Ocado Share Price Plunges Amid Restructuring and Cash Flow Concerns

Ocado Group (LON: OCDO) is facing investor scrutiny despite reporting strong EBITDA growth in its full-year results for the 52 weeks ended November 30, 2025.

The markets reacted negatively, sending shares down over 10%, driven by concerns over underlying cash flow and a restructuring plan involving job losses.

The online grocery technology firm announced Group revenue of £1,362 million, a 12.1% increase year-over-year. Technology Solutions revenue rose by 13.0% to £561.2 million, while Ocado Logistics saw an 11.5% increase to £800.3 million. Statutory revenue also increased by 13.8%.

Group adjusted EBITDA surged to £178 million, up from £112 million in the previous year. Technology Solutions led the way with £140 million in EBITDA, boasting a margin growth from 16.2% to 25.0%. Ocado Logistics contributed £38 million to the Group's EBITDA. Ocado Retail (“ORL”) revenue also increased, +15.4%; EBITDA* £84m (FY24: £45m)

Despite the positive EBITDA figures, Ocado's underlying cash flow remained negative at £(213) million, albeit slightly worse than the £(199) million the previous year. The company highlighted that increasing EBITDA was offset by higher finance costs. However, Ocado maintains strong liquidity with £1.0 billion, including £740 million in cash and cash equivalents.

The company reported a statutory profit of £395 million, a stark contrast to the £(374) million loss in the previous year. This profit includes adjusting items of £754 million, primarily a £783 million gain on the statutory valuation of Ocado Retail's equity.

Ocado is undergoing a restructuring to focus its commercial strategy and simplify its operating model. This involves a reduction in the workforce, a move that has unsettled the markets. CEO Tim Steiner acknowledged, “Regrettably, this means a significant number of roles will no longer be required,” while assuring support for affected colleagues.

The market's negative reaction underscores concerns about Ocado's cash flow situation and the potential impact of the restructuring. While EBITDA growth is encouraging, investors appear to be prioritizing profitability and sustainable cash generation. The share price decline suggests increased volatility in the short term.

CEO Tim Steiner stated, “FY25 was a year of tangible progress for Ocado…We remain on track to turn cash flow positive during FY26 and deliver full year cash generation in FY27,” reinforcing the company’s focus on achieving profitability.

Ocado anticipates Technology Solutions revenue of approximately £500 million with an EBITDA margin of around 30% in FY26. The company expects to turn cash flow positive during the second half of FY26, with a full-year underlying cash outflow of around £(200) million. Full-year cash flow positivity is projected for FY27.