock-based compensation consistently adds back $2.5M to $3.1M per quarter, which effectively masks the true economic cost of operations and complicates the assessment of the company's underlying cash burn rate.
The consistent use of non-cash adjustments like SBC and D&A suggests that the company's reported cash flow figures may be more optimistic than the underlying operational reality. Analysts should be cautious, as these adjustments do not mitigate the actual cash outflow required to sustain the business.
Quick answers to the most common questions about buying CMBM stock.
Cambium Networks Corporation (CMBM) generated $-17.0M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Cambium Networks Corporation (CMBM) reported negative free cash flow of $21.5M in 2023, indicating capital requirements exceeded cash from operations.
Cambium Networks Corporation (CMBM) spent $4.6M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2023, Cambium Networks Corporation (CMBM) spent $0.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.