What was the impact on OLO's cash balance, earnings per share, and free cash flow in Q2, and how does that affect the company's liquidity position?
Answer
The press‑release you quoted does not include the specific figures for Olo’s cash balance, earnings per share (EPS) or free‑cash‑flow (FCF) for the second quarter of 2025. It only tells us that:
- Revenue and non‑GAAP operating income came in “above the high‑end of the guidance ranges.”
- The company is “partnering with Thoma Bravo” to accelerate its vision.
Because the release does not disclose the actual dollar amounts for cash on hand, the EPS number, or the FCF amount, we cannot calculate or describe the precise impact on Olo’s liquidity position from those three metrics.
What this means for the analysis
| Metric | Information provided in the release | What we still need to know |
|---|---|---|
| Cash balance | No figure disclosed. | The ending cash‑and‑cash‑equivalents on the balance sheet (or change vs. prior quarter). |
| Earnings per share (EPS) | No figure disclosed. | The GAAP or non‑GAAP EPS for Q2 (or the range that was previously guided). |
| Free cash flow (FCF) | No figure disclosed. | The net cash generated by operations after cap‑ex (or the change vs. prior quarter). |
Without those numbers we cannot:
- Quantify the change in cash on hand (e.g., “cash rose to $X million from $Y million”), which is the primary indicator of short‑term liquidity.
- State the exact EPS (e.g., “adjusted EPS was $Z, beating the $Z‑Z guidance range”), which tells investors how profit is being allocated per share.
- Measure free‑cash‑flow (e.g., “FCF of $A million, up/down from $B million”), which shows whether the company is generating cash after investing in growth—critical for assessing the ability to fund operations, repay debt, or reinvest.
How to interpret the qualitative cues
Even though the precise numbers are missing, the language in the release gives a positive, but limited, view of liquidity:
- Revenue and non‑GAAP operating income above guidance – suggests the business is performing better than the market’s expectations, which typically translates into higher cash generation and potentially stronger cash balances.
- Strategic partnership with Thoma Bravo – such a partnership often brings additional capital resources (e.g., equity investment, debt financing, or operational support). This can bolster the balance sheet and improve the company’s ability to meet short‑term obligations.
- No mention of cash‑burn or liquidity concerns – the absence of a “cash‑burn” warning or a “reduced cash balance” statement is a positive signal that the company likely feels comfortable with its liquidity position.
What to do next
To answer the question definitively, you would need to locate the full earnings release or the accompanying SEC filing (e.g., Form 10‑Q), which typically includes:
- Cash balance – “Cash and cash equivalents at June 30, 2025 were $ X million, compared with $ Y million at March 31, 2025.”
- EPS – “Adjusted earnings per share for Q2 were $ Z, versus $ Z‑Z guidance.”
- Free cash flow – “Free cash flow for the quarter was $ A million, representing a X% change from the prior quarter.”
Once those figures are obtained, you can:
- Calculate the change in cash balance (ΔCash = Q2 cash – Q1 cash).
- Compare EPS to guidance to gauge profitability per share.
- Assess free‑cash‑flow relative to operating cash flow and cap‑ex to determine whether the company is generating surplus cash that can be used for debt repayment, acquisitions, or working‑capital needs.
Bottom line
Based solely on the excerpt you provided, we can only confirm that Olo’s Q2 performance was stronger than expected in terms of revenue and non‑GAAP operating income, and that a new partnership is expected to help accelerate growth. However, the release does not disclose the specific cash balance, EPS, or free‑cash‑flow figures, so we cannot quantify the exact impact on Olo’s liquidity position without accessing the complete earnings release or the related SEC filing.