Blue Apron: Is Positive EBITDA Enough?



 Blue Apron (APRN) forecasts that Q1 and all of 2019 will be EBITDA positive. The company lost $18.8 million in Q3 so Blue Apron has to generate substantial improvements in EBITDA in the matter of 2 quarters to achieve this goal.


The biggest issue is that the company is only going to be modestly EBITDA positive. The company doesn't have any interest charges so being EBITDA positive is a relatively clear number outside of about $8.5 million in quarterly depreciation and amortization costs. These depreciation charges are likely due to fulfillment facilities that don't need to be expanded at this point.



Blue Apron is definitely making positive moves to improve the business. The value of the stock remains in question without some meaningful catalyst.

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