Cash flow generation is severely compromised, highlighted by a free cash flow margin that swung from 27.4% in 2025Q1 to a deeply negative 113.2% by 2025Q3.
| Cash from Operations | -6.61M | -6.51M | -3.45M | -3.18M | -3.3M | -1.95M | -884.93K | -718.7K | -610.46K | -530.4K |
| Operating CF Margin % | - | -80.37% | -58.23% | -57.71% | -101.74% | -85.52% | -111.58% | -116.33% | -196.23% | -1101.12% |
| Operating CF Growth % | -1773.29% | -88.44% | -8.59% | 3.58% | -69.1% | -120.34% | -23.13% | -17.73% | -15.09% | - |
| Net Income | -8.78M | -9.14M | -4.81M | -4.73M | -3.55M | -3.44M | -1.07M | -752.65K | -970.34K | -550.65K |
| Depreciation & Amortization | 176.54K | 449.58K | 391.26K | 262.02K | 210.62K | 174.7K | 121.91K | 116.38K | 68.34K | 33.91K |
| Stock-Based Compensation | 292.59K | 1.48M | 600.06K | 285K | 441K | 550K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 867.38K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3M | 3.2M | 122.97K | 256.62K | 21.06K | -10.02K | 0 | 318.67K | 219.34K | 5.33K |
| Working Capital Changes | -1.3M | -2.5M | 239.43K | 742.48K | -414.84K | -91.48K | 61.94K | -82.43K | 72.2K | -18.99K |
| Change in Receivables | -204.57K | -1.61M | -10.37K | -56.16K | -780 | 3.85K | 16.61K | -46.85K | -1.63K | -1.29K |
| Change in Inventory | -27.31K | 111.18K | 15.45K | -52.72K | -43.47K | -73.6K | -6.08K | -4.43K | -7.63K | 7.96K |
| Change in Payables | 1.42M | -907.91K | -53.22K | 544.94K | 42.06K | -27.57K | 72.5K | -34.62K | 0 | 0 |
| Cash from Investing | -6.26M | -2.98M | -977.22K | -2.41M | -681.53K | -498.22K | -115.84K | -4.71K | -735.6K | -25.5K |
| Capital Expenditures | -189.75K | -51.2K | -1.11M | -2.41M | -681.53K | -498.22K | -115.84K | -4.71K | -735.6K | -25.5K |
| CapEx % of Revenue | 1.63% | 0.63% | 18.71% | 43.81% | 21.03% | 21.85% | 14.61% | 0.76% | 236.45% | 52.93% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -6.07M | -2.92M | 132.16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 12.35M | 11.92M | 4.42M | 2.74M | 6.09M | 3.22M | 1.13M | 723.41K | 1.2M | 627K |
| Debt Issued (Net) | 708.86K | 3.54M | -1.33M | 2.74M | -109.56K | 535.65K | -270.66K | 575.41K | -3.6K | 11.5K |
| Equity Issued (Net) | 0 | 8.38M | 4.28M | 0 | 7.2M | 2.69M | 1.4M | 148K | 0 | -30K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -30K |
| Other Financing | 11.64M | -10 | 1.47M | 0 | -997.87K | 0 | 0 | 0 | 1.21M | 645.5K |
| Net Change in Cash | -510.74K | 2.44M | -6.09K | -2.85M | 2.11M | 776.48K | 128.57K | 0 | -142.43K | 71.11K |
| Free Cash Flow | -6.71M | -6.56M | -4.56M | -5.59M | -3.98M | -2.45M | -1M | -723.41K | -1.35M | -555.89K |
| FCF Margin % | -57.8% | -81% | -76.94% | -101.53% | -122.78% | -107.37% | -126.19% | -117.09% | -432.68% | -1154.05% |
| FCF Growth % | -470.7% | -43.74% | 18.43% | -40.56% | -62.52% | -144.62% | -38.34% | 46.26% | -142.14% | - |
| FCF per Share | -1.27 | -1.24 | -1.57 | -3.38 | -2.42 | -0.21 | -0.09 | -0.01 | -0.02 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.76x | 0.71x | 0.72x | 0.67x | 0.93x | 0.57x | 0.83x | 0.95x | 0.63x | 0.96x |
| Interest Paid | -39.84K | 75.22K | 215K | 129K | 8.5K | 16.17K | 21.51K | 1.74K | 0 | 0 |
| Taxes Paid | 0 | 109.28K | 800 | 800 | 1.6K | 800 | 800 | 800 | 0 | 0 |
Liquidity and capital exhaustion
As reported in recent financial filings, REBN exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently oscillating between positive and negative values, suggesting that reported earnings are not currently indicative of the company's underlying ability to generate actual cash.
The volatility in the OCF/NI ratio implies that accruals and non-cash adjustments are significantly distorting the company's financial performance. Investors should monitor this divergence, as it suggests that the core business model is struggling to convert accounting profits—or in this case, losses—into sustainable cash inflows.
Based on the provided quarterly data, REBN's free cash flow trajectory remains highly erratic, with margins swinging from a positive 27.4% in 2025Q1 to a deeply negative 113.2% by 2025Q3, highlighting the extreme difficulty the company faces in achieving consistent cash flow self-sufficiency.
This erratic FCF performance indicates that the company's cash burn is not yet under control, likely driven by the high costs associated with its retail expansion strategy. The lack of a stable, positive FCF trend suggests that the business remains heavily reliant on external financing to fund its ongoing operations.
According to historical cash flow statements, REBN's capital expenditure as a percentage of revenue has been highly inconsistent, peaking at 65% in 2024Q1, which suggests that the company is still in a heavy investment phase rather than a mature, maintenance-focused operational cycle.
The high variability in CapEx/Rev ratios may indicate that the company is aggressively deploying capital to build out new locations, which may not yet be contributing meaningfully to revenue. This capital intensity warrants further investigation into whether these investments are generating an adequate return on invested capital.
As evidenced by quarterly cash flow reports, working capital changes have been a significant source of volatility for REBN, with swings as large as $2.1M in 2025Q1, indicating that the company's cash management is highly sensitive to fluctuations in inventory and accounts payable cycles.
The frequent shifts in working capital suggest that the company may be struggling to optimize its cash conversion cycle, potentially due to inventory build-ups or inconsistent payment terms with suppliers. This instability in working capital management adds another layer of risk to the company's already strained liquidity position.
Based on an analysis of the cash flow statement, REBN's reported figures are significantly impacted by non-cash items like stock-based compensation, which reached $4.0M in 2025Q3, potentially obscuring the true cash cost of operations and the extent of shareholder dilution required to sustain the business.
The reliance on non-cash adjustments to manage the appearance of the cash flow statement suggests that the underlying business operations are not yet self-funding. Investors should be cautious, as these adjustments may mask the true extent of the cash burn and the company's ongoing dependence on equity-based financing.
Quick answers to the most common questions about buying REBN stock.
Reborn Coffee, Inc. (REBN) generated $-6.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Reborn Coffee, Inc. (REBN) reported negative free cash flow of $6.6M in 2025, indicating capital requirements exceeded cash from operations.
Reborn Coffee, Inc. (REBN) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.