3 Stocks With Explosive Sales Growth and Strong Cash Flow

Core Insights - Achieving rapid revenue growth while maintaining positive cash flow is a significant challenge for companies, exemplified by Rivian Automotive [1][2] Group 1: Rivian Automotive - Rivian's revenue has grown at a compound annual growth rate (CAGR) of nearly 350% over the past three years, but it has generated approximately -$15 billion in free cash flow (FCF) during the same period [2] - The company only recently achieved a positive gross margin on vehicle sales, which has contributed to its cash burn, as it historically priced its cars too low to cover production costs [2] Group 2: Royal Caribbean Cruises - Royal Caribbean Cruises has experienced a significant revenue increase with a three-year CAGR of nearly 121$16.5 billion, over 50% higher than its pre-pandemic sales in 2019 [6] - The firm has turned around its cash flow situation, generating just under $2 billion in FCF in 2024 after a total of -$12 billion from 2020 to 2022 [7] Group 3: DraftKings - DraftKings has achieved a three-year CAGR of over 54% in revenue, with a record annual revenue growth of 111% in 2021 [8][9] - The company has made progress towards profitability, with its adjusted EBITDA margin improving from -120% in 2021 to just under positive 4% in 2024 [10] - DraftKings generated positive FCF of $408 million in 2024, marking its first positive cash flow year, with expectations of over$850 million in FCF for 2025 [11] Group 4: Li Auto - Li Auto has seen a three-year annual revenue CAGR of just under 75%, with revenues increasing to nearly $19.8 billion in 2024 from over$4.3 billion in 2021 [13][14] - The company is one of the few profitable electric vehicle makers, with an adjusted operating margin improving from -4% in 2021 to around 5% in 2024 [14] - Li Auto has generated positive FCF every year since going public, with over $1.1 billion in FCF in 2024 [15]