#cashflow

So you want to cut expense and create more cash flow wow riveting!! And have Samsung do more work in the area. Can you say ops is getting riffed! Thanks Deane and Heidi what a great idea. Can’t wait for Samsung to f……more cell sites up…. Neeed to get the he-l out of hear before the ship completely sinks

what is your take on this?

https://www.msn.com/en-us/technology/artificial-intelligence/larry-ellison-built-oracle-by-letting-customers-pay-for-servers-now-ai-is-forcing-oracle-to-spend-billions-on-them/vi-AA2eie7S?ocid=hpmsn&cvid=6aef6954a6d34576ab4197f616e5324f&cvpid=6aef697d884e4024a0942aebf11b8ec9&ei=52

... Larry Ellison built Oracle by letting customers pay for servers... now AI is forcing Oracle to spend billions on them
Oracle became one of Wall Street's hottest AI stocks after announcing enormous cloud infrastructure commitments, including a reported $300 billion agreement with OpenAI. But despite generating billions in profit and holding substantial cash reserves, the company's ambitious expansion raised concerns about debt, capital spending and future cash flow. This business case study explores how Larry Ellison built Oracle into a database giant, how Amazon Web Services disrupted its traditional business model and why artificial intelligence has pushed Oracle toward a much more expensive infrastructure strategy. It also examines the difference between contracted future revenue and actual cash available to finance new data centers. Ultimately, the video asks whether Oracle's AI gamble will become one of the technology industry's greatest investments or an expensive financial burden.

For instance, how does that help them pay their operational costs and their RPOs when "annualized" revenue was only 50B/yr?

Remember that they owe oracle 85B in FY27 alone, not counting all their other RPOs.

And also remember that their "annualized revenue" number was based on extrapolation from revenue before they slashed token prices.

With the unannounced west coast buyer I was wondering if the buyer was Apple? We would be a great fit into their payment ecosystem globally and bring $6B in immediate annual cash flow. Finally we would get real leadership and direction so sky would be the limit. One can dream!

Xerox is asking for credit note swaps to move the 2028 note moving maturity to 2030.
The $55M is still due in January, it will be rolled over to be due in 2030.
This company has no chance of ever paying 4.3 plus billion down with 10 million free cash flow.
This stock has no value at all now, how are people buying still.

GG here:

So, Xerox will drag along into 2027 and maybe 2028, but what if they don't?

What if this is the last 60 days of ore-petition solvency?

It's a long shot, and not at all likely, but it IS possible, and it would most likely be the IPCO JV that does XRX in.

Here's where we are today:
Preferred and common stock dividends are gone
Cash Flow is dangerously low
LP admits on a earnings call, that a vendor, or vendors, have curtailed credit to XRX
The company's IP is locked up in a 5 year deal with onerous covenants

Starting with the last one, first. XRX's IP is tied up with this deal and can be yanked awain on default. All the other debt currently carried is just debt. This TPG Debt is an actual bo-b that could go off and take down the company. When I can IP, I mean basis things like patents, but that also is the the brand name and logo. Obviously Xerox can't do business without a logo, or the patents underpinning the units being sold.

It is the ultimate greenmail instrument. If things go south, TPG will be the first lender to get paid, even if the other dept holders have to pay them out of their end, to keep using the brand name.

Also keep in mind that LPs current Golden Parachute expires on 12/31 with the "change of ownership" clause. If the end of Xerox is inevitable, why wouldn't LP steer it into the ditch now and get the payout. Also, the sooner CH11 is filed, the better chance they have of pulling out and avoiding the CH7 down the road.

GG here:

Well folks. Today is the day we all saw coming a mile away. As of this morning and the Goodwill write down, XRX has a total enterprise value lower that its debt.

Technically, XRX is worth more dead, than alive.

What can we expect now? Perhaps:

A lower bond rating? This could actually help XRX in the short term, it they use cash to buy back debt for pennies on the dollar. Knowing what we know now, a CCC+ rating might be generous.

A supply chain, chain reaction? LP admitted in the call that vendors are restricting credit, which forces spot payments, or rotating to higher priced vendors willing to shoulder the credit risk for inflated prices charged. He didn't let that slip on accident; he said it because he had to, his hand was forced and he had to disclose. Vendors are the lifeblood of a business and when credit is cut off, that is game over. We are near that point now. Every major vendor was on that call today and heard the same thing you did form LP.

Slow pay, no pay? On the flip side are the people that pay XRX, and the doom loop effects these people too. How excited are people to renew service with a proprietary vendor that could go belly up? Also, there are a lot of gross people out there that will slow pay, no pay a vendor they think is going belly up, as to buy time at 0$ interest or see if the bill disappears in CH11 proceedings.

New business? People who are already in bed with XRX in the form of proprietary hardware are one thing, but net new clients are another. Why would anyone sign up for that kind of vendor risk? Large companies won't, just the small and uninformed.

TL;DR from the call:
Vendors are cutting us off.
We are worth $1BN less than we were on Monday.
We can no longer pay dividends.
Sales are down.
Cash is gone.
We are blaming this all on the price of Oil and RAM.

On the way to $56 a share. What you all miss is that the current price jump is because of geopolitical conflicts. But the higher price and revenues help pay down debt much faster. The 700+ layoffs add another 400-500 mm to cash flow. Keeping salary raises and bonus low will likely add another 1B for buybacks or cash flow which should all drive stock price higher. Divestment will further improve the balance sheet. If any of the projects does not work out next year, they will no longer get capital for investment. Work hard, love what you do, and the share price increase will get us more secure and increase our market cap to at least 130B by next year.

CDW reported Q2 2026 net income of $274 million, while carrying a substantial debt load of $5.82 billion. Areas to watch: leverage, cash & credit rating. CDW's debt increase continues to balloon, with cash flow dropping from $443M to $220M.

Just wanted to share just in case anyone is in the same boat as me. Since we don’t necessarily know the exact date of the severance payment, if you need cash now another option is to login into fidelity and request a withdrawal. You can request a partial or full (just pay the taxes). It processes in a couple days and if you have made withdrawals/loans in the past and used direct deposit it will go to that account in ~3 days. You can also pay the $25 fee to get a check sent overnight. This may not be possible/ideal for all but it’s an option if you need some cash now.

Sionna Therapeutics is implementing significant layoffs, reducing its workforce by approximately 46%. This decision follows the failure of its SION-719 cystic fibrosis trial. The company is shifting its focus to a new dual combination therapy. This strategic pivot aims to advance a different NBD1 stabilizer and CFTR corrector. The restructuring is expected to extend the company's cash runway.

Boston, MA

https://www.fiercebiotech.com/biotech/sionna-lays-46-workforce-strategic-shift-after-cystic-fibrosis-trial-fail

Total mismanagement at the top, they have all this money in the bank and they are doing nothing with it. Total Cash: $1.96 billion = Total Cash Per Share: $12.25
Why aren't they paying employees? Why aren't they repaying $1.5billion of debt? They don't know how to run a business

Why aren’t we buying back our stock faster? We have so much cash and all time lows on our stock. We can basically take our company private in a few years at this rate.

Stock was crushed because free cash flow is weak. Translation .... no more buildings to sell, not enough free cash anymore to buy back shares, component costs hitting margin, lack of innovation has resulted in stale comiditized products.

The only way to increase cash flow now is a massive layoff.

Nike ’s Free Cash Flow: A Key Warning Sign for Investors

Free Cash Flow (FCF) is one of the most important metrics I look at when analyzing a company because it shows how much cash remains after the business funds its capital expenditures.
For Nike, the recent trend deserves attention:

📊 Free Cash Flow
2023: $4.87B
2024: $6.62B
2025: $3.27B
2026: $2.18B

The numbers tell an important story.
Nike reached a strong $6.62 billion in FCF in 2024, but since then, FCF has fallen sharply to $2.18 billion in 2026.

That represents a decline of approximately 67% from the 2024 peak.
The key question for investors is not simply whether Nike still generates positive FCF, it does.

The more important question is:
Why is Nike generating significantly less cash from its operations?

Because capital expenditures have remained relatively controlled, the deterioration in FCF appears to be driven primarily by the decline in Operating Cash Flow.

This is something I would investigate further through:

• Revenue growth
• Operating margins
• Inventory levels
• Accounts receivable
• Working capital
• Debt
• Earnings quality
• Cash conversion
  A company can remain profitable while its cash generation deteriorates. That is why Free Cash Flow is such an important part of fundamental analysis.
  For investors, the next step is understanding whether this decline is temporary or structural.
  That distinction can significantly change the investment thesis.

I NEED CASH BABY! Xerox Sells $105 Million in Tariff Refunds For $80 Million in Cash to Pay Off Debt, Stock Rises to $3.45.
(Google this)

“We’re looking for anything they can do or say to
show they’re protecting the bottom line, they’re
protecting earnings, they’re protecting cashflow.”

RAs coming. . .

https://www.barrons.com/articles/ibm-earnings-stock-price-a3df6f77

By: Mackenzie Tatananni | July 22, 2026, 3:00 am EDT

After last week’s earnings warning sent IBM’s stock into a downward spiral, it may seem like the fate of its shares is sealed. Yet that may not be the case.

Investors already have an idea of what the numbers will look like. IBM previewed its second-quarter earnings last week—a rare move for a company that had only pre-announced earnings once before in its history, during the 2008 financial crisis.

IBM cautioned that key metrics, which will be released on Wednesday after the closing bell, would fall short. The company expects to report $17.2 billion in revenue for the quarter—behind Wall Street’s call for $17.9 billion—driven by a 7% year-over-year drop in infrastructure, flat consulting sales, and a 5% uptick in software. Adjusted earnings are forecast to come in at $2.93 a share, behind the $3.01 analysts were expecting.

Last week, CEO Arvind Krishna issued commentary around artificial-intelligence spending, saying that some customers suddenly shifted their budgets toward servers, memory, and other “supply-constrained infrastructure” to get ahead of expected price hikes.

“This dynamic impacted client buying patterns,” Krishna explained in a letter to shareholders. “While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization.”

Shares plunged 25% on July 14, marking their worst one-day decline ever and wiping out nearly $70 billion in market value. The stock fell 26% last week—the worst weekly performance in the company’s history.

Now, investors are questioning whether the company is facing execution issues in the face of unexpected changes, or if there are signs of a broader shift in customer behavior that IBM must adapt to. Krishna wrote that “numerous large deals” failed to close on the timelines IBM had expected, “driving the majority of our shortfall.”

The real proof won’t be in the numbers—investors already have an idea of what those will be. Rather, they’re looking for signs of future execution and commentary regarding the steps IBM is taking to recover from the quarter’s missteps.

“IBM has to show customers are still spending, the AI and software opportunity remains intact, and that management has a credible plan to get growth back on track,” Mizuho’s Dan O’Regan told Barron’s ahead of the report.

Given that IBM had been trading earlier this year near all-time highs, the selloff was partly warranted, O’Regan said. Even so, he believes the market was overlooking momentum in “several of IBM’s strategic businesses,” particularly software and AI-related offerings.

“If those trends remain intact, investors may ultimately view this as an execution reset rather than a deterioration of the long-term story,” O’Regan explained.

Although the earnings warning triggered a wave of price-target cuts, most firms aren’t changing their tune on IBM stock. The consensus rating on FactSet remains Overweight. On Tuesday, Jefferies analysts reaffirmed their Buy rating on the shares, even as they lowered their price target to $260 from $320.

For Wall Street bears, the earnings warning validated long-held doubts rather than offering a fresh perspective. BNP Paribas analyst Stefan Slowinski has long argued that the stock was trading at an unwarranted premium to the broader market.

“We’ve been concerned about valuation,” Slowinski told Barron’s. “Investors are overpaying for very low organic growth.” To counter that drag, he noted, IBM has relied on buying faster-growing software firms to artificially lift its overall profile.

“Cashflow is always important for IBM,” Slowinski continued. “It’s never good if you miss on the top line and you’re not growing, but you should protect the bottom line. Even if they do take down their full-year revenue guidance, can they keep their full-year cashflow guidance?”

From his perspective, second-quarter earnings will be a crucial test for IBM. “If they can pull some levers, that gives investors confidence that, even if the market changes and they miss on revenue, they typically now know how to adapt their business,” Slowinski said. “We’re looking for anything they can do or say to show they’re protecting the bottom line, they’re protecting earnings, they’re protecting cashflow.”

Looks like FHE isn't paying the bills again! Unfulfilled orders are piling up, haven't seen any D&H or Ingram Micro orders in weeks. Rumors abound on Slack about cashflow issues again, but of course OTC is tight-lipped, pretending there's no issue, while the boots on the ground have to deal with the pi---d-off institutional customers. May be time to desert the sinking ship....

With the fact that new clients, new business wins, new marketshare gains from existing partnerships are NOT happening at BNY, what is the business world to determine? BNY has been destroying it’s employee base in the US and UK in order to save cash. It’s interesting that the company is trying to stop paying employees that it fires for devious reasons too. It is adding up that the so called profitibility at BNY is only happening by stagnating existing client revenue and firing FTE’s while avoiding payouts and holding onto people’s saving match benefits until the following year. The investment community is starting to become awake to this. This is an unhealthy company. And unhealthy RV and his GS based board are incapable of growing and innovating this place. A push for a merger has got to be in the works soon. Or else…..

Verizon is burning through CASH faster than the revenue we are bringing in and after expenses,its public information… if Dan doesnt change this ship around fast this company is going under faster than we all think.thats why everyone panicking at the top, why do you think everyone is leaving its not because Dan fired everyone BTW.

Not sure if others have noticed, but the Frisco executive center is now sharing space with Intuit employees. It’s been noticeably more crowded lately and it doesn’t feel like the same place it was when we first moved in.

Which honestly brings up something I’ve been thinking about for a while — was Frisco even the right call to begin with?

The location is surrounded by toll roads. For a lot of us commuting in every day, there’s really no way around it. Those tolls add up and that cost falls on employees, not the company. That felt like an oversight when we moved in and it still does.

And now we’re sharing the space with an outside company? That wasn’t exactly part of the pitch when this place was built. So it makes you wonder — is this a cash flow issue? Or did the business case for building here just not hold up the way leadership said it would?

Either way, it’s a fair question. The people who made this decision aren’t the ones paying tolls every morning to get there.

https://www.healthcare.digital/single-post/oracle-cerner-potential-acquirers-of-oracle-health

"A Private Equity consortium led by a firm like Thoma Bravo or Francisco Partners is the most probable successor. This structure satisfies several competing requirements: it provides Oracle with an immediate cash infusion to fund its GPU clusters (satisfying the liquidity crisis), it bypasses the most severe antitrust hurdles associated with a Microsoft or Amazon acquisition and it allows for a "neutral" platform that could potentially stabilize the customer base."

Conclusions: Sell off Oracle Heath, ORCL needs the cash ! New CFO is the Grim Reaper !

Given the latest layoffs and the constant threat of more cuts, I’ve been thinking a lot about how much cash I have available and how many months of unemployment it would carry me through. I didn't like the number at all. Three months tops. I’m curious where other people stand when it comes to fully liquid savings, not stocks, retirement accounts, mutual funds, or anything you’d have to sell or wait on. Just money you could access immediately if things went sideways. Am I the only one who's utterly unprepared in all of this mess?

1. Loans taken to cover payroll. All that LHXNext savings still can't stop the debt created implosion.
2. Accelerating the full transformation into the ENRON of the defense industry.
3. 160 hours vacation and sick combined cap being enforced in certain businesses. Director level approval required above 160 hours combined.
4. Auto rejection of planned sick or vacation leave if not provided with enough advance notice. Override requires manager and second level approval.
5. Rolling layoffs still occurring.
6. Stock price down $70 from recent high of around $370. Currently around $300.
7. Insider selling accelerating.
8. RTO harassment still occurring even with commuting costs skyrocketing due to fuel spikes.
9. Outsourced IT company not getting paid due to cash flow issues. Leads to more service outages and lack of support.
10. Morale has hit a new low. Parking lots emptying rapidly after 5 PM. Only time I've ever seen people leave faster was after a 4 hr college chemistry lab was over.

Please comment with additional information regarding the state of dysfunction @ L3H

IBM is in a strong financial position, backed by consistent cash flow, disciplined capital allocation, and a well-managed balance sheet under CFO Jim Kavanaugh. The company continues to invest strategically in high-growth areas like AI and hybrid cloud while maintaining financial stability, showing that its transformation is being executed from a position of strength—not weakness.

This can only be seen in the 10Q report

Here is the link to the report
https://www.youtube.com/watch?v=pI_7D7T83TQ&t=33s

DT is funneling free cash flow to build their AI center with Nvidia. Watch for bigger changes by Q3, cuz there's not much more cuts to be made at this point.

Gossamer Bio announced poor results from a key study. The San Diego company's stock value dropped by 78%. Gossamer Bio is now laying off 77 workers. This cut reduces its workforce by 48%. The company aims to conserve cash and plans to meet with the FDA.

San Diego, California

https://www.sfgate.com/tech/article/gossamer-bio-layoffs-22084095.php

With that amount in the account surely they have enough to give raises. Other companies with nothing can give raises. Whats going on?

With prices being dropped to get more customers in, ARPU falling and acquisition costs therefore going up…..margins and cash flow are falling and will continue to, and guess what’s next……yes, more major headcount reductions coming soon to try and improve the margins. It is simple P&L math, just watch…..

Q4 only looks “good” if you stop at the headline: revenue jumped +26%, but that’s almost entirely because Xerox bought Lexmark.

Strip that out and the underlying business is still shrinking by 9%. Cash is the real story: free cash flow for 2025 fell to about $130M, down from roughly $470M last year, a MASSIVE drop at the exact moment debt is crushing the company.

The snapshot that truly matters: Xerox has roughly $500M in cash, $4+ billion in debt, and only about $400–450M of equity left.

Goodwill sits around $2+ billion (Goodwill Guy will check this), meaning one big write-down and equity is basically gone on paper.

Interest expense alone is running close to $250M A YEAR. This is why management rolled out the warrant scheme before earnings as an attempt to reduce debt without spending cash and without going to bankruptcy court.

Q4 proved the company is operationally alive but financially boxed in.

The warrants, the timing, the messaging... all of it points to one thing: advanced financial engineering to avoid Chapter 11, not confidence in growth.

This is what survival mode looks like when you still want to stay in control.

What happens when they start delaying payments? Asking for a friend

Any word on a cash award coming for 2026?

Past couple of years it has paid out end of Jan / early Feb.

I wonder if the $2k RSU from last year will cause us not to get it.

https://finance.yahoo.com/news/goldman-sachs-forecasts-t-t-081022634.html

Due to not pating our vendors many shipments are not coming in. I wonder how long this will last.

Xerox’s problem is brutally simple: more cash goes out than comes in. Every quarter.

The business isn’t generating enough cash to cover interest, restructuring, and working capital.

Why? Because Xerox is burning cash from operations. Not investing cash. Burning it.

To plug the gap, they’re selling patents and borrowing money using what’s left of their Intellectual Property as collateral, basically pawning the family silver to pay this month’s bills.

At the current pace, they’ve got maybe 6–9 months of runway if they keep pulling levers like asset sales and emergency loans; without those, it’s closer to 2–3 quarters.

Seeking a $500M IP-backed loan means unsecured financing is effectively closed (credit rating at CCC+ = markets price in a real risk of default).

This does NOT fix the business, it just buys time.

If cash doesn’t turn positive fast (not “less negative,” but actually positive), the only realistic outcomes are:

#1 More asset sales (DocuShare, XMPie, CareAR, etc)
#2 Forced recapitalization (debt converts to equity, shareholders wiped)
#3 Chapter 11 (court-supervised version of #2)

Everything else you hear is just nicer words around that math.

The endgame is no longer theoretical, it’s just a matter of timing.

https://www.investing.com/news/stock-market-news/xerox-seeks-500-million-ipbacked-loan-to-boost-liquidity--wsj-93CH-4408966

I hope all this is true, send me some cash and let me never work here again. Thank you for your attention to this matter.

I have a workable and thoughtful proposal, aiming to avoid layoffs completely while still achieving the desired cash flow for investment.
Here is a breakdown of the suggestion and some key aspects it addresses:
💡 Proposal Summary
• Goal: Avoid layoffs and fund a new investment.
• Method: Temporarily cut employee bonuses (10% to 50%) for two years.
• Investment: Use the saved bonus money to fund the project "Dan wanted to invest in."
• Incentive/Risk:
• Success: If the investment works after two years, the employees receive their deferred bonus money back as a lump-sum incentive for their sacrifice.
• Failure: If the investment fails, "Dan should accept the responsibility"
✅ Key Strengths of This Approach

1. Layoff Avoidance: This is the strongest benefit, maintaining team morale and institutional knowledge.
2. Shared Sacrifice: It frames the financial challenge as a company-wide effort, which can foster unity.
3. Incentivized Risk: The promise of a repayment and potential "extra incentive" acts as a performance bonus for the overall company strategy.
4. Accountability: The success or failure of the plan is tied directly to the leadership ("Dan") who proposed the investment, which could satisfy employees who are bearing the temporary cost.
   ❓ Considerations for Management
   While compelling, a management team would need to carefully consider the following details:
   • Legal/HR: The company would need clear legal agreements outlining the bonus deferral and repayment mechanism.
   • Employee Morale: Even with the promise of repayment, a 50% bonus cut for two years could lead to high-value employees leaving for competitors offering better immediate compensation.
   • Financial Math: They would need to ensure the 10-50\% cut actually yields enough cash to fully cover the required investment without jeopardizing other operational needs.
   • Definition of "Works": There needs to be a clear, measurable metric (e.g., specific ROI, revenue increase) defined now so there is no ambiguity about whether or not "Dan's plan" was successful two years from now.
   It's a creative way to turn a potential crisis (layoffs) into a shared, high-stakes investment with an immediate path to funding.

This is 100%. The layoff is not because AI is magically changing things, or because clients need less work. The nature of work is changing, projects are smaller and more focused. But, behind all of this is the need for free cashflow which can be achieved through higher sales (not going to happen) or cut in expenses (it's happening right now). She needs cash to finance AI infrastructure build out, and the only way to find the $$$ is to cut people. She has no other options (ok, she can go in debt, but that's always bad). So, she's repeating the same thing that AWS (30K cuts), MSFT (25K cuts), META (20K Cuts) and others are doing.

I wish all of us good luck.