Are there any notable changes in operating expenses or capital expenditures that could affect cash flow?

Answer

The press release you referenced announces Big lari Holdings Inc.’s (NYSE: BH) second‑quarter and first‑half results for 2025, but the excerpt you provided stops short of the detailed financial tables. Because the specific line‑items for operating expenses (e.g., selling‑, general‑, and administrative costs; cost of goods sold; other SG&A) and capital expenditures (the cash spent on property, plant, equipment, or other long‑lived assets) are not included in the text you shared, I cannot point to any concrete changes in those figures.

Below is a framework for how you can evaluate whether there are “notable” changes in operating expenses or capital expenditures that could affect cash flow, once the full earnings tables are available:

How to Apply This to Big lari Holdings’ Release

1. Locate the “Consolidated Statements of Operations” (or the equivalent income statement) in the full release.

   • Identify the total operating expense line and note the dollar amount for Q2 2025, the first six months of 2025, and the comparable periods in 2024.
     
   • Calculate the percentage change YoY and QoQ. A change of double‑digit (e.g., > 10 %) is typically considered “notable” for a company of this size.

2. Find the “Statement of Cash Flows” (or the “Capital Expenditures” footnote).

   • Look at the “Cash used for investing activities” and, if disclosed, the “Capital expenditures” line.
     
   • Note any new projects (e.g., new restaurant openings, remodels, technology roll‑outs) that the company may have announced in the “Management Discussion & Analysis” (MD&A) section.

3. Cross‑check with the MD&A commentary:

   • Companies often explain the drivers behind expense or capex changes (e.g., “We increased marketing spend to support the launch of our new menu” or “Capex was reduced this quarter as we completed the 2024 expansion plan”).
     
   • These narrative explanations help you assess whether the changes are temporary, strategic, or permanent.

Typical Scenarios for Big lari Holdings

• If operating expenses rose sharply (e.g., due to higher food‑cost inflation, increased labor wages, or a new advertising push), you would expect lower operating cash flow unless the company simultaneously generated proportionally higher revenue.
  
• If capital expenditures dipped (perhaps because the company finished a major expansion phase in 2024), the free cash flow for the remainder of 2025 could improve, giving the firm more leeway to service debt, repurchase shares, or increase dividends.
  
• Conversely, a surge in CapEx (e.g., aggressive opening of new restaurant locations or a technology‑investment program) would consume cash in the investing section, potentially offsetting any operating cash‑flow gains and tightening the cash‑position in the short term.

What to Do Next

1. Retrieve the complete earnings release (usually posted on the company’s investor‑relations website or the PRNewswire link).
   
2. Extract the exact figures for:
   • Total operating expenses (Q2 2025 vs. Q2 2024, and 6‑month totals).
   • Capital expenditures (or “cash used for investing activities”) for the same periods.

3. Run a quick variance analysis:

   • Example: If operating expenses rose from $120 M in Q2 2024 to $138 M in Q2 2025, that’s a 15 % increase—a notable change that would likely compress operating cash flow.
     
   • Example: If CapEx fell from $30 M in Q2 2024 to $18 M in Q2 2025, that’s a 40 % reduction, potentially freeing $12 M of cash for other uses.

4. Interpret the cash‑flow statement to see the net effect on Free Cash Flow (FCF):

   • FCF = Operating Cash Flow – Capital Expenditures.
     
   • A rising FCF despite higher operating expenses could indicate that the company is successfully generating enough cash to cover the extra costs, whereas a declining FCF would signal tighter liquidity.

Bottom Line

• Based solely on the excerpt you provided, there is no explicit data on operating expenses or capital expenditures, so I cannot confirm any “notable” changes.
  
• However, once you review the full earnings tables, apply the variance framework above to spot any significant shifts.
  
• Any substantial increase in operating expenses or large uptick in capital expenditures will directly influence Big lari’s cash‑flow generation and should be factored into your assessment of the company’s short‑term liquidity and longer‑term financial health.