Krispy Kreme shows turnaround with positive cash flow and growth but faces valuation uncertainty.

Krispy Kreme reported its first positive free cash flow since its IPO in Q1, with adjusted EBITDA rising 38% year-over-year and a 260 basis point margin expansion. The company projects FY 2026 net revenue between $1.25 billion and $1.35 billion, adjusted EBITDA of $140–$150 million, and free cash flow exceeding $15 million. Despite these improvements, valuation remains uncertain, and the stock's technical outlook is mixed with resistance at $4.20 and support at $3.10. A breakout above $4.25 could push the price toward $7.25, signaling potential further gains.