0000793952-25-000170
SEC filingNo Notes data provided; only table of contents available.
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Operating cash flow for Q1 2027 was a negative $310.5 million, a dramatic reversal from the positive $472.6 million reported in the same quarter last year. This decline reflects a significant cash outflow from working capital, largely driven by a $659.9 million increase in finance receivables originations (net of collections) and a $141.3 million increase in other current assets. Net income for the quarter was not explicitly provided in the cash flow excerpt, but the sizable negative CFO suggests that accrual earnings do not reflect the cash consumed by the business's lending operations.
Capital expenditures totaled $67.0 million, slightly above the prior-year level of $65.3 million, indicating ongoing investment in manufacturing and facilities. Free cash flow (not explicitly stated) would be deeply negative after incorporating these capex outflows.
Despite the weak cash generation, the company continued to return capital to shareholders, paying $72.1 million in dividends and repurchasing $25.0 million in stock. However, share repurchases were sharply lower than the $141.6 million spent a year earlier, reflecting a more conservative capital allocation stance. The financing cash flow of $303.7 million was primarily driven by net debt borrowings, which offset the operating and investing cash outflows.
Overall, the cash flow statement highlights the heavy cash absorption from the company's finance receivables portfolio, which masks the underlying cash flow from its motorcycle operations. Working capital swings and the timing of receivable origination versus securitization are critical factors to monitor in future periods.