Net Revenues (USD, thousands)

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Goodwill and Intangible Impairment (USD, thousands)

Total Operating Expenses (USD, thousands)

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Income (Loss) Before Income Taxes (USD, thousands)

Income Tax (Benefit) Expense (USD, thousands)

Net Income (Loss) and Comprehensive Net Income (Loss) (USD, thousands)

Basic Net Income (Loss) per Common Share (USD)

Diluted Net Income (Loss) per Common Share (USD)

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The documents only provide the numeric figure for Q2 2025’s operating cash flow at **328,548 thousand USD**.  **[0001437749-25-002365_flws20241104_10q.htm:5]**  No detailed explanation regarding the underlying factors or drivers for this increase in Q2 2025 is provided in the available documents.

What drove Operating Cash Flow to jump so high in Q2 2025?

The operating cash flow dropped sharply in Q1 2025 due to a significant increase in the cash outflow from operating activities. This decline was driven by a larger net loss, which increased from **$(31,242) thousand** in Q1 2024 to **$(34,190) thousand** in Q1 2025, and more pronounced changes in working capital. Notably, there was a substantial increase in cash used for inventories (rising from **$(89,287) thousand** to **$(97,439) thousand**), a marked jump in cash used for prepaid and other expenses (from **$(14,764) thousand** to **$(29,237) thousand**), and a much larger cash outflow associated with accounts payable and accrued expenses (from **$(42) thousand** to **$(8,806) thousand**).  **[0001437749-24-032702_ex_740049.htm:8]** **[0001437749-24-032937_flws20240930_10q.htm:3]** **[0001437749-24-032937_flws20240930_10q.htm:19]** 

Why did Operating Cash Flow drop sharply in Q1 2025?

The steep decline in Q3 2024’s operating cash flow appears to be the result of a mix of factors. Despite an overall improvement in net income, the beneficial impacts on cash flow were dampened by **smaller reductions in working capital items**. For example, there was a much smaller decrease in **accounts payable and accrued expenses** (only **$6,077 thousand** vs. **$59,806 thousand**), and **inventory reductions** were less impactful (**$31,674 thousand** compared to **$57,031 thousand** previously). In addition, the **goodwill and intangible impairment charge** was significantly lower (**$19,762 thousand** vs. **$64,586 thousand**), and while **stock-based compensation** increased (to **$7,641 thousand** from **$5,941 thousand**), these adjustments collectively contributed to the substantial change in operating cash flow for Q3 2024.  **[0001437749-24-015273_flws20240331_10q.htm:5]** **[0001437749-24-014253_ex_665042.htm:6]** 

What contributed to the steep decline in Operating Cash Flow in Q3 2024?

39331dbe3f027cbc570d5d597aa774efc49157ded1a0726fc6dc95bcec685761

The drastic drop in **Cash and cash equivalents** in Q1 2025—from **$159,437 thousand** as of June 30, 2024 to **$8,407 thousand** as of September 29, 2024—is attributed to the company's strategic reallocation of cash in preparation for the holiday season. The company increased its **inventory** significantly—from **$176,591 thousand** to **$275,323 thousand**—to meet expected higher demand, and it also borrowed **$45 million** under its revolving credit facility to support these seasonal needs.  **[0001437749-24-032702_ex_740049.htm:7]** **[FLWS_3405129_6]** 

Why did Cash and cash equivalents drop so drastically in Q1 2025?

The jump in current maturities of long-term debt was driven by a reclassification of debt into current liabilities. Specifically, **a portion of the long-term debt was reclassified because the amounts are due within the next 12 months**. In particular, **$45,000 thousand in borrowings under the revolving credit facility** was recognized as current, and there were adjustments in the **term loans**, which remained at **$187,500 thousand** but had a portion reclassified based on the repayment schedule.  **[0001437749-24-032702_ex_740049.htm:7]** **[0001437749-24-032937_flws20240930_10q.htm:7]** 

What factors led to the jump in current maturities of long-term debt in Q1 2025?

The surge in total assets in Q2 2025 was primarily driven by a **significant increase in cash and cash equivalents** (from **$159,437 thousand** to **$247,220 thousand**) and a **substantial rise in trade receivables** (from **$18,024 thousand** to **$61,352 thousand**). Additionally, **other assets increased** (from **$36,448 thousand** to **$39,516 thousand**), which further contributed to the overall growth, despite a **decline in inventories** and a **slight decrease in prepaid and other assets**.  **[0001437749-25-002182_ex_772158.htm:7]** 

What drove the surge in total assets in Q2 2025?

The long-term debt declined significantly in Q2 2025 because the company made a **$25 million prepayment** on its term loan, which was an amendment to its credit agreement.  **[0001437749-25-002182_ex_772158.htm:7]** **[FLWS_3413728_3]** 

Why did long-term debt decline significantly by Q2 2025?

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Cash and cash equivalents (USD, thousands)

Trade receivables, net (USD, thousands)

Inventories (USD, thousands)

Prepaid and other (USD, thousands)

Total current assets (USD, thousands)

Property, plant and equipment, net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Goodwill (USD, thousands)

Other intangibles, net (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses (USD, thousands)

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Current portion of long-term operating lease liabilities (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt, net (USD, thousands)

Long-term operating lease liabilities (USD, thousands)

Deferred tax liabilities, net (USD, thousands)

Other liabilities (USD, thousands)

Total liabilities (USD, thousands)

Total stockholders’ equity (USD, thousands)

Total liabilities and stockholders’ equity (USD, thousands)

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Net Income (Loss) (USD, thousands)

Depreciation and Amortization (USD, thousands)

Stock-Based Compensation (USD, thousands)

Acquisitions, Net of Cash Acquired (USD, thousands)

Capital Expenditures (USD, thousands)

Acquisition of Treasury Stock (USD, thousands)

Proceeds from Exercise of Employee Stock Options (USD, thousands)

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Net Cash Provided by (Used in) Financing Activities (USD, thousands)

Net Change in Cash and Cash Equivalents (USD, thousands)

Deferred Income Taxes (USD, thousands)

Cash and Cash Equivalents, End of Period (USD, thousands)

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Orders for Consumer Floral & Gifts e-commerce channel (percent change)

Average order value for Consumer Floral & Gifts e-commerce channel (percent change)

Orders for Gourmet Foods & Gift Baskets e-commerce channel (percent change)

Average order value for Gourmet Foods & Gift Baskets e-commerce channel (percent change)

1 800 FLOWERS COM (FLWS)

Financials