Operating cash flow remains disconnected from net income, evidenced by a $35.7 million inflow in 2026Q4 despite a $16.5 million net loss, highlighting significant non-cash expense impacts.
| Cash from Operations | 163.07M | 61.91M | 181.72M | 193.21M | 156.13M | 120.57M | 81.42M | 121.09M |
| Operating CF Margin % | 18.32% | 8.54% | 17.32% | 19.84% | 20.31% | 20.39% | 12.52% | 16.72% |
| Operating CF Growth % | 163.38% | -65.93% | -5.95% | 23.75% | 29.49% | 48.09% | -32.76% | - |
| Net Income | -14.9M | -72.76M | 152.7M | 187.49M | 119.56M | 18.1M | 37.1M | 84.84M |
| Depreciation & Amortization | 67.59M | 64.5M | 71.38M | 50.81M | 48.53M | 48.31M | 64.05M | 59.89M |
| Stock-Based Compensation | 0 | 41.87M | 42.46M | 61.8M | 33.55M | 49.87M | 1.44M | 1.44M |
| Deferred Taxes | -11.99M | -16.3M | -18.61M | -40.12M | 7.5M | -18.93M | -4.91M | 2.02M |
| Other Non-Cash Items | 66.63M | 53.47M | 27.87M | -11.32M | 327K | 19.19M | 4.59M | 5.05M |
| Working Capital Changes | 55.74M | -8.86M | -94.08M | -55.45M | -53.33M | 4.03M | -20.85M | -32.14M |
| Change in Receivables | -9.2M | 33.08M | -9M | -10.26M | -18.35M | -9.3M | 16.44M | -19.41M |
| Change in Inventory | -6.27M | -30.16M | -15.85M | -75.15M | -4.47M | 7.64M | 346K | -18.6M |
| Change in Payables | 6M | 4.04M | -12.65M | 11.96M | -4.35M | 15.1M | -3.12M | -4.79M |
| Cash from Investing | -41.72M | -40.82M | -516.72M | -99.7M | -66.27M | -68.25M | -41.68M | -97.52M |
| Capital Expenditures | -38.18M | -39.95M | -124.77M | -79.78M | -69.94M | -40.67M | -45.62M | -98.3M |
| CapEx % of Revenue | 4.29% | 5.51% | 11.89% | 8.19% | 9.1% | 6.88% | 7.02% | 13.57% |
| Acquisitions | 0 | 319K | -408.12M | -19.92M | -14.55M | -27.89M | 3.94M | 354K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -1.18M | 16.18M | 0 | 27.41M | 318K | 0 | 354K |
| Cash from Financing | -77.38M | -112.06M | 198.88M | -20M | -5.31M | -72.19M | 82.5M | -39.74M |
| Debt Issued (Net) | -61.37M | 86.88M | 218.84M | -7.5M | -7.5M | -17.28M | 43M | -10M |
| Equity Issued (Net) | 1.62M | -184.56M | 3.63M | -18.06M | -638K | 321.43M | 0 | 257K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -400M | 0 | 0 |
| Share Repurchases | -1.71M | -853.92M | 3.63M | -18.06M | -638K | 0 | 0 | 0 |
| Other Financing | -17.64M | -14.38M | -23.6M | 5.56M | 2.83M | 23.67M | 39.5M | -30M |
| Net Change in Cash | 44.25M | -91.05M | -136.54M | 68.91M | 85.92M | -16M | 116.62M | -17.04M |
| Free Cash Flow | 124.89M | 21.96M | 56.94M | 113.43M | 86.19M | 79.9M | 35.8M | 22.79M |
| FCF Margin % | 14.03% | 3.03% | 5.43% | 11.65% | 11.21% | 13.51% | 5.51% | 3.15% |
| FCF Growth % | 468.78% | -61.44% | -49.8% | 31.61% | 7.87% | 123.15% | 57.1% | - |
| FCF per Share | 0.67 | 0.12 | 0.29 | 0.59 | 0.45 | 0.42 | 0.19 | 0.12 |
| FCF Conversion (FCF/Net Income) | -10.95x | -0.85x | 1.19x | 1.03x | 1.31x | 6.72x | 2.20x | 1.43x |
| Interest Paid | 0 | 21.96M | 10.15M | 1.92M | 813K | 2.75M | 2.45M | 2.04M |
| Taxes Paid | 0 | 11.64M | 89.93M | 58.21M | 22.2M | 8.91M | 15.87M | 19.57M |
Automotive cyclicality and margins
According to recent financial filings, Allegro's operating cash flow frequently diverges from net income, as evidenced by the 2026Q4 period where the company reported a $16.5 million net loss while simultaneously generating $35.7 million in operating cash flow, highlighting significant non-cash expense impacts.
The persistent gap between accounting losses and positive operating cash flow suggests that non-cash charges, such as stock-based compensation and depreciation, are heavily influencing the bottom line. Investors should monitor whether this cash-generative capacity is sustainable or if it relies on aggressive working capital management that may eventually reverse.
As reported in quarterly statements, Allegro's free cash flow trajectory remains highly erratic, swinging from a $21.8 million outflow in 2025Q3 to a $51.0 million inflow in 2026Q1, reflecting the company's sensitivity to automotive production schedules and the resulting fluctuations in cash conversion efficiency.
The lack of a stable free cash flow trend suggests that the company's current business model is susceptible to sudden shifts in demand. This volatility complicates valuation efforts, as the ability to fund internal growth or acquisitions appears tethered to short-term inventory and production cycles rather than consistent operational scaling.
Based on the provided cash flow data, working capital changes have been a primary driver of liquidity, with a notable $48.5 million inflow in 2026Q1 contrasting sharply with a $35.2 million outflow in 2024Q4, indicating significant variability in inventory and receivables management across different periods.
These large swings in working capital suggest that Allegro is managing significant inventory build-ups and drawdowns to align with Tier 1 automotive customer demand. Such reliance on working capital to bolster cash flow may mask underlying operational inefficiencies during periods of slowing automotive production.
Analysis of recent financial statements indicates that Allegro's capital expenditure remains a material drag on cash flow, with CapEx as a percentage of revenue peaking at 13.5% in 2024Q3, reflecting the ongoing investment required to maintain its fab-lite manufacturing and testing infrastructure.
The consistent level of capital spending suggests that the company must continue to invest heavily to keep pace with technological advancements in magnetic sensing. This capital intensity limits the company's ability to generate meaningful free cash flow during periods of revenue stagnation or margin compression.
Quick answers to the most common questions about buying ALGM stock.
Allegro MicroSystems, Inc. (ALGM) generated $163.1M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Allegro MicroSystems, Inc. (ALGM) generated $124.9M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Allegro MicroSystems, Inc. (ALGM) spent $38.2M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Allegro MicroSystems, Inc. (ALGM) spent $1.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.